FINANCE

Lululemon Athletica Inc. revealed that it plans to open smaller, “local” stores amid results that disappointed Wall Street.   Net revenue for the quarter ended July 31 increased 14% to $514.5 million, just shy of projections, from $453.0 million in the year ago period. Total comparable sales rose 4%, with in-store sales up 3% and direct to consumer sales up 6%.   Net income increased 12.5% to $53.6 million.  

Changing footwear trends took a bite out of Genesco Inc.’s sales in the second quarter.   The company reported net income of $14.6 million, up from a year-earlier profit of $7.5 million.   Genesco’s revenue for the second quarter, ended on July 30, fell 4.6% to a less-than-expected $625.6 million.   Total same-store sales fell 1%, with a 4% decline at the Journeys Group.   

While some specialty chains struggle to meet earnings predictions, Dollarama reported better-than-expected second quarter results. The Montreal-based discount chain’s net income was $106.4 million for the second quarter of fiscal 2017, ended July 31, 2016 — up 11.4% from $95.5 million for the same period last year.  

Following a revenue miss in the second quarter, sales continue to slide at The Buckle.    For August, same-store sales fell 14.8%, a decrease exceeding the company’s 10.9% same-store loss in July, and a 10.8% drop in the second quarter.    Net sales for August also dipped 14.0% to $87.2 million for the four-week period ended August 27, 2016, compared to $101.4 million for the same fiscal month last year, ended August 29, 2015.   

J. Crew Group’s efforts to pump up sales at its core brand didn’t quite take off in the second quarter.   Total revenues at J.Crew Group decreased 4% to $569.8 million in the second quarter.   Total same-store sales fell 8%, its eight consecutive quarterly decrease, with a 9% decline at the company’s namesake brand and a 3% increase at Madewell.   J. Crew reported a net loss of $8.6 million, compared with $13.6 million a year ago.  

Aeropostale may still live to see another day thanks to a last-minute bid.   In a development that no one saw coming, a consortium of landlords, liquidators and others joined together to make a $243.3 million offer to save 229 Aeropostale stores, Fortune reported. The group includes General Group Properties, Simon Property Group, Gordon Brothers Retail Partners, Hilco Merchant Resources, and Authentic Brands Group.  

Chico’s FAS reported better-than-expected second quarter earnings and announced new cost-saving measures. It also said the president of its namesake brand is stepping down.  

Things are looking bleaker for bankrupt Aeropostale.   A bankruptcy court judge on late Monday rejected a request from Aeropostale to blame its bankruptcy on Sycamore Partners and block an offer from the private equity firm.   Sycamore Partners confirmed it submitted a bid for the chain after the judge issued the opinion. The amount of the bid is unknown, but it may have been $150 million, which is how much Aeropostale owes two affiliates of Sycamore, Aero Investors and MGF Sourcing Holdings.

Abercrombie & Fitch Co.’s turnaround was called in to question on Tuesday as the chain posted a wider loss in its second quarter, hurt by a decline in tourist traffic at its flagship locations.     The teen apparel retailer also revealed that it expects to close up to 60 U.S. stores as their leases expire this fiscal year. On its quarterly conference call, company executives said the chain has flexibility to close even more stores, with about half of its U.S. leases expiring by the end of 2017, the Wall Street Journal reported.

DSW Inc. on Tuesday posted better-than-expected results for its second quarter and reaffirmed its full-year outlook.    The company also said it expects to see $25 million of annualized savings in 2017 as a result of a restructuring program it launched earlier this year, with about $7 million of the total to be realized this year. The retailer said the savings would result “from organization realignment and improvements in procurement and other business processes.”