NEW YORK — Retailers reporting second-quarter results Thursday delivered, for the most part, mixed results, with Stein Mart Inc. posting profits that doubled.
The Jacksonville, Fla.-based retailer reported net income of $11.6 million, or 26 cents a share, for the second quarter ended July 30, which is up from $5.7 million, or 13 cents a share, for the same period last year. Net sales for the quarter climbed 5.1 percent to $337.1 million from $320.6 million last year. Comp-store sales in the quarter grew 3 percent over the prior year.
In its quarterly report, the retailer cited decreased markdowns as one element driving its positive results. "We experienced strong, regular-price selling of our fashion assortment through the spring-summer season and continue to enjoy early success with our transition and fall assortment due to the continual flow of fresh merchandise into the stores," said Michael D. Fisher, president and chief executive officer, in a statement.
For York, Pa.-based Bon-Ton Stores Inc., results were not as good. The company reported a net loss of $1.4 million, or 9 cents a share, for the second quarter ended July 30. In the prior year, Bon-Ton had a net loss of $388,000, or 2 cents per share. The second-quarter loss in 2005 includes an after-tax charge of 4 cents a share from the sale of the company's proprietary credit card operations. Total sales for the most recent quarter declined 3.5 percent to $274.3 million from $284.2 million a year ago. Comp-store sales decreased 3 percent.
James H. Baireuther, vice chairman and chief administrative officer of Bon-Ton, attributed the declining numbers to the sale of "non-go-forward" merchandise during the spring months. "These goods generated nonrecurring clearance sales of approximately $27 million in the first half of 2004. The replacement of sales from new merchandise did not occur to the degree we had anticipated," he said. Baireuther also said cooler weather in May had a negative impact on apparel sales.
Specialty retailer Aéropostale Inc. also had a disappointing quarter. The company reported a decline in net income to $7.5 million, or 13 cents a share, for the quarter ended July 30, down from $10.9 million, or 19 cents a share, in the same period last year. Net sales for the quarter increased 19.5 percent to $232.8 million from $194.9 million. Comp-store sales decreased 2.2 percent in the quarter versus a year-ago gain of 20 percent."We are clearly disappointed with our performance for the second quarter," said Julian Geiger, chairman and ceo, in a statement. "While we were able to manage our expenses carefully, our sale and gross margins in certain key classifications were significantly below our plan. As a result of this shortfall, our inventories at the end of the second quarter were higher than we initially anticipated."
For regional discounter ShopKo Stores Inc., based in Green Bay, Wis., the second quarter showed significant profit gains. The company reported a 39 percent increase in earnings to $11.5 million, or 38 cents per share, from $8.3 million, or 28 cents, for the same period last year. Net sales for the quarter decreased 5 percent to $737 million from $775.6 million. Same-store sales also declined, dropping 5.6 percent from the same period last year.
A company statement attributed results for the quarter to a higher gross margin resulting from profitable sales and promotional activity; a decrease in capital expenditures due to reduced store remodeling activity; a reduction in debt levels; and a gain on the sale of three stores that partially offset merger-related costs.
Meanwhile, second-quarter net income for Stage Stores Inc. increased 20.4 percent, to $6.5 million, or 33 cents a share, from $5.4 million, or 27 cents a share, for the same period last year on revenue that grew 10.5 percent to $309.4 million from $279.9 million. The improved results were attributed to the company's comparable-store sales growth of 7 percent for the quarter along with sales from new stores.
@tradesy is turning the concept of a showroom upside down with its new space in Santa Monica. Here, the company plans to hold events, art exhibits and a showcase rare fashion pieces like this Louis Vuitton boxing set. Get all the details on Tradesy’s first showroom on WWD.com. #wwdnews
Spotted last night at the @erdem x @hm launch event: Kate Bosworth, Rashida Jones, Kirsten Dunst and Selma Blair. The party, which took place in LA, also marked the opening of their pop-up shop. “I was interested in creating a collection that wasn’t in any way disposable. It was about pieces you’d create and keep forever, things that have a permanence to it,” designer Erdem Moralioglu said. #wwdeye (📷: Katie Jones)
Renee Zellweger in yellow in 2001 and again in 2017. Chosen as one of the 12 @pantone Leading Spring Colors (and dubbed “Meadowlark”), it only makes sense that the bright hue stands the test of time and is making a resurgence this season, seen already on stars like @blakelively and @gigihadid. (📷: Donato Sardello & @rexfeatures) #wwdfashion #tbt
Dior’s 70th anniversary celebration continues with a new exhibition at the Royal Ontario Museum in Toronto. “Christian Dior,” which is scheduled to run through March 18, takes a look at the founders tenure from 1947 to 1057 and feature 40 designs. Pictured here is an evening gown from the Ailée, fall 1948-49 haute couture collection. #wwdfashion (📷: Brian Boyle)
As one of the most recognizable models in the world, Christy Turlington Burns has an insider’s view of the fashion industry and the allegations of sexual harassment swirling around it. “I can say that harassment and mistreatment have always been widely known and tolerated in the industry. The industry is surrounded by predators who thrive on the constant rejection and loneliness so many of us have experiences at some point in our careers,” Turlington told WWD, along with her suggestions for how the modeling world should protect younger women and men. Read more on WWD.com. Link in bio. (📷: Tony Palmieri) #wwdnews
@asics America has tapped a new brand ambassador: famed DJ/record producer @steveaoki. This initiative is intended to set the tone for the new brand identity and philosophy and will include partnerships with influencers and in-store and off-line activations that will continue into next year. This is Asics’ most significant marketing effort in two decades, and is expected to attract younger consumers to the brand. #wwdfashion
24-year-old Jean Prounis is redefining the rules of jewelry. Formerly a studio assistant to Jemima Kirke and a design apprentice at Ghuran, she focuses on handcrafted subtleties and ancient goldsmithing techniques. “There was a really sterile feel in the environment and I wanted to have jewelry with character that shapes how you wear it everyday,” Prounis said. Each piece is hand made in New York, either by Prounis or three other jewelers in the district. #wwdfashion
“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