Zales returns to full-year profitability
Dallas — Zale Corp. narrowed its net loss in the fourth quarter to $8 million, from $19.7 million a year ago. Despite the loss, the retailer reported its first profitable fiscal year since the financial crisis in 2008.
“We are pleased to report another solid quarter with a 5.6 percent comp and significant improvement to margins,” said Zales CEO Theo Killion.” Importantly, for the year we achieved a significant milestone by delivering our highest net income in six years. “We intend to build on this momentum as we focus on driving profitable top-line growth and long-term shareholder value.”
Revenue for the quarter ended July 31, rose 2.5% to $417.1 million. Same-store sales increased 5.6%, including an 8.1% increase at its namesake division. Both the quarterly net loss and revenue gain beat Wall Street expectations
For the full year, revenues were $1.89 billion compared to $1.87 billion in fiscal year 2012. Same-store store sales increased 3.3%. Net earnings were $10 million, compared to a net loss of $27 million, in fiscal year 2012.
Q2 Comp-store sales slip at Chico’s FAS
FORT MYERS, Fla. — Chico’s FAS’s financial results for the second quarter ended Aug. 3 were affected by a lower transaction count and average dollar sales, primarily because of lower traffic and the cycling of strong comparable sales last year.
The company reported net income of $43.6 million for the quarter — a decrease of 18.4% compared to $53.4 million in the year-ago quarter, and earnings per diluted share of $0.27, a decrease of 15.6% compared to $0.32 per diluted share in the year-ago quarter.
Net sales were $649.5 million for the quarter, up 1.2% from $641.7 million in the year-ago quarter, primarily reflecting 112 net new stores for a square footage increase of 8.8%.
Meanwhile, comparable sales for the quarter decreased 2.6% following a 5.6% increase in last year’s second quarter.
The Chico’s/Soma Intimates brands’ comparable sales decreased 3.1% following a 7.2% increase in last year’s second quarter for a two-year stack of up 4.1% and the White House | Black Market brand’s comparable sales decreased 1.5% following a 2.3% increase in last year’s second quarter for a two-year stack of up 0.8%.
The women’s omnichannel specialty retailer operates under the Chico’s, White House | Black Market, Soma Intimates and Boston Proper banners, and counts with 1,427 stores in the US as well as corresponding e-commerce sites.
Express in fast lane as net income rises 7%; to launch outlet business
Columbus, Ohio — Express Inc. reported a profitable second quarter of fiscal 2013, with year-over-year increases in net income, net sales and same-store sales. Net income rose 7% to $16.8 million, in line with Wall Street expectations, from $15.9 million. The retailer raised its full-year guidance and also announced plans to launch its outlet business in the second quarter of next year.
Net sales for the quarter increased a better-than-expected 7% to $486.2 million, from $454.9 million.
Same-store sales increased 6%, following a 1% hike in the second quarter if last year. This includes e-commerce sales, which increased 27% to $59.9 million. In last year’s second quarter, e-commerce sales grew 24% to $47.2 million.
"We delivered a very solid second quarter,” said Michael Weiss, chairman and CEO of Express. “Financial highlights include high single digit sales growth, comparable sales that represent a return to mid-single digit growth and earnings per share that came near the upper end of our guidance. As we move into the second half of the year, we are confident in our product and marketing strategies, and believe we are well positioned for the fall and holiday seasons."
For the full fiscal year, Express is projecting a year-over-year improvement in same-store sales but a slight decline in net income compared to fiscal 2012.