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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 »

Foot Locker Q2 profit up 59% from sales uplift

Monday, August 20th, 2012

Sportswear retailer Foot Locker has booked a 59.5% rise in second-quarter net profit on the back of a positive sales performance in North America and Europe, beating the Street in the second quarter.

For the period ended July 28, the New York-based specialty athletic retailer earned a net income surged to US$59m, or 39 cents a share, compared to $37m, or 24 cents, in the same period a year ago. Gross margin increased 90 basis points.

Revenues increased 7.2% to $1.37bn, from $1.28 billion, on the back of a comparable-store sales increase of 9.8 percent. Analysts were expecting earnings per share of 33 cents on revenue of $1.35 billion. Excluding the effect of foreign currency fluctuations, total sales were up 10.6%.

Positive results were driven by Nike’s lightweight and technical running products, the firm said. Domestic comps rose in the low teens in the second quarter, while Foot Locker Europe’s comp-store sales were essentially flat. The international divisions posted mid-single-digit comp gains, while the direct-to-customer segment advanced 18.1 percent.

Ken Hicks, chairman and CEO, said: “We have achieved consistently strong financial and operational results since we began implementing our long-term plan over two years ago. This consistency was also evident with the good profitability we achieved this quarter across our divisions, from the North American stores, to Europe, and to our direct-to-customer business.”

During the first half of the year, the company opened 47 new stores, remodeled/relocated 109 and closed 62, taking its total number of stores to 3,354. Hicks also said more store changes are expected in the back half. The firm is now testing 11 stores for the Champs prototype, and has several Foot Locker test stores on tap for this winter into next spring.

“We intend to open three new concept stores for Lady Foot Locker before the holiday selling season. These stores will be merchandised significantly different than a Lady Foot Locker store with much more apparel, stronger coordination between shoes and apparel and more emphasis on performance. These stores will have a new nameplate over the door, which we will announce later in the quarter,” Hicks said on a conference call with analysts Friday.

Foot Locker ended the period with cash and short-term investments of $820 million and long-term debt of $133 million.

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H&M launches Fashion Family clothes collection

Friday, August 17th, 2012

Swedish fashion retailer H&M Hennes & Mauritz has launched its Fashion Family clothing collection, available for men, women and children.

For women, the range includes a fitted jacket, skinny trousers, a grey long-sleeved dress, as well as accessories. The line features a leather jacket, knitted jumper, T-shirt, sunglasses, beanie hat and scarf for men.

Mini-me versions of the adult clothes have been designed for children.

The Fashion Family collection will be available at the H&M’s Regent Street and Selfridges stores in London and online from 17 September.

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Gap Q2 Profit Rises

Friday, August 17th, 2012

Fashion retailer Gap Inc. said Thursday after the markets closed that its second-quarter net income rose 29%, helped by higher sales and improved gross margins. The company’s quarterly earnings per share also came in above analysts’ expectations as did its quarterly sales. Based on second quarter results, the company once again raised its full year earnings outlook.

For the second quarter ended July 28, 2012, the San Francisco-based company reported net income of $243 million or $0.49 per share, compared to $189 million or $0.35 per share for the year-ago quarter. Net sales for the second quarter grew 6 percent to $3.58 billion from $3.39 billion last year. Same-store sales increased 4 percent. Analysts polled by Thomson Reuters estimated earnings of $0.48 per share and revenues of $3.53 billion for the quarter.

Same-store sales for the second increased 4%. Same-store sales rose 7% for Gap stores in North America and Banana Republic’s North America fleet, while it grew 3% for Old Navy’s North America stores. International same-store sales fell 5%. Whilst gross margin for the quarter improved to 39.9% from 36.9% a year earlier.

“Customers responded well to our product offerings across our brands, driving a healthy increase in sales and earnings per share during the quarter,” said Glenn Murphy, chairman and chief executive officer of Gap. “Our continued focus on product and store execution are helping to drive positive momentum and we’re committed to sustaining solid performance for the remainder of the year.”

