The weakening business environment and accounting quirks took their toll on the fourth-quarter results of Signet Jewelers Ltd., parent to Kay Jewelers and Jared the Galleria of Jewelry.Also on Wednesday, Delia’s Inc. reported a fourth-quarter profit, largely from the sales of its skateboard catalogue business, and Citi Trends Inc. reported higher profits for the quarter and also named David Alexander, president and chief operating officer, to succeed Ed Anderson as chief executive officer upon Anderson’s retirement April 4.In the three months ended Jan. 31, a $516.9 million charge to write down the value of legacy acquisitions led Signet to a net loss of $424 million, or $4.97 a diluted share, versus year-ago earnings of $143 million, or $1.65. Based in Hamilton, Bermuda, Signet changed the way it handles its books after switching the primary listing of its shares to the New York Stock Exchange and adopting U.S. generally accepted accounting principles, or GAAP. Most of the goodwill that was written off related to acquisitions made in 1990 and before.For the quarter ended Jan. 31, sales fell 18.9 percent to $1.12 billion from $1.38 billion. For the full year, Signet’s losses of $393.7 million, or $4.62 a diluted share, compared with earnings of $219.8 million, or $2.55, a year earlier. Sales dropped 8.8 percent to $3.34 billion. U.S. sales accounted for $2.54 billion of the total.“Given the very challenging environment, the group has made an encouraging start to fiscal 2010,” said Terry Burman, ceo. “In the U.S., same-store sales for the first seven weeks were down 2.7 percent….In the U.K., same-store sales for the first seven weeks were down 3.8 percent.”The relatively upbeat assessment of sales in the new year helped to lift shares of Signet $1.22, or 10.8 percent, to $12.50.While charges threw Signet to a loss, the sale of its CCS skateboard catalogue business to Foot Locker Inc. allowed Delia’s Inc. to more than triple its fourth-quarter profits.Net income for the three months ended Jan. 31 soared 275.8 percent to $22.6 million, or 73 cents a diluted share, compared with $6 million, or 19 cents a share, in the year-ago period. Excluding the aftertax impairment and restructuring costs related to the sale of the CCS business on Nov. 5, the firm registered a net loss of $873,000, or 3 cents a share. Revenue grew 0.1 percent to $67.2 million, from $67.1 million a year earlier. Retail sales increased 6.9 percent to $33.9 million, while direct sales fell 6 percent to $33.3 million. For the year, the retailer had net income of $17.2 million, or 55 cents a share, versus $2.3 million, or 8 cents a share, in 2007. Net sales rose 7 percent to $215.6 million, from $201.6 million. Value-priced retailer Citi Trends posted a 20 percent leap in fourth-quarter profits. Net income moved to $10.1 million, or 70 cents a diluted share, versus $8.4 million, or 59 cents a share, in the year-ago period. Net sales grew 8.9 percent, to $146.6 million from $134.6 million, but fell 1.9 percent on a same-store basis. Analysts were looking for earnings per share of 55 cents on sales of $146.6 million, according to Yahoo Finance. For the year, net income grew 22.3 percent to $17.4 million, or $1.22 a share, compared with $14.2 million, or $1 a share, in 2007. Revenues increased 11.6 percent, to $488.2 million from $437.5 million. Following his retirement, Anderson will remain with Citi Trends as executive chairman as well as chairman of the company’s real estate committee.
To celebrate Pride 2018, @themarcjacobs released the #GratefulNotHateful campaign, a social media initiative aimed at extending Pride beyond the parade. Inspired by Jacobs’ everyday outlook, the campaign features Jacobs along with a group of models and social media stars who are members and supporters of the LGBT community, all seen wearing @marcbeauty’s Highliner Gel Eye Crayons in colors of the rainbow. Head to our Instagram stories to see close-ups of the liner. #wwdbeauty
Virgil Abloh’s dad Nee and Don Crawley, cofounder of RSVP Gallery, were some of the hometown crew at the Chicago-born designer’s debut show for Louis Vuitton. (📸: @jdiderich ) #wwdmens #louisvuitton #virgilabloh
About last night: @marycharteris and @adwoaaboah hit up Hyde Park for the Serpentine Galleries’ annual summer party held in partnership with @chanelofficial. Head to WWD.com to see more photos. #wwdfashion
“This is Paris, my first show. I’m all about democracy. If some kid shows up, flew from New Jersey to just be around, let’s get him a seat.” — @virgilabloh tells WWD’s @jdiderich ahead of his first show for @louisvuitton men’s. (📸: @alfredo_piola ) #wwdmens #virgilabloh #louisvuitton
“Kate Spade was a true fashion icon who brought joy to the lives of women around the world, and inspired women to live life to the fullest. We are dedicated to carrying on her legacy,” said Anna Bakst, brand president and chief executive officer of @katespadeny. The Kate Spade Foundation announced that it will be donating $1 million to suicide prevention and mental health awareness in tribute to the recent death of Kate Spade. Read more on WWD.com. #wwdnews (📷: @chinseephoto)
A first look at @virgilabloh’s sneakers for @louisvuitton. Abloh spoke to WWD about his debut collection for Louis Vuitton, creating @kendalljenner’s #metgala outfit and redefining the heritage brand. Read the full story on WWD.com. #wwdfashion 📷: @alfredo_piola)
The world’s largest producer of denim @iskodenim is sharing the strategy behind its product development process. Read our full interview with ISKO’s product development manager Baris Ozden on the company’s extensive research practices, upcoming denim trends and the latest material innovations on WWD.com. #iskodenim