NEW YORK — Retail stocks lost ground during a down week for the broader market, which was hurt by mixed earnings reports from several large firms in the technology and financial sectors.
The WWD Composite Stock Index dropped 1.9 percent to 1,098.88, while the S&P 500 fell 2 percent to 1,261.49. The Dow Jones Industrial Average, which declined 2.7 percent in the week to 10,667.39, dropped 213.32 points, or 1.96 percent, on Friday alone.
As earnings season began in earnest for the broader market, Charlotte Russe Inc. kicked off for retailing on Thursday. The specialty retailer posted fiscal first-quarter net earnings that more than tripled as sales jumped 34.3 percent. But Charlotte Russe, which has been repositioning its Rampage brand, guided second- and third-quarter earnings per share below Wall Street expectations, including what could be a wider second-quarter loss compared with the prior-year period.
San Diego-based Charlotte Russe, which operates 356 namesake stores and 66 Rampage locations, also said it plans to open 35 Charlotte Russe stores this year.
Shares of the company ended the week at $15.47, down 43 cents, in New York Stock Exchange trading.
For the three months ended Dec. 24, net income increased to $7.1 million, or 29 cents a diluted share, beating analysts' estimates by a penny. The results included a pretax charge totaling 1 1/2 cents related to stock-based compensation expenses. Comparatively, the company had a profit of $2.2 million, or 9 cents, a year ago.
Sales came in at $201.5 million, also ahead of analysts' estimates of $197.7 million, while comparable-store sales spiked 15.6 percent. In the year-ago quarter, sales totaled $150 million. On an operating basis, earnings in the first quarter rose more than threefold to $11.4 million.
The company cited strength in accessories and apparel sales at its Charlotte Russe stores for the quarter's results. Mark Hoffman, chief executive officer, said in a statement that the retailer's Rampage business "continues to be a work in progress with its brand repositioning," despite posting double-digit same-store sales during the quarter.
Hoffman said companywide same-store sales during the first three weeks of January are up in the double digits. "We feel very confident about the fashion spring content and quality of our merchandise," he said.Looking to the second quarter, the company forecasts a loss per share of 3 to 7 cents because of the continuing promotional environment, a later Easter holiday and because it is typically a low sales volume time of year. The loss was 3 cents in the same year-ago period. However, the company is expecting a profit of 20 to 24 cents in the third quarter.
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews
@prada is introducing a new project at its men’s fall 2018 show this Sunday: “Prada Invites.” The fashion house invited four celebrated creative minds – @ronanaerwanbouroullec, Konstantin Grcic, @herzogdemeuron and @rem.koolhaas – to each create a unique item with its iconic nylon material. The designs will be unveiled on the runway show, which will take place at the company’s warehouse in Viale Ortles 25. #wwdfashion #mfwm (📷: @martinocarrera)
@kering_official is spinning off its stake in puma in an effort to focus on its luxury brands, the brand operator announced yesterday. “We are proud to have supported the turnaround of Puma, which now has unrivaled capabilities to take full advantage of the specific dynamics of its global markets and is poised to achieve substantial growth,” said François-Henri Pinault, Kering’s chief executive officer and chairman. Artémis will become a “long-term strategic shareholder” of Puma with a 29 percent stake. #wwdnews #wwdfashion (📷: @jilliansollazzo)
The fashion world mourns for celebrated street style photographer, Nabile Quenum, who died at age 32 in Paris.
Quenum, creator of the fashion blog “J’ai Perdu Ma Veste,” was a fashion week fixture, and regularly shot for New York magazine’s The Cut, among other outlets, and brands such as Louis Vuitton, Moncler and Adidas. He was also actively involved in the #NoFreePhotos initiative, which kicked off in the fall. Read more about Quenum in @kbsmoke's story on WWD.com. #wwdnews
@verwanggang and @maisonladuree have teamed up on a dessert collab called Vera Wang Pour Ladurée. The collection, which launched this week, features a specialty macaroon, as well as a wedding cake inspired by one of the designer’s gowns. “I could not imagine a more delicate or sophisticated creation to grace any couple’s celebration,” said Wang. #wwdfashion