just-style’s round-up of Q4 apparel and footwear industry results

The latest fourth-quarter filings from US apparel and footwear brands and retailers show that while some companies are beginning to recover from the market disruption caused by the Covid-19 pandemic, others are continuing to struggle. 

The Buckle

Nebraska-based denim specialist The Buckle said net sales for the 13 weeks ended 30 January increased 17.7% to US$318.8m from $271m a year prior. Comparable store net sales were up 18% on last year, while online sales surged 81.5% to $66.2m. This compares to $36.4m in the prior-year period. Net income amounted to $65.6m, compared with $47m for the fourth quarter of fiscal 2019.

For the full year, net sales edged up 0.1% to $901.3m from $900.3m a year earlier. Comparable store net sales increased 0.4%, while online sales were up 72% to $190.6m, compared to $110.8m for the 52-week period ended 1 February 2020. Net income was $130.1m, compared with $104.4m last time

Guess

Guess CEO Carlos Alberini said the company’s fourth-quarter results significantly exceeded expectations, in spite of the difficult circumstances posed by the pandemic. The company recorded GAAP net earnings of US$70.4m, an 11.5% decrease from $79.6m last year. Adjusted net earnings were $77.7m, down 5.7% on the prior-year period. Total net revenue, meanwhile, tumbled 23% to $648.5m from $842.3m, and was down 25.9% in constant currency. Declines were recorded in the company’s Americas retail, Europe and Asia divisions, of 24.2%, 26.8%, and 16.2% respectively.

For the full year, Guess recorded GAAP net loss of $81.2m, compared to GAAP net earnings of $96m a year prior, while adjusted net loss amounted to $4.5m, compared to adjusted net earnings of $105m.  Total net revenue decreased 29.9% to $1.88bn from $2.68bn in the prior year. In constant currency, net revenue decreased by 31%.

Guess expects revenues in the first quarter of fiscal 2022 to be down in the high-single digits versus the first quarter of fiscal 2020. For the full fiscal year 2022, assuming no Covid-related shutdowns past the first quarter, it expects revenues to be down in the high single digits versus fiscal 2020.  

Iconix Brand Group

For the fourth quarter ended 31 December, Iconix Brand Group posted total revenue of US$33.9m, a 22% decline, compared to $43.2m a year earlier. The firm attributed a 21% decrease in revenue in its women’s segment principally to a decrease in licensing revenue from its Mudd and London Fog brands, partially offset by an increase in its Danskin Brand. Revenue from the Men’s segment decreased 35% mainly due to a decrease in licensing revenue from our Buffalo and Ecko Unltd brands partly offset by an increase in our Umbro brand. International segment revenue declined 30% mainly due to decreases in Latin America and Europe. The company reported a GAAP net loss of $14.1m for the period, compared to a net loss of $93m in the prior-year period.

For the full year, total revenue was $108.6m, a 27% decline from $149m a year earlier. The decrease was primarily driven by decreases in Iconix’s woman’s, men’s and international segments as a result of the negative impacts of the Covid-19 pandemic on the global economy. GAAP net loss attributable to Iconix for the twelve months reflected a net loss of $7.3m, compared to a net loss of $109.5m last time.

PVH Corp

Apparel giant PVH Corp, owner of the Calvin Klein and Tommy Hilfiger brands, said fourth-quarter revenue was in line with the company’s guidance despite more extensive lockdowns throughout Europe than previously anticipated. Revenue decreased 20% for the period ended 31 January to US$2.09bn from $2.6bn last time. Sales were down in the company’s Tommy Hilfiger, Calvin Klein, and Heritage Brands divisions, by 16%, 17%, and 41%, respectively. Sales through PVH’s digital channels grew 57%, with sales through its directly operated digital commerce businesses up 68%. The company reported a net loss of $57.7m, compared to a net loss of $67.4m last time.

For the full year, revenue fell 28% to $7.13bn. Sales were down in the company’s Tommy Hilfiger, Calvin Klein, and Heritage Brands divisions, by 23%, 28%, and 44%, respectively. Sales through PVH’s digital channels grew 43%, with sales through its directly operated digital commerce businesses up 69%. Digital penetration as a percentage of total revenue doubled in 2020 compared to 2019. PVH reported a net loss of $1.1bn, compared to net income of $417.3m a year earlier. 

Revenue in 2021 is projected to increase 22-24% as compared to 2020, and be up by 42-44% in the first quarter compared to the prior-year period.

Oxford Industries

Oxford Industries reported a 26% decline in consolidated net sales for the fourth quarter ended 30 January to US$221m from $298m in the prior-year period. Full price e-commerce sales grew 26%, while full price retail sales were down 43% on last year. The company swung to a net loss of $12.2m from net income of $15.3m last time, while gross margin narrowed to 54.3% from 55.9%.

Meanwhile, full year consolidated net sales were $749m in fiscal 2020 compared to $1.12bn in fiscal 2019, representing a 33% year-on-year decline. Full price e-commerce sales grew 28%, with growth in all the company’s branded businesses in the year. Full price retail sales were down 56%. Oxford Industries reported a net loss for the year of $95.7m, compared to net income of $68.5m last time. Gross margin was 55.4% compared to 57.4% in fiscal 2019, with gross margin lower in each operating group. Gross margin was negatively impacted by a more promotional environment due to Covid-19 and inventory markdown charges, which were partially offset by LIFO accounting credits.

