NEW YORK — Hot Topic stayed hot in June and Aeropostale continued to soar.
Retailers are due to report their June same-store sales today but Hot Topic said Wednesday that same-store sales in June were up 3.5 percent as overall sales jumped 22.2 percent to $42.4 million. Aeropostale said comparable-store sales were up 8.7 percent during the month and 41.7 percent overall, to $45.9 million.
While the two youth specialty stores added to the momentum established Tuesday when, as reported, both Chico’s FAS and Pacific Sunwear of California reported double-digit increases in June comps, the higher-comp procession was interrupted Wednesday by American Eagle Outfitters, which continued to struggle, particularly in its men’s business. AEO’s comps for the month fell 5.7 percent.
“Sales throughout June met our expectations, with positive comps in each of the five weeks and in each geographic region for the month,” said Betsy McLaughlin, president and chief executive of Hot Topic, in a statement.
Leading HT’s results, somewhat uncharacteristically, was the men’s classification, up 9 percent on a comp basis, while music-licensed apparel was up 4 percent, and women’s and accessories ahead 2 percent.
The City of Industry, Calif.-based company, which operates 450 HT stores and 40 Torrid units, said on a prerecorded call that similar to recent months, the June comp increase is because of an increase in the average number of transaction per store. In June, the average number of transactions per store rose 3 percent, average units per transactions were flat and the average transaction value fell by 2 percent to $21.
With a midteen increase, women’s was the strongest part of Aeropostale’s 8.7 percent jump, but men’s rose in the low-single digits as accessories fell at the same pace. Women’s and men’s accounted for 60 and 27 percent of sales during the month versus 56 and 30 percent, respectively, a year ago.
The company, with 413 stores, said inventory levels and gross margins continue to track inline with expectations. Transactions for the month were flat, while units per transaction were up in the low double-digit range.
At American Eagle, AE stores dwindled 5.3 percent and the Bluenotes/Thriftys decreased by 10.8 percent in June. Total sales increased 5.3 percent to $128.2 million from $121.7 million, including $7.7 million from Bluenotes/Thriftys.“While our June business was choppy at times, overall results were inline with expectations,” Laura Weil, chief financial officer, said on a call. “Our top priority is to clear through spring-summer merchandise and enter fall with lean inventories and a clean, fresh assortment.”
She said the summer sale event drove business in June, leading to a high-single-digit decline in the average unit retail price. However, the number of units sold per store increased in the high-single digits and unit per transaction rose in the low-double digits.
Regarding the second quarter, AE said it expects to report earnings per share in a range of 10 cents to 12 cents, which is based on a July comparable-store sales decline in the mid-to-low single digits. In last year’s quarter, AE reported EPS of 14 cents.
Also reporting Wednesday, San Diego-based Factory 2-U Stores completed a trio of consecutive monthly increases, this time a 3 percent rise. Bill Fields, chairman and chief executive, said in a statement he is targeting July comps to be in the range of between negative 2 percent and positive 2 percent.
From overseeing America’s fastest-growing speciality retailers to codifying cool, WWD talked to the women who are leading the way for the future of beauty. Check out our Instagram Stories to see how these women built today and are creating tomorrow. (📸: @hannah_khymych) #wwdbeauty
For @laperlalingerie's spring 2018 show, the brand chose to host their event at @thevenetianmacao. With Chinese megastars @bingbing_fan and @hubing in attendance, La Perla debuted a rock ‘n’ roll-inspired collection. The show marked the start of Sands Macao Fashion Week, which runs from October 19 to 24 — the city’s first such event. Pictured here are models backstage with glimmering eyes. #wwdfashion (📷: Cheuk-Yin To)
Trending for spring 2018: top stitch design. Gone are the days of stitch just for seams — designers are using the once-minimal detail to create strong decorative elements. (📷: Paola Testa; Styled by @andrew_shang) #wwdfashion
@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)