- News Archive
Jos. A. Bank and Gary Sinise Help Troops with New Suits
- Published 06/26/2013
Through its "Uniform of Success" event, Jos. A. Bank Clothiers, Inc. has joined with the Gary Sinise Foundation to give suits to thousands of military veterans as they re-enter the civilian workforce.
Anyone who purchases a men's suit from July 1-7 gets an additional two free suits. Jos. A. Bank will then donate a suit to a returning veteran through the Gary Sinise Foundation. The promotion's tag line will be BUY 1-GET2-GIVE 1.
"We are humbled by the sacrifice our veterans make every day for our country," said R. Neal Black, CEO of Jos. A. Bank. "For over 100 years, our customers have relied on us to dress them for success, and we want to make returning veterans the very best-dressed job candidates."
Many veterans experience a difficult transition from military to civilian life, especially finding a job. The challenge is greatest for young, male troops returning from active duty, which had a 20 percent unemployment rate in 2012.
An advocate of meeting that challenge is award-winning actor Gary Sinise. He formed the Gary Sinise Foundation to create programs that serve and honor Americans in the military. Sinise also formed the Lt. Dan Band as a homage to the role he played in "Forrest Gump" as disabled veteran Lt. Dan Taylor. The group tours the world performing concerts for the military and their families on behalf of the Gary Sinise Foundation and the USO. Sinise received the Presidential Citizens Award for his humanitarian efforts on behalf of the USO and the foundation.
"Uniform of Success" complements the foundation's partnership with GE for "Get Skills to Work." The program accelerates skills training for U.S. military veterans, helps veterans and employers translate military skills to advanced manufacturing jobs, and empowers employers with tools to recruit and mentor veterans.
"For the past several years I've been on a mission to boost the morale of our troops," said Sinise. "Being able to look sharp and dress nicely can raise the self-esteem and confidence of these veterans.
Having a great suit to put on for a job interview can be a very special thing for somebody who's spent a lot of time in a military uniform, and may not have worn one for a long time."
Customers who purchase a regular-priced suit (excluding Traveler and Classic Collection merchandise) at a Jos. A. Bank full-line store or online at www.josbank.com will receive two additional suits of equal or lesser value free. For each suit purchased, the Gary Sinise Foundation will receive a voucher from Jos. A. Bank for distribution to a U.S. military veteran identified by the foundation as returning to the civilian workforce. The veteran may redeem the voucher at any Jos. A. Bank full-line store for a free suit from the Jos. A. Bank "Executive Collection" (retail value of $650).
About Jos. A. Bank
JoS. A. Bank Clothiers, Inc., established in 1905, is one of the nation's leading designers, manufacturers and retailers of men's classically-styled tailored and casual clothing, sportswear, footwear and accessories. The Company sells its full product line through 606 stores in 44 states and the District of Columbia, a nationwide catalog and an e-commerce website that can be accessed at www.josbank.com. The Company is headquartered in Hampstead, Md., and its common stock is listed on the NASDAQ Global Select Market under the symbol "JOSB."
About the Gary Sinise Foundation
The Gary Sinise Foundation serves the nation by honoring its defenders, veterans, first responders, their families and those in need by creating and supporting unique programs such as Building for America's Bravest, Gary Sinise Foundation Relief & Resiliency Outreach, Invincible Spirit Festivals, Serving Heroes and Arts & Entertainment Outreach which are designed to entertain, educate, inspire, strengthen and build communities. For more information, please visit www.GarySiniseFoundation.org
Gerald W. Evans Jr Promoted to COO HanesBrands
- Published 06/21/2013
HanesBrands (NYSE: HBI), a leading marketer of everyday branded basic apparel, this week announced that it has promoted Gerald W. Evans Jr. to chief operating officer effective Aug. 1, 2013.
Evans, 54, who has served as the company’s co-chief operating officer since 2011, will have responsibility for the day-to-day running of the company with direct oversight of all global commercial and supply chain operations. Evans, whose leadership assignments during a 30-year career at HanesBrands has spanned the organization in marketing, sales and general management, has been instrumental in the development of the company’s Innovate-to-Elevate strategy that leverages the company’s powerful brands, product innovation and global low-cost supply chain to enhance margins.
“I am pleased to announce Gerald’s promotion to COO,” said Hanes Chairman and Chief Executive Officer Richard A. Noll. “Gerald has widespread experience in the apparel industry, a proven global track record of achievement, and immense respect as a leader within our organization. We are looking forward to continuing our success under his operating leadership.”
Each of the company’s commercial business segments and its global supply chain will report to Evans. In a newly created position to focus on international performance and growth with worldwide retailers, William J. Nictakis will report to Evans as chief commercial officer, international businesses and global retailers. Other direct reports to Evans include W. Howard Upchurch, president, innerwear; John T. Marsh, president, activewear; and Michael E. Faircloth, president, chief global operations officer.
