Chico’s FAS Inc. posted a decline in second-quarter profits.
For the three months ended Aug. 3, the company said net income fell 18.4 percent to $43.6 million, or 27 cents a diluted share, from $53.4 million, or 32 cents, a year ago. Sales inched up 1 percent to $649.5 million from $641.7 million, although comparable-store sales fell 2.6 percent. By operation, sales at Chico’s/Soma Intimates were essentially flat at $414.7 million versus $414.6 million a year ago. White House|Black Market saw a 5 percent gain to $205.1 million, while Boston Proper posted a 9 percent decline to $29.7 million.
The company said comps for its Chico’s/Soma Intimates brands sales fell 3.1 percent, while the White House|Black Market brand saw same-store sales fall 1.5 percent.
For the six months, net income fell 11.5 percent to $94.7 million, or 58 cents a diluted share, on a net sales gain of 2.1 percent to $1.32 billion.
David F. Dyer, chief executive officer, told Wall Street analysts during a conference call: “Our second quarter performance fell short of our goals....Traffic was our issue with the first quarter due to unseasonably cool weather; traffic was also our issue in the second quarter. We were just not able to drive sufficient traffic to cycle against the record results from the second quarter of last year.”
Dyer explained that, by nameplate, the “Chico’s brand faced a significant challenge up against strong second-quarter comparable sales in 2012. In the end, Chico’s was not able to overcome the record spring 2012 results driven by color, print and pattern.”
White House|Black Market flowed too much color too frequently for the season, he said, adding that “we have returned to more normal color cadence and color palette in our fall assortment.”
At Boston Proper, “Sales were down about 9 percent for the quarter, and although better than the first quarter run rate, the second quarter’s performance was still not up to our expectations.”
Soma continues to perform well, Dyer said, stating “We saw continued momentum at Soma Intimates building upon the strength of its new stunning support bra, which helped us overcome the challenging traffic to drive midsingle-digit comparable-sales increases.”
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast