Robert Hanson’s vision for American Eagle Outfitters Inc. includes a foray South of the Border.
Hanson, who took the reins as chief executive officer in January, said the company would open at least four stores in Mexico next year, beginning in the spring.
“Based on extensive research and our leading border stores, we have strong brand acceptance and believe Mexico presents growth and high return on invested capital potential,” Hanson told analysts on a conference call detailing second-quarter results, which were strong enough for the company to boost its annual outlook.
“We recently launched our online business in Mexico so we can bring a complete multichannel experience to our customers,” Hanson said. “We view Mexico as an important pilot which will inform our longer-term approach to global expansion.”
Hanson plans to lay out more of his vision for the company to Wall Street in October, but said American Eagle will fortify its brands in North America, setting the stage for “transformational growth, which includes multichannel global expansion and a true 360-degree customer engagement model.”
The company’s second-quarter profits slipped to $19 million from $19.7 million a year earlier and earnings per share were flat at 10 cents. Excluding the 77kids business, which was sold off, earnings rose to 21 cents a share, in line with the retailer’s guidance earlier this month. Sales advanced 10.5 percent to $739.7 million from $669.1 million.
American Eagle boosted its annual EPS guidance for continuing operations to a range of $1.33 to $1.36, up from the $1.16 to $1.22 projected in May. That was enough to push the stock up 6.2 percent to $22.13.
Also reporting Wednesday were Chico’s FAS Inc. and Express Inc. Chico’s also impressed investors, although Express’ outlook disappointed. Here’s a rundown of results for the quarter ended July 28.
• Chico’s net income rose 23 percent to $53.4 million, or 32 cents a share, from $43.4 million, or 25 cents, a year earlier. Earnings came in 2 cents better than the 30 cents analysts expected. Total sales increased 16.4 percent to $641.7 million from $552.4 million.
Shares of the company rose 6.6 percent to $18.21.
The company has 1,327 stores and outlets under the Chico’s, White House|Black Market and Soma Intimates banners.
David Dyer, president and ceo, said the company opened 31 stores so far this year. “These new stores are exceeding our sales expectations and were our first priority as we allocated total inventory since first-year sales are a major indicator of the long-term success for a given location. So in all likelihood, we left more than a few comparable sales dollars on the table.”
• Express’ earnings rose 26.1 percent to $15.9 million, or 18 cents a share, from $12.6 million, or 14 cents, a year earlier. Profits per share were 1 cent ahead of the 17 cents analysts expected. Sales inched up 2 percent to $454.9 million from $446 million.
Michael Weiss, chairman, president and ceo, said the company continued to open stores and maintain double-digit growth in e-commerce, but sought to tamp down expectations for the rest of the year.
“As we begin the second half of the year, we believe it is prudent to set our guidance more conservatively and in line with the trend we experienced in the second quarter,” Weiss said. “We remain confident in our strategies and expect the disciplined execution against our growth pillars to result in another year of growth for Express.”
The chain cut its annual EPS outlook to a range of $1.69 to $1.79, down from the $1.79 to $1.89 projected in May. Investors reacted strongly, pushing the stock down 11.1 percent to $15.03.
• After the market closed, Pacific Sunwear of California Inc. said second-quarter net losses narrowed to $17.5 million, or 26 cents a share, from $19.3 million, or 29 cents, a year earlier. Sales rose 4.7 percent to $210.3 million from $200.9 million.
@fearofgod and @maxfieldla have teamed up on a pop-up installation. The store, located in the gallery space across from Maxfield’s Melrose Ave location, is the site of the brand’s House of God pop-up in which Fear of God founder @jerrylorenzo has created a church-inspired installation. A dozen vintage church pews sit in front of an LED screen playing 90s gospel singers in an effort to re-create an environment akin to a Southern Baptist Church, Lorenzo explained. Read more about the pop-up on WWD.com #wwdfashion (📷: Jennifer Johnson)
Known for his sleek, sophisticated American glamour, Norman Norell is the subject of an upcoming exhibition at @fitnyc. “Norell: Dean of American Fashion,” which runs from February 9 through April 14, will feature approximately 100 ensembles and accessories. His best work is exemplified by the designer’s glittering “mermaid” gowns frosted with thousands of hand-sewn sequins – like the one pictured. (📷: William Helburn) #wwdfashion
For pre-fall 2018, @balmain didn’t let go of the glitz. A crystal embroidered baseball jacket priced at around $40,000 hangs in the “couture” section of the brand’s first men’s pre-collection. Sporting the words “Balmain Army” across the back, the item took around two months to make. “When it was completed, it was like Christmas, it was like, ‘It’s done, it’s exactly what I wanted,’” said Balmain’s creative director @olivier_rousteing during a tour of the collection in a Paris showroom on Monday. #wwdfashion
Eighty degree temperatures and outdoor installations at the annual Art Basel Miami Beach called for bright, elevated beachwear. See more street style pictures on WWD.com. #theyarewearing #ABMB (📷: @lifeinreverie)
Following September’s emotional tribute to her brother Gianni, Donatella Versace wanted to bring the spring show’s deep sense of intimacy to her @versace_official pre-fall collection. Donatella found inspiration in Versace Palazzo in Milan and from Gianni’s opulent apartment. Archival patterns and new motifs were splashed on silk shirtdresses and fitted jersey frocks. See the rest of the photos on WWD.com. #wwdfashion
Demna Gvasalia continues to shake up the Paris fashion calendar — and experiment with new runway timetables for his @vetements_official brand. WWD has learned that Vetements plans to stage its next coed show for the fall 2018 season on January 19 during Men’s Fashion Week in the French capital. Details about the timing and venue have not been confirmed — stay tuned on WWD.com to catch the latest. #wwdnews (📷: @giovanni_giannoni_photo)
@zacposen's go-to holiday gift? Cookies! "I'll usually bake cookies and send them as a gift," said the designer, who recently released his cookbook "Cooking With Zac: Recipes from Rustic to Refined." Get the recipe for his Brown Butter-Chocolate Chip Cookies via link in bio 🍪🍪🍪 #wwdeye #cookingwithzac
For @monsemaison’s pre-fall 2018 collection, Fernando Garcia and Laura Kim honed in on the brand’s many signatures — men’s wear, which was tweaked and feminized through deconstruction, proportion play and lots of bare shoulders. See the rest of the photos on WWD.com #wwdfashion (📷: George Chinese)
On Friday night, @yohjiyamamotoofficial received the Design for Asia Lifetime Achievement Award in Hong Kong. The 75-year-old designer has been celebrated for many years and is best known for his dark and avant-garde tailoring. “In my long career, in design, architecture, [I’ve been to] so many parties, this is the very first time that I have such a warm feeling, I really appreciate this,” Yamamoto said. #wwdfashion (📷: @dominiquemaitre)