Ascena Retail Group (ASNA) said Tuesday that an “unseasonably cold spring” contributed to a 4 percent decline in total comparable store sales in the third quarter of fiscal 2016. The Mahwah, New Jersey-based specialty retailer, which sells clothing and accessories under the Ann Taylor, Loft, Lou & Grey, Justice, Lane Bryant and Dressbarn banners, among others, reported an increase in sales from $1.15 billion to $1.67 billion, driven by the acquisition of Ann Inc. However, that integration also caused earnings to tumble from last year’s $0.15 per diluted share to $0.08 per diluted share. To that end, the company has cut its full-year revenue outlook to around $7.1 billion and adjusted earnings per share to between $0.67 and $0.70.
Deep discounting meant that preppy clothier Lands’ End (LE) continued its downward spiral in the first quarter, despite introducing new products, marketing programs and website enhancements. The Dodgeville, Wisconsin-based company reported a loss of $5.8 million compared to a profit of $1.7 million last year. Revenue was $273.4 million in the three months ended Apr. 29, compared to $299.4 million in the year-ago period, as direct-to-consumer sales decreased 8.4% to $232.2 million and retail sales declined 10.4% to $41.2 million. The company attributed the latter to a 7.1% fall in same-store sales and a smaller number of Lands’ End Shops at Sears. Inventory also rose 8.9% to $309.9 million from $284.6 million.
A strong wholesale season for Calvin Klein and Tommy Hilfiger in the first quarter of fiscal 2017 helped G-III Apparel (GIII) come back from a poor end to the prior year. Net sales increased 6 percent to a record $457.4 million, compared to $433 million a year ago, but the company’s retail businesses did not perform to plan and profit fell from $6.8 million to $2.8 million. With that being said, G-III is confident it can turn that around in the second quarter and achieve net income of between $7 million and $9 million.
Michael Kors (KORS) opened 142 new stores and expanded its e-commerce operations during the fiscal year ended Apr. 2, and now the mid-range brand is reaping the rewards—or so it says. While figures released Wednesday show that total revenue increased 10.9% from $1.1 billion to $1.2 billion in the fourth quarter, and retail sales rose 22 percent to $572.6 million, sales at stores open for more than a year increased by only 0.3%. Furthermore, licensing revenue decreased 13.6% to $35.6 million.
HanesBrands (HBI) announced its sixth acquisition in three years at the end of April and on Wednesday the Winston-Salem, North Carolina-based company updated its 2016 financial guidance to reflect the expected contributions from the pending acquisitions of Champion Europe (expected to be completed in late June) and Pacific Brands Ltd. (looks set to close in July). Hanes said it now expects 2016 net sales of between $6.15 billion and $6.25 billion, up from the previous guidance range of $5.8 billion to $5.9 billion, while diluted earnings per share are forecast to be $1.51 to $1.57, down from $1.63 to $1.73, as a result of acquisition-related charges.