July 19th, 2012

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Hermes H1 Consolidated Revenue Climbs

Thursday, July 19th, 2012

French luxury group Hermes today (19 July) said consolidated revenue in the first half of 2012 totalled 1.59 billion euros, a rise of 21.9% at current exchange rates from the prior-year period. Consolidated revenue grew 15.4% at constant exchange rates. In the first half of 2012, all regions registered growth.

In Asia, excluding Japan, sales rose 25% with growth driven by China, Singapore and Hong Kong. Japan recorded a 3% sales jump, while France saw sales rise 10% and sales in the rest of Europe grew 21%. In the Americas, sales increased 9%, despite an exceptionally high basis of comparison.

Ready-to-wear and fashion accessories recorded 21% sales growth, which was attributed to the success of the spring/summer collections. Silk and textiles recorded 15% growth over the half.

During the second quarter, sales growth was 21.9% at current exchange rates. Despite the very high basis of comparison, sales continued to expand briskly both in the group’s own stores and in the wholesale channels.

Over the half-year, sales continued to expand “briskly both in the group’s own stores and in the wholesale channels”.

For the rest of the year, the company said it will continue to expand its distribution network, reinforce production capacity and secure control over sourcing.

Looking ahead, given the sales performance in the first half, the group stands by its target for consolidated revenue growth of 10% over the full year 2012 at constant exchange rates.

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

US Retail sales fall for third month in a row in June

Thursday, July 19th, 2012

US retail sales fell for the third month in a row in June as consumers continued to cut back on their spending, according to Department of Commerce data released this week, raising new concerns about the country’s economic recovery.

Retail sales were down 0.5% month-on-month, but were 3.8% higher than June last year. US retail spending fell 0.2% in May.

The Census Bureau figures showed clothing and clothing accessories stores recorded a 0.2% increase in June compared to May, rising 3.5% year-on-year; for department stores, the figures were down 0.7% and down 3.2% respectively; and for sporting goods stores (also including books and music), the figures were down 1.6% and up 4.4%.

The National Retail Federation said June’s figures implied that persistently-high domestic unemployment, stagnant job growth, and international economic unease “have taken a toll on American consumers this spring”.

Its data showed June retail sales (excluding automobile, gas stations and restaurants) fell 0.4% seasonally adjusted from May but increased 1.7% unadjusted year-over-year. This year-over-year increase marks 24 consecutive months of sustained retail sales growth.

“There is no doubt consumers struggled with discretionary spending last month, but many families may be looking at this as a temporary break as they save up for back-to-school shopping in July and August,” NRF president and CEO Matthew Shay said.

“Weak economic numbers over the past few weeks have increased anxiety about the future direction of the economy,” added NRF chief economist Jack Kleinhenz. He said the latest data is “discouraging but not demoralising”.

“If you look at the first half of the year overall, retail sales actually increased 4.6% year-over-year, indicating that the economy is improving but maybe not quick enough to impact consumer spending and job growth.”

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Sports Direct International Full Year Pre-tax Profit Climbs

Thursday, July 19th, 2012

UK retailer Sports Direct International Plc. today (19 July) reported higher profit for the full year, helped by increased revenues.

For the 53 weeks ended April 29 the company booked a 17.3% jump in full-year pre-tax profit to £151.5m from £118.79m. The prior year had only 52 weeks. The company said underlying profit before tax rose to £162.1m in the year ended 29 April.

Sales rose 13% to £1.836bn from 1.6 billion pounds in the prior year. The company noted that 52 week group revenue climbed 13 percent to 1.807 billion pounds with growth across all divisions against tough comparatives.

The UK sports retail division, which includes the Sports Direct, Sports World and Lillywhites brands, saw sales climb 7.9% to £1.3bn, with like-for-like sales increasing 0.7%.

Second-half sales grew 11.2% to £667.7m. Online sales grew 82% to represent 11.6% of total retail sports sales, the company said.

The premium lifestyle division, which includes the Cruise, Van Mildert, USC and Tucci fascias, and was formed during the year after the company acquired USC and Van Mildert, as well as an 80% stake in Cruise clothing, reported £73.5m in sales.