G-III Apparel Group

For the fourth quarter ended 31 January, G-III Apparel Group said net sales decreased 30.3% to US$526.2m from $754.6m last year. The company reported GAAP net income for the period of $14.6m, compared to $25.3m last time. Net sales for the full year, were down 35% to $2.06bn from $3.16bn, while net income fell to $23.5m from $143.8m a year prior. The company has completed the restructuring of its retail operations segment and has permanently closed the Wilsons Leather and GH Bass stores. Included in the fourth-quarter results are net losses from the Wilsons Leather and GH Bass store operations of $8.6m, while net losses from the same operations for the full year amount to $55.7m. 

For the first quarter of fiscal year 2022, G-III Apparel Group expects net sales of about $460m, which compares to $405.1m in the same period last year. GAAP net income for the quarter is expected to be in the range of $0.05-$0.15 per diluted share. 

Dollar General

Dollar General saw fourth-quarter net sales increase by 17.6% to US$8.4bn from $7.2bn a year prior, while same-store sales increased 12.7%. The company reported net income of $642.7m, an increase of 20% compared to $535.4m in the fourth quarter of 2019. Gross margin expanded 77 basis points to 32.5% from 31.8%. For the full year, net sales increased 21.6% to $33.7bn from $27.8bn in fiscal year 2019, with same-store sales up 16.3%. Net income grew 55% on last year to $2.7bn from $1.7bn in fiscal year 2019, while gross margin was 31.8%, compared to 30.6%, an increase of 117 basis points.

Meanwhile, Dollar General has announced the planned retirement of Mike Kindy, the company’s executive vice president of global supply chain, effective 15 April. Tony Zuazo, currently senior vice president of inventory and transportation, will be promoted to executive vice president of global supply chain upon Kindy’s retirement. 

Weyco 

Footwear maker Weyco has reported net earnings of US$5.1m for the fourth quarter ended 31 December, compared to $8.8m in the prior-year period. Net sales fell to $62m from $86.9m last time. Net sales in the North American retail segment, which include sales from the company’s e-commerce businesses and brick-and-mortar stores in the United States, were $8.7m, compared to $9.1m in last year’s fourth quarter. This decrease was offset by a 15% increase in e-commerce sales.

Overall net sales for 2020 were $195.4m, to $304m in 2019, while Weyco reported a net loss of $8.5m. This compares to net income of $20.9m a year prior. Adjusted net earnings were $3.2m. Net sales in the North American retail segment declined to $21.5m from $25.2m in 2019, with the decrease partially offset by a 9% increase in e-commerce sales.

Caleres

For the 13-weeks ended 30 January, Caleres said net sales were US$571m, down 18.3% from the fourth quarter of fiscal 2019. Direct-to-consumer represented 75% of total net sales. The company reported a 6.2% sales decline in the Famous Footwear segment and a 32.4% drop in the Brand Portfolio segment. Total company-owned e-commerce website sales increased about 25%, with e-commerce penetration rising to about 30% of net sales. Caleres reported a net loss of $77m for the quarter, compared to net earnings of $0.4m in the prior-year period. Adjusted net income was $1.3m, compared to $13.9m last time.

For the full year, consolidated sales of $2.12bn were down 27.5%, with direct-to-consumer sales representing 73% of total net sales, and total company-owned e-commerce website sales up 40% on last year, with e-commerce penetration rising to about 30%. Caleres reported a 20.4% sales decline in the Famous Footwear segment, and a 35.8% drop in the Brand Portfolio segment. Net loss for the year was $439.1m, compared to net earnings of $62.8m last time. Adjusted net loss was $52m, compared to adjusted net income of $86.4m. 

Burlington Stores

Burlington Stores saw total sales increase 4% to US$2.3bn in the fourth quarter ended 30 January, while comparable store sales were flat. While comparable store sales were down 10% in November due to unfavourable weather, comparable store sales trends improved significantly thereafter, improving to flat in December and to a 17% increase in January, as weather normalised and federal stimulus payments were disbursed. Net income declined to $156m from $206m last year, while adjusted net income was $163m, compared to $215m. The decline in adjusted net income was due primarily to higher product sourcing and Covid-19 related costs. Gross margin rate was 42.5% versus 42.1% last time, an increase of 40 basis points. 

For the full year, total sales decreased 21% compared to Fiscal 2019, while Burlington reported a net loss of $216.5m, compared to net income of $465.1m a year earlier. 

Zumiez

Zumiez said total net sales for the fourth quarter ended 30 January increased 0.8% to US$331.5m from $328.8m last year. Comparable sales for the 13 weeks increased 4.7% compared to a comparable sales rise of 6.4% last time. Net income, meanwhile, was $42.8m, up from $37.9m in the fourth quarter of the prior fiscal year. Total net sales for fiscal 2020 decreased 4.2% to $990.7m from $1.034bn, while comparable sales increased 13.6%. Net income was up 14% on the year prior to $76.2m from $66.9m.