Evans’ career at HanesBrands began in 1983 in L’eggs marketing, and he has since held leadership positions of increasing responsibility across the organization in marketing, sales, and general management. Early in his career, he served assignments leading the L’eggs sales function and companywide Walmart selling team, and he then successfully held general management roles in the 1990s, including serving as president of the company’s hosiery and intimate apparel business in Australia while based in that country. In the early 2000s, his assignments included running the company’s U.S. activewear, knit underwear and sock businesses.
After the company’s spinoff in 2006, Evans led the reconfiguration of the company’s global supply chain into a low-cost operation balanced across the Western Hemisphere and Asia. He also ran Asia commercial business development. Before becoming co-chief operating officer in 2011, he served as co-operating officer, president international. Evans earned his bachelor’s degree and MBA from the University of South Carolina. He serves on the executive committee of the American Apparel & Footwear Association’s board of directors.
HanesBrands is a socially responsible leading marketer of everyday basic apparel under some of the world’s strongest apparel brands, including Hanes, Champion, Playtex,Bali, JMS/Just My Size, barely there, Wonderbra and Gear for Sports. The company sells T-shirts, bras, panties, men’s underwear, children’s underwear, socks, hosiery, casualwear and activewear produced in the company’s low-cost global supply chain. Ranked No. 512 on the Fortune 1000 list, Hanes has approximately 51,500 employees in more than 25 countries and takes pride in its strong reputation for ethical business practices. Hanes is a U.S. Environmental Protection Agency Energy Star 2013 and 2012 Sustained Excellence Award winner and 2010 and 2011 Partner of the Year. The company ranks No. 141 on Newsweek magazine’s list of Top 500 greenest U.S. companies. More information about the company and its corporate social responsibility initiatives, including environmental, social compliance and community improvement achievements, may be found on the Hanes corporate website at www.HanesBrands.com.
Oxford Declares Quarterly Cash Dividend
- Published 06/20/2013
Oxford Industries, Inc. announced today that, on June 19, 2013, its Board of Directors declared a cash dividend of $0.18 per share on common stock payable on August 2, 2013 to shareholders of record as of the close of business on July 19, 2013. The Company has paid dividends every quarter since it became publicly owned in 1960.
Oxford Industries, Inc. is a global apparel company which designs, sources, markets and distributes products bearing the trademarks of its owned and licensed brands through direct to consumer and wholesale channels of distribution. Oxford's brands include Tommy Bahama®, Lilly Pulitzer®, Ben Sherman®, Oxford Golf®, Arnold Brant® and Billy London®. The Company operates retail stores, internet websites and restaurants. The Company also has license arrangements with select third parties to produce and sell certain product categories under its Tommy Bahama, Lilly Pulitzer and Ben Sherman brands. The Company holds exclusive licenses to produce and sell certain product categories under the Kenneth Cole®, Geoffrey Beene®, Dockers® and Ike Behar® labels. Oxford's wholesale customers include department stores, specialty stores, national chains, specialty catalogs and Internet retailers. Oxford's stock has traded on the New York Stock Exchange since 1964 under the symbol OXM.
Devigi Fitness Apparel Made in USA
- Published 06/19/2013
Owner Says Doing Business Locally Creates Solid Working Partnerships and Delivers Highest Quality Product Possible
A recent article published by CNBC.com reports that more shoppers are making it a point to inquire if an item is made in the USA, while small businesses and emerging entrepreneurs are finding it is smart business to keep their operations local to build meaningful and productive partnerships with suppliers. One such entrepreneur, Nadine Gelberg, Ph.D., creator of Devigi, a new line of high-fashion, high-performance fitness apparel manufactured in Philadelphia, knows that keeping her business local is the right strategy for quality, timing, efficiency, and ease of operation.
Gelberg is committed to manufacturing in the USA because it is easier and better. With local production Devigi gets higher quality, reduced time to market and partners who are committed to success. "My suppliers are actually like my partners. We are a team," she said. "My business is important to their success and in turn, they care about me and the success of Devigi, and will go the extra step necessary."
Furthermore, Gelberg explains for her it is much more cost-effective and efficient to keep her manufacturing local. "Time to market is critical and the cost and time of shipments make local production more economical," she said. "But even if that weren't the case, I prefer being able to build relationships and create opportunities in my own backyard rather than abroad."
Gelberg points out that there are many other reasons to look for the made in the USA label. Making the decision to buy American elicits a sense of patriotism and keeping it local provides a great sense of community by providing jobs, boosting the local economy and creating strong working relationships.
"Hopefully more businesses and entrepreneurs will realize all the benefits of doing business here and will commit to staying here," said Gelberg. "Manufacturing in America and buying American is good for everyone."
