J. Crew 3Q Profits Fall 29%, but Tops Estimates
New York City The troubled economy has brought even high-flying J. Crew Group Inc. down to earth. The retailer said Tuesday its third-quarter earnings fell 29% on lower sales at existing stores and slimmer margins, but the results still topped analysts’ expectations.
During the third quarter, the apparel retailer earned $19 million compared with $26.8 million in the year-ago quarter. Revenue rose 9% to $363.1 million from $332.7 million. Same-store sales fell 3% in the period.
The retailer also slashed its earnings prediction for the full year, citing the tough economic environment.
“Despite these difficult economic times our priorities remain the same—providing innovative product, style and design, servicing our customers and making disciplined investments,” Millard Drexler, J. Crew’s chairman and CEE, stated. “At the same time, we recognize that a sea-change has occurred with the consumer. In the near term we are not immune to the significant challenges we are all facing in retail in these unprecedented times.”
Fisher resigns from Godinger
NEW YORK Mark Fisher has resigned as president and chief marketing officer of Godinger. He will become a partner at International Industrial Development Associates.
Fisher was with Godinger for 15 years, his tasks will be assumed internally.
Charming Shoppes posts better-than-expected 3Q loss
BENSALEM, Pa. Charming Shoppes reported a loss form continuing operations of $23.7 million of 21 cents per diluted share on a non-GAAP basis. The company had projected a diluted loss per share in the range of 35 cents to 37 cents.
Net sales from continuing operations for the thirteen weeks ended Nov. 1 decreased 8% to $553.1 million, compared to net sales from continuing operations of $599.7 million for the thirteen weeks ended Nov. 3, 2007.
Net sales for the company’s retail stores segment were $528.5 million during the quarter, a decrease of 10% compared to $588.1 million during the same period last year. Consolidated comparable-store sales for the company’s retail stores segment decreased 9% during the quarter. The decrease in consolidated comparable-store sales compares favorably to the company’s previous projection for sales declines in the low double digits.