just-styles round-up of Q3 apparel and footwear industry results

just-style's round-up of Q3 apparel and footwear industry results

In the latest third-quarter filings from US apparel and footwear brands and retailers, Francesca's Holdings Corporation swung to a third-quarter loss of US$16.2m, PVH Corp posted what CEO Emanuel Chirico called a "strong earnings performance", and Abercrombie booked its fifth consecutive quarter of positive comparable sales.

Cherokee Global Brands

Cherokee moved to a profit in the third quarter, booking a net income of U$63,000, compared to a net loss of $2.5m a year earlier. Revenues, meanwhile, declined by $2m, or 25%, to $5.8m from $7.8m. The year-on-year decline largely reflects the transition of the company's Tony Hawk, Cherokee and Liz Lange brands in the US from a direct-to-retail (DTR) model to new wholesale licensing partners.

American Eagle Outfitters

American Eagle Outfitters delivered record third quarter sales in the 13 weeks to 3 November, rising to $1bn for the first time, compared to $960m last year. Consolidated comparable sales increased 8%, following a 3% increase last year. Net income, meanwhile, surged 34% to $85.5m, compared to $63.7m a year ago, while gross margin rate increased 80 basis points to 39.8% of revenue compared to 39% last year. Lower markdowns and rent leverage were slightly offset by increased delivery costs, the company said.

Destination Maternity

At maternity wear retailer Destination Maternity, quarterly net loss narrowed to US$4.1m from $7.5m in the year-ago period, while net sales fell 3.7% to $92.8m from $96.4m. The company said sales were negatively impacted by the net closure of 27 owned locations and 12 leased locations in addition to a decrease in comparable sales which fell 2.6%, compared to an increase of 1.1% in the third quarter of the previous year. Gross margin slipped 40 basis points to 52.4%. CEO Marla Ryan said the company is continuing to focus on right-sizing the organisation, rationalising expenses and improving profitability as part of its multi-year strategic plan, Destination -> Forward.

Tailored Brands

Tailored Brands reported 2.3% positive comparable sales in the third quarter, with all retail brands delivering positive comparable sales. On a GAAP basis, net earnings were US$13.9m compared to $36.9m last year. On an adjusted basis, earnings were $51.4m compared to $36.9m last year. Consolidated gross margin increased 40 basis points to 44.6%. The company said its third-quarter 2018 GAAP results include charges of $40.4m. Total net sales, meanwhile, increased 0.2% to $812.7 million, while retail net sales increased 0.6% primarily due to an increase in retail clothing sales, which drove positive 2.3% retail comparable sales.

Oxford Industries

Thomas Chubb III, CEO of Oxford Industries, said the strong sales trends the company experienced in its direct businesses during the first half of the fiscal year continued through the third quarter with a 7% comparable sales gain. However, in the period ended 3 November, consolidated net sales decreased 1% to US$233.7m, compared to $236m in the third quarter of fiscal 2017. Net earnings, meanwhile, totalled $1.9m, compared to $1.1m in the year-ago period, while gross margin widened to 55.3% compared to 53.0% in the third quarter of fiscal 2017. 

Francesca's Holdings

Francesca's Holdings Corporation swung to a third-quarter loss of US$16.2m, compared to net income of $0.2m in the prior-year quarter. Gross margin fell to 35.3% from 39.6% in the period, mainly due to deleveraging of occupancy costs as a result of lower sales as well as an increase in occupancy costs. Net sales, meanwhile, dropped 10% to $95.4m from $105.8m last year, mainly due to a 14% decrease in comparable sales. This follows an 18% fall in comparable sales for the comparable prior year quarter. President and CEO Steve Lawrence said the company saw comparable sales declines start to narrow as it moved into the fourth quarter, but needs to accelerate change and improve results faster.

Zumiez

Zumiez CEO Rick Brooks said the firm is very pleased with its third-quarter performance and strong back-to-school season.  The period represented Zumiez's ninth quarter of positive comparable sales which increased 4.8% compared to a comparable sales increase of 7.9% last year. Net sales in the period rose 1.2% to US$248.8m from $245.8m in the year-ago quarter, while net income totalled $13.8m, compared to $11.9m in the third quarter of the prior fiscal year.  

