May 24th, 2012

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Signet Jewelers Profit Rises; Guides Q2 Below View

Thursday, May 24th, 2012

Signet Jewelers Ltd. today (May 24) reported a better than expected profit for the first quarter on higher sales at its U.S. division. However, revenues missed analysts’ estimates, reflecting same-store sales that were negatively impacted by the calendar shift of Mother’s Day to the second quarter. Looking ahead, Signet forecast earnings for the second quarter below analysts expectations. The company’s shares are down more than 11 percent in pre-market trading.

The specialty retail jeweler’s same-store sales for the first quarter rose 1.2 percent and were adversely impacted by the previously disclosed calendar shift, estimated to have had an impact of $32 million or 370 basis points.

Mike Barnes, Chief Executive Officer of Signet, said, “We delivered strong financial results in the first quarter and increased our earnings per share by 10.3% to $0.96 as we anticipated the impact of the Mother’s Day promotional calendar shift and managed our business accordingly.”

About 83 percent of Signet’s sales in the first quarter came from the U.S., where the year-over-year growth was 1.8 percent. Same store sales increased 1.2 percent and were impacted by 440 basis points due to the calendar shift. The Kay brand grew sales 4 percent, while sales at the more expensive Jared brand increased by 1.7 percent.

Sales at the U.K. Division, which accounted for about 17 percent of total sales, declined 0.5 percent. However, same-store sales at the division rose 1.2 percent. Signet’s gross margin rate for the quarter was 39.3 percent, compared to 39.4 percent in the same period last year.

The company’s net income for the first quarter was $82.5 million or $0.96 per share, up from $75.4 million or $0.87 per share in the year-ago period. On average, 9 analysts polled by Thomson Reuters expected earnings per share of $0.91 for the quarter. Analysts’ estimates typically exclude one-time items.

Sales for the quarter edged up 1.4 percent to $900.0 million from $887.3 million in the year-ago period, but missed analysts’ consensus estimate of $912.29 million.

Looking ahead to the second quarter, Signet forecasts earnings per share in a range of $0.78 to $0.84 and same-store sales in the mid to high single digit range. Analysts expect the company to report earnings of $0.90 per share for the quarter. The company said the outlook is being provided due to the complexity of the calendar shift.

However, Signet said its second quarter benefited from the calendar shift. Same-store sales, including Mother’s Day, were up strong double-digits.

SIG closed Wednesday’s trading at $47.75, up $2.00 on a volume of 1.70 million shares. In Thursday’s pre-market, the stock is down $5.50 or 11.52 percent to $42.25.

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

ASOS Full-year Pre-tax Profit Up; Announces Management Incentive Plan

Thursday, May 24th, 2012

ASOS plc  said its full-year pre-tax profit was up to 30.35 million pounds from last year. Earnings per share totaled 26.7 pence, up from 13.7 pence in the prior year, and profit before tax and exceptional items rose to 40.93 million pounds from the prior year.

Group revenues were up 46% year-over-year to 494.96 million pounds. Total retail sales grew 49% to 481.6 million pounds. The key driver of retail sales growth continues to be the company’s International business, although UK growth remains solid with sales up 7% on last year. Moving ahead, the company remains positive in its outlook for 2012/13 as it continues its journey to becoming the world’s number one online fashion destination.

ASOS plc, in a separate release, said, with effect from April 1, 2009, it implemented during 2010 a three year Management Incentive Plan, or MIP, the performance period for which ended on 31 March 2012.

To this end, the MIP provided executive directors and certain senior employees of the company the opportunity to demonstrate their commitment to and belief in the future plans for the company by investing their own money to buy subordinated shares issued in a subsidiary company, ASOS.com Limited, to be exchanged in two equal tranches, on 30 September 2012 and 30 September 2013, into ASOS shares in a set ratio, subject to the company’s performance against the conditions of the plan.

During the term of the MIP, the management team of the company has been extremely successful in generating real returns for shareholders. On 31 March 2012, ASOS’s market capitalisation was 1.37 billion pounds, up from 218.5 million pounds on 31 March 2009, an increase of over 500%.

On May 23, 2012, based upon the recommendation of the Remuneration Committee of the company, the company approved the exchange of subordinated ordinary shares in ASOS.com Limited, which are held by certain participants to a total of 4 million ordinary shares with a nominal value of 3.5 pence each in ASOS plc.

Posted in Activewear, Apparel, Brand, Children, Designer, E-tail, Finance, Men, News, Operations, accessories, ladies | No Responses »

Tiffany In Talks To Buy Elsa Peretti’s Intellectual Property Rights

Thursday, May 24th, 2012

Luxury jewelry retailer Tiffany & Co. said it has made a firm offer to buy jewelry designer Elsa Peretti’s intellectual property rights, but both parties are yet to reach a deal.

Since 1974, Tiffany has been the sole licensee for these rights necessary to make and sell Peretti-designed products under Peretti’s trademarks.

As per a U.S. Securities and Exchange Commission filing made by Tiffany on Wednesday, Peretti has warned that she may terminate the license agreement if both parties fail to agree on terms regarding the deal price.

A termination of the license agreement could adversely affect Tiffany’s operating results. As per the filing, the designs of Peretti accounted for 10 percent of Tiffany’s net sales in 2009, 2010 and 2011, while Peretti receives a royalty.

Peretti recently had expressed interest to sever her relationship with Tiffany, following which her advisors initiated negotiations for the transaction.

According to Tiffany, the price it has offered is based upon the value of the Peretti Intellectual Property to Tiffany. For the retailer, it represents a “significant” investment that would likely improve cash flows and operating results in subsequent years.

