Hanesbrands hopes to return to growth in Q4 after a positive Q3. Meanwhile, Ralph Lauren raised its outlook after its Q2 was ahead of expectations and Under Armour reports its premium strategy is starting to gain traction.

Hanesbrands eyes return to growth after 'strong' Q3

In third quarter (Q3) ended 28 September 2024 Hanesbrands reported a 2.5% drop in net sales to $937m from $961m in the same period last year. Its operating profit was up 27.1% from $81m in Q3 2023 to $103m in Q3 2024. Its income was $30m compared to a loss of $39m in the same period last year.

Hanesbrands CEO Steve Bratspies said: “We delivered another strong quarter with operating profit, earnings per share, and cash flow results that exceeded our expectations. In addition, we have further reduced our leverage, expect a return to revenue growth in the fourth quarter, and raised our full-year outlook for profit and cash flow."

Hanesbrands expects net sales from continuing operations of approximately $900m in Q4, which would be a 2% increase.

For FY24 the company expects net sales from continuing operations to be approximately $3.61bn, which would be a 4% decrease as compared to prior year on a reported basis. It notes that this figure includes projected headwinds of approximately $50m from last year’s US Sheer Hosiery divestiture and approximately $42m from changes in foreign currency exchange rates.

Ralph Lauren Q2 ahead of expectations, raises full year outlook

Ralph Lauren's net revenue was $1.7bn in Q2 2025 ending 28 September 2024, which was up from $1.6bn in the same prior period. The company's operating income was $0.179bn compared to $0.165bn in the same period last year and its net income was $0.148bn compared to $0.147bn in the same prior year period.

"Our teams are executing well on our long-term strategy, injecting energy and excitement behind our storied brand through what continues to be a choppy global operating environment," said Ralph Lauren president and CEO Patrice Louvet.

Ralph Lauren has raised its full year fiscal 2025 revenue and adjusted operating margin expansion outlook, which reflects its confidence in brand momentum and business trends. The company now expects constant currency revenues to increase in a range of approximately 3% to 4%. It expects operating margin to expand approximately 110 to 130 basis points in constant currency, driven by gross margin expansion and operating expense leverage.

Under Armour Q2 results shows premium strategy is gaining traction

Under Armour's Q2 revenue for the period ended 30 September 2024 was in line with expectation despite being down 11% to $1.4bn. Its operating income was $173m and net income was $170m.

Under Armour president and CEO Kevin Plank said: "Our second quarter fiscal 2025 performance demonstrates that our strategy to reconstitute the Under Armour brand and establish a more premium position in the marketplace is gaining traction. With better-than-expected results, we are pleased to raise our full-year profitability outlook while simultaneously increasing marketing investments to amplify our brand."

Under Armour's updated fiscal 2025 outlook expects its revenue to decline at a low double-digit percentage rate. Its operating loss is expected to be $176m to $196m compared to the previous expectation of $220m to $240m.

Wolverine Worldwide reduces FY24 outlook amid Q3 revenue decline

Wolverine Worldwide's Q3 (ended 28 September 2024) total revenue was down 16.6% to $440.2m from $527.7m in the same period last year. Its operating profit was $35.2m compared to $27.3m and its net profit was $24.3m compared to $9.0m in the prior year period.

“In the third quarter, we delivered better-than-expected revenue and earnings – led by Merrell and Saucony outpacing our forecast – as we continue to make progress on our plan to turnaround and transform the company for the future,” said Chris Hufnagel, president and CEO of Wolverine Worldwide.

He added: "Today, we’re moving forward with a stronger platform for growth – a rationalised portfolio of authentic brands positioned in attractive categories, a much healthier balance sheet with our restructuring and stabilization efforts largely behind us, and finally, a talented, aligned, and motivated team driving the business each day.”

For FY24 the company expects revenue from its ongoing business to be approximately $1.730bn to $1.745bn. This range compares to the previous outlook of approximately $1.71bn to $1.73bn and represents a decline of approximately 13.1% to 12.4% and a constant currency decline of approximately 13.3% to 12.6% compared to 2023.

Hufnagel concluded, “While pleased with the continued progress and early proof points to our strategies, we remain intently focused on driving the business forward to realize the full potential of our brands and delivering better returns to our shareholders.”

Skechers reports ‘record-breaking’ Q3 growth

Skechers reported third-quarter sales of $2.35bn for the period ending 30 September 2024, a 15.9% increase over the same quarter last year as it tries to keep momentum by pushing its product offerings for team-based sports.

Skechers COO David Weinberg said: “Despite challenging market conditions in certain countries, we achieved 21% wholesale growth, 10% direct-to-consumer growth, as well as 16% internationally and 15% domestically.”

The footwear company said sales increased 16.4% internationally and 15.3% domestically.

Wholesale sales grew $241.4m, including increases in AMER by 21.6%, EMEA by 30.9%, and APAC by 5.1%. Direct-to-consumer sales had increases in EMEA of 28%, Americas of 5%, and APAC of 10%.

Skechers CEO Robert Greenberg added: “Skechers’ significant growth in the third quarter can be attributed to offering the right product at the right price and ensuring availability at locations where consumers want to shop – whether it’s in our own direct-to-consumer channels or with our network of key retailers.”

For the fourth quarter of 2024, the company projects sales of between $2.165bn and $2.215bn with diluted earnings per share ranging from $0.70 to $0.75.

For the fiscal year 2024, Skechers increased its full-year guidance and believes it will achieve sales of between $8.925bn and $8.975bn and diluted earnings per share of between $4.20 and $4.25.

Crocs Q3 revenue up 2% despite Heydude brand falling 17.4%

Crocs third quarter (Q3) revenues increased 2% to $1.06bn. Direct-to-consumer (DTC) revenues grew 4.4% or 4.6% on a constant currency basis and wholesale revenues contracted 1.4% or 0.9% on a constant currency basis.

Crocs added that revenues in North America increased 2.1% to $491m and international revenues increased 15.5% to $367m.

The company’s namesake brand revenues increased 7.4% year over year to $858m or 7.9% on a constant currency basis. DTC revenue for Crocs was up 7.7% to $463m and wholesale revenue increased 7.1% to $396m.

Whilst revenue for the company’s Heydude brand, which it acquired in 2021 for $2.5bn fell 17.4% year over year to $204m. Heydude’s DTC revenue fell 9.3% to $91.1m, while wholesale revenue fell 23% to $113m.

“Heydude's recent performance and the current operating environment are signalling it will take longer than we had initially planned for the brand to turn a corner,” explained Crocs CEO Andrew Rees.

Rees added the company is now “resetting” its full-year outlook for Heydude, but remains confident in the long-term trajectory of the brand.