The company ended the second quarter with a total of 3,285 store locations in 42 countries, 3,035 of which were company-operated. During the second quarter, the company opened 29 and closed 20 company-operated store locations. The company opened its first Old Navy store outside of North America in Tokyo and continued to expand its Gap brand store base in China. The company continues to expect net openings of about 15 company-operated stores and about 50 to 75 franchise stores during fiscal year 2012.

Going forward, the company raised its fiscal year 2012 earnings estimate to a range of $1.95 to $2.00 per share, from prior estimate of $1.78 to $1.83 per share. Analysts currently estimate earnings of $2.08 per share for the full year.

The company repurchased $349 million worth of shares in the second quarter and ended the quarter with 479 million shares outstanding and $2.1 billion in cash, cash equivalents, and short-term investments. Gap shares are currently gaining 1.34% in after hours trading after closing the day’s regular trading session at $34.34, down 27 cents. The shares trade in a 52-week range of $15.08 to $34.92.

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Foot Locker Reports Rise In Q2 Net Income

Friday, August 17th, 2012

Specialty athletic retailer Foot Locker Friday released the financial results for the second quarter ended July 28, 2012, reporting a profit for the second quarter that increased from last year, as runners splurged on new sneakers for the summer season.

The New York-based company reported net income of $59.0 million or $0.39 per share for the second quarter, higher than $37.0 million or $0.24 per share in the prior-year quarter.On average, 13 analysts polled by Thomson Reuters expected earnings of $0.33 per share for the quarter.

Total sales for the second quarter increased 7.20 percent to $1.367 billion, from $1.275 billion for the same period in the previous year. Comparable-store sales rose 9.8 percent, and topped eleven Wall Street analysts’ consensus estimate of $1.35 billion by a whisker. Excluding the effect of foreign currency fluctuations, total sales improved 10.6 percent.

Sales at established stores jumped 9.8 percent. Adjusted earnings per share and quarterly revenues topped analysts’ expectations. Following the news, Foot Locker shares gained more than 6.5 percent in early dealings.

This was the tenth consecutive quarter of sales and profit growth for Foot Locker in relation to the comparable prior-year periods.

“We have achieved consistently strong financial and operational results since we began implementing our long-term plan over two years ago. This consistency was also evident with the good profitability we achieved this quarter across our divisions, from the North American stores, to Europe, and to our direct-to-customer business,” Chairman and CEO Ken Hicks said in a statement.

At the end of the second quarter, Foot Locker operated 3,354 stores in 23 countries in North America, Europe, Australia, and New Zealand, compared to 3,407 stores last year. Additionally, it had 37 franchise stores in the Middle East and South Korea as opposed to 25 last year.

During the quarter, Foot Locker repurchased about 1.2 million shares of its common stock aggregating $37.5 million under a $400 million share repurchase program.

FL closed Thursday’s regular trading session at $34.49, down $0.08 on a volume of 2.48 million shares. In the past 52-week period, the stock has been trading in a range of $17.77 to $34.92.

Posted in Activewear, Apparel, Brand, Children, Finance, Media, News, Retail, accessories, ladies | No Responses »

Aeropostale Q2 Profit Down

Friday, August 17th, 2012

Apparel retailer Aeropostale Inc. Thursday reported a decline in profit for the second quarter. Second-quarter net income declined to $0.1 million or $0.00 per share from $2.9 million or $0.04 per share in the comparable quarter last year. Aeropostale net sales increased 4 percent, to 485.3 million dollars, in the second quarter of fiscal 2012. Net sales for the same period last year were 468.2 million dollars. 23 analysts expected revenues of $490.11 million for the quarter.

Adjusted net income for the quarter was $0.1 million or $0.00 per share, compared to an adjusted net loss of $1.7 million or $0.02 per share in the prior year quarter. On average, 25 analysts polled by Thomson Reuters expected the company to earn $0.00 per share for the second quarter.

Comparable sales, including the e-commerce channel, for the second quarter were essentially flat compared to a 12 percent decrease last year. Comparable store sales, excluding the e-commerce channel, for the second quarter decreased 1 percent, compared to a 14 percent decrease last year.

Net revenue from the company’s e-commerce business for the second quarter increased 27 percent to 31.9 million dollars, from 25.1 million dollars in the year ago period. The company ended the quarter with cash and cash equivalents of 169.6 million dollars and no debt. It currently has 145.2 million dollars of availability remaining under its share repurchase program.

