May 23rd, 2012

...now browsing by day

 

American Eagle Outfitters Q1 Profit Up; Lifts Annual Earnings View

Wednesday, May 23rd, 2012

Teen-apparel retailer American Eagle Outfitters posted higher first-quarter net profit of $39.7 million or $0.20 per share, versus $28.32 million or $0.14 per share last year. Excluding the operating results for 77kids, adjusted earnings were $0.22 per share, compared with year-ago quarter’s $0.16 per share. On average, 24 analysts polled by Thomson Reuters expected earnings per share of $0.20 for the quarter.

Quarterly net sales were $719.09 million, a 18% growth from $610 million in the comparable period, whereas 22 analysts estimated revenues of $718.97 million for the quarter. Comparable-store sales, including AE Direct, rose 17%, compared with a 7% decline a year before.

For the second quarter the company sees adjusted earnings of $0.13 – $0.15 per share, assuming mid single digit comparable store sale growth. Analysts project earnings of $0.12 per share for the second quarter.

Assuming low to mid-single digit comparable store sales growth for the year, the company revised up its annual adjusted earnings per share outlook to $1.16 – $1.22 from its earlier guidance of $1.06 – $1.12. Twenty-five analysts anticipate earnings of $1.18 per share for fiscal 2012.

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

Genesco Q1 Profit Climbs; Lifts 2013 Earnings Forecast

Wednesday, May 23rd, 2012

Shoe and clothing retailer Genesco Inc. posted first quarter net earnings of $20.61 million or $0.85 per share versus $14.8 million or $0.63 per share a year ago.

Results for the recent quarter reflect pretax items of $3.1 million, or $0.12 per share after tax, primarily including compensation expense related to deferred purchase price payments in connection with the acquisition of Schuh Group Ltd. in June 2011, decreased by a tax rate adjustment reflecting the tax treatment of the deferred purchase price.

Adjusted earnings per share from continuing operations were $0.98, up from $0.67 in the same quarter last year. On average, nine analysts polled by Thomson Reuters expected the company to report earnings of $0.74 per share. Analysts’ estimates typically exclude special items.

Net sales grew 25% to $600.14 million from $481.5 million last year, reflecting the addition of sales from Schuh and a comparable store sales increase of 9%. Analysts expected revenues of $577.14 million.

The Lids Sports Group’s comparable store sales were up 4%, the Journeys Group rose 12%, and Johnston & Murphy Retail increased 4%.

Robert Dennis, chairman, president and chief executive officer of Genesco, said, “Our first quarter results reflect the continuation of the positive sales trends that have characterized our business for the past several quarters. The combination of favorable fashion trends, excellent execution, and the strong strategic positions of our businesses has helped us maintain momentum even in the face of tougher comparisons. The strength in sales once again drove improved expense leverage and profitability above expectations.”

The company now expects adjusted fiscal 2013 earnings per share to be in the range of $4.70 to $4.82, an increase from its previous guidance range of $4.58 to $4.70. The new outlook represents an increase of 15% to 18% over last year’s adjusted earnings per share of $4.09. Analysts expect earnings per share of $4.69.

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

Talbots Extends Sycamore Agreement

Wednesday, May 23rd, 2012

The Talbots Inc. said it has agreed to extend its exclusivity agreement with Sycamore Partners for two days.

The deal further extends the exclusivity period under the agreement that the two parties entered into on May 5 in connection with Sycamore Partners’ nonbinding proposal to acquire all of Talbots’ outstanding common stock for $3.05 a share. The exclusivity period will now expire on May 24.

The nonbinding exclusivity deal initially had been set to expire May 15, and had previously been extended to Tuesday.

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

Wet Seal Slips To Loss In Q1

Wednesday, May 23rd, 2012

Teen apparel retailer The Wet Seal Inc. announced results for its fiscal first quarter ended April 28, 2012, and introduced guidance for the second quarter of fiscal 2012. The company also said it plans to close a number of Arden B stores and will reduce the amount of Wet Store shops it will open this year after posting a first quarter net loss.

For the quarter ended 28 April, the company swung to a net loss of US$273,000, or breakeven per share, compared to a profit of $8m, or $0.08 per share, in the same period last year. The company posted an operating loss of $441,000, compared to $13.3m operating income last year.

Excluding the after-tax effect of non-cash asset impairment charges, net income would have been $1.9 million, or $0.02 per share, in the latest year quarter, and would have been $8.2 million, or $0.08 per share, in the prior year quarter.

