American Eagle Outfitters Inc.’s stock rose more than 5 percent Wednesday after the teen apparel retailer said fourth-quarter profits rose 46.7 percent and that it was seeking a new chief executive officer.
The company, which has been struggling to stand out on both the price and merchandise fronts in fierce competition with rivals Abercrombie & Fitch Co. and Aéropostale Inc., said ceo James O’Donnell would retire, a move welcomed by a number of analysts. Shares closed at $15.56, up 76 cents, or 5.1 percent.
In other earnings news Wednesday, The Bon-Ton Stores Inc. exceeded analysts’ EPS consensus estimates by 11 cents, sending its stock up 10.5 percent, while Coldwater Creek Inc. fell short of estimates in results disclosed after the close of the market, sending shares down sharply in after-hours trading. The S&P Retail Index pulled ahead 0.7 percent to 510.30 while the major indices gave up ground. With crude oil prices continuing to move up, the Dow Jones Industrial Average fell less than 0.1 percent to 12,213.09 on the second anniversary of the index’s lowest point since April 1997. The market is currently 89.6 percent higher than the 6,440.08 intraday low hit on March 9, 2009.
American Eagle recorded net income of $87 million, or 44 cents a diluted share, for the three months ended Jan. 29, 1 cent better than analysts expected. Year-ago net income was $59.3 million, or 29 cents. Excluding a year-ago loss from discontinued operations, income totaled $87 million versus $79.6 million a year earlier.
Sales for the quarter fell 4.2 percent to $916.1 million from $955.8 million. Comparable-store sales declined 7 percent, as gross margin shrank to 39.4 percent of sales, compared with year-ago margin of 41 percent.
O’Donnell, 70, will remain with the Pittsburgh-based company until a successor is appointed. A veteran of Gap Inc., he’s been with the retailer for 11 years as chief operating officer, co-ceo and for the past eight years as ceo.
Snubbed by holiday shoppers, Coldwater Creek reported that its fourth-quarter loss grew to $37 million, or 40 cents a diluted share, 14 cents worse than analysts expected, from a loss of $9.7 million, or 11 cents.
The Sandpoint, Idaho-based company said net sales sunk 20.8 percent to $252.1 million, from $318.4 million, in the year-ago period. Comps fell 20.5 percent while gross margin contracted to 24.1 percent of sales from year-ago margin of 28.4 percent.
Reflecting on a number of changes in staffing and merchandising, chairman and ceo Dennis Pence said 2011 would be a “transitional year,” adding, “We believe that we are taking the right steps to reinvigorate our brand and enhance our merchandise appeal.”
At Bon-Ton, based in York, Pa., net income rose 5.9 percent to $85 million, or $4.41 a diluted share, from $80.3 million, or $4.34, last year. Analysts polled by Yahoo Finance expected EPS of $4.30.
Total revenues rose 0.7 percent to $1.03 billion from $1.02 billion, which included a 0.8 percent increase in sales to $1.01 billion from $1 billion last year and a 0.8 percent rise in comparable-store sales.
The company reversed a loss in 2009 by posting year-end profits of $21.5 million, or $1.12 a diluted share, as revenues inched up 0.4 percent to $3.05 billion from $3.03 billion.
Shares skyrocketed $1.62 to close at $17.04 Wednesday.
My character, Dinah Madani, is just the coolest, [most] badass woman imaginable," says @amberroserevah. The actress stars in @marvel's newest series on @netflix, @thepunisher. To prepare for her role, Revah sat down with Homeland agents to get a real sense of with Dinah's day-to-day life is really like. Read our full interview on WWD.com. #wwdeye (📷: @jilliansollazzo)
A scene from the 91st annual @macys Thanksgiving Day Parade. The parade, which boasts 50 million TV viewers and 3.5 million on-site spectators, is considered one of the largest and most watched parades in the world. (📷: Jason Szenes/EPA-REX)
The circus came to @bloomingdales 59th Street on Tuesday night and lit up Lexington Avenue with acrobatic dancers, death-defying knife throwing, sword swallowing and aerial acts with no net. The 45 minutes of theatrics built up to unveiling the holiday windows depicting @swarovski crystal-encrusted circus pieces and scenes from “The Greatest Showman” – songs from the soundtrack included. See the rest of the photos on WWD.com #wwdfashion (📷: Joshua Scott)
The psychedelic fashion that pervaded the ’60s is back with an exhibit at the @museumofcityny. “Mode New York: Fashion Takes a Trip” chronicles the changing styles from 1960 through 1973 and features designers such as @ysl, @oscardelarenta and more. The exhibition, which is on display through April 1, is organized into four periods: First Lady Fasion, Youthquake, New Bohemia and New Nonchalance. Pictured here is model Pat Bardonella during the Garvey Day Parade in 1968. (📷: @kwamebphoto) #wwdeye #wwdfashion
“People should be a lot more honest in expressing both the dark and light of themselves. We need to give each other the space to do that because it’s the only way we can grow and evolve,” says @noelwells of her new film “Mr. Roosevelt,” which is largely based on her own struggles. Unexpectedly leaving @nbcsnl in 2014 after just one season, Wells felt set back in her self-esteem and career trajectory. She quickly refocused her energy to more personal projects, which led to the completion of “Mr. Roosevelt.” Read the rest of WWD’s interview with the “Master of None” actress on WWD.com #wwdeye (📷: @jilliansollazzo)
@barbrastreisand is giving fans a chance to see her perform up close in a new concert series, which makes its debut on @Netflix today. From behind-the-scenes takes to her concert performance in Miami last December, the two-hour streaming special captures Streisand in her element. Pictured here is the singer/actress photographed for WWD in 1963. (📷: Palmieri Tony) #wwdeye #wwdarchive
@chanel and @pharrell dropped what’s being dubbed as the world’s most exclusive sneakers yesterday. The Adidas Originals NMD Hu, which Williams designed in collaboration with Chanel and @adidasoriginals, has a waiting list of over 120K people who pre-registered online at chanelatcolette.fr –– and only 500 pairs are on sale. The singer predicted the resale value of the shoes could reach $40K. Read the full interview on WWD.com. Link in bio. #wwdfashion (📷: Dominique Maître)
@imanshumpert is diving deeper into his creative endeavors and relaunching his clothing line, Post 90s, and is helping to raise money for the hurricane victims in St. Maarten with a jersey he’s designed with his brother. The Cleveland Cavaliers player talked to WWD about kneeling during the national anthem, working with fashion brands and how he wants to be more than an @nba player. Read the interview on WWD.com #wwdfashion (📷: George Chinese)