Thomas P. Johnson, Chief Executive Officer, commented, ”While we were encouraged by the customer response to our fashion offering, we were disappointed by our overall financial performance for the second quarter. Our core basics business experienced significant pricing pressure due to the highly promotional and competitive retaillandscape. As a result, we promoted these businesses more aggressively than initially expected to end the quarter with inventories in line with our plan.” in line with our plan.”

Looking ahead to the third quarter, the company has forecast earnings in the range of $0.25 to $0.30 per share. Analysts currently expect the company to earn $0.38 per share for the third quarter.

New York-based Aeropostale is a primarily mall-based, specialty retailer of casual apparel and accessories, principally targeting 14 to 17 year-old young women and men through its Aeropostale stores and 4 to 12 year-old kids through its P.S. from Aeropostale stores. The company currently operates 914 Aeropostale stores in 50 states and Puerto Rico, 75 Aeropostale stores in Canada and 97 P.S. from Aeropostale stores in 22 states. In addition, pursuant to various licensing agreements, its licensees currently operate 20 Aeropostale and P.S. from Aeropostale stores in the Middle East, Asia and Europe.

The company opened seven Aeropostale and 15 P.S. from Aeropostale stores, and closed four Aeropostale stores during the quarter. For the second quarter, the company invested 20.8 million dollars in planned capital expenditures.

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American Apparel’s Q2 net sales grow by 13 percent

Thursday, August 16th, 2012

American Apparel announced its financial results for the second quarter ended June 30, 2012. The company reported a double digit comparable store sales growth each month since November of 2011.

Comparing the second quarter 2012 to the corresponding period last year, net sales increased 13 percent to 149.5 million dollars on a 14 percent increase in comparable store sales in the retail business, a 10 percent increase in net sales in the wholesale business and a 2 percent decrease in the average number of stores.

Gross profit of 79 million dollars for the second quarter of 2012 increased 9 percent from the 72.4 million dollars reported for the second quarter of 2011. Gross margin rate for the 2012 second quarter decreased to 53 percent from 55 percent for the 2011 second quarter.

Net loss for the second quarter of 2012 was 15.3million dollars, or 0.14 dollars per common share,compared to net loss for the second quarter of 2011 of 0.2 million dollars. As of August 1, 2012 there were approximately 106.2 million shares outstanding. Consolidated Adjusted EBITDA was 7.6 million dollars in the second quarter of 2012 versus 3.7 million dollars in last year’s second quarter.

The second quarter 2012 net loss included an income tax provision of 1.1 million dollars versus 0.5 million dollars in the 2011 second quarter. As of June 30, 2012, the company has available Federal net operating carry forwards of approximately 75.7 million dollars and unused Federal and State tax credits of 16.2 million dollars.

For the month of August, the company expects that comparable store sales will increase in the upper teen to low twenty percent range and it estimates the percent increase in net sales will be in the 10 percent to 15 percent range versus the prior year. Accordingly, the company is raising its adjusted EBITDA guidance for 2012 to between 36 dollars to 44 million dollars from the prior estimate of 32 dollars to 40 million dollars.

American Apparel is a vertically integratedmanufacturer, distributor, and retailer of fashionbasic apparel based in downtown Los Angeles,California. As of July 31, 2012,American Appareloperated 251 retail stores in 20 countries, includingthe United States, Canada, Mexico, Brazil, United

Kingdom, Ireland, Austria, Belgium, France, Germany, Italy, Netherlands, Spain, Sweden, Switzerland, Israel, Australia,Japan, South Korea, and China. American Apparel also operates a wholesale business that supplies high quality T-shirts and other casual wear to distributors and screen printers. In addition to its retail stores and wholesale operations, American Apparel operates an online retail e-commerce website.

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77kids brand sold to former Children’s Place CEO Dabah

Monday, August 13th, 2012

US clothing retailer American Eagle Outfitters has sold its loss-making children’s business 77kids to Ezra Dabah, the former CEO of The Children’s Place, for an undisclosed amount. Under the deal, Dabah has acquired the brand’s store assets, the online business, inventory, and a temporary licence to use the 77kids name until 15 January 2013.