Devigi designs and manufactures fitness apparel that combines style and performance to make its customers feel good and look great. Devigi products drape elegantly across the body, fit and flatter sizes from 0-18 and enhance the right curves while camouflaging others. In Devigi apparel, athletes will have the confidence and energy to reach for intensity in all their workout routines. Devigi comes from the universal language Esperanto, meaning "compel" or "drive."
George Zimmer Leaving Company Men's Wearhouse
- Published 06/19/2013
The Board of Directors of Men's Wearhouse today announced that it has terminated George Zimmer from his position as Executive Chairman. The Board expects to discuss with Mr. Zimmer the extent, if any, and terms of his ongoing relationship with the Company.
In light of Mr. Zimmer's termination, the Company also announced that it is postponing its Annual Meeting of Shareholders, which had originally been scheduled for June 19, 2013, at 11:00 a.m. Pacific daylight time. The purpose of the postponement is to re-nominate the existing slate of directors without Mr. Zimmer.
The Company expects to announce the rescheduled date, time and location of the postponed Annual Meeting shortly. The Company will set a new record date, provide additional information with respect to the Annual Meeting in a supplement to its proxy statement to be filed with the Securities and Exchange Commission and commence a new solicitation with respect to the supplemented proxy materials. Shareholders are urged to read the supplement in its entirety, as it will contain important information about the Annual Meeting.
About Men's Wearhouse
Founded in 1973, Men's Wearhouse is one of North America's largest specialty retailers of men's apparel, with 1,143 stores. The Men's Wearhouse, Moores and K&G stores carry a full selection of suits, sport coats, furnishings and accessories in exclusive and nonexclusive merchandise brands, and Men's Wearhouse and Tux stores carry a limited selection. Most K&G stores carry a full selection of women's apparel. Tuxedo rentals are available in the Men's Wearhouse, Moores, and Men's Wearhouse and Tux stores. Additionally, Men's Wearhouse operates a global corporate apparel and workwear group consisting of Twin Hill in the United States and Dimensions, Alexandra, and Yaffy in the United Kingdom.
Kate Spade Saturday Wins in Trademark Dispute
- Published 06/18/2013
Foot Locker Approved To Complete Runners Point Group Acquisition
- Published 06/17/2013
Foot Locker, Inc., the New York-based specialty athletic retailer, announced today that it has received approval from the Federal Cartel Office in Germany to complete its previously announced acquisition of Runners Point Warenhandelsgesellschaft mbH ("RPG"). According to the terms of the agreement between Foot Locker, Inc. and RPG, the transaction is now expected to close in early July.
Foot Locker, Inc. is a specialty athletic retailer that as of May 4, 2013 operated 3,321 stores in 23 countries in North America, Europe, Australia, and New Zealand. Through its Foot Locker, Footaction, Lady Foot Locker, Kids Foot Locker, and Champs Sports retail stores, as well as its direct-to-customer channels, including footlocker.com, Eastbay and CCS.com, the Company is a leading provider of athletic footwear and apparel.
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Destination XL Group to Present at Piper Jaffray Annual Consumer Conference
- Published 06/4/2013
Presentation to be Webcast Live at 1:20 p.m. ET on June 13
Destination XL Group, Inc., the largest multi-channel specialty retailer of big & tall men's apparel, announced today that its President and Chief Executive Officer David Levin and Executive Vice President, Chief Operating Officer and Chief Financial Officer Dennis Hernreich will participate in a fireside chat at the Piper Jaffray 33rd Annual Consumer Conference on Thursday, June 13, 2013 at 1:20 p.m. ET. The conference is being held June 12-13 at the New York Palace Hotel in New York City.
A live audio webcast will be available through the "Investor Relations" section of the Company's website. For those unable to listen to the live webcast, an archive will be available on the Company's website for approximately 90 days.
About Destination XL Group, Inc.
Destination XL Group, Inc. is the largest multi-channel specialty retailer of big & tall men's apparel with operations throughout the United States, Canada and in London, England. The retailer operates under six brands: Destination XL®, Casual Male XL, Rochester Clothing, B&T Factory Direct, ShoesXL and LivingXL. Several catalogs and e-commerce sites, including www.destinationxl.com, make up the Company's direct-to-consumer business. With more than 2,000 private label and name brand styles to choose from, customers are provided with a unique blend of wardrobe solutions not available at traditional retailers. The Company is headquartered in Canton, Massachusetts. For more information, please visit the Company's investor relations website: http://investor.destinationxl.com.
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VICTORIA'S SECRET LIVE Summer 2013: Tonight, May 30 at 9:00 PM
- Published 05/30/2013
VICTORIA'S SECRET LIVE! Summer 2013 will broadcast on VS All Access on VictoriasSecret.com Thursday, May 30th (9:00-10:00 PM, ET). To introduce the sexiest trends of the summer season, world-famous Angels Adriana Lima, Candice Swanepoel, Erin Heatherton and Lily Aldridge will be live that night in studio. The live show will also include a musical performance from band St. Lucia, special guests Estee Stanley and Mary Helen Bowers, interviews with the Supermodels and a spring makeover.
