Chico’s Q2 profit soars 42%, announces purchase of Boston Proper
Fort Myers, Fla. — Chico’s FAS reported Wednesday that its profit for the second quarter surged 42% to $43.4 million, up from $30.5 million a year earlier. Revenue rose 18% to $551.4 million, topping Wall Street’s expected $536.3 million, and same-store sales increased 12.8%. By brand, same-store sales were up 11.9% at Chico and Sonoma Intimates, and comps were up 14.9% at White House | Black Market.
Capping the positive performance news, Chico’s also said Wednesday that it has made a deal to acquire Boston Proper Inc. for $205 million cash.
The Boca Raton, Fla.-based Internet and catalog women’s apparel retailer is thought to be a good fit for Chico’s. “Boston Proper’s brand focus is highly complementary to our existing brands’ customer experience, adds significant volume to our direct-to-consumer channel and provides us new opportunities to grow market share,” said David Dyer, CEO and president, Chico’s FAS.
The transaction is expected to close in about 45 days. Boston Proper will operate as a stand-alone division within Chico’s FAS.
Abercrombie & Fitch profit jumps 64%, offers money to ‘Situation’ to stop wearing A&F clothing
New Albany, Ohio — Abercrombie & Fitch Co. reported Wednesday that profit for the second-quarter rose 64% to $32 million, up from $19.5 million, on increased demand in the United States and Europe.
Revenue rose 23% to $916.8 million, as previously reported, and same-store sales increased 9%.
The quarterly results indicate the retailer’s rebound as it has honed its focus on international expansion and right-sizing the portfolio. It plans to open 40 Hollister stores internationally this year, and close up to 65 stores in the United States.
On Tuesday, Abercrombie & Fitch released news that it had offered Michael “The Situation” Sorrentino, a cast member of MTV reality series “Jersey Shore,” a "substantial payment" to stop wearing the retailer’s clothing, citing potential damage to the Abercrombie & Fitch image.
BJ’s Wholesale Q2 profit up 28%
Westborough, Mass. — BJ’s Wholesale Club reported Wednesday that net income for the quarter ended July 30 increased 28% to $45.7 million, compared with $35.7 million in the year-ago period.
The warehouse club operator said revenue rose 11% to $3.05 billion from $2.75 billion, beating an expected $2.98 billion. Revenue from membership fees increased to $51.8 million from $47.5 million, while net sales rose to $2.98 billion from $2.69 billion. Same-store sales rose 7.8%, including a 4% contribution from fuel sales.
"It is clear that our members are doing more of their weekly food shopping with us. And I believe that we have tremendous opportunities to further grow our business," Laura Sen, BJ’s president and CEO, said in a statement.