The former Children’s Place chief executive has paid American Eagle Outfitters an amount equal to 65% of the cost of the acquired inventory and assumed certain liabilities associated with the brand, according to a company SEC filing.

As a result of the agreement, the company now expects to incur an after-tax loss of US$35m on the exit of the 77kids business, compared to earlier guidance of $35-50m. Losses will include $19m of asset impairments, inventory write-downs and severance, $6m of support payments to Dabah and $10m of operational costs.

American Eagle Outfitters revealed in May it was looking to sell part or all of the 77kids brand, after announcing plans to exit the business.

Earlier this month, the teen apparel retailer raised its second quarter earnings guidance after achieving stronger than expected sales during the period. The company now expects earnings per share to be between $0.19 and $0.21, compared to previous guidance of $0.13.

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Tom Tailor’s H1 sales grow by 18 percent

Wednesday, August 8th, 2012

Tom Tailor Holding announced its financial status for the half year fiscal 2012. In the period from January to June, the company reported an increase of 18 percent in its sales to 207.8 million Euros (257.65 million dollars).

In the second quarter, group sales climbed by 15.5 percent to 104.3 million Euros (129.27 million dollars) as compared to 90.3 million Euros (111.96 million dollars) in the same period last year.

During the first six months, Tom Tailor’s retail segment grew sales by 34.6 percent to 85.5 million Euros (105.97 million dollars) from 63.5 million Euros (78.70 million dollars) in the same period last year. Its e-commerce sales rose by 46.6 percent to 15.4 million Euros (19.09 million dollars). The company also increased its number of retail stores by 21 to 269 in the first half of the year.

In the Wholesale segment, which comprises franchise stores and shop-in-shops,

Tom Tailor grew its sales by 8.1 percent to 122.3 million Euros (151.58 million dollars) from 113.1 million Euros (140.18 million dollars) in first half of fiscal 2011. Company also increased the net number of shop-in-shops by 103 to 1,889 and franchise stores by four to 159 in the first quarter. Tom Tailor improved its gross profit margin by 3 percent to 50.5 percent.

The operating result – measured using adjusted EBITDA – improved, despite additional expenses for both, the TV campaign and the launch of the new POLO line. It stood at 11.8 million Euros (14.62 million dollars) in the first half of 2012, equivalent to an increase of approximately 16 percent on last year. Despite higher marketing and refinancing expenses, as well as costs for the Bonita takeover and tax payments for prior years, the cash outflow from operating activities improved in the first half to -8.8 million Euros (10.91 million dollars) from -9.5 million Euros (11.77 million dollars) in 2011.

Assuming that Bonita is fully consolidated witheffect as of 1 August, the Group now anticipatessales of between 625 million Euros (774.63 milliondollars) and 635 million Euros (787.02 milliondollars) and an adjusted EBITDA of between 70 million Euros (86.76 million dollars)

to 75 million Euros (92.96 million dollars).

Established in the year 1962, the Tom Tailor Group is an international and vertically integrated lifestyle company which offers stylish casual wear and accessories for men, women, teenagers and children. At the end of June 2012, Tom Tailor was represented in 35 countries by 269 dedicated stores, the Tom Tailor e-shop, 159 franchise stores, 1,889 shop-in-shops, and approximately 6,300 multi-label points of sale.

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American Eagle raises Q2 earnings outlook

Friday, August 3rd, 2012

Teen clothing retailer American Eagle Outfitters has raised its second quarter earnings guidance after achieving stronger than expected sales during the period.

The retailer said net sales for the second quarter increased 11% to US$740m, while comparable store sales climbed 9%.

The company now expects earnings per share to be between $0.19 and $0.21, compared to previous guidance of $0.13.

“Continuing the strength from the first quarter, we saw improvements across our product assortments, our brands and geographic regions during the second quarter,” CEO Robert Hanson said. ”We successfully pulled back promotional activity, while maintaining increased traffic and transactions.”

Last month, the retailer said it expects to incur an after-tax loss of $35-50m from the exit of its 77kids children’s brand.

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