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

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

The latest third-quarter filings from US apparel and footwear brands and retailers are a mixed bag, with some companies beginning to recover from the market disruption caused by the Covid-19 pandemic, while others are continuing to struggle. Zumiez saw net income jump by more than 50%, while Urban Outfitters has reported a 38% increase in profit, and L Brands is back in the black. Elsewhere, Express has reported a net loss of US$90.3m, and Nordstrom has seen profits and sales slide.

Express 

Fashion apparel retailer Express said consolidated net sales fell 34% in the 13 weeks to 31 October to US$322.1m from $488.5m a year ago, with consolidated comparable sales down 30%. Comparable retail sales, which includes both Express stores and e-commerce, decreased 33%. Comparable outlet sales were down 20%. Gross margin was 4.3% of net sales compared to 28.2% in last year's third quarter. The decrease was driven by the sales impact of Covid-19 and an $8.4m non-cash impairment charge taken against certain long-lived store assets. Net loss was $90.3m, compared to a net loss of $3.1m last time. On an adjusted basis, net loss was $76.2m, compared to $1.8m a year prior.

Express said subsequent to quarter-end, it completed a 10% workforce reduction at its Columbus, Ohio corporate office as outlined in January as part of its restructuring. The reductions are expected to result in $13m in benefits in 2021.

Zumiez

Zumiez's total net sales for the third quarter ended 31 October increased 2.6% to US$271m from $264m last year. For the stores that were open, comparable sales increased 8.1% compared to the same period a year ago. Net income, meanwhile, was $29.1m, compared to $19.2m in the third quarter of the prior fiscal year.

Zumiez said total fourth quarter-to-date sales for the 31 days ended 1 December were down about 3.9%, compared with the same 31-day period last year. Comparable sales were down 1.7%. 

Dollar General Corporation

Dollar General reported a 17.3% rise in net sales to US$8.2bn for the three months to 30 October. Same-store sales increased 12.2% on last year, with rises in all each of the consumables, seasonal, home products and apparel categories, driven by an increase in average transaction amount, partially offset by a decline in customer traffic. The company reported net income of $574.3m, an increase of 57.1% compared to $365.6m last year. Gross margin widened to 31.3% from 29.5% in the third quarter of 2019.

Tilly's

Tilly's has reported total net sales of US$140.3m for the third quarter ended 13 October, a decrease of $14.5m or 9.4% compared to $154.8m last year. Net sales from physical stores were down 20.8% to $104.6m and represented 74.5% of total net sales compared to 85.3% a year prior. Net sales from e-commerce, meanwhile, amounted to $35.7m, up 57.3% on last time and representing 25.5% of total net sales compared to 14.7% last year. Net income fell to $2.1m from $6.4m in the prior year.

"The third quarter finished strong following a weak start in August resulting from delays in back-to-school timing this year, and this positive momentum carried into the early stages of the fourth quarter," said CEO Ed Thomas.

PVH Corp

PVH Corp said its third-quarter results exceeded company expectations, driven by strong performance in Europe and China. Revenue for the three months to 1 November decreased 18% to US$2.12bn compared to last year but was a sequential improvement compared to the percentage revenue decreases in the prior two quarters. Sales through PVH's digital channels grew 36%, with sales through its directly operated digital commerce businesses up 70%. Sales were down in the company's Tommy Hilfiger, Calvin Klein, and Heritage Brands divisions, by 12%, 18%, and 36%, respectively. Net income amounted to $69.8m, down from earnings of $209.2m a year earlier.

Guess

Guess CEO Carlos Alberini said the company's third-quarter results significantly exceeded expectations in spite of the challenging circumstances posed by the pandemic. Total net revenue for the period to 31 October decreased 7.6% to US$569.3m from $615.9m last time. In constant currency, net revenue decreased by 10.1%. Declines were recorded in the company's Americas retail and Asia divisions, of 26.7% and 24.7%, respectively in US dollars. Europe revenues, meanwhile, were up by 16%. The company recorded GAAP net earnings of $26.4m, a 112.3% increase compared to $12.4m a year earlier. Adjusted net earnings were $37.4m, compared to $14.9m last time.

