American Eagle has been trimming it store base to do more with less.
Shares of American Eagle Outfitters Inc. rose 6.2 percent in early-morning trading after the company reported second quarter results that bested Wall Street’s estimates, even though profits dropped by nearly half from a year ago.For the three months ended July 29, the teen retailer posted a 48.9 percent drop in net income to $21.2 million, or 12 cents a diluted share, from $41.6 million, or 23 cents, a year ago. Excluding restructuring charges, adjusted earnings per share was 19 cents for the quarter. Net revenues rose 2.7 percent to $844.6 million from $822.6 million. Comparable-store sales rose 2 percent on top of a 3 percent gain last year.Wall Street ‘s consensus estimate was EPS of 16 cents on revenues of $824.0 million.Shares of American Eagle were at $11.91 shortly after the markets opened.Jay Schottenstein, chief executive officer, said the company “achieved sales and earnings above our expectations in a challenging retail environment. Sales trends improved and I’m proud of the continued growth in jeans, bottoms, women’s apparel and Aerie, with encouraging signs in men’s tops beginning to emerge.”The ceo said the company remains focused on delivering product innovation and strengthening its engagement with customers.The company said its capital expenditure for the quarter totaled $46 million. It said it continues to expect fiscal year 2017’s capital expenditures in the range of $160 million to $170 million. Half of that spend is expected to be for store remodeling projects and new store openings, while the balance will be used to support the e-commerce business along with “general corporate maintenance,” the company said.Expecting comps to range flat to up low single digit, the company guided third quarter EPS to the range of 36 cents to 38 cents. It said guidance excludes possible asset impairment and restructuring charges. The year ago EPS was 41 cents.The company opened nine Aerie stores, with seven in new markets. It also opened six American Eagle stores, with two in Mexico and four in the U.S. Further, there were nine international licensed stores opened and three that were closed. For the second half, the company plans to open another five American Eagle stores and five Aerie stores in the U.S., Canada and Mexico, along with 32 international licensed stores. It also said the company is on tract to close a total of 25 to 40 stores this year.
@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
@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)
Not only does #TheProfit return to CNBC tonight, but @marcuslemonis has launched @shopmarcus, a new shopping and lifestyle retail experience in Aspen and Chicago, with more locations to come. The retail stores offer in-store stylists and a variety of contemporary womenswear selections.
“It’s life, I’m going to face it,” @mingxi11 sighed. “I fell, but you know, I think the most important thing is that I get back up. I had the love, the help from my sister — the girl next to me Gizele [Oliveira] — she’s so nice. When I went backstage everybody was trying to comfort me like ‘Oh Ming, it’s OK.’ I’m really, really touched. I think it’s them who gave me the courage to go back on stage for the finale,” Xi told WWD of her fall at the @victoriassecret fashion show. (📷: David Fisher) #wwdfashion #vsfashionshow #victoriassecret
@louisvuitton tapped @therealpeterlindbergh for its latest city-centric photo book, which is part of a series called Fashion Eye. The primarily black and white book captures the spirit of Berlin in 57 images shot between 1989 and 2019. “Berlin is an inspiration for me, more than a city. I mean @millajovovich is simply Berlin!” said Lindbergh. #wwdfashion
“You know, I think audiences expect a certain performance so I have to deliver to them what they’re expecting to a certain degree. But I’m also a different actor and a different person, I have my own spin on the character,” says @noahegalvin of his takeover of the leading role in “Dear Evan Hansen” following the departure of @bensplatt, who originated the role. Read WWD’s interview with the 23-year-old actor on WWD.com #wwdeye (📷: @jilliansollazzo)
For pre-fall 2018, @etro created richly-colored wonderland, using tapestries, textiles and wallpapers from the Eastern world at large. The line featured floral and graphic prints and jacquard motifs, like this two-piece look featured here. #wwdfashion (📷: Giovanna Pavesi)
@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
“I just wanted to create this fully rounded character, but I do think what excited me most was just the opportunity to give a group of people representation that I feel needs it. I like to do characters in projects that stand for something and Karolina definitely does, so that was really exciting to me,” @ginnygardner says of her new role in @hulu’s “The Runaways.” Gardner plays Karolina Dean, a queer superhero, which is a rarity for @marvel. Read more about Gardner’s character on WWD.com #wwdeye (📷: @dandoperalski)