The Children's Place

Jane Elfers, CEO of speciality retailer The Children's Place, has hailed the company's "industry-leading" 9.5% comp on top of a positive 5.1% comp last year. For the 13 weeks to 3 November, net sales increased by US$32.5m, or 6.6%, to $522.5m from $490m last year. Net income, meanwhile, totalled $49.9m, compared to $44.1m the previous year.   Adjusted gross margin deleveraged 220 basis points to 39.1% of sales, as a result of stronger sales in e-commerce and the firm's decision to "compete aggressively" for market share, partially offset by fixed cost leverage on stronger comparable retail sales and the reclassification of certain items due to new revenue recognition rules.

GIII Apparel Group

GIII Apparel Group reported a net sales jump of 4.7% to US$1.07bn for the three months ending 31 December, helped by growth in its wholesale business. Operating income fell to US$140m from US$141.5m on the back of increased depreciation and amortisation costs. Despite this net income grew to US$94m from US$81.6m a year earlier. The company has now raised its guidance for the full year ending 31 January 2019. It expects net sales of US$3.08bn compared with US$3.06bn previously. It also expects a net income of between US$132-137m compared with US$125-130m. 

Dollar General

Dollar General CEO Todd Vasos said the company delivered strong operating performance and financial results in the third quarter as both earnings and revenue increased. For the 13 weeks to 2 November, net income reached US$334.1m from $252.5m in the year-ago period. Net sales increased 8.7% to $6.4bn in the third quarter of 2018 compared to $5.9bn in the third quarter of 2017. The increase was positively affected by sales contributions from new stores and growth in same-store sales, modestly offset by the impact of store closures. Same-store sales increased 2.8% from the third quarter of 2017, driven by an increase in average transaction amount and positive results in the consumables, seasonal and home categories, partially offset by sales declines in the apparel category. Customer traffic was essentially flat.  Gross margin narrowed to 29.5% from 29.9%, a decrease of 39 basis points. 

Tilly's

Tilly's has announced revised financial results for the fiscal 2018 third quarter ended 3 November 2018 in order to correct certain accounting entries relating to inventory under the retail method. The correction resulted in a US$2.1m charge to cost of goods sold, partially offset by a corresponding $0.6m reduction in previously recorded corporate bonus accruals within selling, general and administrative expenses, resulting in a net charge of $1.5m to operating income, and a $1.1m reduction in net income for the quarter. As a result, earnings in the period totalled $5.4m, compared to $8.8m last year. Comparable store net sales, including e-commerce, increased 4.3%, while comparable store net sales in physical stores increased 1.3% and represented about 86% of total net sales. E-commerce net sales increased 26.7% and represented approximately 14% of total net sales which  decreased US$6m, or 3.9%, to $146.8m from $152.8m last year. Gross margin decreased to 29.7% from 32.8% last year. As expected, buying, distribution and occupancy costs deleveraged 190 basis points against lower total net sales primarily as a result of the retail calendar shift.

PVH Corp

CEO of PHV Corp Emanuel Chirico said the company is pleased with the "strong earnings performance" in the third quarter, which exceeded expectations, driven by the power of what he called the group's diversified global business model. For the period ended 4 November, net income totalled US$243.1m, compared to $239.2m last year. Third quarter revenue increased 7% (increased 9% on a constant currency basis) to $2.38bn compared to $2.22bn the prior year period, in line with previous guidance. Revenue in the Calvin Klein business for the quarter increased 2% to $963m, while at Tommy Hilfiger, sales were up 11% to $1.1bn. Revenue in the Heritage Brands business for the quarter, meanwhile, increased 8% to $429m compared to the prior year period, as solid growth in the wholesale business was partially offset by a 1% comparable store sales decline.

Chirico said the company continues to over-deliver against its 2018 plan and is raising its full-year earnings outlook based on its third quarter outperformance and its confidence in the opportunities for the fourth quarter, despite "recent retailer bankruptcies in the US and UK and increasing geopolitical volatility around the world". The company currently projects that 2018 earnings per share on a GAAP basis will be in a range of $9.10 to $9.12 compared to $6.84 in 2017. Revenue is projected to increase by about 7% with 7% and 10% growth forecast at Calvin Klein and Tommy Hilfiger  respectively. Revenue for the Heritage Brands business is projected to increase by about 2%. 

