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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 »

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.

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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 »

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 »

Libby Edelman joins back Sam Edelman Team

Wednesday, August 22nd, 2012

Libby Edelman, one of the creative visionaries behind footwear brand Sam Edelman, will be rejoining the team in a new role to help drive the marketing and licensing of the line as it expands into new markets, including intimate apparel and outerwear.

The Brown Shoe Company-owned brand said Edelman will provide “creative vision” to the evolution of the brand as it continues to expand with new opportunities..

Diane Sullivan, president and CEO of Brown Shoe Company said: “Libby has been an integral part of the success of the Sam Edelman brand over the years, and we are thrilled to have her back on the team… Nobody knows Sam better than Libby, and she can help take his voice and integrate it throughout everything the brand is doing, from footwear to intimate apparel to outwear.”

The couple has worked together for more than 30 years, launching the Esprit footwear business in 1983 and the Sam & Libby brand in 1987.

Libby was a noted senior fashion editor in the ‘70s and early ‘80s with magazines such as Harper’s Bazaar, Seventeen and Glamour, followed by a major role as director of public relations at Calvin Klein. After moving to California in 1983, Libby joined Sam as president of the Esprit Children’s Division.

“I took some time off to replenish my creative spirit through photography and travel, including a trip to Peru for Soles4Souls, an organization that collects new and used shoes for those in need. I had a great time but it felt right to come back refreshed and ready to synergize my energy with Sam’s new projects and collections. Even though I know him very well, he always surprises me with his ideas and that is an inspiring environment to be a part of,” said Edelman.

Brown Shoe Company is a 2.6 billion dollars, global, footwear manufacturing company. More than 130 years old, the company operates more than 1,300 retail stores across the United States, Canada and China. It also designs, sources and markets many well-known wholesale shoe brands — such as Naturalizer, Dr. Scholl’s Shoes, LifeStride, Sam Edelman, Franco Sarto, Via Spiga, Vera Wang, Avia and Ryka. In addition to its retail and wholesale operations, it also operates ecommerce sites.

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

Ariella wins trademark back and jumps abroad

Tuesday, August 21st, 2012

London fashion darling Ariella, a famous Carnaby Street’s presence since the Sixties, has won a long-lasting battle to win back its trademark.  The rights to the Ariella name in 29 countries belonged to German Universal Textiles, which went into liquidation two years ago.

London´s fashion brand Ariella is planning a global push after winning back the rights to use its name in key markets abroad.  In July, Ariella regained the rights to use the name in those countries, agreeing a six figure deal with the new owner, Betti Holdings of Slovenia, reported ‘Gulf News’.

“Now, we are ready for a big expansion,” Constantinou – one of the founders- said. “We have increased staff from 12 to 29 in the past two years and are exporting more to Germany, Switzerland, Austria, Spain, Norway, and Canada.”
Up to the date, the German swimwear maker had the rights to the Ariella name in 29 countries, including Japan, Australia, Canada, Russia, and Germany.

Ariella, an iconic name in Sixties Carnaby Street, was co-founded by Achilleas Constantinou and his brother Aristos in 1966. Sixty years later, the Ariella label manufactures and designs for department stores and retailers in Britain and Europe, among them John Lewis, River Island, and Debenhams.

Besides, the company has launched a new label, Ariella Couture, the brain child of Lana Marie Constantine, Constantinou’s 28-year-old daughter. Lana launched the Ariella Couture range and opened its first concession at Harvey Nichols in Dublin in April. “We will be moving to London stores next,” she said.

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Stella McCartney Opens in Shanghai

Tuesday, August 21st, 2012

Stella McCartney has opened its first freestanding boutique in Shanghai as the brand takes direct control of its Chinese business.

The 1,195-square-foot store, which opened earlier this month, is located at the Reel Mall on Nanjing Road. In line with the brand’s current store design concept, the boutique features a glazed, ceramic tile facade, an oak parquet floor in a herringbone pattern and brass fixtures.

Stella McCartney, which is a joint venture between the British designer and French luxury giant PPR SA, is expanding in China. In October, the brand’s first kids’ shop-in-shop and lingerie corner will open on the fourth floor of Shanghai’s Reel Mall. Stella McCartney will open a Beijing store in December and a second Shanghai store next spring. The London-based brand recently took its China distribution in-house, terminating a franchising agreement with Lane Crawford. Lane Crawford remains Stella McCartney’s distributor in Hong Kong.

“As our brand is pursuing extension into Asia it is now time to take our business and presence in China further into the next step of growth by developing a local strategy focused on retail expansion and increased distribution,” said Frederick Lukoff, chief executive officer of Stella McCartney.

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

Urban Outfitters Q2 Profit Rises

Tuesday, August 21st, 2012

Specialty apparel retailer Urban Outfitters Inc., said Monday its profit for the second quarter increased from last year on strong growth across its mainstay brands. The company’s earnings for the quarter breezed past Street estimates, with sales also coming in ahead of expectations. The positive results comes amid a pickup in retail activity as consumers splurge on their favorite brands even as concerns remain of the overall economic situation. The news had a significant impact on Urban Outfitters shares that reached a new high for the year. The stock is currently up 16.34 percent at $36.39 on the Nasdaq.

Philadelphia, Pennsylvania-based Urban Outfitters reported second quarter net income of $61.29million or $0.42 per share, up from $56.69 million or $0.35 per share last year in the same quarter last year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.33 per share for the quarter.

Urban Outfitters operate under its eponymous brand as well as those like Anthropologie, BHLDN, Free People, and Terrain. During the quarter, the company’s net sales grew 11 percent year-over-year. Net sales for the quarter rose to $676.27 million from $609.18 million in the prior year quarter. Twenty eight analysts had consensus revenue estimate of $671.58 million for the quarter.

Comparable retail segment net sales, which include comparable direct-to-consumer channel, increased 4% for the quarter, while comparable store net sales decreased 1%. Comparable retail segment net sales at Free People and Urban Outfitters increased 12%, and 6%, respectively, while comparable retail segment net sales at Anthropologie were flat for the quarter. Direct-to-Consumer net sales increased 22% and wholesale segment net sales rose 17% for the quarter.

Nevertheless, high cost of sales somewhat impacted gross margin that fell 30 basis points from last year to 37.6 percent, hurt by the deleveraging of initial merchandise costs and store occupancy expenses.

Moving forward, CEO Richard Hayne said, “As we head into the second half of the year we plan for gradual year over year improvement in our business along with further tightening of our store inventories.”

URBN closed Monday at $31.28, down 0.38%, on a volume of 3.2 million shares on the Nasdaq. In after hours, the stock gained $5.11 or 16.34%. In the past year, the stock trended in a range of $21.47 – $31.81.

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

Finish Line Appoints Amber Vanes As VP, Planning And Allocation

Tuesday, August 21st, 2012

Finish Line Inc. announced that it has appointed Amber Vanes as its vice president, planning and allocation.

Vanes has been with Finish Line for seven years, most recently serving as Senior Buyer/DMM for The Running Specialty Group. Finish Line, which acquired The Running Specialty Group last year, operates 19 specialty running shops in seven states and the District of Columbia under The Running Company banner as a joint venture with Gart Capital Partners.

Prior to Finish Line, Vanes worked as a Senior Business Analyst at Marshall Field and Company.

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

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