Net sales for the quarter fell 5.2% to $147.9 million compared to net sales of $156.0 million last year. Consolidated comparable store sales decreased 7.7%. Comparable store sales for Wet Seal decreased 7.0% and for Arden B decreased 11.4%. Analysts polled by Thomson Reuters expected the company to report earnings of $0.02 per share on revenues of $149.98 million for the quarter. Analysts’ estimates typically exclude special items.

CEO Susan McGalla said: ”We are disappointed with our first quarter results and recent sales trends at both Wet Seal and Arden B. We are taking immediate actions to rebalance the assortments towards stronger selling categories.”

As the leases of Arden B stores come up for renewal this year, the company said it will either seek short-term extensions or allow the lease to expire and close the stores. As a result, the number of Arden B stores will decline from 84 to 64 to 69 stores by the end of the year.

“This will allow us to put all efforts toward repositioning the brand. We are committed to the long-term future of Arden B and look forward to restoring strength in the business and resuming a growth trajectory,” McGalla said.

The company also said it reduced its store opening plan to 20 to 22 net store openings at Wet Seal for fiscal 2012, a decrease from its prior plan of 25 to 30 net openings. McGalla added: “This reflects a more selective approach to new store development while we’re working on repositioning efforts at Wet Seal.”

Looking forward, Wet Seal expects net loss per diluted share in the range of $0.03 to $0.06 for the second quarter compared to net income per diluted share of $0.02 in the prior year second quarter. Total net sales are expected to be between $136 million and $141 million. The company expects comparable store sales decline between 7% and 11%.

Analysts expect the company to report earnings of $0.15 per share on revenues of $633.48 million for fiscal 2012.

At 28 April 2012, the company operated 553 stores in 47 states and Puerto Rico, including 469 Wet Seal stores and 84 Arden B stores.

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

Guess’ Q1 profit slumps 37.6% after sales drop

Wednesday, May 23rd, 2012

Fashion firm Guess Inc. , a designer and marketer of apparels and accessories, Tuesday (May 22) reported a 37.6 percent decline in first-quarter profit, hurt mainly by lower European revenues and weak margins. However, Guess’ earnings and revenues for the quarter easily beat analysts’ expectations, helped by improved demand in Asia. Following the news, shares of Guess rose seven percent in after-hours trade.

For the first quarter ended 28 April, Los Angeles-based Guess posted net earnings of US$26.6m, or $0.30 per share from $42.7m or $0.46 per share in the same period last year. On average, 12 analysts polled by Thomson Reuters expected earnings of $0.26 per share for the quarter.

Gross margins dropped to 40.6 percent from 41.9 percent last year. Operating margin declined 520 basis points to 6.8 percent, reflecting higher professional fees, higher selling and distribution expenses and increased marketing costs. Operating earnings slumped 44.8% to $39.1m, which included a $900,000 unfavourable currency translation impact.

Total revenues for the first quarter dropped 2.2 percent to $579.3 million from $592.2 million last year. Analysts estimated revenues of $569.85 million. Its North American stores generated US$251.8m in net revenue, a 1.8% increase on the prior year, while comparable store sales declined 5.5% in US dollars and 5.1% in local currency. Wholesale revenue in Guess’ North American division dropped 3.8% to $43.9m.

European net revenue decreased 9.7% to $189.8m, down 4.6% in local currency. Net revenue from Asia segment advanced around 8 percent to $64.8 million.

Chief Executive Paul Marciano said, “We are pleased to deliver first quarter financial results that exceeded both our top and bottom line expectations, even as economic conditions remained challenging in many markets. We continued to focus our efforts on growing in newer international markets, and we succeeded, expanding in key markets such as China, Germany and Russia… While we did face economic headwinds in southern Europe, our brand remains strong there and our business is stable,” added Marciano. In Europe, revenues dropped about 10 percent to $189.8 million, or 4.6 percent in local currency.”

Meanwhile, Guess backed its full-year 2013 earnings guidance, but lowered its revenue outlook. The company continues to expect full-year earnings in a range of $2.50 to $2.65 per share. Revenue guidance was lowered to a range of $2.70 billion to $2.74 billion, from prior expectation of $2.74 billion to $2.78 billion. Analysts currently expect earnings of $2.59 per share on revenues of $2.74 billion for fiscal year 2013.

Guess also detailed a weak outlook for the second quarter with earnings expected in the range of $0.48 to $0.52 and revenues of $625 million to $635 million. Analysts currently expect earnings of $0.62 per share on revenues of $667.48 million for the second-quarter.

The company approved a quarterly dividend of $0.20 per share, payable on June 22, to shareholders of record on June 6.

GES closed Tuesday’s trading on NYSE at $24.44, down $0.03 or 0.12%, on a volume of 3.3 million shares. The stock, however, gained $1.75 or 7.16% in after-hours trade.

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