Newswire

Nordstrom fell 2.7 percent to 59.45 dollars after regular trading ended in New York. The shares had gained 14 percent this year before Thursday close, compared with a 16 percent advance for the Standard & Poor’s 500 Index.

The fashion retailer reported net income in the first quarter ended May 4 dropped 2.7 percent to 145 million dollars, or 73 cents a share, from 149 million dollars, or 70 cents, a year earlier, Nordstrom said. The 24 analysts surveyed by Bloomberg expected on average 76 cents.

On the back of the just released figures, earnings per share in 2013 will be 3.65 to 3.80 dollars, the retailer reaffirmed, helped by 5 cents by share repurchases. Analysts projected 3.80 dollars, the average of estimates compiled by Bloomberg.

Nordstrom shares fell about 3 percent in after-hours trading Thursday on news of the softer earnings, which were below estimates. The average of analysts’ estimates was 76 cents a share, according to Yahoo Finance.

Meanwhile, luxury top player Richemont saw growth in its Asia-Pacific market – which generates 41 percent of group sales, slowed to 5 percent in the year to the end of March, down from 46 percent a year earlier.

Closing the corporate news, Arthur Engel, CEO at Björn Borg, said: “In the first quarter 2013 we reported a decline in sales. At the same time we still see a need to expand wisely for future growth.

During the quarter we took an important step through the acquisition of the Finnish operations from the former distributor.”

The Swedish fashion group’s net sales fell by 6 percent with gross profit margin standing at 49.4 percent and operating profit also decreasing as it noted a 37 percent slip. Profit after tax were up to 6 million Swedish kroner.

Walmart, the world's largest retailer, has posted a rise in profits in the three months to April. The US giant, which owns UK's Asda, said profits rose 1 percent to 3.78 billion dollars (2.48 billion pounds) after sales in the US fell by 1.4 percent.

Promotions boost sales at Asdah

Sales and profits at subsidiary Asda, the UK's second-biggest supermarket, rose by a healthier 1.3 percent thanks to a range of price promotions. The company's fashion ranges, especially George by Asda, have been a huge success with customers.

Walmart said US sales were affected by a raft of factors, including a delay in income tax refund cheques, cool weather, lower price inflation than expected, and an increase in companies' payroll tax.

Customers made fewer visits, with overall sales to its stores down by 1.8 percent, although once they were there, shoppers' average amount spent rose by 0.4 percent.

Shares in the company fell ahead of the US market opening, although earlier this week, they had hit an all-time high of 79.96 dollars on Wednesday.

Walmart said it expected the next quarter's same-store sales to see no or modest growth of up to 2 percent.

Separately, Walmart this week said it would conduct its own safety inspections at its Bangladesh factories instead of joining an accord with other retailers, in the wake of the collapse of the nine-storey Rana Plaza building on 24 April, where more than 1,100 people died. Critics said its plan was "flawed".

Image: George by Asda

For the first quarter ended May 4, 2013, Nordstrom’s earnings per diluted share showed a 4.3 percent increase over the same quarter last year. Total company net sales for the first quarter increased 4.8 percent compared with net sales during the same period in fiscal 2012.

Gross profit, as a percentage of net sales, decreased 50 basis points compared with the same period in fiscal 2012. Selling, general and administrative expenses, as a percentage of net sales, increased 14 basis points compared with the same period in fiscal 2012. Earnings before interest and taxes decreased 1.8 percent compared to the same quarter last year.

Nordstrom is based in Seattle. It operates 248 stores in 33 states. First quarter performance was consistent with the lower end of the company’s expectations. While in the first two months of the quarter the company experienced particularly soft sales trends, overall sales trends showed improvement in April.

For the fiscal first quarter ended May 4, 2013, JC Penney reported a net loss of 348 million dollars. Total sales in the first quarter showed a decrease of 16.4 percent compared to the same period last year. Comparable store sales decreased 16.6 percent for the quarter. Gross margin was 30.8 percent of sales, compared to 37.6 percent in the same period last year. As a percent of sales, total operating expenses were 49.3 percent in the first quarter.

Myron E. (Mike) Ullman, III, chief executive officer of JC Penney, said, "Over the past five weeks we have taken critical steps to stabilize the business, including improving our balance sheet. We are intensely focused on renewing customer excitement and loyalty through a combination of new attractions and long-beloved brands.”

JC Penney is based in Texas. In the first quarter, the company introduced the Joe Fresh brand. During the year the company anticipates opening 60 Sephora inside JC Penney stores, including 30 opened during the first quarter, and ending the year with 446.

For the first quarter (January 1, 2013 to March 31, 2013) Björn Borg’s net sales fell by 6 percent. Gross profit margin was 49.4 percent. Operating profit decreased during the quarter by 37 percent. Profit after tax amounted to 6 million Swedish kroner (0.9 million dollars).

“In the first quarter 2013 we reported a decline in sales. At the same time we still see a need to expand wisely for future growth. During the quarter we took an important step through the acquisition of the Finnish operations from the former distributor,” said CEO Arthur Engel.

Brand sales in the underwear product area fell by 8 percent in the first quarter, in line with a weak wholesale market in Europe. Underwear accounted for 54 percent of brand sales during the period. Sales in the sportswear and eyewear product areas noted solid increases during the quarter. The footwear product area saw a slight increase, while bags and fragrances reported declines. In total, sales of other products increased by 3 percent during the quarter.

As of March 31, 2013, there were a total of 57 Björn Borg stores. The group owns the Björn Borg trademark and its core business is underwear. It also offers sportswear and fragrances, and footwear, luggage and bags and eyewear.