However, if the license agreement is terminated by either party, Tiffany would retain all rights for six months following the date of notice of termination. It will also get an additional year to sell any Peretti-designed products on hand or on order.

In case of termination, the company expects that the potential losses in net sales could be substantially mitigated through the design and merchandising of new products, redeployment of Peretti-related advertising and display resources as well as changes in the promotion, display and merchandising of existing products.

Tiffany shares closed Wednesday’s trading at $61.80, up $0.36 or 0.59 percent. In the extended trading, shares rose $1.40 or 2.27 percent to $63.20.

Posted in Brand, Collaborations, Designer, Finance, Men, News, Operations, Retail, accessories, ladies | No Responses »

PVH Q1 Profits Up 61.5%

Thursday, May 24th, 2012

PVH Corp. Wednesday reported a surge in first-quarter profit, driven mainly by “continued momentum” at its Calvin Klein and Tommy Hilfiger heritage brands. PVH’s earnings and revenues for the quarter came in well ahead of analysts’ expectations.

The clothing company lifted its financial outlook for the full year 2012, and detailed second-quarter earnings above current analysts’ expectations. The revision was based on continued strong performance from the two brands of Calvin Klein and Tommy Hilfiger.

Chief Executive Emanuel Chirico said, “Both of these brands continued to demonstrate their worldwide consumer appeal during the first quarter, allowing us to perform above our expectations for both revenue and earnings per share, despite the cost pressures and economic headwinds in Europe that have impacted our industry.”

PVH, which owns and markets Calvin Klein, Van Heusen, Arrow and Tommy Hilfiger brands, renamed itself from Phillips-Van Heusen Corp. last year, as a majority of its revenues were contributed by Calvin Klein and Tommy Hilfiger brands rather than Van Heusen.

Revenues from Calvin Klein business rose 7 percent to $262.1 million, with comparable store sales growth of 9 percent. Revenues from Tommy Hilfiger advanced 8 percent year-over-year to $770.4 million, as retail comparable-store store sales growth increased 16 percent in North America while European comparable store-sales grew 5 percent.

PVH said total revenues for the first quarter grew 4 percent to $1.43 billion, topping analysts’ estimate of $1.40 billion.

The New York-headquartered company’s first-quarter net income improved to $93.1 million or $1.27 per share from $57.7 million or $0.79 per share last year. On an adjusted basis, earnings advanced to $1.30 per share from $1.23 per share last year. Analysts polled by Thomson Reuters expected earnings of $1.26 per share for the quarter. Analysts’ estimates typically exclude special items.

Looking forward to the second quarter, PVH expects adjusted earnings in a range of $1.18 to $1.20 per share. The company expects second-quarter revenues to be relatively flat compared to last year’s revenue of $1.33 billion. Analysts currently expects earnings of $1.17 per share for the quarter, with revenue of $1.35 billion.

For the full-year 2012, the company lifted its adjusted earnings guidance to a range of $6.15 to $6.25 per share, from prior estimate of $6.10 to $6.20 per share. Analysts currently estimate earnings of $6.17 per share for the full year.

PVH now projects full-year 2012 revenues to increase 1 percent to 2 percent compared to last year’s revenue of $5.89 billion. Previously, the company expected full year revenues to be relatively flat to up to 2 percent. Analysts currently estimate revenues of $6.03 billion for the full year.

“As we head into the second quarter, we are optimistic that the strength of our brands and the sound execution of our business strategies, along with our strong balance sheet, will continue to drive long-term growth and improvements in our financial metrics and business returns in 2012 and beyond,” said Chirico.

The company plans to hold a conference call Thursday morning to discuss the results and is on the schedule to address the Citi 2012 Global Consumer Conference Thursday.

PVH closed Wednesday’s trading on the NYSE at $77.37, down $0.18 or 0.23%, on a volume of 2.7 million shares. The stock however gained $3.12 or 4.03% in after-hours trade.

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

Moss Bros like-for-likes boosted by store refits

Thursday, May 24th, 2012

Sales at menswear group Moss Bros benefited from an enhanced product offer and revamped stores with like-for-like sales growing 8.8%.

For the 16 weeks to May 19 total sales were up 7.9% on last year with business across its retail and hire divisions continuing to perform well.

The like-for-like cash gross profit also grew during the period and was 5.2% ahead of last year.

In an interim management statement the group said its trading performance continued to improve, which is in line with market expectations and Moss Bros is on course to deliver anticipated levels of growth.

Chief executive officer Brian Brick said: “We are pleased with the sales momentum which continues into this year and the ongoing control of margins. There is no doubt that we are benefiting from the continuing improvement of our product offer and the early stages of the roll out of the refurbishment of our stores in some higher profile locations is reinforcing the strength of the core Moss brand.”

The menswear group is continuing to modernise the look and feel of its Moss stores and has refitted its flagship Regent Street and Bicester Village stores. Moss Bros said the improvements have been “well received by customers”. A further ten stores have been selected for refit during the next year.

However, Brick said Moss Bros remains “cautious” about the general economic environment and the short term impact of the Olympic Games and Euro 2012 football tournament.

The company has put contingency plans in place to ease any disruption to the business resulting from the Olympic Games, particularly for its central London stores, and distribution centre in Barking.

Brick added: “We have a strong foundation from which to build and develop further our product offering, upgrade the standards of presentation of our stores and continue to improve our customers’ experience. We remain confident about our medium term growth prospects.”

Moss Bros has also appointed Neil Sansom, former marketing director at M&M Direct as its ecommerce director.

Sansom will take on the newly-created role after having been marketing director at outdoor and sports fashion retailer M&M Direct for four years.

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