News

...now browsing by category

 

American Eagle’s Q2 EPS up by 62 percent

Thursday, August 23rd, 2012

US teen clothing retailer American Eagle Outfitters has lifted its full-year earnings guidance, despite posting a decline in second-quarter profit due to costs related to the exit of its loss-making children’s brand 77kids.

In its financial results for the second quarter ended July 28, 2012, American Eagle Outfitters announced income from continuing operations to have increased 62 percent to $61.8m, or $0.21 per diluted share, compared to $0.13 per diluted share for the comparable quarter last year.

Net income for the second quarter ended 28 July, which includes a loss from discontinued operations, declined 3.3% to US$19m, or 0.09 dollars per diluted share, compared to 0.10 dollars per diluted share last year. Net sales increased 11% to $740m, while comparable store sales, including AE Direct, climbed 9%.

The after-tax loss for the company’s 77kids business was $24m during the quarter, compared to an operating loss of $5m last year. The company expects to incur the remaining exit costs during the third quarter. Last month, American Eagle said it expects to incur an after-tax loss of $35-50m through the exit.

On May 18, 2012, the company had announced plans to exit its children’s business, 77kids, which includes 22 stores and the online business. On August 3, 2012, the company completed a sale of 77kids, which included substantially all of the assets comprising the 77kids business, including store assets, the on-line business, inventory and a temporary license to use the 77kids name through January 15, 2013.

In the second quarter, online sales increased 28 percent, compared to a 17 percent last year. The company ended the quarter with total cash and short-term investments of 702 million dollars compared to 514 dollars million last year.

For the third quarter, management expects EPSfrom continuing operations to be in the range of0.37 dollars to 0.38 dollars per diluted share, compared to 0.30 dollars last year. For the year, management is raising its EPS guidance from continuing operations to a range of 1.33 dollars to 1.36 dollars, compared to an adjusted 0.97 dollars last year.

CEO Robert Hanson said: “While pleased with our results, and therefore raising our annual outlook, we continue to drive for long-term performance improvement through fortifying our brands, further strengthening our products, marketing and customer experience, enhancing operational disciplines and pursuing growth across North America.”

Looking forward, the company has lifted its full-year earnings per share to range from $1.33 to $1.36, compared to earlier adjusted EPS guidance of $1.16 to $1.22.

American Eagle Outfitters is a global specialty retailer offering high-quality, on-trend clothing, accessories and personal care products under its American Eagle Outfitters and Aerie brands. The company operates more than 1,000 stores in North America, and ships to 77 countries worldwide through its websites. American Eagle Outfitters and Aerie merchandise also is available at 39 international franchise stores in 12 countries.

Posted in Apparel, Brand, Finance, News, Operations, Retail | No Responses »

Guess lowers FY outlook as Q2 profit slides

Thursday, August 23rd, 2012

US fashion firm Guess Inc has lowered its full-year earnings guidance after booking a decline in second-quarter net profit. The company blamed the decline on the impact of a weaker euro as well as negative same-store sales, higher occupancy and selling costs in Europe, and higher spending on advertising and marketing.

Net earnings for the three months ended 28 July tumbled 30.5% to US$42.9m. or $0.49 per share, from $78.3 million or $0.84 per share in the comparable quarter last year. On average, twelve analysts polled by Thomson Reuters expected the company to report earnings of $0.50 per share. While earnings from operations slumped 38.7% to $57.3m.

Net sales fell 6.2% to $635.4m, from $677.16 million in the prior-year quarter, while eleven analysts expected revenues of $629.95 million for the quarter. Revenues at the North American retail business slipped 3.1% to $253m. Revenues in the North American wholesale segment declined 5.1% to $41.6m. Revenue in Europe fell 14.5% to $246.9m, but Asian revenues jumped 20.9% to $66.8m.

CEO Paul Marciano said ”The second quarter was both rewarding and challenging for us. While store traffic remained down in North America, our strategy to elevate our women’s business appears to be working. We are now focused on driving improvements in accessories, which has become increasingly competitive, and are also developing plans to refine our North American strategy where necessary to remain competitive.

“Our European business remained stable, as we grew in newer markets in the north and east, while economic conditions continued to affect consumers, particularly in the south. We also posted solid double-digit growth in Asia and China has continued to exceed our expectations.”

Looking ahead, to the third quarter of fiscal 2013, earnings per share are expected to be in the range of $0.42 to $0.46 and consolidated net revenues are expected to range from $620 million to $630 million. Analysts currently expect the company to report earnings of $0.64 per share on revenues of $670.67 million for the third-quarter.

