Children´s Place Retail & Hot Topic Inc surpass estimatesThursday, 08 March 2012
Wednesday saw a good deal of corporate releases
cheering up the market, with better than expected for companies such as The Children´s Place Retail Stores or Hot Topic Inc. In the UK, John Lewis saw its profit dipping while Mulberry Group paid a golden welcome to its new chief executive, Bruno Guillon.
British luxury bags firm Mulberry today forked out £3.4 million on a golden hello for its new chief executive Bruno Guillon, reported Wednesday the Evening Standard. Guillon, who joined from French luxury goods brand Hermès at the start of the month, has been granted 200,670 shares and he has paid just 200p a share while the company has gone with the rest of the costs. Guillon, 46, was poached from Hermès last year, having previously worked for LVMH and Nina Ricci.
Meanwhile, John Lewis reported pre-tax and bonus profits dropped 3.8% to £353.8m in its full year. Total sales across the group were up 6.4% to £8.73bn in its year to January 28. Its store like-for-like sales edged up 1.3%, yet dropped 0.6% excluding VAT. Operating profit plunged 20.4% to £157.9m.
John Lewis group’s chairman Charlie Mayfield said the profits dip was down to increased investment to future-proof the retailer. It injected £21.3m into improving its operating structures over the year and £27.9m into new stores, up £11.2m on last year.
He said: “We have achieved a good sales performance in a tough year for the economy. Profound changes are taking place in the retail sector and importantly this was a year when we upped the pace of innovation and investment. This came at a price of some short-term profit but leaves us in a good place at the start of this year.” “We start this year leaner and fitter and have initiatives underway which will deliver key benefits in the coming years.”
Across the Pond, teen apparel retailer Hot Topic Inc. reported a higher-than-expected quarterly profit, helped by higher gross margins, and forecast a profit for the current quarter, sending its shares up 4 percent in after-hours trading. The retailer, which raised its quarterly dividend 14 percent, expects a first-quarter profit of 2 cents to 5 cents a share. According to Thomson Reuters I/B/E/S, analysts were expecting the company to break even. The company posted a fourth-quarter net income of $9 million, or 21 cents a share, compared with a loss of $0.6 million, or 1 cent a share, last year. Sales fell 1 percent to $209.9 million.
Finally, the Children's Place Retail Stores (NASDAQ:PLCE) said Wednesday its fourth quarter earnings fell to miss analysts' estimates. For the first quarter of fiscal 2012, the company said it expects earnings in the range of $1.03 to $1.08 per share. Analysts polled by Thomson Reuters are expecting $1.14 per share. For the full year fiscal 2012, the company anticipates earnings between $3.10 and $3.30 per share.