Weak sales drive lowered Q2 outlook for American Eagle
Pittsburgh – American Eagle Outfitters is lowering its earnings outlook for the second quarter of fiscal 2013 due to what the retailer characterizes as weak sales and margins. The company now forecasts earnings per share (EPS) for the quarter of about $0.10, down significantly from $0.21 in the second quarter of last year.
Total net revenue decreased approximately 2% in the second quarter, while consolidated same-store sales, including AEO direct, decreased 7%. This compares to an 8% consolidated same-store sales increase last year. American Eagle CEO Robert Hanson said that despite second quarter issues the retailer is prepared for success in the near future.
“We are not at all happy with our second quarter results, which were impacted primarily by a disappointing performance of our AEO women’s assortment and weak traffic,” said Hanson. “Results were exacerbated by a highly promotional retail environment, which intensified over the course of July. Within this context, we increased the depth and breadth of markdowns; these actions have enabled us to achieve a clean inventory position moving into the third quarter.”
“We are encouraged to see strength in our direct business, which posted a low double-digit increase,” Hanson continued. “Other areas of continued performance included AEO men’s business, aerie, factory stores, and international markets, validating our strategic initiatives. Our efforts are keenly focused on strengthening our women’s’ business and ensuring our assortments are compelling, innovative and balanced across core, core fashion and fashion. The domestic retail environment remains challenging, however, we have a strong sense of urgency and believe we are focused on the right actions to regain traction, deliver strong returns and profitable growth.”
American Eagle will release full second quarter earnings on Aug. 21.
Jack in the Box pops up with Vine campaign
San Diego – Jack in the Box is launching a new summer promotional campaign utilizing the mobile video platform Vine. Developed by digital agency Struck, the campaign consists of 101 videos showing Jack in the Box customers how to "Go Big," a promotional theme the retailer is using in its menu.
The videos are available within the Vine mobile application as well as on the Jack in the Box website, and will be promoted via the restaurant chain’s Twitter and Facebook page. The website will solicit user-generated content gathered throughout the summer.
"In addition to providing a continual pipeline of digital content, the Vine promotion does a great job of connecting together our big summer products, and utilizing a technology platform that really resonates with our target,” said Andrea Shuff, director, marketing communications, Jack in the Box.
Fandango, Rue La La offer V.me digital wallet service
Los Angeles – Fandango and Rue La La have both begun offering customers the option of using the V.me digital wallet service from Visa to pay at online checkout. V.me eliminates the need to enter billing, shipping and account information, and instead allows consumers to pay for a purchase by entering their user name and password.
Other e-commerce merchants that have recently started accepting V.me payments include Crutchfield, Modnique, and Sonic Electronix.