NEW YORK — Increased sales from new businesses helped Kellwood Co. post big numbers for the second quarter.
Net income shot up 52.9 percent for the period to $10.2 million, or 36 cents a diluted share. This compared with $6.7 million, or 25 cents, a year ago. Without losses of $1.2 million from discontinued operations a year ago, earnings rose 30.2 percent.
Analysts were looking for earnings of 35 cents a share, according to Reuters. Prior to the earnings announcement, shares of the firm fell 56 cents, or 1.5 percent, to $36.96 on the New York Stock Exchange Thursday.
Sales for the three months ended July 31 advanced 10.1 percent to $560.5 million, from $508.9 million a year earlier. Phat Fashions and Phat Farm, which the firm acquired in February, added sales of $17 million to the quarter. The top line was also helped along by licensed sportswear businesses such as Calvin Klein and Izod.
Chairman and chief executive officer Hal Upbin said in a statement that he expects the economy at large, including the rate of job creation, consumer confidence and spending on apparel, to continue to improve, but not at the levels seen earlier this year.
“Like our customers, Kellwood would rather focus on gross margin and inventory turnover than get too far ahead of a cautious consumer with orders and inventory,” said Upbin. “As a result of the recent softening in demand for apparel, as indicated by fall orders from customers and some delays in launching certain new marketing initiatives from the third to the fourth quarter, we expect sales in the third quarter to increase by 12 to 13 percent and be in the range of $720 million to $730 million versus $644 million last year.”
Kellwood, as well as other major players in the moderate market such as Jones Apparel Group, is trying to attract additional customers and drive more full-price selling by marketing better-known names. For fall, the company is introducing O Oscar, a new moderate line produced under license from Oscar de la Renta Ltd. and supported by a national ad campaign.
Kellwood is also embarking on an effort to more effectively brand its $600 million Sag Harbor business. This entails a multimillion-dollar marketing campaign, including ads in national women’s magazines, outdoor ads, a vacation sweepstakes and in-store visuals.During the first half, Kellwood’s earnings jumped 28.2 percent to $35.3 million, or $1.26 a diluted share, from $27.5 million, or $1.03, a year ago. Sales rose 5.5 percent to $1.25 billion.
@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