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

J.Crew Ballet Flats

(Photo: J.Crew.com)

Tiffany 1Q Profit More Than Doubles As Demand Rebounds (WSJ): Tiffany & Co.'s first-quarter earnings more than doubled on demand across most of its markets and product lines, a sign that higher-end and even mainstream consumers are feeling better about buying.

Movado's Q1 Beats Street, To Close Retail Boutique Unit (Reuters): Movado Group Inc posted a narrower-than-expected quarterly loss, helped by a recovery in consumer demand, and said it will close its retail boutique unit, which is expected to hurt the watchmaker's 2010 revenue by $30 million.

J. Crew doubles 1Q net income, raises guidance (AP): Catalog retailer J. Crew Group Inc. doubled its first-quarter net income as revenue soared nearly 20 percent and raised its guidance for the year above estimates.

HR Quarterly Round-Up: Gap, Ann Taylor, Polo, Aeropostale

Gap Inc. Earnings Rise 40% (LA Times): Apparel company Gap Inc. reported robust first-quarter profit Thursday and said sales grew across all of its brands.

Ann Taylor Stores Posts 1Q Net Income (Crain's New York): Ann Taylor Stores Corp. returned to profitability in its fiscal first quarter, helped by strong performances at both its namesake and Ann Taylor Loft stores and more full-price purchases.

Polo Ralph Lauren Profit More Than Doubles (Reuters): Polo Ralph Lauren Corp reported a quarterly profit on Wednesday that more than doubled, as strong sales at its retail stores helped offset a decline in wholesale revenue

Aeropostale 1Q Profit Up 43% (Businessweek): Teen clothing retailer Aeropostale Inc. said Thursday that its net income rose 43 percent as revenue grew and online sales surged.

HR Quarterly Round-Up: Abercrombie & Fitch, Saks, Limited Brands

Abercrombie & Fitch Narrows F1Q Loss, Expanding Abroad (WSJ): Abercrombie & Fitch Co.'s (ANF) fiscal first-quarter loss narrowed, and the high-priced teen-apparel retailer outlined further plans to expand its presence overseas.

Saks Profit Surpasses Projections on Fewer Markdowns (Businessweek): Saks Inc., the New York-based luxury retail chain, reported first-quarter earnings that beat analysts’ estimates after marking down fewer goods.

Limited Brands Beats Street, Outlook Disappoints (Reuters): Limited Brands Inc., the operator of the Victoria's Secret and Bath & Body Works chains, posted better-than-expected quarterly net income on Wednesday, but the midpoint of a profit outlook fell short of expectations, sending the company's shares down 5 percent.

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

A yellow gold, diamond, pearl and emerald necklace from the Bvlgari Heritage Collection

(Photo: Catherine Bigelow/SFGate.com)

Bulgari Loss Narrows on Sales of Necklaces, Perfume (Businessweek): Bulgari SpA, the world’s third- largest jeweler, reported a narrower first-quarter loss on rising sales of necklaces and perfume.

Macy's Swings to Profit, Aided By Move to Meet Local Demand (MarketWatch): Department-store operator Macy's Inc. on Wednesday said it swung to a better-than-expected $23 million first-quarter profit, helped by its strategy to tailor stock to local demand.
 
Nordstrom 1st-Qtr Net Rises, But Misses Street view (Reuters): Nordstrom Inc (JWN.N) said its first-quarter net profit rose 43 percent over last year, but it missed analysts' forecasts and shares fell after hours.

HR Quaterly Round-Up: Elizabeth Arden, Steve Madden

(Photo: RedDoorSpas.com)

Elizabeth Arden Overseas' Growth Narrows Loss (Reuters): Elizabeth Arden Inc posted a narrower-than-expected quarterly loss and raised its profit forecast on Thursday, helped by strong international growth and improved gross margins.

Steve Madden 1st-Qtr Profit Rises (Businessweek): Shoe maker Steve Madden Ltd. said its profit more than doubled in the first quarter as wholesale and retail sales improved. But the company offered full-year earnings guidance that fell short of expectations and shares slid $1.68, or 4 percent, to $38.32 in premarket trading.

