J. Crew Group Inc. estimated full-year earnings would be in line with Wall Street estimates but reduced sales expectations for the fourth quarter, according to a regulatory filing with the Securities and Exchange Commission released Thursday.
The apparel retailer, which is expected to be acquired by TPG Capital and Leonard Green & Partners for $3 billion, anticipates annual earnings of $2.08 to $2.13 a share. Analysts were looking for EPS of $2.11, Yahoo Finance said.
The projection implies fourth-quarter EPS of 30 cents to 35 cents for the fourth quarter, versus the analyst consensus estimate of 34 cents.
For the fourth quarter, J. Crew projected same-store sales to decline in the midsingle digits versus its previous outlook of a low-single-digit decline. Inventories are expected to increase in the midteens on a percentage basis versus the comparable period last year.
The firm reaffirmed its gross margin outlook, forecasting a decline of 600 to 700 basis points compared with the fourth quarter of 2009.
The company said that in the first two months of the fourth quarter, through Jan. 1, comparable-store sales decreased 3.2 percent, on top of a 16.7 percent increase in the comparable months of fiscal 2009. Internet and phone sales grew 11.8 percent to $126.1 million. Direct sales were up 11.7 percent in the comparable year-ago period.
The update comes one day after J. Crew extended the “go-shop” period by one month, until Feb. 15, and trimmed the size of the termination fee tied to its acquisition.
Shares of J. Crew Thursday closed at $43.42, down 3 cents or 0.1 percent.
“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