Abercrombie & Fitch Co

Fran Horowitz, CEO of US apparel retailer Abercrombie & Fitch Co, said the company is pleased with its third-quarter performance which marked its fifth consecutive quarter of positive comparable sales and saw growth across both of its brands. In the 13 weeks ended 3 November, net income reached US$23.9m, up from $10.1m in the year-ago period. Net sales, meanwhile, totalled $861.2m, compared to $859.1m last year, despite the  adverse impacts from the calendar shift and foreign currency. Comparable sales increased 3%, with Hollister up 4% and Abercrombie up 1%. The gross profit rate was 61.3%, flat to last year, and down approximately 40 basis points on a constant currency basis, net of hedging.

Dollar Tree

US discount retailer Dollar Tree delivered earnings in line with company expectations in the third quarter, despite continued cost pressures related to domestic freight and investment in store wages, said CEO Gary Philbin. The period to 3 November marked the firm's 43rd consecutive quarter of same-store sales growth, with increases in both customer transactions and average ticket. Net income compared to the prior year's third-quarter increased US$41.9m to $281.8m, while gross margin decreased to 30.2% compared to 31.3% in the prior year. The 110 basis point decline was driven primarily by higher domestic freight, shrink, markdowns, distribution, and occupancy costs, partially offset by lower merchandise costs. Consolidated net sales, meanwhile, increased 4.2% to $5.54bn from $5.32bn last year. Enterprise same-store sales increased 1%, while same-store sales for the Dollar Tree banner increased 2.3% on a constant currency basis. Same-store sales for the Family Dollar banner decreased by 0.4%.

Express

David Kornberg, CEO of speciality retail apparel company Express, said the company's third-quarter performance was in line with the firm's guidance. Net income in the period totalled US$8m, compared to $6m in the third quarter of 2017, while gross margin improved 70 basis points to 30.7% of net sales compared to 30% last year. The improvement was driven by a 10 basis point increase in merchandise margin and 60 basis point decrease in buying and occupancy costs as a percentage of net sales. Net sales, meanwhile, increased 2% to $515.0m from $503.4m a year ago, while comparable sales (including e-commerce sales) were 0%, compared to a 1% decrease in the third quarter of 2017. E-commerce sales increased 26% year over year to $149.1m. On a comparable sales basis, e-commerce sales increased 23%.

Guess Inc

Victor Herrero, CEO of Guess Inc, said he is very pleased to report another quarter of strong operating performance despite a widening of the company's net loss in the period. In the three months to 3 November, net loss attributable to Guess Inc totalled US$13.4m, compared to $2.9m last year. Adjusted operating margin was 3.7%, an increase of 130 basis points compared to the same prior-year quarter. Total net revenue for the third quarter of fiscal 2019 increased 10.3% to $605.4m, compared to $549m in the prior-year quarter. In constant currency, net revenue increased by 13.1%. Sales in the Americas decreased 0.1% in US dollars and increased 1.1% in constant currency, while sales in Asia increased 20.4% in US dollars and 21.8% in constant currency. Meanwhile, in Europe,  revenues increased 14.8% in US dollars and 19.8% in constant currency.

Dick's Sporting Goods

Dick's Sporting Goods booked a mixed third quarter as earnings rose but sales slipped. The company reported consolidated net income for the third quarter ended 3 November 2018 of US$37.8m, compared to $36.9m last year. Net sales, meanwhile, decreased 4.5% to $1.86bn from $1.94bn in the year-ago period. Adjusted for the calendar shift due to the 53rd week in 2017, consolidated same-store sales decreased 3.9% on a 13-week to 13-week comparable basis. Based on an unshifted calendar, consolidated same store sales for the third quarter decreased 6.1%. Third quarter 2017 consolidated same-store sales decreased 0.9%.