The Cato Corporation 

Cato Corp has reported a net loss of US$3.6m for the third quarter ended 31 October, compared to net income of $6m in the prior-year period. Sales for the quarter were $149.2m, or a decrease of 21% from sales of $189.4m a year ago. The company's same-store sales decreased by 23%. Gross margin, meanwhile, narrowed to 26.7% from 37.4%, due to a reduction in merchandise contribution, combined with the effects of deleveraging from the sales decline.

"Sales in the third quarter reflected continued softening of customer demand as Covid-19 cases continued to rise throughout our market areas and many people still have not returned to work. As we see this trend continuing, we anticipate that the remainder of the year will be challenging," said CEO John Cato.

Nordstrom

Nordstrom third-quarter profits slid to US$53m from $126m a year earlier while sales declined 16% to $3bn from $3.5bn, impacted by the pandemic. Erik Nordstrom, CEO said the company's operating profitability benefited from its ability to significantly strengthen financial flexibility early on. The company adds it is encouraged by the positive momentum and expects continued progress in the fourth quarter and into 2021.

Burlington Stores

Burlington Stores booked a 6% decline in sales during the third quarter to $1.6bn while comparable-store sales fell 11% on the back of deficient inventory levels and delayed back to school purchases. Gross margin rate was 45.0% vs. last year's rate of 42.4%; this improvement was driven by a combination of lower markdowns and higher markup, which were partially offset by higher freight costs. Product sourcing costs were $144m vs. $90m driven primarily by higher supply chain costs, due to higher wages and hiring incentives. Net income fell to $8m from $96m a year earlier.

American Eagle Outfitters

American Eagle Outfitters (AEO) saw net income tumble 28% to U$58.1m for the three months to 31 October from $80.8m a year earlier. Total net revenue decreased $35m, or 3%, to $1.03bn from $1.07bn last time, largely reflecting mall traffic declines related to Covid-19, offset by strong online sales. By brand, American Eagle revenue decreased 11%, following a 2% increase last year. Aerie's revenue increased 34%, following a 26% rise last year. AEO's digital reported revenue was up 29%. Aerie digital revenue rose 83% and AE increased 11%. Gross margin of 40.2% expanded from 38.2% last year. 

Chico's FAS

Chico's FAS CEO Molly Langenstein hailed "another quarter of sequential performance improvement", with total sales increasing by 14.8% on the previous quarter, driven by strong digital performance and a rebound in store sales, and gross margin rate rising more than 700 basis points. For the period ended 31 October, total sales amounted to US$351.4m. Sales decreased approximately 27.5% from last year's third quarter, reflecting a decline in store sales as well as the impact of 63 net permanent store closures since last year, partially offset by double-digit growth in digital sales. Year-over-year digital sales grew in all three brands, with Soma leading the way with 67% growth compared to last year. Gross margin was 22%, up 740 basis points from the second quarter. Gross margin in last year's third quarter was 35.3%. The year-over-year decrease primarily reflects deleverage of fixed occupancy costs as well as lower maintained margin. Net loss, meanwhile, widened to $55.9m from $8.1m a year ago. Chico's said its net loss for this year includes impairment charges of $6.3m. 

Abercrombie & Fitch

Casual clothing retailer Abercrombie & Fitch has posted a 5% decline in net sales for the third quarter ended 31 October to US$820m, reflecting the adverse impact of Covid-19 on store sales. Digital net sales, however, surged 43% to $382m reflecting robust growth in every month of the quarter. Net income amounted to $42.3m, compared to $6.5m last year, while gross profit rate improved 390 basis points to 64% on higher average unit retail and lower average unit cost, benefiting from inventory shrink favorability of about 100 basis points and changes in foreign currency exchange rates of about 90 basis points.

