C-SUITE

Perfumania names new COO

BY Marianne Wilson

Perfumania Holdings announced the appointment of Neal Montany as COO of the company, effective Aug. 29.

Montany will oversee the fragrance and beauty retailer’s operations, including IT, manufacturing, warehousing and facilities, logistics, loss prevention, purchasing and human resources.

Montany’s career in operations management spans over three decades, including senior management positions at United Technologies Corporation and International Aero Engines. Most recently, he served as VP/GM of GKN Aerospace in New York with full P&L and site responsibility.

As of April 30, 2016, Perfumania operated 303 corporate-owned retail stores as well as its e-commerce site.

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FINANCE

Express tumbles in Q2

BY Marianne Wilson

Express Inc. cut its annual profit forecast as the chain struggled with declining sales and weak store traffic in its second quarter.

The retailer reported net income of $10.1 million for the quarter ended July 30, short of Wall Street expectations, down from $21 million, in the year-ago period.

Revenue fell 6% to $504.8 million, also below Street forecasts. Same-store sales, which include online sales, fell 8%, which was worse than analysts expected.

In a statement, Express CEO David Kornberg cited “challenging store traffic,” which was compounded by “a lack of clarity across the assortment.”

“We believe we have identified the necessary actions to position Express to regain momentum and we are moving on them,” he said. “Our fall assortment is more cohesive across our wearing occasions, clearly identifying the important trends, and we are aggressively pursuing several marketing initiatives focused on driving new customer acquisition and retention. In addition, we are pleased with our overall inventory position as we begin the fall season.”

For the full year, the company expects adjusted earnings of $1 to $1.14 a share, down from previous guidance for $1.41 to $1.54 a share.

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FINANCE

Home goods retailer misses in Q2

BY Marianne Wilson

Kirkland’s reported a second-quarter loss that was larger than expected as it lowered its outlook for the year.

The home goods retailer lost $3.6 million in the quarter ended July 30, compared with a loss of $2.3 million in the year-ago period.

Net sales for the quarter increased 6.7% to $123.0 million. Same-store sales, including e-commerce sales, decreased 4.3%.

“Traffic remains under pressure as we enter the second half and we've adjusted our full-year guidance to incorporate a more conservative outlook," said Mike Madden, CEO, Kirkland’s. "Our seasonal merchandise is performing well thus far and we have planned deeper buys in categories that are trending favorably. Our fall marketing campaign reflects a better balance of value and inspiration, and we're making improvements to our omnichannel delivery and execution.”

Kirkland's opened 13 stores and closed 4 stores during the second quarter, giving it a total of 391 locations at quarter end. It is on track to open 40 to 42 new stores for the year.

The retailer said it expects its gross profit margin to decline year-over-year given an increase in supply chain and store occupancy costs, slightly offset by a higher merchandise margin. Operating expenses are expected to increase slightly as a percent of sales. Kirkland’s expects fiscal 2016 earnings per share to be in the range of $0.70 to $0.80.

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