The bulk of companies reporting second-quarter results Wednesday delivered weaker profits during a period of heavy markdowns and summer clearances.
Women's apparel retailer Chico's FAS Inc. saw a 28 percent dip in second-quarter earnings, hurt by sluggish same-store sales at both divisions. For the quarter ended Aug. 4, earnings dropped to $38.7 million, or 22 cents a diluted share, from $53.8 million, or 31 cents, in last year's period as sales increased 8 percent to $436 million from $403.4 million. Same-store sales declined 5.6 percent.
By division, comps decreased 6 percent at Chico's and 3 percent at White House|Black Market. While the company said it is optimistic for the fall and holiday season, it still expects a decrease in earnings in the third quarter.
Coldwater Creek Inc. reported earnings that slid 27.6 percent for the second quarter to $8.7 million, or 9 cents a diluted share, from $12 million, or 13 cents a share, as sales rose 17 percent to $253.5 million from $216.4 million. Total same-store sales declined 6 percent.
Citi Trends Inc. posted a 50 percent drop in second-quarter earnings to $627,000, or 4 cents a diluted share, from $1.3 million, or 9 cents, in the year-ago period. Sales climbed 27 percent to $96.8 million from $76.3 million, while total same-store sales increased 3.4 percent.
Jewelry retailer Finlay Enterprises Inc. widened its loss in the second quarter to $8.4 million, or 92 cents a diluted share, from a loss of $4 million, or 44 cents, in the year-ago period. Sales for the second quarter fell 1 percent to $148 million from $149.3 million, while same-store sales decreased 3.6 percent.
The company said the luxury sector remains strong, and the Carlyle stores and Bloomingdale's departments continue to trend positively. Finlay expects a loss in the third quarter in the range of $1.10 to $1.20 a diluted share, and a loss in the full-year period of about 40 cents to 55 cents a diluted share.
Meanwhile, Hong Kong-based apparel retailer Esprit Holdings Ltd. reported robust full-year earnings, with strength in European sales.
Issa Rae stopped by WWD's NYC headquarters to talk about season two of "Insecure," which premieres this Sunday on HBO. Click link in bio for all the details. #wwdeye (📷: @jgreenery; Styled by @mayteallende)
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