Tuesday, November 24, 2009

HR Quarterly Round-Up: J.Crew, TIffany & Co.

(Photo: Reuters/Mike Segar)

J.Crew full-price sales spur profit beat, shares up (Reuters): J Crew Group Inc reported a quarterly net profit far above Wall Street estimates due to strong autumn sales of clothing and expanded profit margins from depressed year-ago levels. The shares of the upscale apparel retailer rose 7 percent in after-hours trading.

Tiffany Profit Tops Analyst Estimates on Sales Gains (Bloomberg): Tiffany & Co., the world’s second- largest luxury-jewelry retailer, reported third-quarter profit that topped analysts’ estimates and boosted its full-year forecast as revenue grew in Asia and Europe. The shares gained.

Friday, November 20, 2009

HR Quarterly Round-Up: Limited, Gap, Ann Taylor

(Photo: Slate.com)

Limited Brands Beats Street, Shares Up (Reuters): Limited Brands, owner of the Victoria's Secret and Bath & Body Works chains, posted a higher than expected quarterly profit on Wednesday, sending shares up 3.5 percent after hours.

Gap Says Profit Rose 25%, Plans to Buy Back Shares (Bloomberg): Gap Inc., the operator of the Old Navy and Banana Republic clothing chains, reported third-quarter profit rose 25 percent as inventory declined, and said it plans to buy back more stock.

Ann Taylor Reports Profit, but Sees Soft Holiday Sales (NYT): The clothing retailer Ann Taylor Stores posted a better-than-expected fiscal third-quarter profit on Friday, but shares fell as the company forecast soft sales for the holiday shopping season.

Tuesday, November 17, 2009

HR Quarterly Round-Up: Dillard's, Saks, Burberry

(Photo: Reuters/Shannon Stapleton)

Dillard's Swings To 3Q Profit On One-Time Gain, Beats Street (WSJ): Dillard's Inc. swung to a fiscal third-quarter profit on a tax gain, but results excluding that were much better than analysts feared as the retailer continued its turnaround effort.

Saks Beats Street, Shares Up (Reuters): Upscale U.S. department store operator Saks Inc. reported a quarterly profit that beat Wall Street expectations for a loss, stoking investor hopes for a luxury market recovery and sending shares up 4.4 percent.

Burberry First-Half Profit Fell 24% But Dividend Lifted (MarketWatch): Burberry reported a 24% fall in first-half profit, with the results buffered by cost cuts and strong demand for its leather goods, but the U.K. luxury-goods group lifted its dividend 4% and expressed optimism for the future.

Saturday, November 14, 2009

HR Quarterly Round-Up: Abercrombie & Fitch, Richemont

(Photo: Reuters/Chip East)

Abercrombie & Fitch Profit Tops View, Shares Up (Reuters): U.S. teen apparel retailer Abercrombie & Fitch posted a much better-than-expected quarterly profit helped by cost cuts and said it plans to speed up its expansion in more profitable markets overseas, sending shares up 6 percent.

Richemont Gains as Rupert Plans to Step in as Chief Executive (Bloomberg): Cie. Financiere Richemont SA, the world’s largest jewelry maker, rose the most in three months in Zurich trading after profit beat estimates and Chairman Johann Rupert said he’ll become chief executive officer to guide the company through the worst recession since the Great Depression.

Friday, November 13, 2009

HR Quarterly Round-Up: Macy's Inc., Nordstrom, Bulgari

(Photo: Reuters/Rick Wilking)

Macy's Holiday Outlook a Turkey, Stock Drops (Reuters): "U.S. department store operator Macy's Inc (M.N) forecast earnings for the fourth quarter, which includes the crucial holiday shopping season, far below Wall Street expectations on Wednesday, sending shares down 8.1 percent."

Nordstrom 3Q Profit Rises But So Do Costs (NYT): "Department store operator Nordstrom Inc. said Thursday that its profit rose 17 percent in the third quarter even though its costs were higher than expected as shoppers began spending more."

Bulgari Climbs to 14-Month High After Earnings Beat Estimates (Bloomberg): Bulgari SpA, the world’s third- largest jeweler, rose to a 14-month high in Milan trading as some brokerages raised their targets on the stock following third-quarter earnings that beat analysts’ estimates.

Thursday, November 5, 2009

October Same-Store Sales Roundup

U.S. retailers posted October same-store sales that offered a mixed bag of results, indicating that retail is in for a disappointing holiday season.

Despite total U.S. comp. sales rising 2.1% in October, the largest increase since July 2008 according to the International Council of Shopping Centers (ICSC), 52% of retailers reported October sales that came in below Wall Street estimates, according to Reuters. 
"October results are not going to give investors the overall warm and fuzzy that we're on track for a strong Christmas," said Brean Murray, Carret & Co analyst Eric Beder, "It looks like we're on track for kind of a mediocre season right now based upon October." (SOURCE: Reuters.com)
However, some industry analysts are optimistic. ICSC projects Nov. same-store sales to rise 5-8%, and holiday same-store sales to rise 1%.

The teen retail sector delivered an October surprise to analysts, claiming the "worst performer" title for the month. Aeropostale Inc. underperformed, posting same-store sales gains of 3% vs. the 14% rise analysts' estimated. Comps at American Eagle Outfitters Inc. sunk 5%, missing the 2% gain analysts projected for the company. As a result, shares in both companies dropped 13.6% and 12%, respectively, with Aeropostale experiencing its biggest one-day decline since Dec. 2008.

High end appears to be on the rise with a 1.8% increase in comp. sales in Oct. for the luxury sector, according to ICSC.
“The improvement in the stock market has had a significant impact on the affluent shopper’s willingness to spend as the luxury market has shown its first positive reading since May 2008,” said Michael Niemira, chief economist and director of research for the International Council of Shopping Centers.  (SOURCE: WWD.com)
Saks Inc. reported a comp. sales gain of 0.7% for the month, beating analysts expectations. The luxury chain reported "experienced continued weakness" in their Saks Fifth Avenue stores, however OFF 5TH and Saks Direct flourished. Management projects mid to high single digit declines in comps. for the second half of 2009.

Nordstrom, Inc. delivered a 6.5% increase in same-stores sales for the month, which topped estimates.

October comp. sales for Neiman Marcus slid 6.0%. Same-store sales in their Specialty Retail Stores segment, which includes Neiman Marcus and Bergdorf Goodman stores, fell 6.2%. Neiman Marcus Direct, which includes their online and catalog operations for Neiman, Bergdorf and Horchow, decreased 4.8%.

Abercrombie & Fitch Co. continues to struggle, posting a loss of 15% for the month, slightly worse than estimates.

Macy's Inc. reported a 0.8% dip in same-store sales, slightly higher than the 0.1% decline analysts predicted according to Thomson Reuters. Online sales (macys.com and bloomingdales.com), which were up 34.6% for the month, helped the company's comp. sales by 0.6 percentage points.

Limited Brands, Inc. posted a 4% decrease in comp. sales for October, falling short of analysts' estimates of a 3.1% decline. Same-store sales losses in Victoria's Secret Stores and La Senza, 6% and 7% respectively, helped drive down Limited's comps.