New for this summer season, Victoria's Secret introduced the Flawless Bra collection and the Bombshell Forever Fragrance. The incredibly lightweight Flawless collection is now available in sizes B - DDD; the new bras feel like a second skin and never show-through, only revealing your natural shape. The Flawless bra collection provides the perfect summer coverage, available in demi or multi-way, featured in colors such as navy, coral, and paisley.
The Bombshell Forever fragrance collection also makes a sexy new statement this summer. Adding to the Bombshell family, this proactive Victoria's Secret fragrance is a fresh and sensual scent that perfectly captures the sultry glamour of our Supermodels. Inspired by a lushly fragrant garden, this scent is irresistibly hypnotizing and lingers like sunshine on skin.
Don't miss VICTORIA'S SECRET LIVE! - Thursday, May 30th on VS All Access on VictoriasSecret.com at 9:00 PM ET.
VS Facebook: http://www.facebook.com/victoriassecret
VS Twitter: http://twitter.com/#!/VictoriasSecret with #VSAngelsLive
VS Instagram: http://instagram.com/VictoriasSecret
VS Website: http://www.victoriassecret.com
The Wet Seal Announces First Quarter Fiscal 2013 Financial Results
- Published 05/29/2013
The Wet Seal, Inc. (Nasdaq: WTSL), a leading specialty retailer to young women, today announced results for the first quarter of fiscal 2013 ended May 4, 2013.
First Quarter 2013
- Net sales for the quarter ended May 4, 2013, were $140.4 million compared to net sales of $147.9 million for the quarter ended April 28, 2012.
- Consolidated comparable store sales decreased 2.9%, including a decrease of 3.4% at Wet Seal and an increase of 0.9% at Arden B.
- Operating income was $3.2 million compared to operating loss of $0.4 million in the first quarter of fiscal 2012. The current year and prior year quarters include $1.6 million and $3.6 million, respectively, of non-cash asset impairment charges. Operating income in the 2013 period also includes a $3.5 million benefit to adjust a loss contingency. Non-GAAP adjusted operating income, excluding the effect of the aforementioned charges and benefits, was $1.3 million in the first quarter of fiscal 2013 compared to $3.2 million in the prior year period.
- Operating income in the 2013 period also includes $1.7 million of incremental legal defense costs versus a year ago.
- Net income was $3.1 million, or $0.03 per diluted share, compared to net loss of $0.3 million, or $0.00 per diluted share, in the prior year quarter. Non-GAAP adjusted net income in the first quarter of fiscal 2013, excluding the after-tax effect of the asset impairment charges and benefit to adjust a loss contingency accrual, was $1.3 million, or $0.01 per diluted share. Non-GAAP adjusted net income in the first quarter of fiscal 2012, excluding the after-tax effect of the asset impairment charges, was $1.9 million, or $0.02 per diluted share.
- At quarter's end, the Company's inventory per square foot was down 7.7% versus a year ago, with Wet Seal down 7.6% and Arden B down 6.3%.
"We are pleased with the operating and financial momentum we're beginning to experience," said John D. Goodman, Chief Executive Officer. "We have made good progress in a short period of time throughout the organization. Our teams have executed well and delivered improvement in virtually every aspect of the business, including product, inventory management, merchandising, marketing, in-store presentation and customer engagement. This allowed us to exceed our financial guidance in the first quarter and forecast a return to positive comp store sales earlier than planned in the second quarter of 2013.
"We have effectively stabilized the business," continued Goodman. "We are seeing an increasingly strong response to our product offerings and customer engagement strategies, while at the same time, we have closely managed inventory and significantly improved our merchandise margin. We believe the Company has the people, processes and brand strength to enable us to begin driving consistent performance, and we are enthusiastic about the opportunity to better position both Wet Seal and Arden B for long-term growth."
Balance Sheet and Share Repurchase Program
As of May 4, 2013, the Company was in strong financial condition, with cash and cash equivalents and short-term investments of $111.7 million and no debt. Inventory totaled $36.3 million compared to $40.1 million a year ago.
During the first quarter ended May 4, 2013, the Company repurchased a total of 1,206,649 shares of its common stock under its current $25 million share repurchase program. The purchases were made at a weighted average cost of $3.00 per share for a total cost of approximately $3.6 million. The Company also repurchased a total of 46,872 shares of its common stock to satisfy employee tax obligations, upon restricted stock vesting, for a total cost of approximately $0.2 million.
Goodman concluded, "We are pleased to be able to utilize the Company's strong cash position to return value to our shareholders. We are also investing in Wet Seal's real estate portfolio through a combination of remodels and new store openings, with an emphasis on highly productive outlet center growth in fiscal 2013."
