Business Update: Economic Conditions Hamper Results
Higher gas prices, sagging consumer confidence and the prospects of higher energy costs this winter is making conditions at retail difficult for retailers and vendors alike. Talbots, Coach, Dress Barn and others all warned of the expected negative...
Higher gas prices, sagging consumer confidence and the prospects of higher energy costs this winter is making conditions at retail difficult for retailers and vendors alike. Talbots, Coach, Dress Barn and others all warned of the expected negative impact of macroeconomic forces on business.
As a result, some companies are repositioning themselves to weather the storm. Late last month, management at Jones Apparel Group Inc. said the company is not for sale and reiterated that the firm's core brands will be key to its success.
Wesley R. Card, chief executive officer of Jones, told WWD that the company has a three-pronged business focus: people, product and execution. "I'm not a designer and not, technically, a merchant," said Card. "But I can see the difference between a good product and a bad product....Our goal is just to be the best supplier to retailers."
For the third quarter period, Jones' bottom line jumped to $400 million on the sale of Barneys New York. This compares to $63 million in the prior year. Total revenues slid to $1.03 billion from $1.08 billion.
That same week, Liz Claiborne Inc. posted net income that fell 65 percent in the third quarter. The drop came as retailers canceled orders. For the three months ended Sept. 29, net income fell to $33.1 million, or 33 cents a diluted share, from $95.2 million, or 93 cents, in the same period last year as sales shed 4 percent to $1.26 billion from $1.31 billion.
William L. McComb, ceo, told WWD that "the environment is tough and retailers are being conservative."
Meanwhile, Dress Barn Inc. lowered its full-year guidance based on declining same-store sales estimates.
The company said it expects full-year guidance for diluted earnings per share to be between $1.25 and $1.35. This companies to a prior forecast of $1.40 to $1.50. The company also lowered first-quarter diluted EPS expectations to the range of 30 cents to 32 cents.
A grooming moment between @tanfrance and @antoni last night at the The LGBT Community Center Trailblazer Awards honoring Anna Wintour, Ricky Martin and more. See more photos at WWD.com #wwdeye (📷: @lexieblacklock)
“It was a very surreal feeling. It wasn’t like we were in the studio together coming up with it — it’s more like he discovered it and loved it. I didn’t let myself get my hopes up, but then it happened it was very exciting,” said singer-songwriter @nombe on discovering that @pharrell would be using his song, “Cant Catch Me” on his HBO documentary series “Outpost.” The German-born singer — named Noah MacBeth — talked to WWD about feminism, using art as a platform for political expression and personal style. Read more on WWD.com #wwdeye (📷: @jilliansollazzo)
This season, denim is going west – in influence. Brands like @fathersdaughterla (pictured here), @tommyhilfiger Jeans, @levis and more are opting for raw, top-stitching styles. (Styled by @thealexbadia; 📷: @ryanplett)
20-year-old British singer @jorjasmith_ made her debut at Coachella last weekend. We caught up with her and talked about her love for Amy Winehouse, working with Kendrick Lamar on the “Black Panther” album and her fashion philosophy. Read the interview on WWD.com #wwdeye (📷: @katiedaisyla)
Supermodel @helenachristensen teamed up with longtime friend and designer @camillastaerk on a joint @paredeyewear collaboration. The lineup features three styles and 11 offerings, all of which embody a vintage feel. Get all the details on how they celebrated the collab on WWD.com. #wwdaccessories #wwdeye (📷: @slovekinpics)
“It’s a hard industry to keep motivated, as well, so finding different subjects and people is what makes it worth it – when you’re like, oh, I’ve met great people, I feel like I’ve done something good, and I feel proud of having done this,” said French actress Stacy Martin on being grateful for the variety of roles she’s take on. Read @ktauer’s full interview with Martin on her her latest film “Godard Mon Amour.” #wwdeye (📷: @danieldorsa)