Despite widespread troubles in the U.S. real estate market, mall developer Simon Property Group Inc. bolstered both earnings and revenues in the second quarter.
Net income available to common shareholders jumped 27.8 percent to $76.6 million, or 34 cents a share, from $59.9 million, or 27 cents a year ago. Sales for the three months ended June 30 rose 7.8 percent to $922.9 million from $855.9 million.
Funds from operations, a key yardstick for real estate investment trusts such as Simon, rose 14.7 percent to $427.9 million.
Still, Simon is feeling the ripples of the troubled times for retailers.
“Square footage lost to bankruptcy for the first six months of 2008 totaled 151,000 square feet as compared to 30,000 square feet during the first six months of 2007,” said David Simon, chief executive officer, on a conference call with Wall Street.
Steve & Barry’s, which filed for Chapter 11 this month and has 276 stores across 39 states, is just one of the chains to suffer from a financial squeeze. Others, such as Boscov’s and Mervyns, appear to be fighting for survival.
Most of the Steve & Barry’s stores in the Simon portfolio are relatively small and the company said it is talking to Nordstrom Rack, Saks Off 5th, the A.J. Wright division of The TJX Cos. and others about filling those spaces.
And Simon says those brands aren’t alone. Despite the tough times, the real estate firm singled out a number of names looking to grow their footprints, including Forever 21, Sephora, Apple, Coach, Express, Abercrombie & Fitch, American Eagle Outfitters and the Liz Claiborne Inc. brands that operate as stand-alone stores such as Lucky Jeans, Kate Spade and Juicy Couture.
Simon’s earnings for the first half inched up 3.9 percent to $164.5 million, or 73 cents a share, on a 6.5 percent rise in revenues to $1.82 billion.
@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
@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)