During the first quarter of fiscal 2013, the Company opened 2 and closed 6 Wet Seal stores. As of May 4, 2013, the Company operated 526 stores in 47 states and Puerto Rico, including 464 Wet Seal stores and 62 Arden B stores.
Second Quarter Fiscal 2013 Guidance
For the second quarter of fiscal 2013, the Company expects earnings per diluted share to be in the range of $0.00 to $0.02. The guidance is based on the following major assumptions:
- Total net sales between $138 million and $141 million versus $135.3 million in the second quarter of fiscal 2012.
- Comparable store sales increase in the positive mid-single digits, versus an 11.1% decrease in the prior year quarter.
- Gross margin rate between 29.0% and 30.2% of net sales versus 22.8% in the prior year quarter, reflecting improvement in merchandise margin and leveraging benefits of positive comparable store sales on occupancy costs.
- SG&A expense between 28.8% and 28.9% of net sales versus 30.6% in the prior year quarter.
- Operating income ranging from $0.1 million to $2.1 million. In the second quarter of 2012, operating loss was $19.5 million, including non-cash asset impairment charges and CEO severance costs.
First Quarter Conference Call Information
The Company will host a conference call to discuss first quarter fiscal 2013 financial results today, Tuesday, May 28, 2013, at 1:30 p.m. Pacific Time. The call will be hosted by John D. Goodman, Chief Executive Officer, and Steve Benrubi, Executive Vice President and Chief Financial Officer.
To participate in the call, please dial (877) 407-3982 or (201) 493-6780. A broadcast of the call will also be available on the Company's web site at www.wetsealinc.com A replay of the call will be available through June 11, 2013. To access the replay, please dial (877) 870-5176 or (858) 384-5517 and provide pin number 413830.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: This news release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements that relate to the Company's estimated fiscal 2013 second quarter earnings guidance, as well as the intent, belief, plans or expectations of the Company or its management. All forward-looking statements made by the Company involve material risks and uncertainties and are subject to change based on factors beyond the Company's control. Accordingly, the Company's future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements. Such factors include, but are not limited to, those described in the Company's filings with the Securities and Exchange Commission. This news release contains results reflecting partial year data and non-fiscal data that may not be indicative of results for similar future periods or for the full year. The Company will not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.
|The Wet Seal, Inc.|
|Condensed Consolidated Balance Sheets|
|Cash and cash equivalents||$||50,320||$||42,279||$||148,108|
|Other current assets||16,258||15,467||16,206|
|Total current assets||164,261||159,228||224,527|
|Net equipment and leasehold improvements||63,569||64,225||86,606|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Accounts payable — merchandise||$||20,644||$||16,978||$||23,802|
|Accounts payable — other||17,470||18,116||11,747|
|Current portion of deferred rent||2,717||2,289||2,619|
|Total current liabilities||68,801||63,730||61,578|
|Other long-term liabilities||1,871||1,908||1,889|
|Total stockholders' equity||128,524||128,732||241,590|
|Total liabilities and stockholders' equity||$||230,870||$||226,506||$||338,114|
|Exhibit A (continued)|
|The Wet Seal, Inc.|
|Condensed Consolidated Statements of Operations|
(000's Omitted, Except Share and Per Share Data)
|13 Weeks Ended|
|May 4, 2013||April 28, 2012|
|Selling, general & administrative expenses||37,437||40,438|
|Operating income (loss)||3,198||(441||)|
|Interest expense, net||(6||)||(10||)|
|Income (loss) before provision (benefit) for income taxes||3,192||(451||)|
|Provision (benefit) for income taxes||82||(178||)|
|Net income (loss)||$||3,110||$||(273||)|
|Net income (loss) per share, basic||$||0.03||$||(0.00||)|
|Net income (loss) per share, diluted||$||0.03||$||(0.00||)|
|Weighted average shares outstanding, basic||88,501,179||88,486,977|
|Weighted average shares outstanding, diluted||88,503,407||88,486,977|
Calculation of the Company's earnings per share requires the allocation of net income among common shareholders and participating security holders. The net income available to common shareholders used to calculate basic and diluted earnings per share was $3,079 for the 13 weeks ended May 4, 2013.