CEO Fran Horowitz announced the early exit of four additional flagship locations by the end of January 2021. This is in addition to the three previously announced fiscal 2020 natural lease expirations. "With these seven closures, we should end the year with eight operating flagships down from 15 at the beginning of the year. These actions align with our multi-year strategy of reducing dependence on tourist-driven locations to reposition within key markets and deliver a better omnichannel experience to our local customer."

Dollar Tree

Consolidated net sales at discounter Dollar Tree increased 7.5% to US$6.18bn from $5.75bn last year. Enterprise same-store sales were up 5.1%, while same-store sales for Family Dollar increased by 6.4% and Dollar Tree same-store sales by 4%. Net income in the period, meanwhile, rose 29% to $330m from $255.8m last time. Gross margin widened 150 basis points to 31.2% from 29.7%, driven by improved merchandise costs including freight, leverage on occupancy costs from stronger same-store sales, improved shrink results and reduced markdowns, partially offset by higher distribution costs.

Dick's Sporting Goods 

CEO of Dick's Sporting Goods Edward Stack has hailed an "exceptionally strong quarter from both a sales and a profitability perspective." For the third quarter ended 31 October, consolidated net income was US$177.2m, compared with $57.6m last year. On a non-GAAP basis, consolidated net income was $182.2m, compared to $44.8m. Net sales were $2.41bn, an increase of 22.9% compared to the third quarter of 2019. The increase was driven by a 23.2% rise in consolidated same-store sales and included a 95% surge in e-commerce sales. E-commerce penetration was about 21% of total net sales, compared to 13% a year ago. Consolidated same-store sales increased by 6%.

Urban Outfitters, Inc

Urban Outfitters has announced a 38% year-on-year rise in net income to US$76.7m and record earnings per diluted share of $0.78 for the three months ended 31 October. Gross profit rate increased by 79 basis points versus the prior year's comparable period, due in part to record low merchandise markdowns in the retail segment. Total company net sales, meanwhile, decreased 1.8% over the same period last year to $970m. Comparable retail segment net sales were flat as a result of negative retail store sales driven by lower store productivity due to reduced store traffic, offset by strong double-digit growth in the digital channel. By brand, comparable retail segment net sales were up 17% at Free People and 4% at Urban Outfitters. Sales were down 9% at the Anthropologie Group. Wholesale segment net sales fell by 24%.

The Buckle

Nebraska-based denim specialist The Buckle has reported net income of US$41.6m for the second quarter ended 31 October, compared to $26m in the prior-year period. Net sales for the 13 weeks increased 12% to $251m from net sales of $224m a year ago. Comparable store net sales were up 12.4% from last year, while online sales surged 72.5% to $46.4m from $26.9m a year earlier. 

Foot Locker

Foot Locker has posted net income of US$265m for the three months to 31 October, compared to $125m in the corresponding prior-year period. Non-GAAP earnings were $128m, compared to $122m. Total third-quarter sales increased 9% to $2.1bn from $1.9bn last year. Excluding the effect of foreign exchange rate fluctuations, total sales increased by 7.7%. Comparable-store sales were up 7.7%. The company's gross margin rate decreased to 30.9% from 32.1% a year ago.

Macy's

Macy's CEO Jeff Gennette said the company's third-quarter results reflect solid performance across all three brands – Macy's, Bloomingdale's, and Bluemercury. Net sales amounted to US$3.99bn in the period, down from $5.17bn last year. Comparable sales declined 21% on an owned basis and by 20.2% on an owned plus licensed basis, due to continued store recovery and continued growth of the digital business. Digital sales grew 27% over the third quarter of 2019 and penetrated at 38% of total owned comparable sales. The company swung to a net loss of $91m in the period, compared to net income of $2m a year ago. Gross margin narrowed to 35.6% from 40% last time. 