For 2024 Crocs now forecasts revenue growth of about 3% versus its prior outlook of 3% to 5%. Revenue for the Crocs brand is expected to rise 8% versus a previous outlook of 7% to 9% growth, while revenue for Heydude is expected to fall 14%, a larger drop from earlier guidance of 10% to 8%.

Boot Barn Q2 sales jump, CEO moving to Ross Stores

For the second quarter ended 28 September 2024, Boot Barn reported a net sales growth of 13.7% over the prior year, amounting to $425.8m, while its net income came to $29.4m.

The company also announced its current CEO and president Jim Conroy, who has led Boot Barn since 2012 will join Ross Stores as CEO-elect on 2 December 2024, and will assume the full CEO role on 2 February 2025.

Boot Barn said that its current chief digital officer John Hazen will assume the role of interim CEO, while chairman of the board Peter Starrett is to become executive chairman.

Commenting on the results Conroy said: "Our fiscal second quarter saw broad-based growth in same-store sales, the addition of 15 new stores and a healthy beat to guidance in earnings per diluted share. Our team's excellent execution has driven improving trends across all channels, store geographies, and major merchandise classifications, positioning us well for the upcoming holiday season.”

For the fiscal year ending 29 March 2025, Boot Barn now expects revenue growth of $1.874bn to $1.907bn for the fiscal year 2025, which is a growth of 12.4% to 14.4% over the prior year.

Caleres Q2 below expectations on weak seasonal demand

Caleres Q2 sales down 1.8% to $683.3m with generated EBITDA of $57.2m and net earnings of $30m compared to $33.9m in the previous year period.

Caleres president and chief executive officer Jay Schmidt said: “Caleres reported second quarter results that were below expectations. While our brands and products continue to resonate with consumers and we remain confident in our long-term vision, our second quarter results in both segments fell short of our potential. Our systems implementation led to lack of visibility that prevented us from delivering our expected results. We also experienced weak seasonal demand and back-to-school business came later than expected.” 

He remains confident in his company's "ability to get back on track" and longer-term he said Caleres is "exceptionally well positioned to execute our strategic plan, invest to fuel our growth initiatives, and drive sustained value for our shareholders".

However the company has lowered its fiscal 2024 outlook of net sales to down low-single-digits percent versus previous guidance of flat to up 2 percent.

Gap Inc raises outlook on positive Q2

Gap Inc recorded a 5% increase in net sales to $3.7bn in the second quarter.

Comparable sales were up 3% year-over-year. Store sales increased 4% compared to last year while online sales increased 7% compared to last year.

Operating income was $293 million; operating margin of 7.9%. Net income of $206 million; diluted earnings per share of $0.54.

“Gap Inc. delivered another successful quarter, exceeding financial expectations and gaining market share for the 6th consecutive quarter,” said president and chief executive officer, Richard Dickson. “Compared to where we were only one year ago, we are in a stronger position across key metrics that matter – including net sales, margins, and our cash position – and we are making consistent progress in the reinvigoration of our brands. These results reflect the dedication and collaboration of our global team, reinforcing my confidence that we are well on our way to unlocking the full potential of this extraordinary portfolio of iconic American brands.”

The company is reaffirming its net sales and operating expense outlook for fiscal 2024 and increasing its outlook for gross margin and operating income growth compared to prior expectations. This outlook takes into consideration the unchanged and continued uncertain consumer and macro environment.

Operating income is expected to grow to mid-high 50% growth range from earlier expectations of a mid 40% growth range.

Lululemon Q2 profits spike on gross margin expansion

Lululemon enjoyed a healthy bottom line uplift on the back of increased second-quarter sales.

Net income rose to $392.9m from $341.6m for the quarter while operating income increased to $540m frin $479m.

Net revenue increased to $2.4m from $2.2m a year earlier.

Calvin McDonald, Chief Executive Officer, stated: "In the second quarter, Lululemon delivered revenue and earnings growth, with ongoing strength across our international business. In the US our teams continue to optimise our product assortment and remain focused on driving forward our opportunities in the market. Looking ahead, we feel confident in the long runway in front of us as we execute on our Power of Three ×2 growth plan."

Meghan Frank, chief financial officer, added: "Earnings per share exceeded our expectations in the second quarter, driven by better-than-expected gross margin expansion and disciplined execution. As we enter the back half of the year, we remain focused on executing on our near-term priorities, while strategically investing for long-term growth.

For the third quarter of 2024, the Company expects net revenue to be in the range of $2.340 billion to $2.365 billion, representing growth of 6% to 7%. Diluted earnings per share are expected to be in the range of $2.68 to $2.73 for the quarter.

For 2024, the Company now expects net revenue to be in the range of $10.375 billion to $10.475 billion, representing growth of 8% to 9%, or 6% to 7% excluding the 53rd week of 2024. Diluted earnings per share are now expected to be in the range of $13.95 to $14.15 for the year.

Kohl's sales fall in Q2 on challenging consumer environment

A “challenging consumer environment and softness in core business” has seen Q2 sales fall at omnichannel retailer Kohl’s.

CEO Tom Kingsbury explained that while the group has taken significant action to reposition itself for future growth its efforts are yet to fully yield the intended outcome.

“During the second quarter, our customers exhibited more discretion in their spending, which pressured our sales even as customers transacted more frequently.

This overshadowed strong performance in our key growth areas, including Sephora, home decor, gifting, and impulse. In spite of this, we continued to execute well operationally, enabling us to deliver a 13% increase in earnings driven by gross margin expansion and strong inventory and expense management.”

Sales fell 4.2% to $3.5bn. Operating income was $166 million compared to $163 million in the prior year. Net income was $66m from $58m a year earlier.

“Looking ahead, we are focused on ensuring that the substantial work that we’ve done across product, value, and experience is fully recognised by both new and existing customers. We will also capitalize on new opportunities such as our partnership with Babies “R” Us and expect to continue to benefit from our key growth areas. Our conviction in our strategy remains strong and our operating discipline, solid cash flow generation, and healthy balance sheet will continue to support us as we work to return Kohl’s to growth,” Kingsbury continued.

Delta Galil Q2 sales rise on private label, DTC growth

Israel’s Delta Galil booked a 40% rise in year-on-year net income to $21m while operating income in the second quarter grew to $63.8m from $42.7m.

Sales surged at $922m from $886m a year earlier.

Isaac Dabah, CEO of Delta Galil, stated: “This was another strong quarter for Delta Galil, highlighted by record second-quarter DTC sales, growth in our Private Label sector, and significant expansion in profitability. Our strategic initiatives, aimed at enhancing operating efficiencies and realigning our manufacturing capabilities, have led to a record second-quarter gross margin of 41.9%, marking the fourth consecutive quarterly record of gross margin.”