Total first quarter-to-date sales for the 35 days ended 6 March were down about 3.8% on last year, while comparable sales decreased 0.4%. By channel, open store comparable sales decreased 6.9% and e-commerce sales increased 29.5%. During this timeframe, Zumiez had roughly 7% fewer open store days than last year due to governmental orders and potential safety concerns. 

Tilly’s

Tilly’s saw net income jump to US$8.9m for the fourth quarter ended 30 January from $6.3m last year. Total net sales were up 3.2% to $177.9m from $172.5m, while total comparable net sales, including both physical stores and e-commerce, increased by 2.5%. Net sales from physical stores were $122.5m, a decrease of 12% compared last year, while net sales from e-commerce surged 66.5% to $55.4m, and represented 31.1% of total net sales. This was up from 19.3% a year prior. Gross margin  was 32.7%, an improvement of 250 basis points compared to 30.2% last year.

For the full year, total net sales were down 14.2% to $531.3m, while Tilly’s reported a net loss of $1.1m, compared to net income of $22.6m, last year.

Genesco

Genesco saw net sales decline 6% in the final quarter of Fiscal 2021 to US$637m from $678m a year earlier, driven by continued pressure at Johnston & Murphy and the impact from store closures during the quarter, partially offset by digital comp growth of 55%. Stores were open about 90% of possible days. Comparable sales increased 1%. Overall sales were flat at Journeys, down 13% at Schuh, and down 42% at Johnston & Murphy while sales were up 84% at Licensed Brands due to the Togast acquisition in the fourth quarter last year. Net earnings for the period amounted to $89.9m, compared to $35.6m last time. Gross margin this year was 45.8%, down 110 basis points, compared with 46.9% last year. The decrease is due primarily to higher shipping and warehouse expense in all retail divisions driven by the increase in penetration of e-commerce, increased closeouts at Johnston & Murphy wholesale, and higher markdowns at Johnston & Murphy retail. 

Net sales for Fiscal 2021 decreased 19% to $1.8bn, with overall sales down 16% at Journeys, 18% at Schuh, and 49% at Johnston & Murphy. Sales were up 61% at Licensed Brands due to the Togast acquisition. Genesco reported a net loss of $56.4m, compared to net income of $61.4m a year prior. Fiscal 2021 gross margin was 45%, down 340 basis points, compared with 48.4% last year.

Express

Express said consolidated net sales for the 13 weeks to 30 January decreased 29% to US$430.3m from $606.7m a year prior, with consolidated comparable sales down 27%. Comparable retail sales, which includes both Express stores and e-commerce, decreased 28%, while comparable outlet sales were down 27%. Net loss for the period narrowed to $53.3m from $141.6m a year earlier. On an adjusted basis, net loss was $43.1m. On an adjusted basis, net income was $13.8m in the fourth quarter of 2019. Gross margin narrowed to 16.6% from 27% last time, driven by the sales impact of Covid-19 and a $4.5m non-cash impairment charge taken against certain long-lived store assets.

For the full year, consolidated net sales fell 40% to $1.2bn from $2bn, with consolidated comparable sales down 27%. Comparable retail sales decreased 29%, while comparable outlet sales were down 21%. Net loss widened to $405.4m, from $164.4m a year prior, while on an adjusted basis, net loss was $314.3m, compared to $5.1m last time. Looking ahead, CEO Tim Baxter said the company is well-positioned to accelerate in 2021 and expects sales to continue improving sequentially each quarter.

Meanwhile, Express said it is finalising a strategy that will grow its digital channel to $1bn in 2024 and expects to unveil the details of the strategy in the second quarter of 2021. It is based on the four foundational pillars of Product, Brand, Customer, and Execution, and will be driven by increases in conversion, average transaction value and traffic fuelled by initiatives including a focus on selling through social media channels and influencer networks.

Dick’s Sporting Goods

Dick’s Sporting Goods saw net sales for the fourth quarter ended 30 January rise 19.8% to US$3.13bn on the year prior, driven by a 19.3% increase in consolidated same-store sales, which included an increase in e-commerce sales of 57%. E-commerce penetration for the period was about 32% of total net sales, compared to about 25% last year. Consolidated net income amounted to $219.6m, compared to $69.8m a year prior. On a non-GAAP basis, consolidated net income was $225m, up from $113.3m a year earlier.

Net sales for the 52 weeks, meanwhile, increased 9.5% to about $9.58bn, with consolidated same-store sales up a record 9.9% despite temporary store closures during March, April and May to help prevent the spread of Covid-19. E-commerce sales increased 100% and represented about 30% of total net sales, compared to about 16% a year earlier. Consolidated net income was $530.3m, up from $297.5m, while on a non-GAAP basis, consolidated net income amounted to $546.2m, compared to $329.1m a year prior.

“We’ve never had a year quite like 2020. We were challenged in numerous ways, as were so many others, but as an organisation we not only survived – we thrived, delivering record-setting sales and earnings,” said Ed Stack, executive chairman and chief merchandising officer.