Profit attributable to equityholders of the group climbed to 106.2 million from £84.17m reported last year. Earnings per share grew to 16.70 from 13.93.

Dave Forsey, Chief Executive, said: “Our position as the consumers’ champion, offering an unrivalled depth and breadth of product choice at the best available prices, delivered a record sports retail performance… Trading since the period end has remained in line with management’s expectations where increased investment in margin has been funded by stronger retail sales. We achieved record revenues and growth across all divisions.”

The Board decided not to pay a dividend at this time.

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

JJB Sports seeks further funding as sales slip

Thursday, July 19th, 2012

Shares of JJB Sports Plc plunged around 24 percent in the morning trade on London Stock Exchange after the British sports retailer said its 24 week like-for-like sales decreased 8.7 percent and cash margin decreased by 16.6 percent. JJB Sports also said it is in discussions with its strategic partners on potential requirement to accelerate funding for a turnaround.

Amid the continuing poor macroeconomic environment, the company sees significant reduction in future headroom on working capital facilities and financial covenants, in the short and medium term.

In its Annual general meeting update, JJB Sports noted that sales and cash margins have fallen materially short of expectations in the 24 weeks. The company attributed poor sales of football replica kits and product associated with the European Football Championships and the poor early summer weather for the decline.

On July 9, while announcing an 8 percent decline in 22-week sales, the company had noted that since the beginning of April, it has experienced a deterioration in trading performance against management expectation, particularly during May and June. JJB Sports’ shares had plunged in double-digit rate on the day of that announcement.

In April, the company had warned that there were material uncertainties facing the business which included the company’s ability to continue to implement its business recovery turnaround strategy in light of the macroeconomic environment and its stock profile.

“These factors were seen as critical to the achievability of the Group’s business plan, and were vital in maintaining sufficient headroom on its working capital facilities and financial covenants, but also important in determining the additional funding which had been expected to be required in the first quarter of 2013,” the company said today in its statement.

However, the actions taken by the company to mitigate the trading and cash shortfall did not meet the expectations and the company said its level of future headroom on working capital facilities and financial covenants will be significantly reduced. The company noted that this is likely to accelerate the timing of the additional funding required, which is dependent upon the trading performance of the business and the successful implementation of the management initiatives.

JJB Sports said its newly appointed Deputy Chairman/Chairman elect Bob Corliss is working to review ways in which its trading performance can be improved both in the short and medium term.

Corliss stated, “There is a lot of work to do, and we have hit the ground running. We are continuing to work collaboratively with our business partners to address the challenges faced by JJB.”

Further, JJB Sports said it has refitted 5 stores this year which have shown an increase in sales and cash margin. The results of its ongoing refurbishment program have been encouraging, yet the Board is reviewing the timing of the program in light of the deterioration in trading. The company added that it continues to work with its key strategic partners to refine the refit design and scope. JJB Sports shares are currently trading at 5.71 pence, down 1.80 pence or 23.92 percent in London.

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

Mothercare Q1 on track despite sales slump

Thursday, July 19th, 2012

Children’s wear retailer Mothercare saw its first-quarter sales fall 4.4% today (19 July) on the back of weaker trading in the UK.

Total UK sales for the 15 weeks ended 14 July fell 10.2% and UK like-for-like sales declined 6.7%.

However, Mothercare’s performance abroad continued to offset its UK business. International retail sales were up 11%, with Asia Pacific and the Middle East & Africa seeing the most growth. Worldwide network sales edged up 1.1%.

“First quarter results were in line with our overall plans despite challenging trading conditions in the UK and the eurozone,” said chairman Alan Parker. ”The UK store restructure programme, which is targeting the largest loss-making stores first, is progressing well with a reduction of 16 stores in the quarter.”

Meanwhile, Parker said the company’s cost reduction programme remains on track and is confident in the delivery of its three-year transformation plan.

Over the period, Mothercare opened 25 stores outside the UK, taking the total number of overseas stores to 1,053.

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