Retailers and vendors who reported quarterly results over the past month did a fine job of beating Wall Street analyst estimates save for Sears Holdings, which saw profits come in lower than anticipated as same-store sales softened. Tiffany & Co., Polo Ralph Lauren Corp. and Phillips-Van Heusen Corp., however, all posted better-than-expected earnings per share.
At the beginning of June, Tiffany & Co. beat Wall Street’s expectations by a penny, and raised its full-year earnings per share guidance. For the three months ended April 30, net income gained 15.1 percent to 49.7 million, or 36 cents a share, from $43.1 million, or 30 cents, in the same year-ago quarter as sales also rose 15.1 percent to $620.9 million from $539.2 million.
WWD reported that comps at the company’s New York flagship jumped 26 percent. Same-store sales in branch stores increased 9 percent, and international sales gained 15 percent to $248 million. Sales growth in Japan did not keep pace with other overseas regions, the company said in its earnings report.
Right before the Memorial Day weekend, Polo Ralph Lauren Corp. posted fourth-quarter results well ahead of Wall Street’s expectations, but the company said full-year earnings per share would come in lower due to acquisition-related costs.
For the three months ended March 31, net income leapt 17.1 percent, to $73.2 million, or 68 cents a diluted share, from $62.5 million, or 58 cents, in the year-ago quarter. Analysts had the company pegged to earn 62 cents.
Roger Farah, president and chief operating officer, told WWD that at Club Monaco, “we’ve made so much progress. We have completed a wonderful year and are off to a great start. The merchandise assortments and store presentations are right on the money and [we are] looking at U.S. and international retail expansion.”
Phillips-Van Heusen said its 8.7 percent first quarter earnings gain was driven by a 16.9 percent increase in revenues, which included a 37 percent increase in Calvin Klein royalty sales.
Strength in the Calvin Klein royalty revenue was partly offset, WWD reported, by a drop in the company’s wholesale sportswear gross margin rate. As with other vendors serving this segment of the market, times have been tough. “Despite the challenges the overall retail environment has been experiencing, we were able to exceed our previous earnings guidance,” Emanuel Chirico, chief executive officer, said in a statement at the time of the earnings release. “Our diversification strategy of marketing our nationally recognized brands across multiple channels of distribution is working and continues to benefit our bottom line.”
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For Sears Holdings Corp., first-quarter earnings came in at the low end of the retailer’s estimates. The company said results were negatively impacted by softer same-store sales. Earnings rose 20 percent tp $1.40 a share. Excluding the certain items, diluted earnings per share came in at $1.10, which compares to $1.11 a year ago. The items includes gains relating to a legal settlement as well as aendments made to Sears Canada’s postretirement benefit plans. Insurance recoveries also added to the bottom-line gains. Revenues fell 2.5 percent to $11.7 billion as domestic same-store sales declined 3.9 percent.
For a detailed look at the stories behind the headlines, see the following archived articles:
Tiffany Raises Guidance
Sears Reports Earnings Rise of 20%
PVH Sees 8.7% Rise In Profits for 1st Qtr.
Polo Beats Expectations, Trims Guidance