“Within our branded business, we are particularly excited about the launch and expansion of key brands such as Florence by Mills and Organic Basics. These launches, amongst others, will position us for consistent, long-term growth. The continued strength of Delta Israel Brands, marked by a 23.2% year-over-year increase in second quarter retail same-store sales and the successful launch of Bath and Body Works and Victoria's Secret in Israel, underscores our growing momentum. Furthermore, our positive operating leverage, reflected in a 100-basis point year-over-year increase in EBIT before non-core margin to 8.0%, demonstrates our ability to balance short-term profitability with long-term strategic investments.”

Victoria’s Secret & Co swings to profit as Q2 sales at ‘high end of expectations’

Victoria’s Secret & Co netted a Q2 profit of $32m versus a $1m loss year on year.

Second quarter 2024 operating income was $62m compared to $26m in the second quarter of 2023. However net sales fell 1% to $1.42bn. The company said this was at “the better end of our preliminary results range which estimated a net sales decrease of 1% to 2%.

Interim CEO and CFO and administrative officer Timothy (TJ) Johnson commented, “Our financial results for the second quarter came in at the high end of expectations and we delivered year-over-year quarterly operating income growth for the first time since 2021. We were encouraged by the continued sequential improvement in quarterly sales results in North America for the fourth consecutive quarter, as sales trends improved in both our stores and digital channels. Improving product acceptance and disciplined inventory management led to gross margin dollar growth and rate expansion, and our teams continue to be relentlessly focused on improving our cost structure, driving a decrease in SG&A dollars and leverage year-over-year.

"While we are optimistic about the positive signs we’re seeing in our business, we recognise the consumer environment remains challenging and our customer is pressured economically. We remain focused on what we can control which is leveraging our market position in intimates and delivering on multiple initiatives to drive growth in our business over the longer term."

Abercrombie and Fitch announces “record” Q2 sales

Abercrombie & Fitch said Q2 net sales grew 21% yearly to $1.1bn. Operating income increased to $305.5m from $123.8m while net income grew from $76.7m to $250.5m.

The company increased its full-year outlook to net sales growth of 12% to 13%, and an operating margin in the range of 14% to 15%

Fran Horowitz, Chief Executive Officer, said, “Our team continued to execute at a very high level in the second quarter, resulting in better-than-expected sales growth and profitability. The strength of our brand portfolio and the improvements in global capabilities resulted in broad-based growth across regions, brands and channels. The Americas led our performance this quarter with net sales growth of 23% on top of 19% growth last year, along with continued strong results in EMEA with growth of 16%. By brand, Abercrombie brands achieved growth of 26% on top of 26% growth last year, and Hollister continued its sequential acceleration to growth of 17% with better-than-expected summer and back-to-school selling. Consistent with the first quarter, we delivered improved profitability driven by gross profit rate expansion and operating leverage, with a second-quarter operating margin of 15.5% and a record second-quarter operating income of $176 million.

"We delivered a strong first half of the year, and we are increasing our full-year outlook. Although we continue to operate in an increasingly uncertain environment, we remain steadfast in executing our global playbook and maintaining discipline over inventory and expenses. We are on track and confident in our goal to deliver sustainable, profitable growth this year while making strategic long-term investments across marketing, digital and technology and stores to enable future growth.”

Urban Outfitters delivers record Q2

Urban Outfitters, Inc. (URBN) has reported total company net sales increased 6.3% to a record $1.35bn for the three months ended 31 July 2024 (Q2).

The company, which owns Anthropologie, Free People, FP Movement, Urban Outfitters and Nuuly brands had a net income of $117.5m and earnings per diluted share of $1.24 for the period.

CEO Richard A. Hayne said: “We are pleased to report record second quarter sales fuelled by strength across all three segments – Retail, Nuuly and Wholesale. Equally impressive, four of our five brands delivered record operating profits during the second quarter.”

TJX raises FY25 guidance, invests $360m in Brands for Less

US off-price apparel and home fashions retailer TJX Companies, Inc. (TJX) has announced net sales for Q2 ending 3 August 2024 were $13.5bn, an increase of 6% versus the second quarter of Fiscal 2024.

Net income was $1.1bn and diluted earnings per share were $0.96, up 13% versus $0.85 in the second quarter of Fiscal 2024.

The company has also announced it signed a definitive agreement to make an investment of approximately $360m for a 35% stake in Dubai-based and privately-owned off-price branded apparel, toys, and home fashions
retailer, Brands for Less. The transaction is expected to close later this fiscal year.

TJX CEO and president Ernie Herrman stated: “I am extremely pleased with our second quarter performance. Our comparable store sales increase of 4%, pretax profit margin, and earnings per share all exceeded our plans."

TJX is raising its full-year guidance for both pretax profit margin and earnings per share with Herrman adding the company's Q3 is off to a strong start.

Longer term, he sees potential to capture additional market share in all of its geographies and to continue global growth.

Wolverine Worldwide reports revenue declines in Q2

Wolverine Worldwide reported a revenue decline of 27.8% in Q2 ended 29 June 2024 to $425.2m and adjusted diluted earnings per share of 15 cents.

Across its brands, Merrell’s quarterly revenue decreased by 19.2% year-over-year, from $176.7m in the same quarter last year to $142.7m this year.

At Saucony, quarterly revenue decreased 28% year-over-year, from $141.7m to $102m. Wolverine’s quarterly revenue decreased by 3.1% year-over-year from $41.4m to $40.1m and revenue at Sweaty Betty was flat in the quarter from this year to last at $44m.

“We delivered better-than-expected revenue and earnings in the second quarter while continuing to execute our ambitious turnaround plan,” said Chris Hufnagel, president, and chief executive officer of Wolverine Worldwide. “We've significantly lowered our debt and inventory levels, while meaningfully expanding our gross margin, and we’re beginning to see proof points of an inflection to growth – driven by stronger product pipelines and improved demand creation.”

For fiscal 2024, the company expects revenue to be approximately $1.71bn to $1.73bn compared to the previous outlook of $1.68m to $1.73bn which represents a decline of 14.2% to 13.2% and a constant currency decline of approximately 14.1% to 13.1% compared to 2023.

Taryn Miller, chief financial officer believes Wolverine Worldwide’s Q2 results reflect “progress and the actions we've taken to improve the financial position of the company,” and while she thinks there is more work to do she said: “The steps we are taking will position the business for long-term growth and value creation for shareholders."

Hanesbrands takes new direction in Q2, following Champion sale

HanesBrands delivered net sales of $995m for Q2, a decrease of 3.8% or 1%, on an organic constant currency basis, with better-than-expected innerwear sales in the US essentially offset by the expected macroeconomic headwinds in Australia.

Loss for the quarter reached $137m or $0.39 per diluted share, while adjusted income from continuing operations was $53m or $0.15 per diluted share.

