A continued focus on managing inventories was one of the themes from among several of the specialty stores that posted second-quarter results on Thursday.
Driven by strong back-to-school merchandise assortments, second-quarter profits surged 43.2 percent on Thursday for teen retailer Aéropostale Inc.
For the quarter ended Aug. 2, the New York-based company posted profits of $21.1 million, or 31 cents a share, compared with profits of $14.7 million, or 19 cents, for the same year-ago period, meeting analysts’ expectations. Net sales jumped 21.2 percent to $377.1 million, from $311.2 million for the comparable period last year. Same-store sales jumped 11 percent compared with a decrease of 4 percent last year.
“Our back-to-school merchandise assortments have been positively received by our customers, and we believe that we are well positioned as we head into the second half of the year,” said Julian R. Geiger, chairman and chief executive officer.
The mall-based specialty retailer said it anticipates third-quarter earnings per share in the range of 59 cents to 61 cents a diluted share. Analysts polled by Yahoo Finance estimate Aéropostale’s EPS to be 60 cents a share.
Pacific Sunwear of California Inc. turned a corner, reporting second-quarter earnings of $2.8 million, or 4 cents a share, after losing $10.5 million, or 15 cents, in the same period last year, yet the company still missed analysts’ estimates.
The Anaheim, Calif.-based company reported profits from continuing operations of $3.71 million, or 6 cents a share, down from $9.26 million, or 13 cents a share, last year. Analysts surveyed by Yahoo Finance anticipated EPS of 6 cents. Sales were up by 0.3 percent to $312.7 million, compared with $311.8 million last year.
“Although our earnings for the second quarter were in line with our expectations, our results continue to reflect the impact of a weakening economy on the retail sector,” said ceo Sally Frame Kasaks. “With the possibility of an even tougher environment ahead, we plan to maintain strong operating discipline while weathering these economic headwinds in order to position our business for success when the environment improves.”
The Wet Seal Inc. posted a 50 percent jump in income to $10.1 million, or 10 cents share, from $6.8 million, or 7 cents, last year. Sales gained 4 percent to $149 million from $143.3 million. Consolidated comps fell by 4.4 percent, while comps for Wet Seal fell by 1.8 percent, and for Arden B. by 13.8 percent.
Ed Thomas, ceo, said ongoing cost and inventory management initiatives helped the firm generate operating margins of nearly 8 percent of sales, and that it will need to continue to manage costs and inventory at least through yearend, due to the sluggish retail environment.
Action-sports retailer Zumiez Inc. saw its second-quarter results fall by 13.6 percent to $4.1 million, or 14 cents a diluted share, from $4.7 million, or 16 cents, in the same year-ago quarter. Sales rose 13.2 percent to $171 million from $150.8 million, while comps declined by 1.7 percent versus the 11.6 percent gain a year ago.
Rick Brooks, president and ceo, said, “We continue to make positive strides in our ongoing efforts to give our customers a unique specialty retail experience, while controlling costs and effectively managing inventories during this very difficult operating environment.”
The retailer lowered its fiscal 2008 earnings outlook to between 80 cents and 82 cents a diluted share from its previous expectations of between 90 cents and 93 cents, due to the ongoing lackluster macroeconomic environment.
Second-quarter results were for the period ended Aug. 2.
Bebe Stores Inc., which reported fourth-quarter results Thursday, said profits shrunk 18.7 percent as both same-store sales and gross margins declined.
For the quarter ended July 5, the Brisbane, Calif.-based company posted income of $16 million, or 18 cents a share, compared with earnings of $19.7 million, or 21 cents, for the same period in 2007. Same-store sales declined 5.6 percent on top of the 5.7 percent decrease for the comparable quarter last year. Gross margin as a percentage of total sales dipped to 45.8 percent, compared with 48.1 percent a year ago, due to increased inventory, outbound freight expense and unfavorable occupancy leverage.
EXCLUSIVE: @tomford is opening its first-ever beauty store. The boutique, which opens November 20 in London’s Covent Gardens, was designed with the over-the-top glam Ford is known for. Read the full story on WWD.com, link in bio. #wwdbeauty #wwdnews (📷: Simon Wagner) #TomFordBeauty
New York-based DJ @harleyvnewton threw a party to celebrate the holiday collection of her dress and pajama line @hvn at the Ladurée Beverly Hills. It Girls @katebosworth, @rashidajones and more joined in on the fun, which included cocktails, croque monsieur sandwiches and a photo booth. #wwdfashion (📷: Owen Kolasinski/BFA.com)
For the holidays, @Burberry partnered with 20-year-old artist @blondeymccoy on a series of three outdoor murals in downtown Manhattan. The murals are McCoy’s interpretation of a Christmas eve party, the idea of charity and the spirit of family. His third mural, pictured here, is the most personal. The image depicts McCoy’s grandparents and father in London’s Trafalgar Square in the Seventies. “My work often features lots of sentimental objects.” #wwdeye
For spring 2018, designers applied bold colors and cartoonish motifs on everything from sneakers and belts to key chains. See all the top men’s accessories trends on WWD.com. #wwdtrends (📷: George Chinsee; Prop Styling by @rnasti; Market Editor: @luiscampuzano)
The @dior-sponsored @guggenheim international gala pre-party has a history of drawing cool-girl musical acts to serenade the crowd –– and last night was no exception. @haimtheband performed songs both new and old, and lured a star-studded audience with the likes of Rebecca Hall, Kate Mara, Mamoudou Athie and more. #wwdeye (📷: @lexieblacklock)
In a partnership between the @metopera and the @englishnationalopera, “Marnie” was born. The opera, with costumes sponsored by @mrporterlive, is an adaptation of the 1961 thriller by Winston Graham. Arianne Phillips, who created the costumes, is no rookie: She’s styled Madonna for her tours and created costumes for a myriad of films in the past. Read WWD’s interview with Phillips, where she talks about her inspiration for the opera’s costumes on WWD.com #wwdfashion
@barneysnyc took a different approach to their holiday windows this year. Instead of Christmas decor, Barneys tapped @thehaasbrothers to tell a story of positivity, gratitude and inclusivity via heartwarming silliness and humor. “It’s about kids and it’s about coming together and being family and loving each other,” said Simon Haas. #wwdfashion (📷: @joshuascottphoto)
Beauty influencer @kandeejohnson makes her foray into hair care with a collaboration with @ogx_beauty — making it the first time that OGX has teamed up for a product creation. The collab includes shampoos and conditioners in three scents. At 39 and a mom, Johnson is a different profile than the emerging social media stars, but is considered one of the pioneers of the digital beauty influencer world. Read WWD’s interview with her on wwd.com, including the strangest beauty product she’s ever tried #wwdbeauty