The Children’s Place

The Children’s Place CEO Jane Elfers said the company’s fourth-quarter results exceeded expectations across all key metrics with sales significantly exceeding expectations in both digital and store channels. For the period ended 30 January, net sales decreased 7.8% to US$472.9m from $513m a year prior. Consolidated digital sales increased 38% for the fourth quarter, representing 46% of total sales, while comparable retail sales for the quarter increased 1%. Net income, meanwhile, was $7.8m, compared to $24.2m last time. Adjusted net income fell to $14.9m from $28m in the comparable period last year.

For the full year, net sales were down 18.6% to $1.52bn from $1.87bn the year before. Digital sales increased 37%, with The Children’s Place ending the year with what Elfers called an “industry-leading” digital penetration of 53% of total sales. The company reported a net loss of $140.4m, compared to a net income of $73.3m. Adjusted net loss of $53.4m compared to adjusted net income of $83.8m in the comparable period last year.

American Eagle Outfitters

American Eagle Outfitters (AEO) said total net revenue decreased US$22m, or 2% to $1.29bn in the final quarter, compared to $1.31bn last year. Comparable sales declined 1%. Aerie revenue increased 25% to $337m and comparable sales increased 29%. American Eagle revenue decreased 9% to $943m and comparable sales declined 8%. AEO’s digital revenue was up by 35%, while store revenue declined 20%. Aerie digital revenue surged 75% and American Eagle increased 20%. Net income in the period fell to $3.53m from $4.76m last time. Gross margin of 34% expanded from 31% last year. 

For the full year, total net revenue amounted to $3.76bn, compared to $4.31bn a year earlier. The company reported a net loss of $209.27m, compared to net income of $191.26m a year prior.

Ross Stores

CEO of Ross Stores Barbara Rentler said while fourth-quarter sales exceeded expectations, the upsurge of the virus resulted in lower traffic, especially in its largest state of California. For the 13 weeks ended 30 January, sales were US$4.2bn compared to $4.4bn last year, with comparable store sales down 6%. Net earnings in the period declined to $238m from $456.1m a year prior. 

For the 2020 fiscal year, sales fell to $12.5bn from $16m a year earlier, while net earnings dropped to $85.4m from $1.7bn last time. 

Ross Stores noted its guidance and results throughout fiscal 2021 will be reported versus fiscal 2019 which it believes makes a more relevant basis for comparison. On this basis, comparable store sales for the 13 weeks ending 1 May are projected to be down between 1-5% compared to the same period in 2019. Earnings per share for the 2021 first quarter are forecast to be $0.74-$0.86, reflecting the deleveraging effect from the projected decline in same-store sales, increased supply chain costs, higher wages, and ongoing Covid-related expenses.

Nordstrom

Nordstrom has reported a 20% decline in total company net sales for the fourth quarter ended 30 January to US$3.55bn from $4.4bn a year earlier. The results slightly exceeded expectations for a low-twenties percentage decrease and mark a sequential improvement of 600 basis points relative to the third quarter, after adjusting for a shift of the Nordstrom Anniversary Sale. Digital sales increased 24% compared with the last year and represented 54% of the business. For the Nordstrom brand, net sales decreased 19%, while at Nordstrom Rack brand, net sales were down 23%. Net earnings, meanwhile, were $33m, compared to $193m last time. Gross profit, as a percentage of net sales, decreased 160 basis points from last year to 33%, primarily due to deleverage from lower sales volume and higher markdowns, partially offset by planned expense savings.

For the full year, Nordstrom reported a net loss of $690m, compared to net income of $496m a year prior, while net sales fell to $10.4bn from $15.1bn.

Assuming stores remain open during the year, for fiscal 2021, Nordstrom expects revenue, including retail sales and credit card revenues, to grow more than 25%, with digital representing about 50% of sales. 

Urban Outfitters, Inc

Urban Outfitters has announced a 6.9% decline in total company net sales for the three months ended 31 January over the same period last year to US$1.09bn. Comparable retail segment net sales decreased 7% due to negative retail store net sales as stronger conversion rates could not offset the reduced store traffic caused by the coronavirus pandemic and related occupancy restrictions. Lower store net sales were partially offset by strong double-digit growth in digital channel sales. By brand, comparable retail segment net sales increased 6% at Free People and decreased 6% at Urban Outfitters and 11% at the Anthropologie Group. Wholesale segment net sales decreased 7%. Net income in the quarter amounted to $28.6m, compared to $19.5m in the prior-year period.

For the full year, total company net sales decreased 13.4%, while comparable Retail segment net sales were down 11%, driven by negative retail store net sales due to mandated store closures as a result of the coronavirus pandemic and lower store productivity once opened, partially offset by strong double-digit growth in digital channel sales. Wholesale segment net sales decreased 40%. Net income amounted to $1.2m, compared to $168.1m a year earlier.