Following the sale of Champion to Authentic Brands Group, HanesBrands said it was looking to create “the right cost structure for a simpler, more focused business.”

The company voiced its intention to grow its innerwear segment and gained another 40 basis points of market share for innerwear in the US, due in part to its increased marketing investment and innovation in the Hanes, Maidenform and Bali brands.

CEO Steve Bratspies said the company’s US innerwear performance was better than expected.

“We’ve taken several strategic actions that have fundamentally strengthened and simplified our business, better positioning the company for consistent revenue growth, higher profit margins, and strong cash generation,” said Bratspies.

For the third quarter, the company expects net sales of $920m to $950m, a 3% decrease at the midpoint and a 1% decrease on an organic constant currency basis.

In the 2024 fiscal year, HanesBrands expects net sales of $3.59bn to $3.63bn. At the midpoint, this represents an approximate 4% decrease on a reported basis and a 2% decrease on an organic constant currency basis.

Under Armour revenues drop 10% in Q1 amid restructuring plan

Under Armour’s first quarter (Q1) saw revenue drop 10% on a reported and currency-neutral basis to $1.2bn. In the three months ended 30 June 2024, the company reported a loss of $305.4m, or $0.70 per share, compared with a profit of $10m, a year earlier.

Whilst total net revenue dropped to $1.18bn, down about 10% from $1.32bn a year earlier.

Under Armour’s North America revenue decreased 14.2% to $709m and international revenue decreased 2% to $473m. In the international business, revenue in EMEA was flat (flat currency neutral), down 10% in Asia-Pacific (down 7% currency neutral), and up 16% in Latin America (up 12% currency neutral).

Wholesale revenue decreased 8% to $681m and direct-to-consumer revenue was down 12% to $480m. Apparel revenue decreased 8% to $758m, footwear revenue was down 15% to $310m and accessories revenue was down 5% to $93m.

"We are encouraged by early progress in our efforts to reconstitute a premium positioning for the Under Armour brand and pleased with our first quarter fiscal 2025 results that were ahead of expectations," said Under Armour president and CEO Kevin Plank.

Under Armour announced a restructuring plan earlier this year, which was said to include job cuts as it fights to strengthen and support the company's financial and operational efficiencies.

The company now expects to be down at a low double-digit percentage rate in fiscal 2025. This includes an expected 14% to 16% decline in North America and a low-single-digit percent decline in its international business, including flat results in EMEA offset by a high-single-digit decline in its Asia-Pacific business due to developing macroeconomic pressures.

Kontoor Brands raises full year outlook after 'better than expected' Q2

Kontoor Brands Q2 revenue of $607m decreased 1% compared to the prior year due to retailer inventory management actions in the US, an anticipated decrease in revenue from seasonal product and lower international revenue that was partially offset by growth in direct-to-consumer, as well as an approximate 2-point benefit from the earlier timing of shipments in US wholesale from the Q3 into Q2.

Operating income was $75m on a reported basis and $80m on an adjusted basis and increased 10% compared to the prior year.

Net income was $51.8m in Q2 compared to $36.4m in the prior year period which was a percentage change of 42%.

Kontoor Brands president and CEO Scott Baxter said the second quarter delivered results that exceeded expectations and added the company, which owns denim brands Lee and Wrangler has raised its full year outlook on increased confidence in the balance of the year.

Revenue is expected to be in the range of $2.57bn to $2.63bn consistent with the prior outlook, however adjusted gross margin is now expected to be approximate 44.8%, whereas it was previously expected to be 44.6%. The company explained its gross margin expansion is driven by the benefits of favourable mix, lower product costs and proactive supply chain efficiencies. Adjusted operating income is now expected to be at the higher end of the prior range of $377m to $387m and its adjusted EPS is now expected to approximate $4.80 compared to the prior outlook of $4.70 to $4.80.

Crocs reports record Q2 on both top and bottom line

Crocs' Q2 revenue increased 4% to $1.12bn, which was an increase of 3.6% on the prior period the year before. Direct to consumer revenues grew 8.9% and gross margin was 61.4% compared to 57.9%. Operating income was $326m, which was an increase of 2.3% from $318m and net income was $228.9m compared to $212.4m the year before.

Crocs brand revenue increased 9.7% to $914m, however HEYDUDE brand revenue decreased 17.5% to $198m.

Crocs CEO Andrew Rees said: "We reported record second quarter results on both the top and bottom line which exceeded our guidance on all enterprise metrics. Strength in the quarter was led by our Crocs brand with exceptional growth internationally. As it relates to HEYDUDE, we are making improvements to support long-term brand health and are focused on driving brand heat by accelerating marketing in the second half of the year."

The company has lifted its operating margin and earnings per share outlook for the fiscal year while maintaining its revenue guidance. Revenue growth of 3% to 5% is expected for FY24 compared to 2023. Adjusted operating margin of more than 25% compared to prior guidance of approximately 25%. Adjusted diluted earnings per share of $12.45 to $12.90 compared to prior guidance of $12.25 to $12.73.

Rocky Brands navigates “unpredictable consumer environment” in Q2

A diversified brand portfolio has helped Rocky Brands post narrower losses in the second quarter despite a modest slip in sales.

Rocky Brands saw a net loss of $1.2m compared with $2.7m for the year-ago period. Operating income increased 104.7% to $4.5 million from the year-ago quarter while net sales decreased 1.6% to $98.3 million from the year-ago quarter.

Jason Brooks, chairman, president and CEO, commented: “We continue to effectively navigate an unpredictable consumer environment thanks to our diversified brand portfolio and recently deployed cost-saving initiatives. Strong double-digit gains in sales for our Durango and XTRATUF brands in both our wholesale and e-commerce channels helped offset softness in other areas of our business and generated low-single digit year-over-year recurring sales growth.

The second quarter was also highlighted by the refinancing of our debt and simplification of our capital structure which is expected to generate approximately $4.4m in annualised savings beginning in 2025. Over the past several years, we have taken actions to improve the company’s financial profile in order to reinvest in growth and drive increased shareholder value. We are encouraged with our recent results and look forward to delivering further growth over the near and long-term.”

Brooks Running has announced a new record in global quarterly revenue in the second quarter of 2024, up 15% year over year driven by double-digit growth in its wholesale and direct-to-consumer channels.

Brooks Running Q2 sales boosted by global demand

In North America, Q2 revenue increased 19% year over year with continued success of the brand’s Glycerin 21 super franchise, Ghost Max, and a strong Ghost 16 introduction.

Brooks’ business in the Europe, Middle East, and Africa (EMEA) region returned to growth with revenue up 4% as the retail landscape showed signs of improvement.