For the fiscal year ending February 2, 2013, earnings per share are expected to be in the range of $2.15 to $2.30 and consolidated net revenues are expected to range from $2.62 billion to $2.65 billion. Previously, the company expected fiscal 2013 earnings to be in the range of $2.50 to $2.65 per share and consolidated net revenues in the range of $2.70 billion to $2.74 billion. Analysts now expect the company to report earnings of $2.59 per share on revenues of $2.71 billion for fiscal 2013. Whilst revenues are forecast to be in the range of $2.62bn to $2.65bn.

Further, the company also announced that its Board of Directors has approved a quarterly cash dividend of $0.20 per share on the company’s common stock. Thedividend will be payable on September 21, 2012 to shareholders of record at the close of business on September 5, 2012.

Posted in Apparel, Brand, Children, Finance, Men, News, Retail, ladies | No Responses »

JD Sports sells Canterbury, acquires OneTrueSaxon

Thursday, August 23rd, 2012

UK sports wear retailer JD Sports has announced plans to sell rugby apparel brand Canterburyto fashion brand operator Pentland Group Plc, and will acquire the OneTrueSaxon brand from the group in a separate deal. JD Sports said it agreed to sell Canterbury for GBP22.7m, and will acquire the OneTrueSaxon brand for GBP50,000.

JD Sports said it decided to dispose of the brand as the majority of Canterbury’s revenue and earnings are located in New Zealand and Australia, territories where it has limited operations and “significantly distant from the core retail focus of the group in the UK and continental Europe.” The sportswear retailer also said the brand would have been unlikely to form a “key component” of its future retail proposition.

“Having reviewed the options for Canterbury, we are pleased to have agreed its sale to Pentland on terms which are attractive for JD and provide Pentland with the opportunity to further build and develop the Canterbury brand. Acquiring the ONETrueSaxon brand will allow us to leverage our in-house expertise and offer new products through our core retail fascias.”

The Canterbury brand booked an operating profit of GBP400,000 after booking losses of GBP1.1m in the US and GBP800,000 in Europe over the year ended 28 January 2012.

ONETrueSaxon was founded in 2000 and is an England-based provider of casual clothing and footwear. In the year ended 31 December 2010, ONETrueSaxon had gross assets of GBP0.6 million and made a loss before tax of GBP1.5 million.

Posted in Activewear, Apparel, Brand, Finance, News, Operations, Retail | No Responses »

Emilia Fabricant Joins Aéropostale

Thursday, August 23rd, 2012

Emilia Fabricant, who last week left her post as president of Bebe Stores Inc., has been appointed Executive Vice President of the Aeropostale brand. She will be responsible for all aspects of design, merchandising and production for the brand, and will report to Thomas P. Johnson, Chief Executive Officer.

“We are thrilled to have someone of Emilia’s caliber and talent join the Aeropostale team. Emilia has a proven track record of creating and executing the type of merchandise and operating strategies that will enable us to continue to evolve our brand, Emilia will be an incredible asset to our organization, and we look forward to her many contributions to our business.” Johnson said Wednesday.

“Aéropostale presents an incredible opportunity for me to join one of the most highly respected and highly productive specialty retail brands in the market,” Fabricant said.

Fabricant most recently served as President of Bebe Stores. Prior to that, she was President and Chief Merchandising Officer of Charlotte Russe Inc. Earlier in her career, she founded Cadeau Maternity, also serving as its President and Chief Merchandising Officer, after the company was acquired by eStyle. Fabricant began her merchandising career with Barneys New York, where she worked in the Co-op division and held executive positions of increasing responsibility, rising to Senior Vice President, Divisional Merchandise Manager and Outlet Division.

Aéropostale specializes in casual apparel and accessories, primarily for 14- to 17-year-old women and men through its Aéropostale stores and Web site. It also targets 4- to 12-year-old kids through its P.S. from Aéropostale division. The company currently operates 915 Aeropostale stores in 50 states and Puerto Rico, 75 Aeropostale stores in Canada and 97 P.S. from Aeropostale stores in 21 states. In addition, its licensees operate 20 Aeropostale and P.S. from Aeropostale stores in the Middle East, Asia and Europe.

Posted in Apparel, Brand, Labor, News, Operations, Retail | No Responses »

Rebecca Damavandi Joins Kellwood

Thursday, August 23rd, 2012

Rebecca Damavandi has joined Kellwood Co. as group president of global business development, a new position for the apparel firm. Damavandi, who began on Monday, reports to Jill Granoff, Kellwood’s chief executive officer. Both Granoff and Damavandi are based in New York.

