Retail Earnings Roundup: Lululemon, Hudson’s Bay, Neiman Marcus

Several big names in footwear and apparel posted earnings releases this week. Read on for the key numbers and takeaways.

Lululemon Athletica Inc.

It’s been an eventful week for the Vancouver, B.C.-based athletic-apparel and accessories  maker and retailer — whose founder, Chip Wilson, is reportedly positioned to sell all of his shares in the company.

Lululemon posted first-quarter earnings on June 9 that showed significant year-over-year gains in net income, to $47.8 million, and a 10 percent year-over-year increase in revenue, to $423.5 million. While the firm’s quarter was impacted by FX pressure and the West Coast ports slowdown, market watchers say factors that include single-digit gains in same-store sales and e-commerce growth buoy optimism about the yogawear maker.

“[We were] most impressed by solid revenue and guidance,” wrote Oliver Chen, an analyst at Cowen & Company. “Improved metrics include positive trends in traffic and conversion, indicating healthy momentum on likely incrementally improved product.”

Watch on FN

While the firm’s stock saw some volatility this week on the news of Wilson’s filing to liquidate his entire stake, Sterne Agee CRT analyst Sam Poser said he continues to rate the firm a “buy” for several reasons.

“The divestiture finally eliminates Mr. Wilson’s disruptive influence over the company,” wrote Poser on June 11. “[And] this filing does absolutely nothing to change our thesis that the initiatives to improve the product and in-store experience are under way and will likely reestablish Lulu as the pinnacle of the activewear space.”

Hudson’s Bay Co.

Canada-based retail group Hudson’s Bay Co. released earnings on June 10 showing a net loss of 54 million Canadian dollars, or $43.2 million, compared with net income of $176 million Canadian dollars, or $141 million, based on the average currency exchange rate for the period.

In the first quarter, the company’s consolidated sales were approximately 2.1 billion Canadian dollars, or $1.68 billion, up 11.7 percent from the prior year. Management said total same-store sales increased by 2.7 percent on a constant-currency basis, with Saks Fifth Avenue and Department Store Group logging same-store sales increases of 0.6 percent and 4.9 percent, respectively. Same-store sales at Saks Off 5th grew by 10.3 percent. Digital sales were up also up 37.2 percent during the quarter.

Neiman Marcus Group Ltd. LLC

Dallas-based luxury department-store chain Neiman Marcus reported its third-quarter results today showing net earnings of $19.8 million, compared with a net loss of 8 million in the year-ago’s third quarter. The firm also posted a 2.2 percent year-over-year increase in revenues, to $1.22 billion, from $1.16 billion in the prior year’s comparable quarter.


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