Chico's

Brand performance at Chico's in the third quarter was "mixed" according to CEO Shelley Broader who added the company's namesake brand did not deliver the sales the firm anticipated which led to total company results that were below expectations. For the 13 weeks to 3 November, total net sales slipped 6.1% to US$499.9m from $532.3m in the year-ago period. Excluding the 1.6%, or $9.1m, impact of hurricanes Harvey, Irma and Maria from last year's third quarter, sales decreased 7.7% in the third quarter, which primarily reflects a comparable sales decline of 6.8% as well as the impact of 43 net store closures since last year's third quarter. The comparable sales decline was driven by a decrease in transaction count and lower average dollar sale. Net income, meanwhile, fell to $6.5m from $16.7m last year, while gross margin narrowed to 36.2% from 37% last year. Chico's said the 80 basis point decrease was primarily driven by an improvement in maintained margin that was more than offset by costs related to the continued expansion of the firm's omni-channel programmes.

Burlington Stores

Burlington Stores has booked a strong third-quarter as both sales and earnings grew. Net income jumped 71% to US$77m, and on an adjusted basis was up 70% to $83m. Gross margin expanded around 20 basis points to 42.4% as a 40 basis point increase in merchandise margin more than offset a negative 20 basis point impact from higher freight costs. Product sourcing costs were around 20 basis points higher over last year. Total sales were up 13.7% to $1.63bn, while comparable store sales grew 4.4%.

Stein Mart

Stein Mart widened its net loss in the third quarter to US$16.6m from $14.6m in the year-ago period. The company noted its net loss for2017 includes an income tax benefit of $10.4m compared to no income tax benefit in 2018. Gross profit margin, meanwhile expanded 110 basis points to 25% from 23.9% last year, driven primarily by higher gross margin from reduced markdowns and continuing improvement in inventory productivity. Markdowns were high in last year's third quarter to clear excess inventories, Stein Mart said. Net sales for the period totalled $279.1m, compared with $285.4m for the third quarter of 2017. Comparable sales increased 1.4%, including sales from licensed departments, while e-commerce sales were up 76% over last year's third quarter. The decrease in total net sales for the quarter reflects the closing of seven underperforming stores this year.

The Buckle

Nebraska-based denim specialist The Buckle booked a 3% rise in earning in the third quarter as net income reached US$20.5m from $19.9m last year. Net sales for the 13-week period, however, slipped 4.1% to $215.1m from $224.3m in the year-ago quarter. Comparable store net sales decreased 1.4% on last year, while online sales were up by 8.8% to $25.5m.

Stage Stores

Stage Stores widened its net loss to US$31.4m in the third quarter, expanding from $17.7m in the year-ago period. For the three months to 3 November, net sales slipped to $347m from $357m last year, while comparable sales increased 9.9% in off-price, decreased 5.5% for department stores, and decreased 2.8% for total company. On a shifted comparable sales basis, comparing the 13 weeks ending 3 November 2018 and 4 November 2017, off-price increased 10.3%, department stores decreased 4.1%, and total company decreased 1.5%. The company updated its annual guidance to reflect what it called the "softer underlying department store trends while incorporating its optimism around off-price and department store home expansion". As a result, it expects net loss for the full year to be between $54m-$59m and net sales in the range of $1.59bn-$1.61bn.

Foot Locker

US footwear firm Foot Locker booked a mixed third-quarter as earnings grew and sales declined. Net income reached US$130m in the three months ended 3 November, from $102m a year earlier. Gross margin widened to 31.6% from 31% a year ago, while total comparable store sales were up 2.9%. Net sales, meanwhile, were down 0.5% to $1.86bn. Excluding forex fluctuations, sales edged up 0.4%.

Ross Stores

Ross Stores CEO Barbara Rentler said both sales and earnings for the quarter were ahead of the company's forecast, despite being up against very strong multi-year comparisons. Net earnings grew to US$338m, up from $274m in the prior year. Third-quarter sales rose 7% to $3.5bn, with comparable store sales up 3% on last year. This compares to last year's same store sales gain of 4%.

Caleres

Footwear retailer Caleres booked a 15% drop in profit in the 13 weeks to 3 November as net income fell to US$29.2m from $34.4m last year. Consolidated sales, meanwhile, totalled $775.8m, up from $774.7m in the year-ago period. Famous Footwear same-store-sales were up 2.8%, while total sales of $448.8m were down 5.1% as expected, as one week of back-to-school sales shifted into the second quarter of this year versus the third quarter of last year. Brand portfolio sales of $327.1m were up 8.5%, including recently acquired Vionic.