Target Corp

Department store retailer Target Corp said total revenue of US$28.3bn in the final quarter grew 21.1% compared with last year, driven by sales growth of 21% and a 28.7% increase in other revenue.  The company’s total comparable sales grew 20.5% in the period, reflecting comparable stores sales growth of 6.9% and digital sales growth of 118%. Net earnings surged 65.6% to $1.38bn from $834m a year earlier, while gross margin rate was 26.8%, compared with 26.3% in 2019, reflecting the benefit of merchandising actions, most notably the unusually low markdown rates, partially offset by the impact of higher digital fulfillment and supply chain costs, along with the impact of category mix.

Full-year sales increased 19.8% to $92.4bn from $77.1bn last year, reflecting a 19.3% rise in comparable sales combined with sales from non-mature stores. Full-year revenue of $93.6bn grew 19.8% compared with 2019, reflecting sales growth of 19.8% and an 18.2% increase in other revenue. Net earnings were up 33.1% to $4.37bn from $3.28bn last time.  Full-year gross margin rate was 28.4%, compared with 28.9% in 2019. 

Chico’s FAS

Chico’s FAS has widened its net loss in the fourth quarter to US$79.1m from $4.3m a year prior. Net sales were $386.2m, compared to $527.1m last year with the 26.7% decline reflecting a comparable sales fall of 24.9% as well as the impact of 39 net permanent store closures since last year’s fourth quarter, partially offset by double-digit growth in digital sales. The comparable sales decline was driven by a decrease in transaction count as in-store traffic continued to be significantly impacted by the pandemic and lower average dollar sales. Gross margin narrowed to 19% from 32.5%, reflecting lower maintained margin, deleverage of fixed occupancy costs and long-lived store asset impairment charges of $2.4m, or 0.6% of net sales.

For fiscal 2020, the company reported a net loss of $360.1m, compared to a net loss of $12.8m a year prior. The net loss for fiscal 2020 includes $199.6m in significant after-tax non-cash charges. Net sales were $1.3bn, compared to $2bn last time, with the 35% decrease primarily reflecting disruptions related to the pandemic, including temporary store closures or stores operating at reduced hours during fiscal 2020, reduced in-store traffic, changing consumer patterns and the impact of 39 net permanent store closures since fiscal 2019, partially offset by double-digit growth in digital sales. Gross margin narrowed to 13.9% from 34.4%.

Kohl’s

Department store retailer Kohl’s has reported a 10.1% decline in total revenue to US$6.1bn for the fourth quarter ended 30 January from $6.8bn in the prior-year period. Net sales amounted to $5.9bn, compared to $6.5bn a year earlier. Net income, meanwhile, increased 29% to $343m from $265m. 

For the full year, total revenue fell 20.1% to $15.96bn from $19.97bn, while net sales declined to $15.03bn from $18.89bn a year earlier. Kohl’s reported a net loss of $163m for the year, compared to net income of $691m twelve months prior. 

Abercrombie & Fitch

Casual clothing retailer Abercrombie & Fitch CEO Fran Horowitz said the company exceeded initial internal expectations for the fourth quarter ended 1 February. Net sales of US$1.1bn were down 5% as compared to last year, reflecting the adverse impact of Covid-19. Digital net sales, meanwhile, increased 34% to $639m reflecting robust growth in every month of the quarter. Net income attributable to Abercrombie & Fitch Co was down 7.3% on last year to $82.39m from $83.13m. 

For the full year, net sales of $3.1bn were down 14% as compared to last year, while digital net sales increased 39% to about $1.7bn. The company reported a net loss of $144.02m, compared to net income of $39.36m a year prior.

Kontoor Brands

Kontoor Brands saw revenue reach US$661m in the fourth quarter ended 2 January, a 1% increase over the same period in the prior year on a reported basis and flat in constant currency. US revenue was $520m, up 1% on last year, driven by growth in Wrangler wholesale, new business development wins, and strength in digital, with own.com increasing 50% and digital wholesale increasing 75%. International revenue was $141m, up 4% on a reported basis, with Wrangler International up 5% and Lee International up 3%. On a constant currency basis, international revenue was flat. The Europe and China businesses experienced continued sequential revenue improvements, with China increasing 11% and Europe 7% on a reported basis. Wrangler brand global revenue amounted to $448m, a 7% rise on last time on a reported and constant currency basis, while Lee brand global revenue increased to $204m, a 1% rise year on a reported basis and flat in constant currency. Net income, meanwhile, surged by 50% to $43.1m from $28.8m last year. Gross margin increased 180 basis points to 42.5% on a reported basis. 

For the full year, revenue decreased to $2.10bn, an 18% decline year-over-year on a reported and constant currency basis. US revenue fell 14% to $1.64bn, while international revenue was down 29% to $456m. Wrangler brand global revenue decreased to $1.35bn, an 11% decline year-over-year on a reported and constant currency basis, while at Lee, brand global revenue decreased 22% to $688m. Net income was down 30% on the year prior to $67.9m from $96.7m. Gross margin increased 180 basis points to 41.2% on a reported basis. 

