NEW YORK — Chico’s FAS continued its trend-bucking ways in the second quarter, as it posted double-digit profits, as well as overall and comparable-store sales increases, benefiting from summer transitional merchandise and higher...
NEW YORK — Chico’s FAS continued its trend-bucking ways in the second quarter, as it posted double-digit profits, as well as overall and comparable-store sales increases, benefiting from summer transitional merchandise and higher markups.
The Fort Myers, Fla.-based firm logged a 49.3 percent gain in income for the three months ended Aug. 2 to $24.5 million, or 28 cents a diluted share, 2 cents ahead of the most recent consensus estimates. That compares with year-ago income of $16.4 million, or 19 cents. Sales for the quarter jumped 38.7 percent to $173.4 million from $125.1 million. Sales leapt 14.6 percent on a comp basis.
“We focused on our summer transitional line this year and it paid off in a stronger initial markup and a lower year-over-year markdown rate as reflected in our 62 percent gross margin in the quarter,” Scott Edmonds, president and chief operating officer, said in a statement. “We believe that these results underscore the ongoing appeal of our concept, our fresh merchandise strategy and our excellent marketing strategies.”
As for fall, Patricia Murphy, chief merchandising officer, said on a conference call she is comfortable about third-quarter sales. To date, comps in August are running in the mid-double digits, despite this month’s blackout, which shuttered about 20 percent of its stores for a day or so.
Murphy achieved her goal of developing a separate color palette for the summer months and wear-now clothing after falling short last year by going too dark. “The colors were upbeat and clothes were lightweight,” she said, noting short- sleeve tops and skirts sold well.
The company said it is continuing to make progress in its intimates line, noting it expects to begin test marketing the collection in the second half. It also is expected to close on its recent acquisition of The White House.
For the first half, profits rose 32.3 percent to $47.8 million, or 55 cents a diluted share, compared with income of $36.2 million, or 42 cents. Salesclimbed 34 percent to $342.4 million from $255.5 million. Comps rose 11.2 percent.
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews
“Stranger Things” is getting a new cast member for season 2. Meet @sadiesink_, the 15-year-old who will be joining the Netflix series for its new season. You may recognize her from “The Glass Castle” with Brie Larson and Woody Harrelson, but the Texas native’s next role goes in an entirely different direction. She describes her character, Max, as “a rough and tumble skater girl [who] becomes friends with the boys at school.” The second season debuts on October 27. (📷: @jgreenery) #wwdeye
Amid the Harvey Weinstein controversy, there’s another sector that’s being put under the spotlight for sexual abuse: the modeling industry. While rumors about abuse and sexual harassment of female and male models — and the photographers, agents and others who perpetrated it — have circulated within the fashion world for years, model @cameronrussell started posting stories from models on Instagram last week about abusive situations they’ve encountered — from sexual harassment and molestation to attempted rape. Over 75 have weighed in so far. Read more on WWD.com. Link in bio. #wwdnews
To celebrate its 16th anniversary, @dylanscandybar tapped designers and celebrities to create mosaics out of candy. The mosaics will be auctioned off to support the philanthropic cause of each participant’s choice. Pictured here is the mural created by @aliceandolivia's Stacey Bendet. For a first look at some of the other artwork being unveiled tonight, go to WWD.com. #wwdeye
The annual Veuve Clicquot Polo Classic in Pacific Palisades this weekend drew Kate Hudson, Tracee Ellis Ross, Laura Dern and more. See pictures of the star-studded event on WWD.com. (📷: @chelsealaurenla) #wwdeye
In his new book “Hollywood Royale,” Andy Warhol’s Protégé Matthew Rolston celebrates the Eighties revival of Hollywood glamour. Featuring more than 100 portraits taken by Rolston from 1977 to 1993, the book contains photos of icons like Michael Jackson, Cyndi Lauper, and @drewbarrymore, pictured here in 1991. “Hollywood Royale,” out today, will be accompanied by an exhibition opening at Los Angeles’ Fahey/Klein Gallery on March 1. #wwdeye
"Nowadays when life is not so happy with everything going on in the world, I think people come to me for a little bit of whimsy and color and fun." - Designer Rebecca De Ravenel on her cult-favorite jewelry line. (📸 : @vsteves) #wwd40
“Everyone is talking about how the retail industry is struggling, but I think it’s an incredible time because brands who are doing something different and innovative are setting themselves up for the future,” said @adamgoldston, who founded the luxury athletic brand @apl with his brother @ryangoldsten. The Goldston’s are part of WWD’s 40 under 40: a group of industry notables. See the rest of the list on WWD.com. (📷: @vsteves) #wwd40
@eyeswoon blogger Athena Calderone debuted her first-ever cookbook, “Cook Beautiful,” which is heavily centered on the presentation and visual expression of food. Pictured here are her miso glazed carrots from the book. Get the recipe on WWD.com. (📷: @johnny_miller_) #wwdeye