Demand for Brooks in France and Germany led the way with sales growth of 12% and 10%, respectively, in the Q1 adult performance footwear category, compared to the same quarter in 2023.

In the Asia Pacific and Latin America (APLA) region, Brooks launched a retail store in Shanghai earlier this month, its first in mainland China, with a second Shanghai location planned for later this year, in addition to first-ever storefronts in Beijing and Guangzhou.

“Brooks’ record results this quarter demonstrate the strength of our brand, business, and product,” said Dan Sheridan, CEO. “We believe sharp focus on the performance category creates mass appeal as we continue to deliver innovative, premium products and experiences that runners and active people value.”

Columbia Sportswear posts Q2 loss on soft consumer demand

Net sales decreased 8% (7% constant-currency) to $570.2m, compared to the second quarter of 2023 reflecting lower wholesale net sales in the US due to retailer cautiousness, a difficult competitive environment, and generally soft consumer demand.

In Q2 the company had a net loss of $11.8m compared to a net income of $8.4m for the comparable period in 2023.

“Second quarter results were generally in line with expectations. We are working to maximise sales in a challenging US marketplace,” ​explained Columbia Sportwear chairman, president and CEO Tim Boyle.

He added that the majority of global markets, such as Europe-direct and China, are still seeing strong demand. 

Looking ahead, Columbia Sportswear reaffirmed its full-year guidance. It still expects net sales to decrease 4-2%, resulting in net sales of $3.35bn to $3.42bn, compared to $3.49bn in 2023.

Skechers achieves new Q2 sales record

Skechers' second quarter (Q2) sales increased 7.2% to $2.16bn thanks to a 6.9% sales rise internationally and a 7.7% increase domestically.

Wholesale sales grew 5.5% including increases in the Americas of 10.3% and EMEA of 3.9%, partially offset by a decrease in APAC of 2.6%. Direct-to-consumer sales grew 9.2% to $86m, including increases in EMEA by 40.6%, Americas by 4.1%, and APAC by 5.8%.

Skechers chief operating officer David Weinberg labelled the company's international increases as "noteworthy" given the "substantial headwinds from foreign currency, a lacklustre 6-18 [holiday] in China, and supply chain disruptions related to the Suez Canal crisis," he said.

The company forecast that for the fiscal year 2024, it will achieve sales between $8.875bn and $8.975bn and diluted earnings per share of between $4.08 and $4.18.

"We remain committed to and confident of achieving our long-term target of $10bn in sales by 2026 and, with a new $1bn share repurchase authorisation, continuing to return cash to shareholders in a disciplined manner," added Skechers chief financial officer John Vandemore.

Ugg owner Deckers Brands reports 22% sale rise in Q1

Deckers Brands announced a sales surge of 22.1% to $825.3m for the first quarter (Q1), compared to $675.8m in 2023.

By region, the US footwear giant's domestic net sales increased 23% to $515.9m, while international net sales rose 20.8% to $309.5m. 

Ugg brand sales increased by 14% to $223m, while Hoka brand sales reached $545.2m, up by 29.7%. These gains offset a 4.3% net sales decrease at Teva and a 28.4% decrease at Sanuk. Sales of other brands, primarily consisting of Koolaburra, increased by 123.5% to $4m compared to $1.8m in the same time period the year before.

“As this is my last quarter to report as CEO, I am pleased to share these strong results to kick off fiscal year 2025,” commented Dave Powers, president and CEO. 

“Hoka and Ugg continue to drive robust full-price demand in the global marketplace by delivering compelling products that consumers love. Deckers has an exciting future ahead as Stefano transitions into his new role as CEO.”

Deckers Brands expects net sales to increase approximately 10% to $4.7bn for the full year. Diluted earnings per share is expected to be in the range of $29.75 to $30.65.

Chief commercial officer and incoming president and CEO Stefano Caroti added: "Fiscal year 2025 is off to a great start, with Hoka and Ugg delivering fantastic first-quarter results that have contributed to our increased outlook for the full fiscal year.

"I'm excited by the opportunity to now lead Deckers and its iconic brands, with the support of our talented teams that remain focused on the long-term opportunities ahead for this great company."

Victoria's Secret reports $4m net loss for Q1

Victoria's Secret Q1 (13 weeks ended 4 May 2024 saw a 3% drop in net sales to $1.36bn compared to $1.41bn in the same period the year before. Its operating income was $26m compared to $28m in the first quarter of 2023 and it reported a net loss of $4m compared to net income of $1m in the same period the year before.

CEO Martin Waters remains "encouraged" by the Q1 results which were at the "high-end" of its previously announced preliminary results.

He said: "We experienced sequential improvement in quarterly sales trends in North America in both our stores and digital business for both the Victoria’s Secret and PINK brands."

He continued: "With some caution around the broader retail environment in North America, we are planning the business appropriately conservative in the near-term, but are encouraged by the start to May and the second quarter. Our brands are strong around the globe, and with the long-term health of the business in mind, we are focused on accelerating our core and our initiatives designed to leverage our market leadership position and unlock our opportunity to convert our significant cultural influence into long-term financial growth.”

Caleres Q1 sales down 0.5% amid ‘challenging consumer demand'

Caleres net sales were $659.2m, down 0.5% from the first quarter (Q1) of 2023.

Earnings before income taxes fell from $45.46m to $39.97m. Net earnings also saw a downward trend at $30.94m versus last year's $34.73m.

Jay Schmidt, president and chief executive officer at Caleres believes that while the consumer demand environment remained challenging, the company achieved growth in sales and profitability from its lead brands and strong margin performance across the brand portfolio.

Schmidt said: "Caleres began 2024 in strong fashion, achieving earnings per share ahead of expectations, generating record first-quarter consolidated gross margin, and making significant progress on our key strategic initiatives, all while investing for the long-term."

In the near term, the company expects to continue to focus on reducing debt and still expects borrowings under its asset-based revolving credit facility will be less than $100m by 2026.

Caleres shared it is reiterating its fiscal 2024 financial outlook and as previously noted, its fiscal 2024 is a 52-week year and compares to a 53-week year in fiscal 2023. Specifically, the company still expects consolidated net sales to be flat to up 2%, compared to 2023.

Kohl shares conservative 2024 outlook after Q1 loss

Kohl’s net sales decreased 5.3% to $3.18bn compared with the year prior, with comparable sales down 4.4%.

Operating income was $43m, a 1.3% drop compared to $98m in the prior year.

The company also lowered its 2024 guidance. It now expects full-year net sales to decline between 2% and 4%.

“Our first quarter results did not meet our expectations and are not reflective of the direction we are heading with our strategic initiatives,” CEO Tom Kingsbury said.

“We recognise we have more work to do in areas of our business. “We are approaching our financial outlook for the year more conservatively given the first quarter underperformance and the ongoing uncertainty in the consumer environment.”

