Gap Inc., with strong performances by its Old Navy and Athleta divisions, posted a better-than-expected 12.6 percent increase in first-quarter net income to $143 million, from $127 million in the year-ago period.Diluted earnings per share of 36 cents compared with diluted EPS of 32 cents in the first quarter of fiscal-year 2016.Sales in the period ended April 29 were flat at $3.4 billion, though comparable sales were up 2 percent.The San Francisco-based specialty retailer also reaffirmed its full-year diluted EPS guidance to be in the range of $1.95 to $2.05. The company continues to expect comparable sales for fiscal year 2017 to be flat to up slightly.“We are pleased with our positive comp and earnings growth this quarter,” said Art Peck, president and chief executive officer. “We’ve made substantial improvements in product quality and fit, and our increasing responsive capabilities are enabling us to better react to trends and demand.“While the retail environment continues to be challenging, we are focused on delivering the best possible product and customer experience, and our ability to leverage a portfolio of iconic brands and operating scale uniquely positions the company for long-term growth.”Gap’s first-quarter results were better than many department and specialty stores that have already reported their quarterly numbers.Comparable sales by division were: Old Navy Global, up 8 percent; Gap Global, negative 4 percent, and Banana Republic Global, negative 4 percent.The company did not break out sales statistics on Athleta but Peck said in a conference call with investors that "Athleta is continuing to be an exceptional performer positioned in a growing segment." It's a matter of both store and category growth, the ceo said, adding that engagement with, and loyalty to, the brand is very high.He said that the Gap "is viewed as an iconic brand and a relevant brand. It's not that the brand is dead in any way, shape or form... transformational work continues. We continue to see signs under the covers that show progress, in particular showing up in the margins."At Banana Republic, the new president, Mark Breitbart, "knows the brand, knows the company and is hitting the ground running," Peck said. "I'm not going to promise when we will see the progress but there are tremendous opportunities to make quick progress."Peck was most bullish on Old Navy, which he mentioned recently opened an 8,000-square-foot "holistic expression" of the brand, in Walnut Creek, Calif. The new format could be a prototype for future stores in a smaller footprint.Discussing the general retail landscape, he said, "We are continuing to see downsizing, bankruptcies, commentary about traffic being soft and consumer spending lacking....We of course are not immune to these challenges. We also believe that we are uniquely positioned to turn these challenges into opportunities,to pick up market share."Priorities remain the same - product. We are well on the way and into the journey of enhancing our product capabilities," improving the fit, enhancing quality, improving the value relationship, ensure products are on trend and "to deliver units into the market share opportunities that we see."He said the company is working with fewer vendors more deeply, "leveraging their capabilities, enhancing our cost, driving innovation, working faster, change faster and respond to demand."Overall, "I always look at the women's business first," Peck said. "I'm really pleased with the progress there. It's not perfect, but that is the hardest business and often a bellwether."
Supermodel @helenachristensen teamed up with longtime friend and designer @camillastaerk on a joint @paredeyewear collaboration. The lineup features three styles and 11 offerings, all of which embody a vintage feel. Get all the details on how they celebrated the collab on WWD.com. #wwdaccessories #wwdeye (📷: @slovekinpics)
“It’s a hard industry to keep motivated, as well, so finding different subjects and people is what makes it worth it – when you’re like, oh, I’ve met great people, I feel like I’ve done something good, and I feel proud of having done this,” said French actress Stacy Martin on being grateful for the variety of roles she’s take on. Read @ktauer’s full interview with Martin on her her latest film “Godard Mon Amour.” #wwdeye (📷: @danieldorsa)
After showing in front of the Eiffel Tower for his last two women’s ready-to-wear collection, it looks like @anthonyvaccarello may be heading to the Big Apple. Sources say the designer will stage his next @ysl show in NYC on June 6. Get all the details on WWD.com. #wwdnews #wwdfashion (📷: @aitorrosasphoto)
EXCLUSIVE: Two and half months after John Targon, cofounder and codesigner of Baja East, was hired as creative director of the contemporary division at Marc Jacobs, he has left the company, WWD has learned. Marc Jacobs International, which is owned by LVMH Moët Hennessy Louis Vuitton, confirmed Targon’s departure in a statement: “John Targon is a talented designer and we appreciate the work he has done here. Ultimately working together did not make sense for the brand and we wish him the best.” Read the story by @jessiredale, link in bio. #wwdnews
@theluxurycollection is officially launching a collection, tapping Sofia Sanchez de Betak for the capsule. Over 30 styles will be featured in the Chufy x The Luxury Collection, debuting next month at Bergdorf Goodman, The Webster, FiveStory and more. De Betak, known as “@chufy,” drew inspiration for the collection from her trips to Japan in the past year #wwdfashion
@lhd, founder and CEO of @thewebster, has teamed up with @lebonmarcherivegauche for the European launch of her ready-to-wear line, LHD. The launch will come with an exclusive pop-up opening today that’s set to run through May 20. Located on the second floor, it carries her debut Miami-themed resort collection, launched in November as see-now-buy-now. #wwdfashion