|Exhibit A (continued)|
|The Wet Seal, Inc.|
|Condensed Consolidated Statements of Cash Flows|
|13 Weeks Ended|
|CASH FLOW FROM OPERATING ACTIVITIES:|
|Net income (loss)||$ 3,110||$ (273)|
|Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:|
|Depreciation and amortization||3,338||4,691|
|Amortization of premium on investments||152||-|
|Amortization of deferred financing costs||27||27|
|Loss on disposal of equipment and leasehold improvements||18||286|
|Deferred income taxes||-||(147)|
|Changes in operating assets and liabilities:|
|Income tax receivable||-||(310)|
|Prepaid expenses and other assets||2,056||(9,926)|
|Other non-current assets||13||8|
|Accounts payable and accrued liabilities||3,950||3,987|
|Other long-term liabilities||(37)||(35)|
|Net cash provided by (used in) operating activities||9,131||(5,096)|
|CASH FLOWS FROM INVESTING ACTIVITIES:|
|Purchase of equipment and leasehold improvements||(3,603)||(3,778)|
|Proceeds from maturity of marketable securities||6,200||-|
|Net cash provided by (used in) investing activities||2,597||(3,778)|
|CASH FLOWS FROM FINANCING ACTIVITIES:|
|Proceeds from exercise of stock options||94||19|
|Repurchase of common stock||(3,781)||(222)|
|Net cash used in financing activities||(3,687)||(203)|
|INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS||8,041||(9,077)|
|CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD||42,279||157,185|
|CASH AND CASH EQUIVALENTS, END OF PERIOD||$ 50,320||$ 148,108|
Segment Reporting (Unaudited)
The Company operates exclusively in the retail apparel industry in which it sells fashionable and contemporary apparel and accessories items, primarily through mall-based chains of retail stores, to female consumers with a young, active lifestyle. The Company has identified two operating segments ("Wet Seal" and "Arden B") as defined under applicable accounting standards. E-commerce operations for Wet Seal and Arden B are included in their respective operating segments. Information for the 13 weeks ended May 4, 2013, and April 28, 2012, for the two reportable segments is set forth below (in thousands, except number of stores as of period end and sales per square foot):
|Thirteen Weeks Ended May 4, 2013||Wet Seal||Arden B||Corporate||Total|
|% of total sales||87||%||13||%||n/a||100||%|
|Comparable store sales % (decrease) increase||(3.4||)%||0.9||%||n/a||(2.9||)%|
|Operating income (loss)||$||9,553||$||558||$||(6,913||)||$||3,198|
|Interest expense, net||$||—||$||—||$||(6||)||$||(6||)|
|Income (loss) before provision (benefit) for income taxes||$||9,553||$||558||$||(6,919||)||$||3,192|
|Number of stores as of period end||464||62||n/a||526|
|Sales per square foot||$||62||$||81||n/a||$||64|
|Square footage as of period end||1,856||192||n/a||2,048|
|Thirteen Weeks Ended April 28, 2012||Wet Seal||Arden B||Corporate||Total|
|% of total sales||85||%||15||%||n/a||100||%|
|Comparable store sales % decrease||(7.0||)%||(11.4||)%||n/a||(7.7||)%|
|Operating income (loss)||$||9,324||$||(1,304||)||$||(8,461||)||$||(441||)|
|Interest expense, net||$||—||$||—||$||(10||)||$||(10||)|
|Income (loss) before provision (benefit) for income taxes||$||9,324||$||(1,304||)||$||(8,471||)||$||(451||)|
|Number of stores as of period end||469||84||n/a||553|
|Sales per square foot||$||64||$||76||n/a||$||65|
|Square footage as of period end||1,881||261||n/a||2,142|
The "Corporate" column is presented to allow for reconciliation of store contribution amounts to consolidated operating income (loss), interest expense, net, and income (loss) before provision (benefit) for income taxes. Wet Seal and Arden B segment results include net sales, cost of sales, asset impairment and other direct store and field management expenses, with no allocation of corporate overhead or interest income and expense.
Wet Seal operating segment results for the 13 weeks ended May 4, 2013, and April 28, 2012, include $1.1 million and $2.7 million, respectively, of non-cash asset impairment charges.
Arden B operating segment results for the 13 weeks ended May 4, 2013, and April 28, 2012, include $0.5 million and $0.9 million, respectively, of non-cash asset impairment charges.
Corporate expenses for the 13 weeks ended May 4, 2013, include a $3.5 million benefit to adjust a loss contingency related to legal matters.
Reconciliation of Non-GAAP Financial Measures to Most Directly Comparable Financial Measures (Unaudited)
Included within this press release are references to non-GAAP financial measures ("non-GAAP" or "adjusted"), including operating income (loss), net income (loss) and net income (loss) per diluted share before certain benefits and charges. These financial measures are not in compliance with U.S. generally accepted accounting principles ("GAAP") and are not necessarily comparable to similar measures presented by other companies. The Company believes that this non-GAAP information is useful as an additional means for investors to evaluate the Company's operating performance, when reviewed in conjunction with its GAAP financial statements. These amounts are not determined in accordance with GAAP and therefore should not be used exclusively in evaluating the Company's business and operations. For further information, see "Company Statement on Disclosure of Non-GAAP Financial Measures" within the Investor Relations section of the Company's corporate web site, www.wetsealinc.com.