TJX Companies

Ernie Herrman, CEO of TJX Companies, said the firm is extremely pleased with its "strong" third-quarter results as both sales and earnings exceeded expectations. For the period to 3 November, net income totalled US$762m, compared to $641.4m in the prior-year period. Gross profit margin was 28.9%, a 0.9 percentage point decrease versus the prior year. TJX said strong expense leverage was more than offset by increased freight costs, expenses associated with the Company's supply chain, and an unfavorable year-over-year comparison related to the company's inventory hedges. Net sales, meanwhile, increased 12% to $9.83bn from $8.76bn last year. Consolidated comparable store sales increased 7%.

Kohl's

Michelle Gass, CEO of US department store retailer Kohl's, said the company is "very pleased" its strong performance continued into the third quarter, resulting in a comparable sales increase of 2.5%, its fifth consecutive quarter of positive growth. For the three months ended 3 November, net income totalled US$161m, compared to $117m in the year-ago period. Gross margin expanded 25 basis points to 37% from 36.8% last year. Net sales, meanwhile, rose to $4.37bn from $4.31bn a year ago. Gass added the company experienced strength across its entire apparel business in the period, while its focus on speed to market and inventory management is driving relevancy with customers, resulting in sales growth, margin expansion, and clean inventory levels.

Urban Outfitters

Urban Outfitters has booked record third-quarter sales and earnings as all brands, channels, product categories and geographies delivered positive comp sales. For the three months ended 31 October, net income totalled US$77.5m, compared to $45.1m in the year-ago period. Gross profit rate improved by 134 basis points, driven by lower markdowns at all three brands and leverage in store occupancy cost due to strong retail segment comparable net sales. Total company net sales increased 9% over the same period last year to a record $973.5m. This compares to $892.8m last year. Comparable retail segment net sales increased 8%, driven by strong, double-digit growth in the digital channel and positive retail store sales. By brand, comparable sales increased 12% at Free People, 8% at the Anthropologie Group and 7% at Urban Outfitters. Wholesale segment net sales increased 12%.

L Brands

L Brands moved to a net loss in the third quarter as pre-tax charges of US$101.2m took their toll in the period. For the three months to 3 November, net loss totalled $42.8m, compared to net income of $86m in the same period last year. The company was hit by a $20.3m charge related to the closure of its Henri Bendel business and an $80.9m non-cash impairment charge related to certain Victoria's Secret store assets. Excluding these charges,  adjusted net income was $45m, compared to $86m last year. Net sales, meanwhile, totalled $2.8bn, an increase of 6% compared to sales of $2.6bn last year, while comparable sales increased 4% compared to the prior year quarter.

The company also announced that John Mehas has been named CEO of Victoria's Secret Lingerie, effective early 2019, replacing Jan Singer, who has resigned. Mehas is currently serving as president of lifestyle brand Tory Burch and previously led Club Monaco, a Polo Ralph Lauren brand, for 13 years as president and CEO.

Walmart

Walmart revealed mixed results for its third-quarter as the US retail giant booked solid sales gains at its domestic stores but saw earnings slide. Total revenue was up 1.4% to US$124.9bn in the period, with US revenues up 3.7% to $80.6bn. Comparable US store sales rose 3.4%, boosted by a 43% jump in domestic e-commerce sales. International net sales, meanwhile, were down 2.6%. Earnings for the quarter dropped 2.2% year-on-year to $1.71bn due to an unrealised loss from its JD.com investment and forex charges. Looking ahead Walmart has forecast 2019 GAAP earnings of between $2.26 and $2.36 per share, compared to $2.65 to $2.80 previously. Adjusted EPS is expected between $4.75 and $4.85 from earlier guidance of $4.65 to $4.80.

Nordstrom

Nordstrom booked a 41% drop in earnings in the third quarter to US$67m from $114m last year. Excluding an after-tax impact of $49m for a credit-related charge, net earnings were relatively flat. Nordstrom said this reflected the reversal of the second quarter impact of the new revenue recognition standard as it relates to the timing of the Anniversary Sale, partially offset by a lower effective tax rate. Gross margin narrowed 137 basis points to 33.3%, while net sales increased 3% in the period to $3.6bn from $3.5bn in the year-ago quarter. Comparable sales increased 2.3%.

