Retail shares took an early hit as a number of chains, including Tiffany & Co., Ascena Retail Group Inc. and Aéropostale Inc., gave disappointing holiday updates.
On the plus side, Urban Outfitters Inc. saw sales, including full price sales, perk up. At 10 a.m. on Wall Street, shares of Tiffany were down 5.4 percent to $59.82, Ascena was down 11.7 percent to $16.44 and Aéropostale was off 10.8 percent to $12.15. Shares of American Eagle, which held its own for the quarter, dipped 4.8 percent to $19.65.
Urban Outfitters, however, saw its stock pop up 4 percent to $42.67.
Tiffany said its comparable-store sales were flat for November and December combined as total sales increased 4 percent to $992 million. Comps in the company’s New York flagship fell 2 percent.
“Holiday period sales growth was at the low-end of our expectations, and we now expect that net earnings for the year ending January 31st will be at the lower-end of the forecast that we issued on November 29th of $3.20-$3.40 per diluted share,” said Michael J. Kowalski, chairman and chief executive officer.
The jeweler will give the final tally for the fourth quarter in March. Looking ahead, Kowalski said earnings in 2013 would grow 6 percent to 9 percent and that the company was planning conservatively for sales growth given “uncertainty about general economic conditions in all our major markets.”
Urban Outfitters Inc. said its comparable sales rose 9 percent including Web sales, while store comps on their own fell 1 percent, in part because goods bought on the Web, but returned to a store count against the store. Net sales increased 15 percent to $666 million. Ceo Richard Hayne said the company delivered better product and was more disciplined with its inventory, which led to “improvement in regular priced sales.”
Ascena Retail Group Inc. said its November and December comps inched up a less-than-planned 1 percent.
David Jaffe, president and ceo, said, “The Holiday selling season proved to be challenging and we increased promotional activity in order to ensure appropriate inventory levels going forward. We are taking the necessary markdowns in the second quarter to effectively transition into the spring season.”
Ascena now expects adjusted diluted earnings per share $1.20 to $1.30 this year, instead of the $1.45 to $1.55 previously projected.
Aéropostale Inc. said its comp1s for the nine weeks ended Dec. 29 fell 8 percent on top of a 9 percent drop year earlier.
“Following a strong Black Friday weekend, sales and traffic trends deteriorated significantly in December,” said Thomas Johnson, ceo. “From a merchandise perspective our core basics businesses, particularly graphics and fleece, remained challenged. We continue to manage our inventories carefully, and we will enter the spring season with fresh and updated assortments."
The specialty store cut its fourth-quarter earnings projection to a range of 20 cents to 24 cents a diluted share, down from the 36 cents to 41 cents previously projected.
Holding its own was American Eagle Outfitters Inc. which said fourth-quarter comps through Jan. 8 increased 5 percent, versus a 13 percent bump a year earlier. The company said it continues to expect fourth-quarter earnings of 54 cents to 56 cents.
@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)