Zara uses social media to apologize for big fashion gaffe
New York — Fashion powerhouse Zara, owned by Spain’s Inditex, used social media to apologize after complaints poured in via Twitter that the retailer was selling a piece of clothing that closely resembled a uniform worn in Nazi concentration camps during World War II. The item in question, called the “Sheriff,” was a children’s blue-and-white striped top with a prominent six-pointed yellow star.
The top was featured on the retailer’s online site in a select number of countries, including Sweden, France and Israel. It was removed on Wednesday hours after it went on sale. Zara turned to Twitter, issuing apologies in a number of different languages, and said the design of the shirt was styled after shirts worn in Old Western movies.
The company wrote on its Twitter feed:
“We honestly apologize, it was inspired by the sheriff’s stars from the Classic Western firms and is no longer in our stores.”
Tiffany Q2 profit and sales top estimates; to open 10 stores
New York – Profit and revenue for Tiffany & Co. exceeded Wall Street predictions during the second quarter of fiscal 2014. Net earnings rose 16% to $124 million from $107 million in the second quarter of the previous fiscal year, which the retailer attributed to worldwide net sales growth and gross margin improvements.
Worldwide net sales increased 7% to $992.9 million, from $925.9 million. Strong performance in the colored diamond and statement jewelry categories helped drive sales.
During the rest of the fiscal year, Tiffany plans to open 10 company-operated stores and close three existing stores: opening four in the Americas, two in Asia-Pacific, two in Japan, and one each in Europe and Russia, while closing one each in the Americas, Asia-Pacific and the United Arab Emirates. Tiffany also increased its net earnings forecast for the fiscal year and expects worldwide net sales growth.
Chico’s Q2 profit disappoints amid price cuts
Fort Myers, Fla. – Chico’s FAS Inc. reported net income of $30.1 million in the second quarter of fiscal 2014, down 31% from $43.6 million in the year-ago period. Price cuts needed to clear seasonal merchandise were a primary driver of Chico’s lower net income. Its results missed Wall Street expectations.
Net sales for the quarter ended August 2, 2014, were $671.1 million, up 3.3% from $649.5 million in the previous year, primarily reflecting the addition of 98 net new stores.
Total same-store sales rose 0.3%.