Retail Ventures Inc.’s second-quarter profits were down sharply as its retailing and investment activities proved less lucrative.
For the three months ended Aug. 2, net income fell 83.3 percent to $17.7 million, or 36 cents a diluted share, from $106.2 million, or $1.81 a share, in the year-ago quarter. Operating profit fell 83.2 percent to $22.1 million from $131 million as the largest component of both figures, increase in the fair value of derivative instruments, dropped to $16.7 million in the most recent quarter from $124.8 million in the 2007 period.
Excluding derivative instruments and discontinued operations, RVI lost 6 cents a diluted share.
Sales fell 1 percent to $459.8 million from $464.6 million as the 2.4 percent increase in revenues at DSW, to $357.2 million, couldn’t fully offset the 11.5 percent drop at Filene’s Basement, to $102.6 million. The same-store sales trend was reversed, as DSW was down 6.9 percent and Filene’s Basement up 1.4 percent for a corporate result of a 5.1 percent decrease.
Retail Ventures in January sold an 81 percent stake in its Value City Department Stores unit to VCHI Acquisition Co., which includes VCDS Acquisition Holdings LLC, Emerald Capital Management LLC and Crystal Value LLC. Last month, the company said it wouldn’t renew the contract of chief executive officer Heywood Wilansky, which expires at the end of January.
For the first six months of the year, net income dropped 57 percent to $46.9 million, or 93 cents a share, from $109 million, or $1.84, during the first half of fiscal 2007. The change in derivatives was $53.9 million in this year’s half, versus $137.3 million in the first six months of last year.
Sales dropped 0.5 percent to $926.1 million from $930.5 million a year ago. Same-store sales were off 4.7 percent, with Filene’s Basement up 0.6 percent and DSW down 6.2 percent.
At the conclusion of the second quarter, Retail Ventures operated 36 Filene’s Basement stores and 274 footwear stores and supplied footwear to 348 other retail locations.
@chanel and @pharrell dropped what’s being dubbed as the world’s most exclusive sneakers yesterday. The Adidas Originals NMD Hu, which Williams designed in collaboration with Chanel and @adidasoriginals, has a waiting list of over 120K people who pre-registered online at chanelatcolette.fr –– and only 500 pairs are on sale. The singer predicted the resale value of the shoes could reach $40K. Read the full interview on WWD.com. Link in bio. #wwdfashion (📷: Dominique Maître)
@imanshumpert is diving deeper into his creative endeavors and relaunching his clothing line, Post 90s, and is helping to raise money for the hurricane victims in St. Maarten with a jersey he’s designed with his brother. The Cleveland Cavaliers player talked to WWD about kneeling during the national anthem, working with fashion brands and how he wants to be more than an @nba player. Read the interview on WWD.com #wwdfashion (📷: George Chinese)
Not only does #TheProfit return to CNBC tonight, but @marcuslemonis has launched @shopmarcus, a new shopping and lifestyle retail experience in Aspen and Chicago, with more locations to come. The retail stores offer in-store stylists and a variety of contemporary womenswear selections.
“It’s life, I’m going to face it,” @mingxi11 sighed. “I fell, but you know, I think the most important thing is that I get back up. I had the love, the help from my sister — the girl next to me Gizele [Oliveira] — she’s so nice. When I went backstage everybody was trying to comfort me like ‘Oh Ming, it’s OK.’ I’m really, really touched. I think it’s them who gave me the courage to go back on stage for the finale,” Xi told WWD of her fall at the @victoriassecret fashion show. (📷: David Fisher) #wwdfashion #vsfashionshow #victoriassecret
@louisvuitton tapped @therealpeterlindbergh for its latest city-centric photo book, which is part of a series called Fashion Eye. The primarily black and white book captures the spirit of Berlin in 57 images shot between 1989 and 2019. “Berlin is an inspiration for me, more than a city. I mean @millajovovich is simply Berlin!” said Lindbergh. #wwdfashion
“You know, I think audiences expect a certain performance so I have to deliver to them what they’re expecting to a certain degree. But I’m also a different actor and a different person, I have my own spin on the character,” says @noahegalvin of his takeover of the leading role in “Dear Evan Hansen” following the departure of @bensplatt, who originated the role. Read WWD’s interview with the 23-year-old actor on WWD.com #wwdeye (📷: @jilliansollazzo)
For pre-fall 2018, @etro created richly-colored wonderland, using tapestries, textiles and wallpapers from the Eastern world at large. The line featured floral and graphic prints and jacquard motifs, like this two-piece look featured here. #wwdfashion (📷: Giovanna Pavesi)
@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
“I just wanted to create this fully rounded character, but I do think what excited me most was just the opportunity to give a group of people representation that I feel needs it. I like to do characters in projects that stand for something and Karolina definitely does, so that was really exciting to me,” @ginnygardner says of her new role in @hulu’s “The Runaways.” Gardner plays Karolina Dean, a queer superhero, which is a rarity for @marvel. Read more about Gardner’s character on WWD.com #wwdeye (📷: @dandoperalski)