Target (TGT) said Wednesday that sales at stores open for at least a year fell by 1.1% in the second quarter ended July 30, resulting in a revenue decline of 7.2% to $16.2 billion from $17.4 billion last year. That being said, women’s apparel and childrenswear outpaced the total business, with growth in womenswear driven by Who What Wear as well as juniors and swim. But while digital sales grew more than 16 percent in Q2, this was a sharp turnaround from the 30 percent growth rate recorded a year ago. As such, Target’s net earnings were down 9.7% to $680 million or $1.16 per diluted share, compared with $753 million and $1.18 per diluted share.
American Eagle (AEO) is winning back teens one bralette at a time. The Pittsburgh-based retailer on Wednesday reported that comparable sales at its Aerie lingerie label rose 24 percent in the second quarter ended July 30. This helped overall comps increase by 3 percent, and total net revenue was up 3 percent to $823 million from $797 million last year. Profits jumped 25 percent to $41.59 million or 23 cents per diluted share, up from $33.27 million and 17 cents per diluted share a year ago. The company’s stock is up 18.45% year-to-date.
Anthropologie and Free People dragged down Urban Outfitters’ (URBN) earnings in the second quarter ended July 31, reporting a 3 percent decline and flat same-store sales, respectively, which offset a 5 percent increase at the retailer’s namesake chain. As a result, total comps increased by just 1 percent. Net sales increased 3 percent to $890.6 million, as revenue rose in both the retail and wholesale segments. Net income in Q2 reached $76.9 million or 66 cents per diluted share versus last year’s $66.8 million or 52 cents per diluted share.