Foot Locker

Foot Locker has posted net income of US$123m for the three months to 3 January, compared to $134m in the corresponding prior-year period. Fourth-quarter total sales were down 1.4% to $2.19bn compared with sales of $2.22bn a year earlier. Excluding the effect of foreign exchange rate fluctuations, total sales for the fourth quarter decreased by 3%. Comparable-store sales decreased by 2.7%

Sales for 2020, meanwhile, were $7.55bn, a decrease of 5.7% compared to sales of $8.01bn in fiscal 2019. Excluding the effect of foreign currency fluctuations, total sales decreased by 6.3%. Full-year comparable-store sales decreased 5.9%. The company’s net income decreased to $323m in 2020 as compared to the 2019 reported net income of $491m.

Carter’s

Carter’s CEO Michael Casey said despite the ongoing pandemic-related challenges, the company achieved its sales and earnings objectives in the fourth quarter. Consolidated net sales decreased US$110.6m, or 10.1%, to $989.9m from $1.1bn last year. Sales declined in all segments principally due to disruptions related to the Covid-19 pandemic. US retail segment comparable sales declined 9%, reflecting a decline in store sales, partially offset by e-commerce growth of 16%. Net income, meanwhile, tumbled $26.1m, or 20.9%, to $99m from $125.1m last time. Adjusted net income was $107.9m, compared to $124.7m. 

For the full year, consolidated net sales were down 14.1% to $3bn, while net income was $109.7m, compared to $263.8m in fiscal 2019. Adjusted net income amounted to $182.6m, compared to $291.7m a year earlier

Wolverine Worldwide

Wolverine Worldwide CEO Blake Krueger said the company delivered better-than-expected results for the fourth quarter and is poised to drive an accelerated recovery over the next twelve to eighteen months. The company widened its net loss in the quarter ended 2 January to US$171.2m from $0.5m a year earlier. Reported revenue was $509.6m, down 16.1% versus the prior year. On a constant currency basis, revenue was down 16.4%. Owned e-commerce reported revenue grew 31.7% versus the prior year. Reported gross margin was 40.1%, compared to 37.8%, while adjusted gross margin was 41.4%, compared to 37.8%. 

For the full year, Wolverine Worldwide swung to a net loss of $138.6m, compared to net earnings of $128.9m a year prior. Reported revenue was $1.79bn, down 21.2% versus the prior year on a reported and constant currency basis. Owned e-commerce reported revenue grew 49.9%. Reported gross margin was 41.1%, compared to 40.6% in the prior year. Adjusted gross margin widened to 41.5% from 40.6%.

Steve Madden

Steve Madden has posted a 15.9% tumble in revenue to US$353m for the fourth quarter ended 31 December, compared to $419.6m in the prior-year period. Revenue for the wholesale business decreased 16.2% to $263m, while retail revenue was down 14.9% to $86.1m due to a significant decline in the brick-and-mortar business, partially offset by continued strength in the e-commerce business. Net income attributable to Steven Madden, Ltd was $22.6m, compared to $17.8m in the same period of 2019. Adjusted net income was $21.8m, compared to $32.2m. Gross margin expanded to 38.3% from 37.7%, while adjusted gross margin increased 40 basis points to 38.2% compared to 37.8%.

For the full year, revenue decreased 32.8% to $1.2bn, while the company booked a net loss of  $18.4m. This compares to net income of $141.3m a year earlier. On an adjusted basis, net income was $51.8m, compared to $162.8m. 

L Brands

L Brands has reported net sales of US$4.8bn for the fourth quarter ended 30 January, compared to $4.71bn a year prior. Comparable sales increased 10%, consisting of a 22% increase at Bath & Body Works and a 3% decrease at Victoria’s Secret. Fourth-quarter sales in the direct channel surged 74% at Bath & Body Works and 33% at Victoria’s Secret. The company moved to a loss in the period, posting net income of $860.3m, compared to a net loss of $192.3m in the prior-year period. 

Net sales were $11.85bn for the full year, compared to $12.9bn last time. Comparable sales were up 21%, consisting of a 45% rise at Bath & Body Works and a 1% increase at Victoria’s Secret. Full-year 2020 sales in the direct channel increased 109% at Bath & Body Works and 31% Victoria’s Secret. Net income amounted to $844.5m, compared to a net loss of $366.4m a year prior.

The company is forecasting first-quarter earnings per share between $0.35 and $0.45, which represents substantial growth compared to last year when stores were closed for the majority of the quarter.

The TJX Companies

The TJX Companies said for the fourth quarter ended 30 January, net sales fell to US$10.9bn from $12.2bn in the prior-year period. Overall open-only comp-store sales were down 3% versus last year, exceeding company plans. Net income, meanwhile declined 67% to $325.5m from $984.8m last time.

For the full year fiscal 2021, the off-price apparel and home fashions retailer reported net sales of $32.1bn, compared to $41.7bn a year earlier. Overall open-only comp-store sales were down 4% versus last year. Net income was $90.5m, down from $3.3bn last time.