The following is a reconciliation of the applicable GAAP financial measures to these non-GAAP financial measures (in millions, except for net income (loss) per diluted share):
|13 Weeks Ended
May 4, 2013
|13 Weeks Ended
April 28, 2012
|Net Income||Net Income Per Diluted Share||Operating
|Net (Loss) Income||Net (Loss) Income Per Diluted Share|
|GAAP financial measure||
|Adjustment to loss contingency, net of income taxes where applicable||(3.5||)||(3.4||)||(0.04||)||-||-||-|
Non-cash asset impairment charges, net of income taxes where applicable
|Non-GAAP financial measure||
The Wet Seal,
Source: The Wet Seal, Inc.
Bloomingdale's Luxury Fashion to Open New Honolulu Store
- Published 05/20/2013
The new store will be part of a redevelopment of a portion of Ala Moana, Hawaii's premier shopping destination, by
The Bloomingdale's store will include a wide range of designer and luxury goods, including women's apparel, shoes, accessories, beauty, men's, kids and home. Bloomingdale's Ala Moana store is expected to employ a workforce of approximately 250 associates.
"Ala Moana will provide an exceptional environment for the distinctive, upscale shopping experience for which Bloomingdale's is world famous. It is a beautiful open-air shopping center that is a recognized destination not only for local customers from the Hawaiian islands, but also for visitors from the U.S. mainland,
Ala Moana will be the 38th Bloomingdale's store location. In addition to 36 current stores, a new Bloomingdale's store is expected to open in fall 2013 in Glendale Galleria in
Bloomingdale's also operates 12 outlet stores in the U.S., with a 13th opening in fall 2013 in
Macy's, Inc., with corporate offices in
Dillard's Reports Record First Quarter Earnings: 2013
- Published 05/16/2013
Highlights of the Company's Performance
- A 27% increase in first quarter earnings per share compared to the prior year (excluding certain items described below)
- A 1% increase in comparable store sales
- Merchandise gross margin improvement of 110 basis points of sales
- A decrease in operating expenses of $3.0 million or 20 basis points of sales
- A 39% increase in cash flow from operations to $136.9 million compared to $98.5 million
- Repurchase of $114.7 million (1.4 million shares) of Class A Common Stock
First Quarter Results
Dillard's reported net income for the 13 weeks ended May 4, 2013 of $117.2 million, or $2.50 per share. Included in net income is a net after-tax credit totaling $4.4 million ($0.09 per share) comprised of the following three items:
- A $7.6 million after tax gain ($0.16 per share) related to the sale of an investment
- A $1.0 million after tax credit ($0.02 per share) related to a pension adjustment
- After-tax asset impairment and store closing charges of $4.2 million ($0.09 per share)
Excluding this credit, Dillard's would have reported record first quarter net income of $112.8 million ($2.40 per share) and a 27% improvement over the prior year's record first quarter earnings per share. Dillard's reported net income for the prior year first quarter, the 13 weeks ended April 28, 2012, of $95.0 million, or $1.89 per share.
Dillard's Chief Executive Officer, William T. Dillard, II, stated, "We are reporting a strong start to 2013 in spite of unseasonably cool weather. Positive comparable stores sales and gross margin expansion combined with good expense control led to another quarter of record profitability at Dillard's. We were also pleased with our strong cash flow, which enabled us to repurchase $114.7 million of Class A Common Stock."
Net sales for the 13 weeks ended May 4, 2013 were $1.549 billion and $1.549 billion for the 13 weeks ended April 28, 2012. Net sales include the operations of the Company's construction business, CDI Contractors, LLC ("CDI").
Total merchandise sales (which exclude CDI) for the 13-week period ended May 4, 2013 were $1.530 billion and $1.522 billion for the 13-week period ended April 28, 2012. Merchandise sales in total and comparable stores increased 1% for the 13-week period ended May 4, 2013 following a 5% comparable store sales increase in the prior year first quarter.
Sales trends were strongest in ladies' accessories and lingerie and juniors' and children's apparel. Sales were weakest in the home and furniture category. Sales trends were strongest in the Central region, followed by the Eastern and Western regions, respectively.
Gross margin from retail operations (which excludes CDI) improved 110 basis points of sales to 39.9% for the 13 weeks ended May 4, 2013 compared to 38.8% for the prior year first quarter. Consolidated gross margin for the 13 weeks ended May 4, 2013 improved 130 basis points of sales to 39.5% from 38.2% during the prior year first quarter. Inventory increased 3% at May 4, 2013 compared to April 28, 2012.
Selling, General & Administrative Expenses
Selling, general and administrative expenses ("operating expenses") were $390.2 million (25.2% of sales) and $393.2 million (25.4%) during the 13 weeks ended May 4, 2013 and the 13 weeks ended April 28, 2012, respectively. Decreases in advertising expense were offset by increases in selling payroll expense. The Company also recorded a $1.5 million pretax credit to pension expense ($1.0 million after tax or $0.02 per share).
