Chico’s to use APT solution
Washington, D.C. — Applied Predictive Technologies (APT) announced that Chico’s FAS has signed an agreement to license APT’s Test & Learn Management System.
Chico’s chose the solution after a pilot project which examined a range of the retailer’s promotional strategies. Using the Test & Learn approach during the pilot, Chicos’ gained valuable insights that helped it better understand its customers’ behavior.
“We have seen how APT’s solution is able to rapidly design and test high-impact ideas before rolling them out to the entire store chain or customer base. The ability to confidently predict the impact of potential outcomes will build on Chico’s ability to quickly bring the best merchandise and shopping experience to our customers,” said Todd Vogensen, VP financial planning and strategy at Chico’s, Fort Meyers, Fla., which operates 1,206 stores.
Going forward Chico’s plans to apply the Test & Learn system to optimize a wide range of business initiatives, in areas including marketing, merchandising, store operations, media mix, new product launches, and pricing.
DSW Q2 profit jumps on acquisition and rising sales
Columbus, Ohio — DSW said Tuesday that its second-quarter profit soared, boosted by a hefty one-time gain related to its acquisition of Retail Ventures.
The results beat Wall Street expectations and the company boosted its full-year outlook.
For the quarter ended July DSW posted net income of $139.9 million, compared with $26.9 million for the same quarter last year.
Excluding the one-time gain related to the purchase of Retail Ventures, the company said it posted an adjusted profit of $33.7 million, compared with an adjusted $23.5 million in the year-ago period.
Sales rose 15% to $476.3 million from $415.1 million. Same-store sales were up 12.3%. The results beat Wall Street predictions.
“During the quarter we increased our men’s and accessories penetration while continuing to grow women’s fashion footwear," said Mike MacDonald, president and CEO. "We also launched our mobile website and kids’ shoes online to further our market share gains in the high-growth e-commerce business. Despite economic uncertainty and equity market volatility, we expect fiscal 2011 to represent another strong year of growth and increased value for all DSW stakeholders."
In May, DSW bought Retail Ventures, a company whose only operating business was its 62% stake in DSW. Retail Ventures’ chairman was also the chairman and former CEO of DSW.
DSW had been a subsidiary of Retail Ventures, until DSW went public in 2005.
DSW steps up 2Q comps
COLUMBUS, Ohio — DSW’s model of bringing designer goods to a budget-conscious consumer continues to pay off, as the company posted sales and earnings growth for its second quarter. DSW Inc. reported that net sales for the second quarter increased4.7% to $476.3 million from $415.1 million in the second quarter of 2010.Comparable sales for the second quarter increased 12.3%.
Reported net income was $139.9 million, or $3.96 per diluted share. This compares with reported net income of $26.9 million, or $1.00 per diluted share.
"We continued our strong performance in the second quarter, delivering double-digit increases in sales and comparable sales, expansion in gross margin and solid earnings growth driven by the success of our format and our strategies," stated Mike MacDonald, president and CEO of DSW Inc. "We believe our sustained momentum is a clear indication of DSW’s authority in the footwear category. The second quarter marked our eighth consecutive quarter of strong comparable sales approaching or equaling a double-digit growth rate."
"During the quarter we increased our men’s and accessories penetration while continuing to grow women’s fashion footwear," MacDonald continued. "We also launched our mobile website and kids’ shoes online to further our market share gains in the high-growth e-commerce business. Despite economic uncertainty and equity market volatility, we expect fiscal 2011 to represent another strong year of growth and increased value for all DSW stakeholders."
For the first half of the year, DSW reported that net sales increased 13.3% to $979.9 million from $866.7 million for the first six months of 2010. Comparable sales for the period were up 11.5%. Net income for the first six months was $101.7 million or $3.54 per diluted share, compared with net income of $21 million or 98 cents per diluted share. Net income benefited by $28.4 million from the company’s recent merger with Retail Ventures.
DSW said it is raising its annual guidance.The company continues to estimate annual comparable sales to increase in the mid-single-digit range and now expects annual diluted earnings per share in the range of $2.70 to $2.85 for fiscal 2011, excluding any impact from the merger with RVI.
As of July 30, 2011, DSW operated 319 stores in 39 states