In her new role, Damavandi is responsible for global licensing and international business development for the Vince, Rebecca Taylor and David Meister brands. Categories for potential product extensions include accessories, handbags and footwear as the firm considers its options for growing the businesses into lifestyle brands.

Damavandi said she is looking forward to “building strategic alliances for each of these brands to grow the businesses both domestically as well as internationally.”

Prior to joining Kellwood, Damavandi was a consultant for two years advising major apparel brands on global issues. Damavandi was also president of licensing and global business development for Elie Tahari, where she established a new corporate division in licensing and distribution. While at Tahari, she developed a five-year business strategy on global expansion that included the launching of new product categories as well as negotiating distribution and retail agreements for South Korea, Turkey, Spain, Greece, U.K. and the Middle East. Damavandi previously held senior global licensing positions at VF Corp. and Guess Inc.

Kellwood is owned by an affiliate of private equity firm Sun Capital Partners Inc.

Posted in Apparel, Brand, Labor, News, Operations | No Responses »

Trinity Net Rises 10.5% in H1

Wednesday, August 22nd, 2012

Men’s wear company Trinity Limited said its net profits rose 10.5 percent in the first half despite an adverse economic environment, but said it would curb the pace of store expansion this year in response to a slowdown in Chinese luxury consumption.

Trinity, which in May bought Savile Row tailor Gieves & Hawkes, said net profit rose to 265.3 million Hong Kong dollars, or $34.2 million, for the six months ended June 30. Part of the privately-held Li & Fung Group, the Hong Kong-based retailer of luxury men’s wear brands also owns Kent & Curwen and Cerruti.

Revenue increased by 13.4 percent to 1.4 billion Hong Kong dollars, or $176.1 million, driven by growth in retail sales in Greater China and licensing income and revenues from Europe. All dollar rates are calculated at average exchange rates for the period in question.

“Difficult conditions are likely to remain for the second half of the year,” Trinity stated. “While there are positive indications in the medium to long term for the Chinese mainland luxury sector, softening same-store sales, rising staff costs and increased inventory led to more modest results for the first half of 2012.”

Sales rose by 5.9 percent in Mainland China and by 13.6 percent in Hong Kong and Macau, but they fell by 12.7 percent in Taiwan. The group’s gross margin fell to 79.2 percent in the first half from 80.8 percent during the corresponding period last year, reflecting “a cyclical slowdown in the market,” Trinity said.

The group said it now expected to open 30 stores in 2012, compared with 50 in 2011, and would close certain stores that were not sufficiently productive. Other cost-cutting measures included reducing inventory and a freeze on new hires and pay rises.

However, it intends to continue searching for acquisitions. “European brands in particular will continue to be an area for investment,” Trinity said.

Posted in Apparel, Brand, Finance, Men, News, Retail | No Responses »

Target collaborates with Roberto Cavalli

Wednesday, August 22nd, 2012

Australian general merchandise retailer Target has named Roberto Cavalli as its latest Designers for Target collaborator. “Target is delighted to collaborate with Roberto Cavalli, one of the world’s most famous and well regarded fashion designers,” said managing director Dene Rogers.

The 42 piece Roberto Cavalli for Target women’s wear line will launch on 31 October and will feature Cavalli’s distinctive animal prints and embellishment. The range will include casual daywear, party pieces, footwear and swimwear. The range will be available in sizes 8-16 and be priced between A$49-129.

“Roberto Cavalli has previously designed a hugely successful collection for other mass retailers and he builds on that success with a 42 piece collection specifically for Target Australia. We strive to provide good quality, stylish fashion for our customers at great value and this collaboration gives Australian women access to international designer pieces at affordable prices.”

Posted in Apparel, Brand, Collaborations, Designer, News, Retail, accessories, ladies | No Responses »

Chico’s Q2 profit up 23% as sales rise

Wednesday, August 22nd, 2012

US women’s wear retailer Chico’s announced its financial results for the fiscal 2012 second quarter and twenty-six weeks ended July 28, 2012. For the second quarter it has booked a 23% rise in net profit as consumers responded well to new merchandise, helping it to sell more products at full-price.

Net income for the quarter ended 28 July reached US$53.4m, compared to $43.4m in the same period last year. Earnings per diluted share increased 28 per cent to $0.32, compared to $0.25 per diluted share in last year’s second quarter. For the twenty-six weeks ended July 28, 2012, company’s net income increased 20 percent to $107m, compared to net income of $89.3m in the same period last year.

