American Eagle Outfitters income more than doubles on cost cutting
Pittsburgh — American Eagle Outfitters net income more than doubled as the company cut costs to offset a sales decline. Net income for the three months ended April 30 rose to $28.3 million from $10.9 million last year. Its results met analyst expectations.
Revenue decreasded 6% to $609.6 million,less than expected. Same-store sales fell 8%.
While sales for the quarter came in lower than anticipated, we achieved EPS within our expected range,” said Jim O’Donnell, American Eagle CEO. “A higher merchandise margin and the positive impact of our expense control initiatives contributed to the bottom line. During the quarter, we continued to implement strategic initiatives across our brands that will position the business for improved performance in the second half of the year and fuel longer-term, profitable growth.”
In the second quarter, American Eagle said it will invest in certain inventory items and expand its accessory business.
Brown Shoe Q1 profit falls on higher costs
St. Louis — Brown Shoe Company Inc., which operates Famous Footwear stores, said Wednesday that its first-quarter earnings tumbled, despite rising revenue caused by higher costs.
The company earned $3.7 million, compared with year-ago earnings of $10 million. Excluding special charges for restructuring and other items, the company earned $7 million.
Revenue rose to $624.6 million from $597.7 million a year earlier. Revenue declined at the company’s Famous Footwear and specialty retail operations, but wholesale revenue jumped 27%.
The cost of goods sold rose 7%. Selling, general and administrative expenses were up 5%.
Brown Shoe attributed its higher revenue mostly to the acquisition of American Sporting Goods in February.
Books-A-Million swings to Q1 loss on declining sales
Birmingham, Ala. — Books-A-Million Inc. on Tuesday reported a first-quarter loss as revenue fell 11.1% in the face of growing competition from digital books. The chain posted a first-quarter loss of $3.5 million, compared with net income of $2 million.
Quarterly revenue dropped to $104 million from $117 million, a year earlier. Same-store sales fell 13.2%.
The company said it was hurt by competition from e-books and by the effect of tornadoes that cut across its home territory in the South near the end of the quarter. It said bargain books, electronics and other categories grew, and it would expand offerings in those areas.