Sale of Investment
During the thirteen weeks ended May 4, 2013, the Company sold its investment in Acumen Brands, an eCommerce company based in Fayetteville, Arkansas. The sale resulted in a pretax gain of $11.8 million ($7.6 million after-tax or $0.16 per share) that was recorded in gain on disposal of assets.
During the quarter ended May 4, 2013, the Company repurchased 1.4 million shares of stock for $114.7 million of Class A Common Stock at an average price of $79.12 per share under the Company's 2013 and 2012 stock plans.
Total shares outstanding (Class A and Class B Common Stock) at May 4, 2013 and April 28, 2012 were 46.3 million and 49.1 million, respectively.
During the first quarter of 2013, the Company closed its Cache Valley Mall location in Logan, Utah (94,000 square feet). Dillard's has announced the upcoming closure of its Randolph Mall location in Asheboro, North Carolina (60,000 square feet). The store is expected to close during the second quarter of 2013.
At May 4, 2013, the Company operated 283 Dillard's locations and 18 clearance centers spanning 29 states and an Internet store at www.dillards.com
. Total square footage at May 4, 2013 was 50.9 million.
Estimates for 2014
The Company is providing the following estimates for certain financial statement items for the fiscal year ending February 1, 2014 based upon current conditions. Actual results may differ significantly from these estimates as conditions and factors change - See "Forward-Looking Information".
The Wet Seal Changes Date for First Quarter Earnings Conference Call
- Published 05/15/2013
Dillard's, Inc. to Report First Quarter 2013 Results
- Published 05/14/2013
The Wet Seal Announces 1st Quarter Fiscal 2013
- Published 05/9/2013
Fiscal First Quarter 2013
|Comparable Store Sales|
|Net Sales||% Change|
|% Change From|
|$ in Millions||Last Year||This Year||Last Year|
E-commerce sales, which are not a component of comparable store sales, increased 4.6% for the period.
"We experienced significant improvement across the business as the quarter progressed," said
"As of quarter-end, we estimate total inventory dollars per square foot decreased in the mid- to high-single digits versus the prior year at
"We continue to improve at delivering great product and offering the right blend of regular and promotional pricing, supported by more compelling in-store marketing and merchandise presentation. The customer is responding well and returning to the Wet Seal brand more quickly than anticipated, which has enabled us to stabilize the business and exceed our financial forecasts in the first quarter. We are also making progress at Arden B, achieving slightly positive comps for the period. The improvements we've made year-to-date, along with the recent appointment of a new GMM for this division, make us optimistic that we can reinvigorate the Arden B brand."
Based on the strength of sales and margins, the Company raised expectations for the first quarter of fiscal 2013. The Company now expects earnings per diluted share of
Class Action Lawsuit Settlement
Last night, in the
While the Company maintains that it has a strong track record of hiring, promoting and retaining a diverse work force, Wet Seal's new leadership approached the Plaintiffs to collaborate on best practices and a no-fault resolution of the case. This collaboration has played an important role in redefining the Company and positioning it for success.
"From the moment I became CEO of
Under the agreement, the Company agrees to post open positions, implement new selection criteria and interview protocols, revamp its annual performance reviews and compensation structure, add regional human resources directors, implement more diversity and inclusion communications and training for field and corporate office employees, and enhance its investigations training and processes. The Company also has reflected its commitment to use diverse models in its marketing and to partnerships with organizations dedicated to the advancement and well-being of African Americans and other diverse groups.
Additional information about the Company's commitment to diversity and its
First Quarter Conference Call Information
The Company will host a conference call to discuss first quarter fiscal 2013 financial results on
To participate in the call, please dial (877) 407-3982 or (201) 493-6780. A broadcast of the call will also be available on the Company's web site at www.wetsealinc.com. A replay of the call will be available through
Fifth & Pacific to Webcast Annualy Meeting May 2013
- Published 05/9/2013
HoneyBeeHandbags.com Shopping Platform for Designer Handbags
- Published 05/8/2013
Texas-based Internet Company, Chimo E-Sales LLC, today announced the opening of its new online store at www.HoneyBeeHandbags.com.
The new e-commerce website offers consumers a shopping platform with access to more than 50 designer handbags at any given time. Brands currently available at HoneyBeeHandbags.com include Christian Dior, Fendi, Gucci, Miu Miu, Prada and Yves Saint Laurent. The company plans to expand its inventory and introduce new brands in the upcoming months.
All handbags contain extensive product descriptions alongside images to better support the online shopping experience. Products range in price depending on brand and material, but designer pieces can usually be found starting at $600.
Customers of HoneyBeeHandbags.com can also follow the Company on its new social media pages located on Facebook and Twitter. The social media pages will be sharing new products, customer reviews and pictures of current inventory.
HoneyBeeHandbags.com accepts all major credit cards including PayPal accounts, and items purchased can be shipped anywhere within the United States. To learn more about this new online store, visit www.HoneyBeeHandbags.com.