News

Foreign currency hits Guess in Q2
New York — Guess Inc. cited the negative impact of foreign currency fluctuations on earnings and sales in a difficult second quarter of fiscal 2016. Net earnings totaled $18.3 million, a 17% decrease compared to $22 million for the second quarter of fiscal 2015.

Total net revenue decreased 10%, from $608.6 million to $546.3 million. Same-store sales, including e-commerce, dropped 2.8% in the United States and Canada. In one bright spot, top-line e-commerce sales grew 20%.
Report: Amazon scaling back hardware development
As Amazon.com deals with the fallout from a New York Times article over working conditions, another media outlet reports the retailer is scaling back its consumer device division and laying off dozens of employees in its hardware development center.

The division, called Lab126, last year released a flurry of 10 devices, including a television set-top box, the Echo and a wand for scanning bar codes at home, according to the Wall Street Journal.

J. Crew swings to loss

New York — It was tough sledding for J. Crew Group in the second quarter as its namesake brand continued to decline. The retailer swung to a net loss of $13.6 million for the quarter, ended Aug. 1, compared with earnings of $10.8 million in the year-ago period. Revenue fell 5% to $593.6 million.
Walmart fires opening salvo of 2015 holiday season

The holiday force has awakened earlier than ever at Walmart with the Aug. 28 launch of a major initiative called Toy Week.

Walmart has released its top toy list of 25 products and announced details of a layaway program that is less restrictive than prior years. The program begins Aug. 28, two weeks earlier than last years, and those participating will find the price point of eligible items has been reduced to $10 with a minimum basket size of $50, there is no account opening fee and only a 10% down payment is required.
Burlington joins the off-price winner's circle

Burlington Stores Inc. has joined the cadre of profitable off-price retailers in the second quarter with a round of impressive sales results.

The company swung to a net income of $10.9 million in the second quarter of fiscal 2015 from a net loss of $6.47 million the same quarter of last year. Decreases in stock option and interest expenses, as well as some impairment charges, helped bring Burlington to profitability.

Net sales rose 10% to $1.14 billion from $1.04 billion, while same-store sales grew 5.6%.
Burlington Stores swings to profit, plans 25 net new stores

Burlington, N.J. — Burlington Stores Inc. is in the black.

The company swung to a net income of $10.9 million in the second quarter of fiscal 2015 from a net loss of $6.47 million the same quarter of last year. Decreases in stock option and interest expenses, as well as some impairment charges, helped bring Burlington to profitability.

Net sales rose 10% to $1.14 billion from $1.04 billion, while same-store sales grew 5.6%.
Sears grants a wish for Make-a-Wish

Sears Hometown and Outlet Stores raised more than $217,000 for Make-A-Wish this past spring, when it held a two-week charitable program.
Tilly’s misses Street in Q2

Irvine, Calif. — Tilly’s Inc. missed Wall Street expectations by falling profit and increasing revenue in a mixed second quarter of fiscal 2015. Net income fell 54%, from $1.3 million to $600,000, with a tax settlement hindering profitability.

Total net sales fared better, rising 6%, from $123 million to $130 million. Same-store sales — including e-commerce — climbed 0.5%.

Despite missing Wall Street forecasts and declining profit, President and CEO Daniel Griesmer said he was pleased with results for the quarter.
West Elm branches out into pop-ups

In a first, West Elm, a Williams-Sonoma subsidiary, will make its products available outside of the brand’s own stores and website.
GameStop a winner in Q2

Grapevine, Texas – GameStop Corp. on Thursday posted a strong second quarter, with profit and revenue that topped analysts’ estimates.

The retailer’s net income rose 3% to $25.3 million from $24.6 million.