Kohl’s Corp. and Nordstrom Inc. both reported lower second-quarter earnings that beat analysts’ expectations Thursday, but Kohl’s pushed second-half expectations upward while Nordstrom went in the opposite direction.
At Kohl’s, second-quarter earnings fell 12.3 percent to $236 million, or 77 cents a diluted share, from $269.2 million, or 83 cents, a year ago. Analysts were expecting the chain to earn 73 cents a share, according to Yahoo Finance.
Sales for the three months ended Aug. 2 inched up 3.8 percent to $3.73 billion from $3.59 billion. Comparable-store sales fell 4.6 percent.
The “results reflect strong inventory management and increased penetration of private and exclusive brands,” said Larry Montgomery, chairman and chief executive officer.
The firm’s gross margin rate expanded to 39.6 percent of sales from 38.9 percent.
During the first half, earnings dropped 18.7 percent to $389 million, or $1.26 a diluted share, on a 2.6 percent rise in sales to $7.35 billion.
For the full year, the Menomonee Falls, Wis.-based midtier retailer is looking for earnings of $3.02 to $3.18 a diluted share, up from previous projections of $2.95 to $3.15 a share.
Nordstrom outperformed analysts’ expectations for second-quarter profits despite a 20.6 percent decline, but trimmed second-half guidance.
With sales lower and markdowns higher, Seattle-based Nordstrom reported a 20.6 percent drop in net earnings to $143 million, or 65 cents a diluted share, compared with net earnings of $180 million, or 71 cents, in the year-ago period. Revenues for the three months ended Aug. 2 dipped 4.3 percent to $2.29 billion, versus $2.39 billion during the 2007 period. Analysts polled by Yahoo Finance expected EPS of 64 cents on revenues of $2.31 billion.
Same-store sales decreased 6 percent, but were down 9 percent at full-line stores. Same-store sales rose 6.3 percent at Nordstom Rack. At Nordstrom Direct, sales rose 14.6 percent.
Three of the company’s five annual sales events were held during the second quarter, the company said.
Gross margin decreased 168 basis points to 35 percent of sales from 36.6 percent a year ago.
For the six months, net earnings declined 22.3 percent to $262 million, or $1.19 a diluted share, from $337 million, or $1.30 a share, in last year’s first half. Net sales dropped 4.1 percent to $4.2 billion from $4.3 billion.
The retailer anticipates third-quarter earnings per diluted share to be in the range of 49 to 54 cents with same-store sales down 4 to 6 percent. For the fiscal year, the company revised guidance to $2.25 to $2.65, down from the previous range of $2.65 to $2.80. Gross margins are expected to be 110 to 140 basis points lower than in fiscal 2007, greater than the previously announced 60 to 90 basis point decrease.
“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