Dillard's

Dillard's booked a mixed third-quarter as profit fell but revenue increased. In the 13 weeks to 3 November, net income slipped to US$7.4m from $14.5m a year ago. Net sales, meanwhile, totalled $1.42bn, compared to $1.35bn last year, while sales in comparable stores for the period increased 3%. Gross margin from retail operations declined 87 basis points compared to the prior year third-quarter due to increased markdowns.

Dillard's CEO William Dillard said while the company is encouraged by its 3% comparable sales performance, this was a disappointing quarter as markdowns weighed heavily on gross margin, particularly in the first month.

Shoe Carnival

Cliff Sifford, CEO of Shoe Carnival, said the firm is pleased with its "strong" financial results for the third quarter, which reflect growth in all geographic regions and virtually all product categories. For the period ended 3 November, net income increased 12.6% to US$12m, compared to $10.7m last year, while gross profit margin expanded to to 30.2% from 29.8%. Meanwhile, primarily due to the calendar shift, net sales in the period decreased 6.4% to $269.2m, compared to net sales of $287.5m in the prior year quarter. Comparable store sales were up by 4.5%.

JC Penney

US department store retailer JC Penney has widened its net loss in the third quarter. Losses amounted to US$151m in the period, compared to $125m a year earlier. Total net sales decreased 5.8% to $2.65bn from $2.82bn in the year-ago period. Comparable sales decreased 5.4 % for the third quarter on an unshifted basis. Reflecting the calendar shift in 2018 due to the 53rd week in 2017, comparable sales decreased 4.5 %. Jewellery, women's apparel and men's were the company's top performing divisions during the quarter.

The company added that given it has recently announced both a new CEO and an interim CFO, and to allow the ability to effectively assess and address current and go-forward execution of the business, it believes it is appropriate to withdraw its previous 2018 full year earnings guidance and update its previous full-year comparable store sales guidance.  Comparable store sales for fiscal 2018 are now expected to be down low-single digits. 

Macy's Inc

Department store chain Macy's Inc has upped its full-year guidance on the back of higher earnings and sales in its third-quarter. Net income amounted to US$62m from $30m a year earlier, while net sales were up 2.3% to $5.40bn, supported by a 3.1% uplift in comparables. For the full year, the retailer is forecasting net sales growth of 0.3%-0.7% from previous guidance of flat to 0.7% growth, and diluted EPS of $4.10 to $4.30 from $3.95 to $4.15 previously.

Iconix Brand Group

Bob Galvin, CEO Iconix, said the firm's results for the quarter were negatively impacted by the Sears bankruptcy filing which resulted in P&L charges. For the period ended 30 September, net income totalled US$20.2m, compared to a net loss of $550.6m in the year-ago quarter. Total revenue, meanwhile, was $46.2m, a 13% decline as compared to $53.2 million in the prior year quarter. Such decline was expected, Iconix said, principally as a result of the transition of its Danskin, OP and Mossimo direct-to-retail labels in its women's segment, as previously announced. The firm added its men's segment declined in the third quarter, primarily from the Starter and Buffalo brands.  Meanwhile, its international segment provided organic growth primarily from the Umbro and Lee Cooper brands, specifically in the Europe, India and China territories.  

Wolverine Worldwide

Wolverine Worldwide CEO Blake Krueger has hailed the firm's "strong" earnings result in the third quarter which he says was driven by healthy gross and operating margin expansion. In the period to 29 September, net earnings totalled US$58.9m, compared to $22.8m in the year-ago quarter. Reported gross margin expanded to 41.6% from 39.7% last year, while reported operating margin was 12.2%, compared to 6.4% in the prior year. Reported revenue, meanwhile, fell 3.9% to $558.6m from $581.3m in the year-ago period. Krueger added the firm expects underlying revenue growth for the fourth quarter to improve "meaningfully" as its growth initiatives take hold especially for its two largest brands, Merrell and Sperry.

HanesBrands 

HanesBrands CEO GeraId Evans Jr said the apparel maker's overall results for the third quarter were "good" and in line with company guidance on a pro forma basis. In the period ended 29 September, the company took a bad-debt reserve charge of US$14m related to the bankruptcy filing of Sears Holdings Corporation. As a result, GAAP operating profit of $257m declined 1% and GAAP diluted earnings per share were $0.47. Net income, meanwhile, totalled $171.4m, down from $203.4m in the year-ago period. Third-quarter net sales increased 3% to $1.85bn, and constant-currency organic sales, which increased for the fifth consecutive quarter, were up more than 1%. Activewear and international sales increased 7% and 11% respectively, benefiting from strong Champion growth, while innerwear sales slipped 7%.

