Destination XL Group swings to loss in Q2, revises guidance
Canton, Mass. — Big and tall men’s apparel retailer Destination XL Group recorded a $1.6 million loss in the second quarter, compared with a profit of $1.2 million in the year-ago period. Sales dipped 3% to $97.6 million from $100.5 million, and same-store sales rose 6.9%.
Aggressive advertising centered around a national ad campaign to ramp up sales cut into second quarter results, which were forecast as break-even. To compensate, the retailer said it will eliminate fall catalogs and reduce the number of store openings from a planned 57-64 to between 55 and 58.
For the year, Destination XL now foresees a loss instead of the previously predicted break-even results.
Ross Stores Q2 earnings beat estimates
Pleasanton, Calif. — Ross Stores Inc. reported a profit of $213 million for the second quarter, compared with $182 million last year and beating Wall Street’s expectations.
Revenue rose 9% to $2.5 billion, matching forecasts. Same-store sales edged up 4%, compared to a 7% rise in the same period last year. However, the retailer expressed caution about the months ahead.
"Looking ahead, given the ongoing uncertainty in the macro-economic environment and the potential for a more promotional and competitive retail climate, we believe it is prudent to maintain a somewhat cautious outlook for the remainder of the year,” said Michael Balmuth, CEO.
Hibbett Sports profit leaps 34% in Q2, cuts view
New York — Hibbett Sports reported that profit surged 34% to $10.5 million in the second quarter, compared with $7.9 million last year and just edging Wall Street expectations.
Sales matched forecasts with a 13% rise to $186.2 million. Same-store sales edged up 0.3%.
But the sporting goods retailer lowered its full-year outlook, citing concern over consumer spending.
“We delivered a solid increase in earnings for the second quarter. Comparable store sales were softer than planned due to a challenging economic environment,” said Jeff Rosenthal, CEO. “However, we are encouraged by a strong start to the third quarter.”
For fiscal 2014, the company plans to open between 70 and 75 stores, expand 18 and close 15 to 20.