FINANCE

While RH continued to make investments to transform its business model, these efforts impacted the company’s preliminary fourth quarter earnings.   The furniture and housewares company, which officially changed its name from Restoration Hardware to RH last month, posted net income of $8.75 million, or 21 cents per share, for the quarter ended January 28, 2017. This was a drop from $33.3 million in fourth quarter 2015. Earnings, adjusted for non-recurring costs, came to 68 cents per share, beating analyst estimates of 65 cents per share.

Commentary by Neil Saunders, managing director of GlobalData Retail, comments on J.C. Penney’s fourth quarter:     Although JCP ended its fiscal year with a shrink in sales, it can take some comfort from the fact that the decreases are modest and that it managed to outperform its main department store rivals.  

Family Christian is going out of business.   The company said Thursday, Feb. 23 that it plans to close all 240 stores across 36 states, according to Reuters.    Family Christian filed for Chapter 11 bankruptcy in February 2015 with more than $120 million in debt. Since then, the chain continued to face a sales slump amid growing competition from online stores.  

Bruised by weak fourth-quarter results, department stores are now planning more cautiously for 2017 as they re-evaluate how to compete in a rapidly changing retail environment,   

Despite a softer sales environment, Foot Locker reported strong fourth quarter earnings — surpassing analyst estimates.   For the fourth quarter ended January 28, 2017, the specialty athletic retailer’s profits hit $189 million, or $1.42 per share, compared with net income of $158 million, or $1.14 per share in the same period of 2015. This exceeded analyst estimates of $1.31 per share.  

J.C. Penney on Friday announced plans to close stores and reduce its workforce even as it reported its first profit since 2010.    In one of its deepest cuts to date, the retailer said it will close 130 to 140 stores, which represent about 13% to 14% of its total, 1,014 store base. The locations to be shuttered are unprofitable, Penney said, and generated less than 5% of total annual sales.     

L Brands is preparing for steep losses in the near-future, specifically across its Victoria’s Secret brand.    For the quarter ended January 28, 2017, net sales were $4.489 billion, an increase of 2% compared to $4.395 billion for the quarter ended January 30, 2016. The company’s net income was $631.7 million compared to $636 million last year.  

Weaker results in its European, Saks Off 5th and Gilt operations contributed to lower fourth quarter sales for Hudson’s Bay Company   For the fourth quarter ended January 28, 2017, the company’s consolidated comparable sales decreased 1.2%. Specifically, DSG (Hudson’s Bay, Lord & Taylor and Home Outfitters) same-store sales increased 0.6%, and Saks Fifth Avenue comparable sales increased 0.1%.