Caleres

Caleres continued its steady progress in the third quarter, recording sequential top-line growth, a return to profitability, and stronger gross margins. For the three months to 31 October, net sales were US$647.5m, down 18.3% from last year. Direct-to-consumer sales represented 71.4% of total net sales. The company reported a 12.3% sales decline in the Famous Footwear segment and a 25.6% drop in its Brand Portfolio segment. Total company-owned e-commerce website sales were up 24.6%, with e-commerce penetration rising to 25.4% of net sales. Net income fell to $14.4m from $28m a year earlier, while gross margin was 39.7%. Adjusted net income was $18.2m, compared to  $31.6m last time.

Ross Stores

Discount department store retailer Ross Stores has reported net income of US$131m, compared to $371m in the prior-year period. The results include a one-time charge of $240m relating to the refinancing of $775m in senior notes during the quarter. Third-quarter sales declined 2% to $3.8bn, with comparable-store sales down 3%.

The Children's Place

The Children's Place said net sales fell 19% to US$425.6m in the three months ended 31 October from $524.8m in the prior-year period. The decline is primarily a result of a decrease in back-to-school sales due to schools adopting remote and hybrid learning models, along with the impact of permanent and temporary store closures. Digital sales penetration increased to 44% in the third quarter. Net income, meanwhile, tumbled 69% to $13.3m from $43m last year. Adjusted net income was $21.1m, compared to $47.1m in the comparable period.

CEO Jane Elfers said the company remains on track to close 300 stores by the end of fiscal 2021, with a plan of 200 store closures in fiscal 2020, inclusive of the 118 stores that have permanently closed in the first nine months of 2020, and 100 store closures in fiscal 2021.

The TJX Companies

The TJX Companies CEO Ernie Herrman said the firm's top and bottom lines significantly exceeded internal plans during the third quarter ended 31 October. The off-price apparel and home fashions retailer reported third-quarter net sales of US$10.1bn, down from $10.5bn last year. Overall, open-only comp store sales were down 5% versus last year. The company posted net income of $867m, compared to net income of $828m in the prior-year period.

L Brands

Victoria's Secret and Pink owner L Brands has moved to a profit for the third quarter, reporting net income of US$330.6m compared to a net loss of $252m last year, when it was hit by some impairment charges. Adjusted net income was $320.3m, compared to $5.7m last year. Net sales for the period ending 31 October were up 14.2% to $3.06bn from $2.68bn last year, while comparable sales increased 28%. Specifically, Victoria's Secret sales in the period were 14.2% lower year-on-year at $1.35bn. Conversely, sales at Bath & Body Works were 54.9% higher at $1.7bn. 

Shoe Carnival

Shoe Carnival CEO Cliff Sifford said the company achieved same-store sales growth and delivered the most profitable quarter in its history, despite the extended back-to-school season. For the period ended 31 October, net income hit an all-time record of US$14.7m, compared to $13.7m last year. Net sales were flat at $274.6m, while comparable store sales increased 0.9%, on top of a 3.5% comparable store sales increase a year ago. E-commerce sales, meanwhile, surged by more than 150% and represented more than 13% of total sales in the period. Gross profit margin increased 110 basis points to 32% compared to last time.

Target Corp

Department store retailer Target Corp said total revenue of US$22.6bn grew 21.3% compared with last year, driven by sales growth of 21.% and an 18.1%increase in other revenue. The company's total comparable sales grew 20.7% in the third quarter, reflecting comparable store sales growth of 9.9% and digital sales growth of 155%. Net earnings surged 41.9% to $1bn from $714m last year, while gross margin rate was 30.6%, compared with 29.8% in 2019. The expansion reflects the benefit of merchandising actions, primarily from exceptionally low markdown rates, partially offset by the impact of higher digital fulfillment and supply chain costs, along with unfavourable category mix. Throughout the third quarter, Target continued to gain market share across all five of its core merchandising categories.

