FINANCE

American Eagle Outfitters profit plunges in Q1

BY CSA STAFF

Pittsburgh American Eagle Outfitters’ fiscal first-quarter earnings plunged by half on losses from its failed Martin+OSA chain, masking higher sales.

For the quarter ended May 1, American Eagle’s profit dropped to $10.9 million, from $22 million a year earlier. Gross margin widened to 37.7% from 36.1%.

“The first quarter demonstrated progress toward our goals. We achieved higher sales and stronger profitability,” said Jim O’Donnell, CEO. “We remain focused on our priority to deliver margin improvement and earnings growth, with the ultimate goal of reaching our mid-teen operating margin target.”

During the recession, American Eagle posted weak sales and relied heavily on discounting but has seen results improve lately. It said in March it was closing its Martin+OSA business, shutting 28 stores and an online operation.

Earlier this month, the company said revenue increased 8% to $659 million as same-store sales climbed 5%.

Inventory climbed 15% on the per-square-foot basis, which excludes the direct-to-consumer business.

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RadioShack extends partnership with Lance Armstrong

BY CSA STAFF

FORT WORTH, Texas RadioShack’s chairman and CEO Julian Day announced at the company’s annual meeting on May 24 that RadioShack has expanded its partnership with Lance Armstrong and the Livestrong foundation. The company said it will introduce exclusive Livestrong-branded products and accessories in all stores beginning in July.

 

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DSW sees improved sales, earnings for Q1

BY CSA STAFF

COLUMBUS, Ohio DSW announced net income of $30.2 million on net sales of $449.5 million for the first quarter ended May 1, compared with net income of $7.1 million on net sales of $385.8 million for the first quarter ended May 2, 2009. Same-store sales increased 16.2% versus a decrease of 4.7% last year.

Diluted earnings per share were 67 cents for the first quarter of fiscal 2010 compared with diluted earnings per share of 16 cents last year.

The company reiterated its estimate of an increase in annual comparable-store sales of approximately 6% to 8% and annual diluted earnings per share of approximately $1.65 to $1.75 for fiscal 2010.  The estimated year-over-year earnings increase is expected to occur in the first six months of fiscal 2010.  The second half performance implied in the guidance recognizes the more challenging last year comparisons for both sales growth and merchandise margins.

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