HR Quarterly Round-Up: Kenneth Cole, Liz Caiborne, Hermès

Kenneth Cole 1Q Earnings Rise on Improved Sales (Crain's New York): Kenneth Cole Productions Inc., which makes shoes, handbags and clothes, on Wednesday reported a first-quarter profit, helped by improving demand in all segments.

Liz Claiborne 1Q Loss Narrows On Nonoperating Income Rise (WSJ): Liz Claiborne Inc.'s first-quarter loss narrowed as nonoperating income surged, while same-store sales climbed 15% at kate spade, partly offsetting declines at Mexx and Juicy Couture, the latter posting a 12% drop.
Hermes Shines With Best Q1 Sales of Luxury Sector (Reuters): Hermes posted the biggest surge in first-quarter sales of all European luxury goods companies on Thursday, pointing to a continued polarisation of the market in which well-established brands crush weaker rivals.

HR Quarterly Round-Up: Revlon, Avon

(Photo: Avon.com)

Revlon 1Q Profit Falls On Expenses, US Sales Down (Businessweek): Revlon Inc.'s first-quarter profit tumbled on Thursday, pressured by higher expenses as U.S. sales for the beauty products company declined.

Avon Products 1Q Profit Takes a Hit From Currency (Crain's NY Business): Avon Products Inc. said Friday that first-quarter profits fell 64 percent as the company was hit hard by a devaluation of Venezuela's currency.

Estée Lauder 3Q Earnings Double Driven By 10% Sales Jump

Strong sales growth overseas and in the U.S., coupled with a stringent cost cutting plan, helped to double Estée Lauder Companies' third quarter profits, according to an article in Crain's New York Business.

Third quarter earnings rose more than 50% to $57.5 million vs. $27.2 million from the previous year. E.P.S. doubled to $.28 compared to $.14 E.P.S. last year. Excluding one-time costs, profit was $.34 per share, beating Wall St. estimates of $.32 per share.

Net revenue jumped 10% to $1.86 billion from $1.70 billion a year earlier, coming under analysts' prediction of $188 million in sales.

Skin care was the best performing product category, with 15.6% growth at $819.8 million, bolstered by strong sales of EL's Advanced Night Repair Synchronized Recovery Complex. Particularly encouraging are the sales numbers for the La Mer skin care line, one of the company's Prestige lines with prices starting at $100, which posted double-digit sales with strength in North America.

President and CEO Fabrizio Freda said in a conference call with analysts, "We believe that consumers are beginning to reconsider luxury products. It certainly bodes well for our entire Prestige portfolio".
The international launch of Pure DKNY and the rollout of Coach Signature fragrances to the U.S. bolstered EL's Fragrance category to an 18.7% sales increase of $222.8 million. Makeup sales rose 2.3%  to $710.8 million on the strength of M*A*C and Bobbi Brown cosmetic brands.

Regionally, the biggest rise was in Asia/Pacific to $371.1 million in sales, an increase of 20.3%. In Europe, the Middle East, and Africa, sales jumped 13.5 to $662 million. Sales in the Americas rose 3.1% to $829.1 million.

In an interview with WWD, Mr. Freda, says the company will continue to invest in marketing spending, and concentrate on brands, opportunites, regions and beauty concerns that are most important to the company,  Mr. Freda also said growth through acquisition isn't off the table:

“We’ve always said [mergers and acquisitions] are part of our strategy,” Freda told WWD, adding the company will pursue opportunities that widen its reach by category, distribution channel and in geographic scope. “Skin care and Asia are our priorities, but we also will look more broadly,” said Freda. (SOURCE: WWD)

For FY2010, EL forecasted sales to grow between 4% and 5% in constant currency. Earnings, excluding one-time items, are projected to be between $2.65 and $2.75 per share.

(Photo: EsteeLauder.com)

Coach 3Q Profit Soars 37%; Looks To Europe For Expansion

A return to their affordable luxury price points has paid off for Coach Inc., as increased demand in North America helped the company to a strong third quarter.

Earnings for the leather goods maker jumped 37% to $158 billion from $115 billion from the previous year, beating Wall Street estimates, according to Reuters. Sales for the quarter topped off at $831 million compared to $740 million in fiscal 2009, with E.P.S. totaling $0.50 compared to $0.36 a year ago. As a result, the company doubled its cash dividend to $0.60 per share annually, implemented a $1 billion stock repurchase program, and upped its China sales target by a year.

