American Eagle Q2 income slides 70% but still tops estimates
Pittsburgh — American Eagle’s second-quarter net income was down 70% amid weak sales. But its results were better than analysts estimates.
For the period ended Aug. 2, American Eagle Outfitters Inc. earned $5.8 million, down from $19.6 million a year earlier.
Revenue decreased 2% to $710.6 million from $727.3 million, topping estimates of $689.5 million. Same-store sales fell 7%.
"Although the second quarter results were slightly ahead of our expectations, they do not reflect our potential," interim CEO Jan Schottenstein said in a statement. “We did, however make significant progress on our priorities to build a sustainable path to higher profitability. We successfully cleared through spring and summer merchandise and entered the second half of the year in a good inventory position.”
Selling, general and administrative expenses increased to $190.1 million from $186.3 million. Depreciation and amortization expense climbed to $35.4 million from $29.7 million.
Macy’s reaches accord on racial profiling allegations
New York — Macy’s Inc. has agreed to pay $650,000 to settle allegations of racial profiling at its flagship store in Manhattan.
Under the agreement with New York’s attorney general, the company will initiate enhanced training and education for its loss prevention and sales associates.
“We also will be adopting an expanded role for our security monitor to help ensure that we have the right policies and procedures in place, and that we are constantly reviewing our compliance with them,” the retailer said in a statement.
The New York attorney general’s Civil Rights Bureau opened an investigation into Macy’s in February 2013 after receiving several complaints from minority customers. The office recorded complaints from 18 African-American, Latino and other ethnic minority customers who alleged they were detained at Macy’s stores between 2007 and 2013, despite not having stolen or attempted to steal any merchandise.
"To be clear, our company’s policies strictly prohibit any form of discrimination or racial profiling and any occurrence of such behavior will not be tolerated in our organization," Macy’s said in its statement.
The agreement with Macy’s comes on the heels of a similar agreement the attorney general’s Civil Rights Bureau reached with Barneys.
Lowe’s Q2 profit up 10%; trims outlook
Mooresville, N.C. — Lowe’s second-quarter net income rose a better-than-expected 10%, helped by improving weather. But the chain lowered its full-year revenue outlook slightly, citing its year-to-date sales and prior assumptions for the second half.
For the three months ended Aug. 1, Lowe’s Cos. earned $1.04 billion, up from $941 million in the prior year.
Revenue increased 6% to $16.6 billion, topping Wall Street’s estimates.
Same-store sales were up 4.4%.
"We believe home improvement spending will continue to progress in tandem with strengthening job and income growth," stated chairman, president and CEO Robert Niblock. “Our year-to-date sales performance, together with our previous assumptions for the second half of 2014, result in a modest reduction to our sales outlook for the year. Our diluted earnings per share outlook is unchanged, which is a testament to our keen focus on profitability."