For the quarter ended May 4, 2013, Kohl’s sales increased by 1 percent, net income dropped by 4 percent and diluted earnings per share increased 5 percent. Kohl’s ended the quarter with 1,155 stores. For the fiscal quarter ending August 3, 2013, the company expects total sales growth of 1 to 3 percent and comparable store sales growth of 0 to 2 percent.

Kohl’s is based in Wisconsin. Kevin Mansell, Kohl’s chairman, president and chief executive officer, said, “After a slow start, sales improved considerably in April. Despite the lower than expected sales, we outperformed our earnings guidance. Our inventory levels are consistent with our expectations." Kohl’s is a department store offering apparel, shoes, accessories, beauty and home products.

Seven UK-based jewellery designers, supported by the BFC’s Rock Vault showcase, will be presenting their collections at the Couture show in Las Vegas at the end of the month.

The emerging talent showcase, created by the British Fashion Council is curated by intentionally renowned jeweller Stephen Webster, and the seven Rock Vault designers will present their collections to top US press and buyers during the tradeshow’s five day showcase.

The British jewellers taking part are Fernando Jorge, Hannah Martin, Imogen Belfield, Jo Hayes Ward, Melanie Georgacopoulos, Tomasz Donocik, and Yunus & Eliza, all of which will showcase their designs within the Stephen Webster ballroom at the event.

Caroline Rush, CEO of the BFC said: “The Couture Show in Vegas is one of the best jewellery trade shows in the world and is a key sales destination for all jewellery brands. The fact that the Rock Vault designers are able to take part in the show at this early stage in their business development is a great opportunity for them.”

The Couture show in Las Vegas takes place from May 30 to June 3.

BuyMyWardrobe, the marketplace for pre-loved luxury designer fashion, has added luxury fashion entrepreneur and founding investor in Net-A-Porter Carmen Busquets to its line-up of investors, as the company pushes forward with trying to change the way people view pre-owned fashion.

Launched in February 2008, BuyMyWardrobe was initially something of a secret amongst London fashion industry insiders however over the last five years the “re-commerce” retailer has hosted 20 events and evolved into the UK’s leading online marketplace for pre-owned fashion and has approximately 30,000 registered users.

This investment marks Busquets first project in the fast-growing “re-commerce” space and she joins the existing line up of investors, which includes industry insider Mimma Viglezio, former executive vice president of global communications at Gucci, and founder Kal Di Paola.

It 's been reported that the new funding will be used to drive BuyMyWardrobe’s growth over the next 12 months, as well as develop and implement an online marketing strategy to increase awareness of the “re-commerce” marketplace. The site also has plans to add new features and functionality such as improved navigational tools and further integration of its blogs content.

BuyMyWardrobe adds new investor

Commenting on her investment, Busquets, said: "I have always believed that luxury fashion items should have a longer life and reselling and recycling our wardrobe is a smart way to do this and be individually responsible for sustainability. I had been looking into the market for a while to invest as I felt the time was right for a re-sale model to be scaled digitally.

“I had not found anyone doing it well until Mimma mentioned BuyMyWardrobe. One of the biggest challenges for digital businesses is to instantly communicate their mission in one sentence. BuyMyWardrobe does just that starting from their name and they go on to nail it with a great vision and a strong management."

BuyMyWardrobe’s managing director, Di Paola, added: “Having Carmen on board is a fantastic opportunity for me and the team to have access to the years of experience and knowledge of one the most successful digital entrepreneurs in the industry.”

This is the latest fashion retail investment for Busquets, in 2012 she increased her investment in online luxury retailer Moda Operandi to back their global expansion, and she has also invested in UK-based jewellery retailer Astley Clarke, CoutureLab, and Caratime.

Image: Carmen Busquets

British fashion label Alexander McQueen has unveiled a new-look website, which not only has a “more cohesive vision and clearer navigation” but also offers shipping to almost 100 different countries.

Previously, the McQueen website only offered delivery to around 30 different destinations, with the redesign the brand is expanding its global reach to include Australasia, Asia, UAE, Russia, South, Central and North America as well as additional countries in Europe.

The shipping expansion coincides with the introduction of several new localised-language versions of the site, allowing customers to browse in French, German, Italian and Japanese.

The new website acts as the “digital flagship” of the British fashion house and has been designed to bring together the two brands, allowing visitors to view both the Alexander McQueen mainline as well as the McQ diffusion label, along the updated e-commerce offering.

The site also features an “experience” function will showcase the latest brand news as well as archive runway stills and videos, lookbook imagery and advertising campaigns.

For the year ended March 31, 2013, Richemont the Swiss luxury goods group, has announced audited consolidated results. Sales increased by 14 percent. Operating profit increased by 18 percent. Profit for the year rose by 30 percent. Earnings per share on a diluted basis increased by 30 percent. Gross profit rose by 15 percent and the gross margin percentage was 50 basis points higher at 64.2 percent of sales.

Despite the slowdown in the Asia Pacific region, and continuing uncertainty in the world economy, sales in the month of April were 13 percent above the comparative period and 12 percent at constant exchange rates. Sales in the Asia Pacific region accounted for 41 percent of the group total, with Hong Kong and mainland China the two largest markets.

The Americas region, which accounted for 15 percent of group sales, posted a third successive year of double-digit growth. Sales in Japan continued to grow, reflecting demand in all segments. Europe accounted for 36 percent of overall sales.

Selling and distribution expenses were 16 percent higher, reflecting in particular the increase in sales in the Maisons’ own boutique networks. Communication expenses increased by 10 percent and represented 9 percent of sales. Administration costs rose by 18 percent and reflected the expansion of certain of the group’s shared service platforms.