"Our growth demonstrates our ability to manage our business nimbly, while investing prudently for the future". says Lew Frankfort, Chairman and CEO of Coach Inc.

Part of that investing includes the company's expansion into Western Europe. Via an agreement with French department store group, Printemps, Coach will open at least 14 locations in Printemps stores throughout France over the next three years, the first being a 1700 sq.ft. shop in Paris this June.  

Coach also entered into an agreement in principle to create a joint venture with British retailer Hackett Limited to open Coach stores in the U.K., Spain, Portugal and Ireland. The first locations in the U.K. and Spain are expected to open in the next twelve months.

On Thursday, Coach will celebrate the grand opening of its brand new Shanghai flagship store. The flagship is located on tony Huai Hai Middle Road, which is enroute to becoming the Fifth Ave. of Shanghai, with luxury brands such as Cartier and Tiffany & Co. pitching a tent there.

Shares of Coach closed at $42.03 with a 15 cents gain.

(Disclosure: Haute Retail holds positions in Coach Inc.

 

Photo: Coach Flagship Store in Shaghai/WWD

HR Quarterly Round-Up: LVMH, Givaudan, Talbots

(Photo Credit: Mitchell Feinberg/LVMH)

LVMH's Revenue Jumps on Restocking (WSJ): France's LVMH Moet Hennessy Louis Vuitton (MC.FR) Tuesday fueled hopes for a swift rebound in the luxury-goods sector after it posted an 11% surge in first-quarter revenue that beat expectations.

Givaudan Sales Up 9.2 Percent (WWD): Givaudan reported its first-quarter sales increased 9.2 percent year-over-year to 1.07 billion Swiss francs, or $1.01 billion at average exchange. The Swiss firm’s fragrances and flavors divisions both contributed to growth.

Talbots' profit shows proof of turn, shares rise (Reuters): Women's clothing retailer Talbots Inc (TLB.N) posted a much better-than-expected quarterly profit and forecast higher sales as its turnaround efforts take hold, sending its shares up nearly 5 percent.

HR Quarterly Round-Up: Prada, Movado, Harry Winston

(Photo: Lionel Bonaventure/Getty Images)

Prada's Profits Increase, Revenue Slips (WWD): Leveraging the performance of its retail network, Prada SpA posted a 1.4 percent increase in net profits to 100.2 million euros, or $140.2 million, in the year ended Jan. 31.

Movado Q4 Loss Narrower Than Expected; Backs FY11 View (Reuters): Watchmaker Movado Group Inc reported a narrower-than-expected quarterly loss, helped by cost cuts, and reaffirmed its outlook for the current fiscal year.

Harry Winston Retail Loss Grows, Sales Rise (WWD): Harry Winston Diamond Corp.’s retail segment more than doubled its fourth-quarter operating loss despite a pickup in demand.

HR Quarterly Round-Up: Tiffany & Co., PVH, Hermes

Audrey Hepburn in Breakfast At Tiffany's

Tiffany Profits Quadruple As Sales Sparkle (Times Online): Tiffany & Co, the New York-based luxury jewellery retailer, said that its fourth-quarter profits more than quadrupled, as high-end shoppers were lured back into its stores over the Christmas period.

Phillips-Van Heusen Returns to 4Q Profit (Business Week): Phillips-Van Heusen Corp. returned to a fourth-quarter profit, the clothing company said Monday, as its revenue climbed more than 6 percent thanks to stronger sales of its Calvin Klein brand.

Hermès lifts operating Profit in Spite of Downturn (Reuters): French luxury group Hermes (HRMS.PA) stopped short of giving an updated forecast for 2010 on Thursday after posting a rise in operating profit for 2009 in spite of the industry's worst downturn in two decades.