Net sales jumped 16.4% to $641.7m, as compared to 551.4 million dollars in last year’s second quarter. Comparable sales climbed 5.6%, reflecting increases in both average dollar sale and transaction count and a positive customer response to its new products. This is on top of a 12.8 percent increase in last year’s second quarter, for a two-year stack of 18.4 percent.

Operating profit rose 24.4% to $85.8m, while gross profit was up 17.1% to $362.2m, compared to 309.3 million dollars for the same period last year, thanks to an increase in full-price selling and effective promotional activities.

During the second quarter of fiscal 2012, the company repurchased 1.8 million shares for 25.6 million dollars under its 200 million dollars share repurchase program announced in November 2011, with 149.4 million dollars remaining under the program as of the end of the second quarter. For the four quarter period ended July 28, 2012, the company repurchased 9 million shares for 110.6 million dollars.

As a result, the company has narrowed its full-year sales guidance. It now expects net sales to range from $2.55bn to $2.6bn, including comparable store growth at a mid-single digit percent, compared to previous guidance of $2.5 to $2.6bn.

Chico’s FAS is a women’s specialty retailer of private branded, sophisticated, casual-to-dressy clothing, intimates, complementary accessories, and other non-clothing items. While the company operates 607 boutiques and 92 outlets of Chico’s throughout the U.S, it operates 388 boutiques and 38 outlets of White House | Black Market. Also, it operates 186 boutiques and 16 outlets of Soma Intimates.

Posted in Apparel, Brand, Finance, News, Retail, ladies | No Responses »

Pacific Brands CEO Morphet steps down as losses widen

Wednesday, August 22nd, 2012

Australian clothing and footwear company Pacific Brands has announced that CEO Sue Morphet will step down after the company booked widening full-year net losses. The company said that Morphet will be replaced by former Fosters CEO John Pollaers, effective 3 September.

The announcement came as the company recorded an A$450.7m full year net loss, widening on the $131.9m loss recorded in the prior year. It attributed the losses $502.7m in non-cash write-downs of goodwill, including $114m in the second half, relating to home wares and work wear. Sales fell 18% over the year to $1.3bn. Excluding the loss of a contract with retailer Kmart, sales fell 4.3% over the year.

EBIT before significant items fell 30.7% to $129.1m, with Morphet emphasising that it was at the high end of its guidance of $125-130m.

Company chairman Peter Bush said that Morphet has driven a “transformational restructuring of Pacific Brands”, taking the business from having “well over 300 brands and a significant brands and a significant debt load to being the consolidated, key brand-focused, comparatively low-debt company it is today”.

Bush added that Pollaers brings a “different set of skills and experience” to the company. ”John is well known in Australia and internationally for his ability to motivate and build confidence in his teams. He sets clear strategic directions, focuses on operational delivery and brings a strong commercial conscience. John has a terrific record of managing and building great brands and the board welcomes his enthusiasm for Pacific Brands,” said Bush.

Posted in Apparel, Brand, Finance, Labor, News, Operations, Retail | No Responses »

Björn Borg Q2 sales up by 3 percent

Wednesday, August 22nd, 2012

The interim report of Björn Borg reported positive development in a continued weak market for second quarter of 2012. The group’s net sales increased by three percent to SEK 105.5 million (15.84 million US dollars) compared to sales for the same period last year.

The gross profit margin was 52.1 percent. Operating profit amounted to SEK 4.8 million (0.72 million US dollars). Profit after tax amounted to SEK one million (0.15 million US dollars). Earnings per share amounted to SEK 0.10 (0.02 US dollars). Brand sales (excluding VAT) decreased by eight percent to SEK 288 million (43.23 million US dollars). The decrease was the same excluding currency effects.

“We are pleased to report stable sales in a continued weak market during the second quarter. The investments we have made in our future growth in recent years are beginning to contribute more to revenues, although earnings are still being adversely affected by the costs. In late August we are opening our first sales location in China and our operations in England are developing well. We remain confident about our development during the rest of the year,” said CEO Arthur Engel.

For the first half, group’s net sales decreased by three percent to SEK 246.0 million (36.93 million US dollars). Excluding currency effects, sales were down 5 percent. The gross profit margin was 49.8 percent. Operating profit amounted to SEK 19.5 million (2.93 million US dollars). Profit after tax amounted to SEK 10.3 million (1.55 million US dollars). Earnings per share amounted to SEK 0.55 (0.08 US dollars).

Björn Borg is a Swedish company that owns and develops the Björn Borg brand. The products are sold in around 15 markets, the largest of which are Holland and Sweden.

Posted in Apparel, Brand, Finance, Men, News, Retail, ladies | No Responses »

« Older Entries