Kingsbury noted positive trends in its women’s category and continued strong growth in its partnership with beauty retailer Sephora.

Capri Holdings Q4 revenue drops 8.4% on luxury’s softened demand

Capri saw its total revenue drop 8.4% from $1.33bn to $1.22bn in its fourth quarter ended 30 March 2024.

The company explained total retail sales declined in the mid-single-digits with trends impacted by softening demand globally for fashion luxury goods. In wholesale, revenue decreased in the high-teens driven by softer demand in the Americas and EMEA.

Loss from operations was $543m compared to loss from operations of $40m in the prior year primarily due to non-cash impairments. While, net loss was $472m as opposed to a net loss of $34m in the same period the previous year.

Chairman and CEO John D Idol was keen to highlight the 11.6m new customers added to Capri Holdings database as its core brands Versace, Jimmy Choo and Michael Kors “continued to resonate with consumers.”

However, he admitted that overall he was “disappointed” with the results.

He added that Capri “strongly disagrees” with the FTC's decision to block its Tapestry acquisition.

he shared that Capri intends to vigorously defend this case in court alongside Tapestry and looks forward to the successful completion of the pending acquisition.

He said: “This combination will deliver value to our shareholders as well as provide new opportunities for our dedicated employees around the world as Capri Holdings becomes part of a larger and more diversified company.”

Gap Inc ups full year guidance after ‘strong’ Q1

Net sales for Q1 were up 3% to $3.4bn compared to last year. Comparable sales were up 3% year-over-year with comparable sales positive at all of its four brands.

In contrast to last year’s operating loss of $10m, the operating income in this quarter was reported at $205m. Similarly, the net income increased to $158m from a net loss of $18m last year.

GAP president and CEO Richard Dickson shared the company gained market share for the fifth consecutive quarter with positive comparable sales at all brands. He believes this demonstrates improved relevance with customers as GAP executes against its brand reinvigoration playbook.

Dickson said: “We are on a journey to become a high-performing house of iconic American brands that shape culture. While this will take time, perseverance, and rigour, we are excited about the opportunities ahead as we unlock the power of Gap Inc.”

He also shared the company has risen both its sales and operating income guidance for the full year.

American Eagle Outfitters reports record Q1 revenue

American Eagle Outfitters saw record revenue of $1.1bn in Q1 2024, up 6% on the prior year and an operating profit of $78m, which exceeded its guidance. The company's womenswear brand Aerie also achieved record Q1 results, with comparable revenue up 6%.

CEO and executive chairman Jay Schottenstein welcomed the "strong" results which he said demonstrated the company's profitable growth strategy was paying off.

He added: "We continued to offer exciting merchandise collections and customer activations, providing compelling in-store and digital shopping experiences. This, combined with actions to optimise our operations and drive efficiencies across the organisation, contributed to meaningful profit expansion, which was ahead of expectations."

American Eagle Outfitters expects 2024 to see an increase in revenue between 2% and 4% overall and revenue growth in the high-single digits in Q2.

Dick's Sporting Goods gains market share after strong Q1

Dick's Sporting Goods reported a 6.2% increase in its net sales of $3.02bn for the 13 weeks ended 4 May 2024 (Q1). It also revealed a double-digit EBT margin of 11.3%.

Net income was $275m compared to $305m in the same period the year before which was a drop of 10%.

President and CEO Lauren Hobart said: "We are incredibly proud of our first quarter results. With our comps increasing 5.3% and double-digit EBT margin of over 11%, we drove continued momentum in our business. Our core strategies and execution are delivering strong results, and we are continuing to gain market share as consumers prioritise Dick's Sporting Goods to meet their needs. Because of our strong Q1 performance, our expectations for continued robust demand from athletes and the confidence we have in our business, we are raising our full year
outlook."

The company's FY outlook for 2024 is between $13.1bn and £13.2bn with comparable sales growth of 2.0% to 3.0%.

Abercrombie & Fitch ups FY outlook after record Q1

Abercrombie & Fitch's Q1 net sales for 13 weeks ended 4 May 2024 were up 22% from the same period the year before to $1bn, which is described as the highest Q1 net sales result in the company's history.

Operating income was $130m compared to an operating income in the same period the year before of $34m or $38m on a reported and adjusted non-GAAP basis.

Net income was $115.1m compared to $17.8m in the same period the year before.

The company's CEO Fran Horowitz said: “Our outstanding first quarter results reflect the power of our brands and strong execution of our global playbook. We successfully navigated seasonal transitions with relevant assortments and compelling marketing, leveraging agile chase capabilities and inventory discipline, driving sales above our expectations.

"Growth was broad-based across regions and brands with Abercrombie brands registering 31% growth and Hollister brands delivering growth of 12%. Strong top-line growth, along with gross profit rate expansion, led to record first quarter operating income and an operating margin of 12.7%."

Abercrombie & Fitch has increased its outlook for fiscal 2024 to net sales being up around 10% from $4.3bn in fiscal 2023. This is an increase to the previous outlook of growth in the range of 4% to 6%.

TJX Q1 6% sales increase driven by consumer demand

Net sales for TJX Companies (TJX) first quarter (Q1) of fiscal 2025 was $12.5bn, an increase of 6% compared to the same quarter last year.

The company's income before taxes was recorded at $1.4bn compared to last year's $1.21bn. Net income increased 22% to $1.1bn from $891m in the previous year.

Ernie Herrman, CEO and president of The TJX Companies Inc. stated: "Overall comp store sales increased 3%, at the high-end of our plan, and both profitability and earnings per share were well above our expectations. Our teams across the company executed on our initiatives and were laser-focused on delivering consumers exciting values on great brands and fashions and a treasure-hunt shopping experience, every day.

"We saw comp sales growth at every division entirely driven by customer transactions, which underscores the strength of our value proposition. This also gives us confidence in our ability to gain market share across all of our geographies. The second quarter is off to a good start and we see numerous opportunities for our business for the balance of the year that we plan to pursue. Longer term, we are excited about the potential we see to drive customer transactions and sales, capture additional market share, and increase the profitability of TJX."

Ralph Lauren Q4 revenue up 2% as strategy for growth delivers

In the fourth quarter (Q4) of fiscal 2024, revenue increased 2% from $1.54bn to $1.57bn on a reported basis and was up 3% in constant currency.

Ralph Lauren explained foreign currency negatively impacted revenue growth by approximately 110 basis points in the quarter. However, a shift in the timing of this year's Easter holiday benefited revenue growth by approximately 50 basis points.

Operating income increased from $40.2m to $108m. Similarly, net income grew to $91m from last year's $32.3m.