Under Armour

Under Armour's multi-year transformation strategy boosted earnings and sales in the company's third-quarter as net profit jumped 38.9% to US$75.3m. Gross margin increased ten basis points to 46.1%, including a $5m impact related to restructuring efforts. Revenue was up 2% to $1.4bn. Sales in the firm's domestic business were down 2% in the quarter, while international sales grew 15%. For the full year, Under Armour is forecasting revenues to increase around 3-4%, reflecting a low single-digit decline in North America and international growth of around 25%. Gross margin is expected be flat to down slightly versus the prior year rate of 45%. Excluding the impact of the restructuring efforts, adjusted diluted earnings per share is now expected to be in the range of $0.19 to $0.22 versus the previous expectation of $0.16 to $0.19.

Columbia Sportswear

Columbia Sportswear has lifted its full-year guidance on the back of a record third quarter. Net income totalled US$100.2m in the period ended 30 September, up 14% from $87.7m last year. The firm also reported record net sales of $795.8m, an increase of 6% compared with net sales of $747.4m for the third quarter of 2017. Looking ahead, the company currently expects 2018 net sales growth of about 11%-11.5% and 2018 net income to come in between $240m and $244m.

Carter's

Carter's failed to achieve its growth objectives in the third quarter due to less robust demand than expected for its fall transitional product offerings, especially during the Labor Day holiday shopping period. Net sales decreased US$24.1m, or 2.5%, to $923.9m in the quarter, while net income tumbled $10.5m, or 12.8%, to $71.8m from $82.3m last year. In the latter part of September, however, as cooler weather arrived in more parts of the United States, sales trends "improved meaningfully" and were more in line with expectations.

"Given the improved trend in sales, together with the strength of our fall and holiday product offerings, we are expecting good growth in sales and earnings in the fourth quarter," said CEO Michael Casey. 

Rocky Brands

US apparel and footwear company Rocky Brands booked a positive third-quarter as both earnings and sales climbed. For the period ended 30 September, net income reached US$5m, compared to $2.2m in the year-ago quarter. Net sales, meanwhile, increased 1.9% to $65.9m from $64.7m last year. Gross margin expanded to 34% from 30.2% for the same period last year. The company said the 380 basis point increase was driven by higher wholesale, retail and military margins combined with a lower percentage of military sales, which carry lower gross margins than wholesale and retail sales.

Levi Strauss & Co

Jeans giant Levi Strauss & Co has announced its fourth consecutive quarter of double-digit revenue growth, which CEO Chip Bergh said was broad-based across virtually every part of the business, including all four brands, and all regions and channels. For the three months ended 26 August, net revenues grew 10% on a reported basis to US$1.39bn from $1.27bn last year. Excluding $14m in favourable currency, net revenues were up 11%. In Europe, net revenues were up by 17%, while in the Americas and Asia sales grew by 7% and 8% respectively. Net income, meanwhile, increased $40m to $130m from $90m in the year-ago period, primarily reflecting lower income taxes, higher operating income and gains on the company's hedging contracts as compared with losses in the third quarter of 2017. Gross margin for the period widened to 53.2% from 51.8% last year, reflecting the margin benefit from revenue growth in the direct-to-consumer channel and international business, a favourable transactional impact of currency and lower product sourcing costs.

Skechers USA

Casual footwear brand Skechers USA has booked record third-quarter sales with revenue reaching U$1.18bn in the period, an increase of 7.5%, or 8.5% on a constant currency basis. Skechers said the rise was the result of an 11.8% increase in the company's international wholesale business, and a 10.6% rise in its company-owned global retail business. Comparable same store sales in company-owned retail stores worldwide increased 1.9%, including an increase of 3% in the US, offset by a decrease of 0.8% in its international stores. Net income, meanwhile, slipped to $90.7m from $92.3m in the year-ago period. Gross margin expanded to 47.9% from 47.5% as higher domestic margins from improved retail pricing and product mix were partially offset by the impact of negative foreign currency exchange rates.