SGB Executive

Genesco, Inc.’s sales and margins topped expectations in the third quarter, but its full-year outlook was lowered as heightened promotional activity is now planned for the fourth quarter, particularly at the flagship Journeys chain. Mimi Vaughn, Genesco’s president and CEO, told analysts, “The consumer pressured by inflation is having to make harder choices on where they spend their money.”

Tilly’s, Inc. reported sales and earnings in the third quarter were down against record year-ago results but topped the action sports chain’s expectations and management predicted an improved comp sales trend for the fourth quarter relative to recent quarters.

Duluth Holdings, Inc., the parent of Duluth Trading, returned to growth in the third quarter on an encouraging response to its updated brand positioning. However, more value-conscious customers have led to a recent deceleration in sales, prompting the company to reduce its outlook for the year.

Designer Brands, Inc. delivered a solid third quarter against challenging year-ago comparisons. However, the parent of DSW lowered its EPS outlook for the year in part due to a significant uptick in promotional activity by athletic brands.

In 1990, Joe DeSimone founded Lacrosse Unlimited in Long Island at the age of 22. Since then, it’s grown to become the country’s largest lacrosse retailer with 48 stores across 14 states. DeSimone spoke with SGB about how the retailer got its start, its success and the evolution of the sport of lacrosse.

Hibbett, Inc. reported that third-quarter EPS came in below Wall Street estimates partly due to increased apparel promotional activity. However, the retailer reiterated guidance for the full year as it expects growth to accelerate in the fourth quarter on strong demand for athletic footwear.

The country’s two biggest off-pricers, TJX Cos. and Ross Stores, both lifted their outlook for the fourth quarter after reporting third-quarter earnings that exceeded guidance as apparel sales outpaced many of their full-priced competitors. Burlington Stores’ reported results that came in at the lower end of guidance and slightly reduced for the year, but is optimistic that a realigned sales mix emphasizing value will drive sales in the quarters ahead.

Famous Footwear’s same-store sales slipped 0.8 percent in the third quarter ended October 29. Results topped expectations with the family footwear chain facing a 26.5 percent same-store gain in the 2019 third quarter. Jay Schmidt, president of Caleres, on a conference call with analysts, said, “By limiting promotional activity, the business generated margins higher than pre-pandemic levels.”

Dick’s Sporting Goods’ third-quarter earnings declined due to aggressive markdowns on apparel but came in well above Wall Street targets as sales remained strong. The sporting goods giant also noted that results remain significantly above 2019 levels while lifting its guidance for the second straight quarter.

Delta Apparel managed to rack up another year of double-digit top-line growth although earnings were slightly down due largely to higher cotton prices. Production curtailments are also expected to continue through the next two quarters to realign inventories due to a pullback in activewear orders in the mass channel.

Foot Locker Inc. reported third-quarter results that surpassed expectations due to improved allocation of Nike products on top of continued success in its diversification efforts to feature other footwear brands. The sneaker giant lifted its guidance for the year. Mary Dillon, Foot Locker’s new CEO, told analysts, “Our relationship with Nike is very important. It’s strong.”

Athleta’s comps were flat year-over in the third quarter as the chain continues to feel the impact of a demand shift from athleisure to occasion and work-based categories. However, success with lifestyle offerings led to significant improvement versus recent quarters.

Macy’s, Inc. raised its guidance for the year as third-quarter results topped analysts’ estimates in large part because consumers have returned to purchasing career and other dressier offerings. “Customers continue to return to in-person post-pandemic shopping experiences, and were searching for occasion-based products, including career in tailored sportswear, dresses and luggage rather than popular pandemic […]

Kohl’s Corp., in its first report since announcing its former CEO Michelle Gass would be joining Levi’s Strauss, reported results that were in line with preliminary guidance provided last week. Kohl’s told analysts that it was withdrawing its guidance for the year but said the CEO change doesn’t mean a change in strategy.