Global direct-to-consumer comparable store sales increased 6%, driven by continued brand elevation with double-digit growth in Average Unit Retail (AUR) and full-price retail performance.

Patrice Louvet, president and chief executive officer, said: "Our teams delivered continued progress on our strategic and financial commitments in year two of our Next Great Chapter: Accelerate plan. Supported by our increasing brand desirability and multiple engines of growth, this year's performance underscores the strength of our long-term strategy, even as we navigate a highly dynamic global operating environment."

For fiscal 2025, Louvet shared that Ralph Lauren will "stay on offence" by continuing to invest in its brand, core products portfolio and consumer-centric ecosystems in key global cities. He believes this strategy, combined with operational discipline and the team's agility and dedication, will drive sustainable growth and value creation.

Deckers' strong Q4 driven by Hoka, Ugg brands

Net sales increased 21.2% from $792m to $960m and both direct-to-consumer (DTC) and wholesale saw revenues increase by approximately 21%.

Operating income went up from $106m to $144.3m. While the income from operations rose to $144.3m compared to last year's $105.9m. Net income increased from $91.8m to $127.5m.

Deckers' brands Hoka and Ugg stood out to be revenue drivers, as the president and CEO, Dave Powers shared: "Hoka and Ugg remain two of the most admired and well-positioned brands in the marketplace, each with a robust innovation product pipeline designed to win with global consumers. Looking forward, our talented teams are highly motivated to continue driving towards the long-term opportunities of these iconic brands."

Chief financial officer Steve Fasching explains the results demonstrate the demand for Deckers' brands and the strength of its nimble operating model which he said is delivering an industry-leading financial performance.

Urban Outfitters delivers record $1.2bn revenue in Q1

For the first quarter ending 30 April 2024, Urban Outfitters' total company net sales increased 7.8% to a "record" $1.2bn. Both retail and wholesale segments saw revenues go up by 5.8% and 3.4%, respectively.

Income from operations increased from $71.4m to $74.6m, while, net income reported a jump to $61.8m from last year's $52.8m.

CEO Richard A. Hayne said the continued strength of Anthropologie, Free People, FP Movement and Nuuly brands drove the "record" first-quarter sales and earnings.

He added: "Customer demand remains robust for our spring and summer fashion, which bodes well for continued sales growth in Q2."

Target Q1 meets expectations with return to growth expected in Q2

The total revenue in the first quarter of 2024 fell 3.1% from $25.32bn to $24.53bn. Operating income saw a similar downward trend and decreased 2.4% to $1.3bn, while net earnings fell by 0.8% from $950m to $942m compared to the same period last year.

Brian Cornell, chair and chief executive of Target Corporation said the first quarter financial performance was in line with the company's expectations on both the top and bottom line.

He stated: "Our topline performance improved for the third consecutive quarter, with growth in our digital business led by strength in our same-day fulfilment services. Consumers continue to respond to the newness and value that we offer across our shopping experience, and we're pleased with early results from the relaunch of Target Circle."

Moving forward, Target said it hopes to deliver for its guests through lower prices, a seasonally relevant assortment, ease and convenience, as it continues to invest in the strategy and efficiency initiatives to get back to growth and deliver on longer-term financial goals.

Delta Galil sees 2% hike in Q1 revenue on strength of brand offer

Delta Galil reported first-quarter 2024 sales of $450.8m, a 2% increase from $442.5m in the first quarter of 2023, driven by growth across most of the company’s segments.

Operating income increased by 80% to $26m compared to $14.4m in the prior-year period. This was attributed to higher sales and gross margin, partially offset by higher SG&A expenses.

Net income increased 300% from $3m to $12m compared to the same period last year. Net income, excluding non-core items, net of tax, increased by 86% to $14.5m.

Isaac Dabah, CEO of Delta Galil, said: "Delta’s solid first-quarter results demonstrate the strength of our brands, the remarkable value and offerings we provide to our Private Label partners, and the successful implementation of the strategies we are pursuing to deliver strong revenue and earnings growth.

"Our performance during the first quarter is especially encouraging as we returned to year-over-year growth in sales with strong profitability and record first quarter operating cash flow. This is testament to the hard work and dedication of our global teams, and the success of recent initiatives aimed at driving sales, improving operating efficiencies and realigning our manufacturing capabilities."

He also shared that during the first quarter, Delta Galil completed the acquisition of Passionata, which he explained adds a complementary intimate brand with a strong global and millennial following to its portfolio.

Amer Sports' Q1 revenue up 13% on technical apparel segment

Amer Sports' first-quarter (Q1) revenue was up 13% to $1.2bn compared to the first quarter of 2023 thanks to a 44% increase in its technical apparel segment.

Amer Sports attributed the growth in technical apparel to Arc’teryx, which it said is generating double-digit new store growth while also delivering exceptional omni-comp growth against difficult comparisons from the first quarter of 2023.

Operating profit was $109m which is lower than last year's $130.4m. Net income was also lower at $6.9m as opposed to $19m in the previous year's first quarter.

CEO James Zheng said: "Our transformation to a brand-direct business model four years ago continues to fuel profitable growth today, and our high-performance technical products are resonating with consumers globally. We are gaining share in the premium sports and outdoor market and are well-positioned to deliver another great year in 2024."

Macy's positive for return to growth despite Q1 sales drop

Net sales were down 2.7% to $4.8bn at Macy's compared to the first quarter of 2023.

Operating income also fell 2.5% from $244m to $125m, while, net income was $62m compared to last year's $155m.

However, Tony Spring, chairman and chief executive officer of Macy’s Inc., said sales neared the high end of its outlook thanks to the company's Bold New Chapter strategy which he believes was well received by its customers.

He said: "Although early days, our investments in product, presentation and experience are gaining traction and reinforce our belief that longer-term, Macy’s, Inc. can return to sustainable, profitable growth."

Macy's updated its annual sales and earnings outlook to reflect a portion of first-quarter performance along with the dynamic macro environment.

The company shared that it continues to view 2024 as a transition and investment year, reflecting investments in key customer-focused strategic initiatives, supported by the company's "strong" balance sheet.

Hanesbrands losses widen in Q1 on sales slump

First quarter losses widened and net sales sank at Hanesbrands Inc on the back of charges linked to the divestment of its US Sheer Hosiery business.

Net loss grew to $39.1m from $34.4m a year earlier. Operating income fell to $52.1m from $57.3m while net sales declined 16.8% to $1.16bn.

On an organic constant currency basis, net sales decreased approximately 15% compared to last year.

Global Champion brand sales decreased 26% on a reported basis and 25% on a constant currency basis, with approximately 500 basis points of the decrease due to the planned strategic shift of its Champion kids’ business to a license model at the beginning of 2024.