HR Quarterly Round-Up: Gap, Dillard's

(Photo: AP)

Gap 4Q Profit Jumps 45%; Plans To Increase Dividend 18% (WSJ): Gap Inc.'s fiscal fourth-quarter profit grew by 45%, on strong sales at its long-struggling Old Navy chain, as the casual-apparel retailer announced plans to lift its annual dividend by 18% and launch a $1 billion stock-buyback effort.
Leaner Inventory Lifts Dillard's (Forbes): Department store operator Dillard's had a blowout day on Wall Street Monday. Shares of the Little Rock, Ark.-based company jumped nearly 20% on greatly improved year-over-year quarterly earnings, making Dillard's the second-biggest gainer on the New York Stock Exchange in March's first day of trading.

HR Quarterly Round-Up: Nordstrom, Macy's, Liz Claiborne

(Photo: Kyle Ericksen/WWD)

Nordstrom's 4Q Profit More Than Doubles (NY Times): Carrying less inventory helped upscale retailer Nordstrom Inc. more than double its second-quarter profit compared with a year earlier, though it tempered its sales outlook for 2010 and its profit results fell slightly short of forecasts.
Lower Costs Lead Macy's To 4Q Profit (Crain's New York Business): Macy's Inc. returned to a fourth-quarter profit Tuesday as lower expenses helped the department store operator even as sales dipped.
 
Liz Claiborne quarterly sales, forecast miss view (Reuters): Liz Claiborne Inc. reported a fourth-quarter loss that matched analysts' expectations but sales and a first-quarter forecast that fell short, hurt by weak sales at wholesale and at its Mexx store chain.

HR Quarterly Round-Up: Bulgari, Jones Apparel, H&M

Garland necklace set with superb fancy colour pearls surrounded by sparkling clusters of soft color tones fine gemstones

(Photo: Bulgari.com)

Bulgari Revenue Falls 5.1% on Lower Luxury Spending (Bloomberg): Bulgari SpA, the world’s third- largest jeweler, said revenue declined 5.1 percent in the fourth quarter as the recession curbed consumers’ appetite for expensive watches and perfumes.

Jones Profit Could Miss Expectations; Shares Fall (Reuters): Retailer Jones Apparel Group Inc (JNY.N) reported a preliminary fourth-quarter profit that could be below analysts' current expectations, sending its shares down nearly 7 percent on Thursday.

H&M Net Profit Up 21%, Warns On Weak Margins (Marketwatch): Swedish fashion retailer Hennes & Mauritz on Thursday reported fourth-quarter net profit rose to 6.15 billion Swedish kronor ($844 million), or 7.44 kronor a share, against profit of 5.09 billion kronor, or 6.15 kronor per share, in the same period a year ago.

HR Quarterly Round-Up: Elizabeth Arden, Estee Lauder, Tod's

(Photo: Tod's S.p.A.)

Elizabeth Arden Quarterly Results Top Expectations (Reuters): Elizabeth Arden Inc's quarterly profit topped expectations as sales picked up, but the cosmetics maker remains cautious about the rest of the year as retailers manage inventories conservatively.

Estee Lauder's Profit Jumps; Sales Gain From Korea to Spain (MarketWatch): Estee Lauder Cos. said Thursday its fiscal second-quarter profit jumped 62%, helped by demand in Asia and Europe as well as by encouraging U.S. and U.K. holiday sales.

Tod's Posts Growth in 2009 Sales (Reuters): Italian designer shoe and bag maker Tod's reported an increase in 2009 sales, showing that it was one of only a few luxury goods companies to see any growth during the global financial crisis.

HR Quarterly Round-Up: Richemont, Burberry and Coach, Inc.

(Photo: Pascal Lauener/Reuters)

 

Richemont Sales Bolster Revival Hopes (FT): Richemont, the world's second-biggest luxury goods group, yesterday reinforced signs of a recovery in demand for expensive watches, jewellery and accessories with Christmas sales well ahead of expectations.

Burberry sales rise stronger-than-forecast 15% (Market Watch): U.K. luxury goods retailer Burberry reported a 15% rise in sales for its fiscal third quarter, sailing past analyst estimates, and the company said it now expects pretax profit for the year will reach the top end of market expectations.

Coach Profit Rises 11% on Holiday Sales (WSJ): Coach Inc.'s fiscal second-quarter earnings rose 11%, with a boost from holiday sales that improved over 2008's weak holiday season. Results beat Wall Street's expectations.

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.

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.

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.