Kohl's

US department store retailer Kohl's has swung to a net loss of U$12m for the third quarter ended 31 October. This compares to a net income of $123m last year. On a non-GAAP basis, Kohl's reported an adjusted net income of $2m, compared to $116m a year ago.  Net sales declined 13.3% for the three months to 31 October, while total revenue fell 14% to $3.98bn from $4.63bn in the prior-year period. Gross margin, meanwhile, narrowed 48 basis points to 35.8% from 36.3%. 

CEO Michelle Gass said: "Our third-quarter results exceeded our expectations with significant sequential sales and profitability improvement. Digital sales growth remained strong and our actions to improve our gross margin showed great progress."

Walmart

US retail giant Walmart has reported an increase of US$6.7bn, or 5.2%, in total revenue to US$134.7bn for the third quarter. Excluding currency, total revenue would have increased by 6.1% to reach $135.8bn. Walmart US posted a 6.2% rise in net sales to $88.4bn, while US comp sales increased 6.4% in the quarter. Walmart US e-commerce sales grew 79% with strong results across all channels. Net sales at Walmart International, meanwhile, were $29.6bn, an increase of 1.3%. Changes in currency rates negatively affected net sales by about $1.1bn. Consolidated net income attributable to Walmart rose 56.2% on last year to $5.1bn from $3.3bn. Consolidated gross profit rate increased 50 basis points with positive contributions from each operating segment.

Sequential Brands Group

Brand management company Sequential Brands Group, Inc has posted a 5.5% decline in total revenue from continuing operations for the third quarter ended 30 September to US$24m from $25.4bn last year. On a GAAP basis, net income from continuing operations was $2.1m, compared to a non-GAAP net loss of $0.9m in the prior-year quarter. Net income attributable to Sequential Brands Group and its subsidiaries amounted to $4.4m, compared to $18.7m last time.

Iconix Brand Group

For the third quarter ended 30 September, Iconix Brand Group posted total revenue of US$24.5m, a 31% decline, compared to $35.5m in the prior-year period. The firm attributed a 43% decrease in revenue in its women's segment principally to a decrease in licensing revenue from its Mudd and Joe Boxer brands. Revenue from the men's segment was down 28% mainly due to a decrease in licensing revenue from the Buffalo and Umbro brands. International segment revenue fell 32% on decreases in Latin America and Europe. GAAP net income attributable to Iconix amounted to $45.7m, compared to a net loss of $35.7m a year ago. 

Dillard's, Inc

Dillard's has reported net income of US$31.9m for the 13 weeks to 31 October, compared to $5.5m last year. Net sales, meanwhile, were down by 27% to $1.02bn from $1.4bn a year earlier. Net sales includes the operations of Dillard's construction business, CDI Contractors, LLC. Total retail sales, which exclude CDI, decreased about 25% to $994.6m, while sales in comparable stores for the same period were down by 24%. Consolidated gross margin, which includes CDI, improved 249 basis points of sales to 35.7% compared to 33.2% last time.

HanesBrands

US apparel manufacturer HanesBrands saw net sales slip by 3.2% for the three months ended 26 September to US$1.81bn from $1.87bn a year earlier. The company said apparel revenue trends improved sequentially in each business segment. US innerwear sales increased by 8.4%, excluding protective garments, with growth in the basics and intimate apparel businesses. Overall, segment sales were up by 37%. HanesBrands sold $179m in personal protective garments globally during the period. US activewear sales, meanwhile, fell 41%, a significant improvement from the second quarter. As reported, international segment net sales dropped by 5%, while operating profit was down 10%. On a constant currency basis, net sales decreased 7% and operating profit declined 12%. Excluding sales of protective garments, core international sales declined 7%. Online sales, meanwhile, soared by nearly 70% on a rebased basis through company e-commerce websites, retailer websites, large internet pure-plays, and business-to-business customers. Net income in the period tumbled 44.2% to $103.3m from $185.1m a year ago. 

For the fourth quarter, net sales are expected at between $1.60bn-$1.66bn. Included in the outlook is about $50m of protective garment sales and $10m of foreign exchange benefit.