Macy’s

“Macy’s, Inc’s fourth-quarter results exceeded our expectations across all three of our brands, as we showed continued quarter-to-quarter sales performance improvements and returned to profitability,” said CEO Jeff Gennette. Net sales for the 13 weeks to 30 January amounted to US$6.78bn, compared to $8.34m last time. Comparable sales were down 17% on an owned basis and down 17.1% on an owned plus licensed basis. Macy’s said this performance beat company’s expectations, driven by the successful execution of its holiday strategy, from off-price to luxury. Digital remained a growing and increasingly profitable platform with sales up 21% over fourth quarter 2019, with digital penetration at 44% of net sales. About 25% of Macy’s digital sales were fulfilled from stores, including curbside pickup and same-day delivery.Net income, meanwhile, fell to $160m from $340m a year earlier. 

For the full year, net sales fell to $17.35bn from $24.56 a year prior. Macy’s reported a net loss of $3.9bn, compared to net income of $564m last time.

The company’s annual guidance contemplates continued pandemic-related challenges in the spring season with momentum building in the back half of 2021. Net sales are forecast at between $19.75bn-$20.75bn. 

Crocs, Inc

CEO Andrew Rees said the footwear firm achieved record fourth-quarter revenues and profitability and finished 2020 with “very strong brand momentum.” For the three months ended 31 December, revenues amounted to US$411.5m, an increase of 56.5% from the same period last year, or 56.1% on a constant currency basis. E-commerce revenues grew 92%, wholesale revenues rose 52.2%, and retail comparable store sales increased 40.9%. Net income, meanwhile, amounted to $183.3m, up from $19.9m last time, while gross margin of 55.7% increased 770 basis points compared to 48% last year. Adjusted gross margin of 56% rose 670 basis points.

For the full year, revenues were $1.39bn, an increase of 12.6% from the same period last year, or 13.5% on a constant currency basis. E-commerce revenues grew 58.2%, wholesale revenues rose 5.6%, and retail comparable store sales grew 21.2%. Net income totalled $312.9m, compared to $119.5m. while gross margin of 54.1% increased 400 basis points compared to 50.1% last year. Adjusted gross margin of 54.6% rose 350 basis points.

For the first quarter of 2021, Crocs expects revenue growth to be between 40-50% compared to first quarter 2020 revenues of $281.2m. For full-year 2021, revenue growth is forecast between 20-25%.

Dillard’s

Dillard’s CEO William Dillard, II said the company’s year-long efforts to control inventory and expenses and preserve liquidity have resulted in “encouraging” fourth-quarter results. For the 13 weeks to 30 January, Dillard’s reported net income of US$67m, compared to $67.7m last year. Included in net income for the most recent quarter is a non-cash pretax charge of $10.7m in asset impairment related to certain clearance locations. Net sales, meanwhile, fell to $1.57bn from $1.92bn a year earlier. Net sales include the operations of Dillard’s construction business, CDI Contractors, LLC. Total retail sales, which exclude CDI, declined 19% to $1.52bn from $1.88bn a year prior. Sales in comparable stores for the period decreased by about 17%. Consolidated gross margin, which includes CDI, improved 127 basis points of sales to 31.1%, compared to 29.8% last time. Retail gross margin, which excludes CDI, improved 171 basis points of sales to 31.9% from 30.2%, primarily due to decreased markdowns.

Walmart

US retail giant Walmart said total revenue for the fourth quarter was a record US$152.1bn, an increase of $10.4bn, or 7.3%. Excluding currency, total revenue would have increased 7.5% to reach $152.3bn. Walmart US posted a 7.9% rise in net sales to $99.6bn, while US comp sales increased 8.6% in the quarter. Walmart US e-commerce sales grew 69% with strong results across all channels. Net sales at Walmart International, meanwhile, were $34.9bn, an increase of 5.5%. Net sales in constant currency increased 6.3%, led by Flipkart, Mexico, and Canada. Changes in currency rates negatively affected net sales by about $0.3bn. Consolidated net loss attributable to Walmart for the three months to 31 January amounted to $2.09bn, compared to consolidated net income of $4.14bn a year prior. The company said Covid-related costs amounted to $1.1bn in the period. Consolidated gross profit rate increased 29 basis points with positive contributions from each operating segment, led by the US.

For the full year, total revenue was $559.2bn, an increase of 6.7%. Excluding currency, total revenue was $564.2bn, marking a rise of 7.7%. Consolidated net income attributable to Walmart amounted to $13.5bn, compared to $14.9bn a year earlier.

Under Armour 

US sportswear retailer Under Armour saw revenue drop 3% for the three months ended 31 December to US$1.4bn. Wholesale revenue decreased 12% to $662m and direct-to-consumer revenue increased 11% to $655m, driven by 25% growth in e-commerce. North America revenue in the fourth quarter fell 6% to $924m and international revenue increased 7% to $448m – with an 11% drop in EMEA, a jump of 26% in Asia-Pacific, and a rise of 2% in Latin America. Apparel revenue was down 4% to $931m, footwear declined 7% to $241m, and accessories jumped 32% to $145m. Net income, meanwhile, amounted to $184m, compared with a loss of $15.3m a year earlier. Excluding the gain on the sale of the company’s MyFitnessPal platform, adjusted net income was $55m. Gross margin increased 210 basis points to 49.4%. Excluding the restructuring efforts, adjusted gross margin increased 300 basis points to 50.3%, driven primarily by benefits from channel mix, supply chain initiatives and regional mix.

