J.Crew sees its revenue up by 21 percentThursday, 30 August 2012
Wednesday closed plenty of relevant news for a handful
of fashion champions. Whil J.Crew saw its revenue hiking 21 percent, Tiffany remained cautious as revised its forecast. JD Sports Fashion had a tough day at the trading floor, as well as Björn Borg.
J.Crew Group, Inc. has posted revenue’s increase of 21 percent to 525.5 million dollars, with comparable company sales increasing 14 percent. Comparable company sales increased 3percent in the second quarter last year. Store sales increased 24 percent to 384.0 million dollars. Store sales increased 5percent in the second quarter last year. Direct sales increased 16 percent to 134.0 million dollars following an increase of 13 percent in the second quarter last year.
Gross margin increased to 45.1 percent from 36.5 percent in the second quarter last year. Last year included amortization of inventory step-up from purchase accounting of 22 million dollars.
Selling, general and administrative expenses increased to 174.7 million dollars, or 33.2 percent of revenues, from 146.4 million dollars, or 33.7 percent of revenues, in the second quarter last year. Operating income increased 49.8 million dollars to 62.1 million dollars, or 11.8 percent of revenues, compared to 12.3 million dollars, or 2.8 percent of revenues, in the second quarter last year. Operating income last year was negatively impacted by amortization of inventory step-up and transaction-related litigation costs noted above.
Elsewhere, Tiffany & Co cut its sales and earnings forecasts earlier this week for the second straight quarter, citing a tough global economy and calling for a later prospect of improving profit margins later in the year to comfort investors.
Shares of Tiffany rose 7 percent to 62.62 dollars on its expectations that pressure on margins from gold and diamond costs are at last easing this quarter, revealed Reuters. Tiffany said gross margin should start to rise again in the holiday quarter, its biggest of the year by far. "It's the light at the end of the tunnel," Morningstar analyst Paul Swinand told Reuters.
In the UK, JD Sports Fashion became one of the main losers within the FashionUnited Top 100 Index, just a week after the athletic apparel retailer announced its intention of getting rid of Canterbury. The stock lost 1.17 percent Wednesday.
England rugby's new kit supplier is set to be sold in a £1 deal - three years after retailer JD Sports Fashion rescued the firm from administration. Pentland - JD's biggest shareholder with brands including Ellesse and Mitre - will take on Canterbury's 22.7 million pounds debt in its purchase of the firm, which also supplies the South Africa and Scotland teams.
Strong sales in New Zealand and Australia during the Rugby World Cup recently helped Canterbury to annual operating profits of 400,000 pounds, but it was dragged to a bottom-line loss by the clothing line in the US and Europe.
Wednesday was also tough for the Swedish underwear company Björn Borg, which shed of 1.55 percent at the trading floor just a day after it announced its plans to enter China. The group’s net sales increased by three percent to 105.5 million Swedish kroner (SEK) (15.84 million US dollars/Rs 87 crores) compared to sales for the same period last year.