Wolverine Worldwide

Wolverine Worldwide CEO Blake Krueger said the company's third-quarter results significantly exceeded expectations. Net earnings for the period ended 26 September tumbled by more than 55% to US$21.7m from $48.6m last year, while gross margin narrowed to 41% from 42.4%. Reported revenue, meanwhile, was down 14.1% versus the prior year to $493.1m. On a constant currency basis, revenue fell 14.6%. Owned e-commerce revenue grew by 56.4%.  

Weyco

Footwear maker Weyco has reported a net loss of US$5.9m for the three months ended 30 September, compared to net earnings of $6.6m in the prior-year period. Net sales were $53.2m, down from $82.5m last time. Net sales of the Florsheim, Stacy Adams, and Nunn Bush brands were down 58%, 55%, and 32%, respectively, due mainly to the current decrease in demand for dress and dress-casual footwear as a result of the ongoing pandemic. Net sales in the North American retail segment, which includes sales from the company's Florsheim retail stores and its e-commerce businesses in the US, were $4.4m, compared to $5.2m a year ago. This was partly due to the closure of three unprofitable stores. E-commerce sales rose 16% but were offset by a significant decline in brick-and-mortar same-store sales.

Under Armour

US sportswear retailer Under Armour has reported a 62% drop in net income to US$39m for the three months ended 30 September from $102.3m in the prior-year quarter. Adjusted net income was $118 million. Revenue, meanwhile, was flat at $1.4bn compared to last year. Wholesale revenue was down 7% to $830m, while direct-to-consumer revenue increased 17% to $540m, driven by continued strong growth in e-commerce. North America revenue dropped 5% to $963m, while revenue from the international business grew by 18% to $433m. Within the international business, revenue rose 31% in EMEA, and by 15% in Asia-Pacific. In Latin America, revenue decreased 15%. By segment, apparel sales fell 6% to $927m, footwear revenue declined 19% to $299m, and accessories sales rose 23% to $145m. Gross margin decreased 40 basis points to 47.9%, driven primarily by negative impacts from Covid-19 related discounting and product mix partially offset by supply chain efficiencies and channel mix.

The company said it expects material impacts on its business results for the remainder of 2020 and into 2021. Regarding Under Armour's full-year 2020 outlook, revenue is expected to be down at a high-teen percentage rate compared to 2019 results, while operating loss is expected to reach about $800m-$860m.

Columbia Sportswear Company

Columbia has posted lower net sales and profitability in the third quarter of 2020 compared to last year, primarily reflecting the ongoing negative effects of the Covid-19 pandemic. For the three months to 30 September, net sales decreased 23% to $701.1m from $906.8m a year ago. Excluding about $45m of autumn 2020 shipments shifting into the fourth quarter, net sales would have decreased 18%. In the direct-to-consumer channel, e-commerce net sales increased 55% year-over-year, while brick and mortar store traffic and sales trends remained well below prior-year levels. Net income tumbled 47% to $62.8m from $119.3m, while gross margin contracted 40 basis points to 48.9% from 49.3% last time.

For the fourth quarter, Columbia expects net sales of $850-$880m, representing a decline of 8-11%. Operating income is forecast at $91-$112m, representing operating margin of 10.7%-12.7%. 

Skechers USA

Footwear retailer Skechers USA saw sales decline 3.9% for the three months to 30 September to US$1.3bn as a result of a 4.1% drop in its international business and a 3.7% fall in its domestic arm. Its international sales declines were partially offset by growth of 23.9% in China and 18.1% in Europe. Net earnings tumbled 37.6% to $64.3m from $103.1m a year earlier, while gross margins remained relatively flat at 48.1% as a result of higher promotional activity internationally, partially offset by favourable mix of online and international sales. CEO Robert Greenberg said Skechers experienced meaningful sequential sales improvement from the second quarter of 78.3%.

