Despite 1.5% Sales Gain, Talbots' Earnings Fall NEW YORK — In the midst of digesting its J. Jill acquisition, The Talbots Inc. posted first quarter earnings that fell 21 percent on a 1.5 percent sales gain.
The Hingham, Mass.-based specialty retailer also said second quarter results would be below Wall Street estimates. Management said earnings per share will likely reflect “the impact of J. Jill’s weak second quarter sales, which will result in a significant loss in the period and represents a continuation of their first quarter trends.”
For the first quarter ended April 29, Talbots’s net income dropped to $27.4 million, or 51 cents a share, from $34.5 million, or 63 cents, in the prior year on sales that climbed to $453 million from $446.5 million.
Ross Strong Sales Aid 4Q Earnings Increases NEW YORK — Ross Stores showed robust first-quarter sales and earnings increases driven by strong sales in the Southwest and Texas and a decline in distribution costs.
The off-price retailer reported first-quarter net earnings Wednesday that rose 18.2 percent to $59.2 million, or 41 cents a diluted share, from $50.1 million, or 34 cents a share, the prior year. The average analyst estimate for earnings per share for the quarter was 41 cents.
Sales also increased 18.2 percent to $1.3 billion from $1.1 billion during the first quarter last year. Comp store sales for the period were also up, rising 6 percent over last year.
Specialty Retailers Report Improved Profit Margins NEW YORK — Improved sales along with less markdowns drove the top line and gross profit margins of specialty retailers reporting results this week.
On Wednesday, ‘tween girls retailer Too Inc. posted earnings that soared 58.1 percent on an 18.7 percent sales gain for its first quarter while Charming Shoppes Inc. clocked a 7 percent profit gain on a 22 percent sales increase. Zale Corp., in the midst of an Securities and Exchange Commission investigation while having an acting chief executive officer at the helm, said sales jumped 2.2 percent with earnings benefiting from a retirement benefit settlement.On Tuesday, plus-size retailer United Retail Group experienced significant gross margin gains that pushed earnings up 92.8 percent on a 2.7 percent sales increase.
Zale said its third quarter net income climbed 15.9 percent to $16.8 million, or 35 cents a diluted share, from $14.5 million, or 28 cents, in the prior year’s quarter on total revenue that climbed to $526.9 million from $515.6 million. Results include charges and gains made from severance payouts and the settlement of “certain retirement benefits.” Excluding these line items, net income for the quarter was $11.6 million, or 24 cents.
Acting ceo Mary E. “Betsy” Burton said on a conference call that the company is “cooperating fully” with the SEC investigation, which is in regard to accounting issues.
“We are reviewing the item they raised which relates to the areas of extended service agreements, leases, accrued pay roll and the timing of certain vendor payments,” Burton said. “We believe based on our current knowledge that our accounting was appropriate and complied with [generally accepted accounting principals].”
In his new book “Hollywood Royale,” Andy Warhol’s Protégé Matthew Rolston celebrates the Eighties revival of Hollywood glamour. Featuring more than 100 portraits taken by Rolston from 1977 to 1993, the book contains photos of icons like Michael Jackson, Cyndi Lauper, and @drewbarrymore, pictured here in 1991. “Hollywood Royale,” out today, will be accompanied by an exhibition opening at Los Angeles’ Fahey/Klein Gallery on March 1. #wwdeye
"Nowadays when life is not so happy with everything going on in the world, I think people come to me for a little bit of whimsy and color and fun." - Designer Rebecca De Ravenel on her cult-favorite jewelry line. (📸 : @vsteves) #wwd40
“Everyone is talking about how the retail industry is struggling, but I think it’s an incredible time because brands who are doing something different and innovative are setting themselves up for the future,” said @adamgoldston, who founded the luxury athletic brand @apl with his brother @ryangoldsten. The Goldston’s are part of WWD’s 40 under 40: a group of industry notables. See the rest of the list on WWD.com. (📷: @vsteves) #wwd40
@eyeswoon blogger Athena Calderone debuted her first-ever cookbook, “Cook Beautiful,” which is heavily centered on the presentation and visual expression of food. Pictured here are her miso glazed carrots from the book. Get the recipe on WWD.com. (📷: @johnny_miller_) #wwdeye
“It’s passion that helps get anybody to a certain point and it’s what’s propelled me,” said Kith founder @ronniefieg, one of WWD’s 40 under 40: a group of industry notables who are changing the face of retail, fashion and beauty. Fieg, who opened a Manhattan flagship on October 7, began his career at age 13 as a stock boy and salesman for footwear chain David Z. “I think staying true to [my] beliefs, hard work and passion have gotten me to where [Kith] is today.” See the rest of the 40 at WWD.com. (📷: @vsteves) #wwd40
25-year-old @samweaving is about to break out this fall, starring in Netflix’s horror film “The Babysitter,” fittingly out today on Friday the 13th. That’s not the only place you’ll be seeing her, though — Weaving’s got a role Showtime’s “SMILF” and another alongside Frances McDormand and Woody Harrelson in “Three Billboards Outside Ebbing, Missouri.” Though she’s got a full plate at the moment, there’s one role she’s got her eye on: Marilyn Monroe. “I’m a little too young at the moment, but it’s on my bucket list,” the actress told WWD (📷: @dandoperalski) #wwdeye
BFF's Poppy Jamie and Suki Waterhouse celebrated the launch of their bag line Pop x Suki at Nordstrom last night. "The line is really about our friendship, and how we are so different but complement each other," said Waterhouse. 👯 (📷: Katie Jones) #wwdeye
After designing the new @louisvuitton and @bulgariofficial flagships and a @chanelofficial boutique opening in Japan, @petermarinoarchitect has another project on his plate: The Lobster Club. Located in the Seagram Building, it’s the famed architect’s first restaurant project in New York, serving up modern Japanese brasserie-style cuisine. Bronze hues, bespoke material detailing, blush and chartreuse tones and a heavy emphasis on Picasso can be seen throughout. Mark your calendars for Nov. 1 for the much-anticipated opening. (📷: @clint_spaulding) #wwdeye
Did you know: @carlychaikin of "Mr. Robot" has been painting for about a decade? The actress, who plays Darlene on the show, is a self-taught artist who lists Salvador Dalí and Chuck Close as some of her idols. Chaikin told WWD that painting is a form of meditation for her — A much-needed one given the intensity of "Mr. Robot." See a piece Chaikin is working on at WWD.com (📷: @jilliansollazzo) #wwdeye