For the full year, revenue was down 15% to $4.5bn with wholesale slipping 25% to $2.4bn and direct-to-consumer up 2% to $1.8bn, driven by 40% growth in e-commerce. North America revenue dropped 19% to $2.9bn and international revenue fell 4% to $1.4bn. Net loss for the year was $549m versus a profit of $92,1m a year earlier. Adjusted net loss was $120m.

HanesBrands 

US apparel manufacturer HanesBrands reported a 2.8% rise in net sales to US$1.8bn for the fourth quarter ended 2 January, compared with $1.75bn a year prior. The company booked $28m in revenue from personal protective garments (PPE) globally. US innerwear sales, excluding PPE, increased 13%, while US activewear marked its third consecutive quarter of sequential improvement, led by a strong performance at Champion. Revenue increased 7% on a rebased basis, driven by growth in the online, wholesale, and distributor channels. International revenue, meanwhile, increased 2%. Excluding $6m in PPE sales, core international revenue increased 1%. On a constant currency basis, international sales declined by about 3%. Fourth-quarter GAAP net loss totaled $332m, compared to net income of $185m in the prior-year period. Adjusted net income excluding after-tax charges of $467m, totalled $135m.

During the quarter, HanesBrands completed a comprehensive business assessment and began implementing its Full Potential plan. As part of the implementation, it determined that it no longer views PPE as a long-term growth opportunity. It has also announced plans to explore strategic alternatives for its European innerwear business in order to further simplify its operations.

Shoe Carnival

Reporting its preliminary results for the fourth quarter ended 30 January, Shoe Carnival said net sales increased to about US$253.9m from $239.9m last year. Comparable store sales were up by about 6.4%, on top of a 3.2% gain in the prior-year period. CEO Cliff Sifford said the company’s record fourth-quarter results capped off an unprecedented year.

Kohl’s

Department store retailer Kohl’s said fourth-quarter earnings are set to exceed company expectations, with significant improvement from the third quarter. Preliminary results show total revenue declined about 10%, including a comparable sales decrease of 11%, marking the third consecutive quarter of sequential improvement. CEO Michelle Gass said digital sales growth remained strong, up more than 20%, and accounted for more than 40% of net sales, with stores playing a critical role in supporting the heightened demand.

Columbia Sportswear Company

Columbia Sportswear’s net sales decreased 4% to US$915.7m in the quarter, from $954.9m a year ago. In the direct-to-consumer channel, e-commerce net sales increased 41% year-over-year while brick and mortar store traffic and sales trends improved sequentially but remained well below prior-year levels. Net income for the period to 31 December was down 16% on last year to $95.8m, while gross margin expanded 50 basis points to 50.6% from 50.1% for the comparable period in 2019.

For the full year, net sales fell 18% to $2.5bn, while net income tumbled 67% to $108m from $330.5m last time. Gross margin contracted 90 basis points to 48.9% of net sales from 49.8% of net sales in 2019. For full-year 2021, Columbia expects net sales of $2.95-$3bn, representing a net sales growth of 18-20%, and operating income of $320-$346m, representing operating margin of 10.8-11.5%. 

Skechers USA

Footwear retailer Skechers USA saw fourth-quarter net sales decline by 0.5% year-over-year to US$1.32bn as a result of a 2.8% decrease in domestic sales, partially offset by a 1.1% increase internationally. Domestic declines were driven by lower retail sales partially offset by growth of 142.7% in e-commerce and growth in the wholesale channel. Net earnings for the period ended 31 December were down 10.4% to $53.3m from $59.5m a year ago and include a one-time tax benefit of $15.9m. Gross margin, meanwhile, increased 102 basis points to 48.9%, rising in all segments, driven by a favourable mix of international and e-commerce sales and average selling price increases in domestic wholesale.

Full-year sales decreased 11.9%, reflecting the impact of the global pandemic on the company’s businesses worldwide. Gross margin of 47.6% was relatively flat to the prior year, while net earnings were $98.6m, compared to $346.6m last time.

Levi Strauss & Co

Jeans giant Levi Strauss & Co posted a 12% decline in net revenues to US$1.39bn for the fourth quarter ended 29 November. Even so, the drop marked a significant improvement on the third-quarter net revenues decline of 27%. Direct-to-consumer revenue slipped 5% on a reported basis, as company e-commerce revenue increased 38% with growth across all regions, partially offsetting a decline in brick-and-mortar store revenues. Global digital revenues, which include e-commerce sites as well as the online business of its pure-play and traditional wholesale customers, grew 34% compared to last year, and comprised about 23% of fourth-quarter 2020 revenues, up from 15% a year ago. Net income, meanwhile, tumbled 41% to $57m from $96m a year ago. Gross margin increased 100 basis points to 55.3%, the company’s highest fourth-quarter gross margin in its recent history. 

For the full year, Levi Strauss swung to a net loss of $127m, compared to net income of $395m a year earlier. Net revenues dropped 22.7% to $4.45bn, down from $5.76bn a year earlier.