Kontoor Brands

Kontoor Brands saw revenue decrease 9% on a reported and constant currency basis to US$583m for its third-quarter ended 26 September. Revenue declines were primarily driven by Covid-19 impacts, offset in part by increases in digital, new business development wins, and a $33m shift in the timing of US Wrangler shipments from the second quarter to the third quarter of 2020. US revenue was $455m in the period, flat year-over-year on a reported basis, while international revenue was $128m, down 30% on a reported basis and 31% in constant currency. Wrangler brand global revenue dropped to $347m, a 6% decline on a reported and constant currency basis, while at Lee, brand global revenue was down 8% to $214m. Net income, meanwhile, amounted to $60.8m, compared to $14.5m in the prior-year period. Gross margin increased 410 basis points to 44.2% of revenue on a reported basis. 

The company expects continued sequential revenue improvement in the final quarter, with sales anticipated to be flat to down modestly, while a quarterly dividend will be reinstated.  

Steve Madden

Steve Madden has posted a 30.9% decline in revenue to US$346.9m from $502.1m a year ago for the three months ended 30 September. Retail revenue decreased 22.1% to $59m in the third quarter due to a significant decline in the brick-and-mortar business, partially offset by strong growth in the e-commerce business. Revenue for the wholesale business decreased 32.7% to $283.8m. Net loss attributable to Steven Madden was $6.9m, compared to net income of $52.5m in the same period of 2019.  Adjusted net income was $31.8m, compared to  $56m a year prior. Gross margin increased 130 basis points to 40.3% compared to 39.0% in the same period of 2019.

CEO Edward Rosenfeld said the company delivered third-quarter revenue and earnings that significantly exceeded expectations. 

Crocs, Inc

CEO Andrew Rees said the footwear firm achieved record third-quarter revenue despite the challenges presented by the global Covid-19 pandemic. For the three months ended 30 September, revenues were US$361.7m, an increase of 15.7% from the record third-quarter revenues achieved in 2019. Revenues increased 15.7%, or 15.9% on a constant currency basis, with growth in all three channels. E-commerce revenues grew 36.3%, wholesale revenues grew 12.4%, and retail revenues increased 8.9%. Digital sales, which includes sales through company-owned websites, third-party marketplaces, and e-tailers, grew 35.5% to represent 37.7% of revenue versus 32.2% last year, with growth in all regions. Geographically, revenues in the Americas totalled $234m, an increase of 27.3% on a constant currency basis, while sales in Asia Pacific declined 9% to $67.7m. EMEA revenues of $60m increased 10.7% on a constant currency basis. Net income, meanwhile, surged 73.4% to $61.9m from $35.7m a year prior, while gross margin of 57.2% increased 480 basis points compared to 52.4% in the same period last year. Adjusted gross margin of 57.4% rose 380 basis points.

Carter's, Inc

Carter's exceeded its sales and earnings goals for the period ended 26 September, with net income rising 34.8% to US$81.2m from $60.3m in the third quarter of fiscal 2019. Adjusted net income increased 2.3% to $85.9m. Net sales, meanwhile, fell 8.3% to $865.1m from $943.3m a year prior. The decline reflects decreased sales to certain wholesale customers, lower traffic to company-operated stores, and a drop in back-to-school sales as many children began the school year at home and learning virtually. This was partially offset by strong e-commerce channel growth. US retail segment comparable sales declined 3.5%.

Levi Strauss & Co

Jeans giant Levi Strauss & Co has returned to profit in the third quarter having exceeded its expectations for the period. For the 13 weeks to 23 August, the denim specialist reported net income of US$27m. While the figure is down some 78% from $124m in the prior-year period, it compares to a net loss of $363.5m reported for the second quarter. Net revenues fell 27% on a reported basis to $1.06bn from $1.45bn last time. Company e-commerce revenue growth of 52% partially offset the decline. Global digital revenues, which include e-commerce sites as well as the online business of its pure-play and traditional wholesale customers, grew 50% compared to last year, and comprised about 24% of third-quarter 2020 revenues, double what it was a year ago. Gross margin, meanwhile, increased 130 basis points on a reported basis to 54.3%.