US sales decreased 35%. Internationally, sales decreased 17% on a reported basis and 16% on a constant currency basis. Constant currency sales increased in Japan, China and Latin America, which were more than offset by decreases in Europe and Australia as macroeconomic headwinds continued to impact demand in these regions.

“We delivered solid first-quarter results with sales at the midpoint of our outlook, better-than-expected adjusted operating profit, positive cash flow generation and further reduction of our leverage. With the year unfolding as anticipated and our profit visibility, we reiterated our outlook for the full-year,” said Steve Bratspies, CEO.

"Over the past three years, we’ve taken necessary actions across the business to enhance and strengthen both the operating and financial models of the Company.

"With our leading brand positions, lower fixed-cost structure, reestablished gross margin, consistent cash generation and a commitment to reduce debt, we have created a multi-year flywheel designed to accelerate earnings, deleverage faster, and invest in growth initiatives, which we believe will drive strong shareholder returns over the next several years.”

GEOX Q1 sales sink on wholesale weakness

Sales at GEOX fell 13.5% in the first three months of the year to EUR193.6m on the back of weakness in the wholesale channel. Net financial loss was EUR134.9 versus a loss of EUR93.1m a year earlier.

Chief Executive Officer Enrico Mistron commented: “The first quarter of 2024 has proven to be extremely challenging and complex as highlighted by numerous market indicators already emerged towards the end of last year. Nevertheless, there are positive signals regarding the performance of our direct-to-consumer (DOS) channels. Comparable sales (LFL) from physical DOS confirm positive trend, reflecting the impact of investments in product and positioning towards a premium segment. The persistence of the complexity and uncertainty observed in all our major reference markets in these first months of 2024 lead us to maintain a prudent and focused approach to the growth of the most profitable markets, the streamlining of processes, and the optimization of cost structures.”

Under Armour moves to restructure on Q4 profit, sales slip

Under Armour’s fourth-quarter sales fell 5% to $1.3bn. North America revenue decreased 10% to $772m, and international revenue increased 7% to $561m (up 6 percent currency neutral). Wholesale revenue decreased 7% to $850 million, and direct-to-consumer revenue was flat at $455m.

Apparel revenue decreased 1 percent to $877m. Footwear revenue was down 11 percent to $338m. Accessories revenue was down 7% to $89m.

The sportswear brand swung to an operating loss for the three months ending 31 March with an operating loss of $3.6m from a $29.5m operating profit and a net profit of $6.6m from $170.5m a year earlier.

The group is now embarking on a restructuring plan which will include job cuts.

CEO Kevin Plank said: "Due to a confluence of factors, including lower wholesale channel demand and inconsistent execution across our business, we are seizing this critical moment to make proactive decisions to build a premium positioning for our brand, which will pressure our top and bottom line in the near term," Plank continued. "Over the next 18 months, there is a significant opportunity to reconstitute Under Armour's brand strength through achieving more, by doing less and focusing on our core fundamentals: driving demand through better products and storytelling, running smarter plays like simplifying our operating model and elevating our consumer experience. In parallel, we're focused on cost management and implementing the strategies necessary to grow our brand and improve shareholder value as we move forward."

Boot Barn's Q4 sales decrease amid cautious consumer spending

Net sales for the fourth quarter decreased 8.7% over the prior-year period to $388.5m from $425.7m.

This decline was attributed to the decrease in consolidated same-store sales and the impact of a 13-week quarter when compared to a 14-week quarter in the prior-year period, partially offset by the incremental sales from new stores opened over the past 12 months.

Income from operations decreased $24.5m to $38.2m in the prior-year period. While net income fell to $29.4m from the prior period's $46.4m.

President and chief executive officer Jim Conroy believes the company will continue to experience further improvement going forward.

He said: "In fact, we have seen broad-based sequential improvement across virtually all major merchandise departments, both stores and e-commerce channels and in all four regional geographies. This trajectory began as we progressed from our third quarter into the fourth quarter, then improved in April and again into May where we have seen positive same-store sales in both channels on a month-to-date basis."

Despite this optimism, Conroy predicts consumers will remain cautious for the foreseeable future. Nonetheless, he is confident that Boot Barn is well positioned to further execute its long-term strategic initiatives.

Crocs Inc Q1 profit dips on HEYDUDE challenges

First quarter revenues increased to $938.6m from $884.2m a year earlier. Operating income fell to 226.4m from $234.9m a year earlier on the back of increased cost of goods and higher expenses in the comparative period. Net income increased to $152.5m from $149.5m.

"We delivered an exceptional first quarter, led by mid-teens growth of our Crocs Brand, driven by robust consumer demand both in North America and in international markets," said CEO Andrew Rees. "Our record revenue, industry-leading gross margins and the power of our diversified business enabled us to raise our full-year adjusted diluted earnings per share outlook."

Rees continued: "As we continue to prioritise brand health in the North American market for HEYDUDE, and considering what we are seeing quarter-to-date, we are reducing our revenue expectations for the brand for the balance of the year. We are confident in the long-term opportunity for the HEYDUDE brand and are excited to welcome a new HEYDUDE president to fully unlock its future potential."

Wolverine Worldwide swings to loss in Q1

Total revenue in the quarter ending 30 March 2024 fell to $394.9m from $599.4m.

The company reported an operating loss of $3.1m compared with an operating profit of $45.3m a year earlier. Net losses were $13.7m from an $18m profit a year earlier.

The company reported lower gross profit and booked an impairment charge compared with the same period a year earlier. During 2023, Wolverine Worldwide divested the US Wolverine Leathers business, the non-US Wolverine Leathers business and the Sperry brand.

“We delivered better-than-expected revenue and earnings in the first quarter, and we are beginning to see proof points emerge as early validation of our strategy and execution – including record gross margin in the quarter, acceleration in our direct-to-consumer business, improving order trends across our wholesale operations, and a healthier balance sheet,” said Chris Hufnagel, president and CEO of Wolverine Worldwide.

“We’re executing our turnaround and transformation with pace and continue to make meaningful progress towards realising the full potential of our brands, platforms, and teams. While we have more work to do, I’m encouraged by the great work of our teams and the power of our brand-building model – focused squarely on creating awesome products, telling amazing stories, and driving the business each and every day.”

Q2 losses widen, sales sink at Delta Apparel

Delta Apparel booked net sales of $78.9m compared to the prior year period net sales of $110.3m with sales falling in both the Salt Life Group and the Delta Group segments for the second quarter ending 30 March. Gross margins were 4.3% compared to 14.7% in the prior year period, driven primarily by production curtailments in the Delta Group segment.

Operating loss increased from $5.3m in the prior year period to $24.4m.

Earnings before interest, taxes, depreciation and amortization (“EBITDA”) was a loss of $20.9m. Net loss increased to $36.3m from a net loss of $7m.