Several clothing retailers posted stronger first quarter earnings Thursday as sales and margins improved.
Children’s Place Retail Stores Inc.’s fiscal first-quarter earnings rose 19%, handily beating its own forecasts. Its full-year earnings guidance was raised to $3.05 to $3.15 a share from $2.90 to $3.10 as it forecasts a second-quarter loss of 33 cents to 38 cents on a low-single-digit increase in same-store sales. Analysts surveyed by Thomson Reuters expected a 35-cent loss.
"We will continue to keep a tight rein on expenses as consumer spending remains constrained by lingering weakness in the economic environment," said Chairman and Chief Executive Jane Elfers, who took the helm in January.
Children’s Place has reported better results recently, excluding one-time items. Like many retailers, it had been hurt by the consumer-spending downturn during the recession, though items like children’s clothing weren’t hit as hard as others. The company has developed a five-pronged plan for growth that includes accelerating store growth and sharpening marketing to push online sales.
For the quarter ended May 1, Children’s Place reported a profit of $27.9 million, or $1 a share, up from $23.5 million, or 79 cents a share, a year earlier. The company in March forecast 85 cents to 90 cents.
Revenue jumped 5% to $422.1 million, while same-store sales declined 0.5%. Analysts expected $418 million.
Gross margin rose to 42.6% from 41.4%.
Meanwhile,tiffany pendants, Buckle Inc.’s fiscal first-quarter profit rose 12% on strong online sales growth.
The youth-apparel retailer, which sells casual apparel under brands like Diesel and Guess targeting fashion-conscious teenagers, posted revenue growth through the recession, but the rate has slowed as double-digit jumps in prior years have made further growth increasingly difficult.
For the quarter ended May 1, the company reported a profit of $30.1 million, or 64 cents a share, up from $26.9 million, or 58 cents a share, a year earlier. Analysts polled by Thomson Reuters most recently estimated 61 cents.
Gross margin edged up to 43.5% from 43.4%.
The company two weeks ago reported first-quarter sales increased 7.6% to $214.8 million as same-store sales rose 2.8%. Sales from its online business,tiffany bangles, which isn’t included in same-store sales, jumped 24%.
Elsewhere on the retail front, Perry Ellis International’s fiscal first-quarter profit jumped 91%, easily topping analysts’ forecasts, as the contemporary and sportswear-apparel maker benefited from stronger margins.
The company also raised its full-year guidance, saying it expects earnings of $1.45 to $1.60 a share and revenue of $775 million to $795 million. That’s up 20 cents and $5 million, respectively.
"As the economy continues to show signs of a recovery, consumers are responding positively across our brand portfolio, reflecting our increased product focus," said President and Chief Operating Officer Oscar Feldenkreis,tiffany money clips, who called the quarter’s results "very strong."
For the quarter ended May 1, Perry Ellis posted earnings of $11.2 million, or 81 cents a share, compared with $5.8 million, or 46 cents a share, a year earlier. Revenue edged up 0.1% to $220.3 million.
Analysts surveyed by Thomson Reuters were looking for earnings of 60 cents on revenue of $230 million.
Gross margin increased to 36.8% from 32.3% on the cost-cutting.
Casual Male Retail Group Inc.’s fiscal first-quarter earnings soared above low year-earlier levels, beating analysts’ estimates, as the big-and-tall clothing retailer improved its margins.
The company also raised its earnings target three cents for the year to 26 cents to 29 cents a share.
The latest results were "characterized by continuing improvements in comparable sales, gross margin and expense control," said President and Chief Executive David Levin. He also said there was strong customer response to new merchandise and the company is encouraged by the overall direction in traffic trends.
For the quarter ended May 1, Casual Male reported a profit of $4.2 million, or 9 cents a share, up from $336,000, or a penny a share, a year earlier. Shares outstanding were 14% higher in the most-recent quarter. Revenue declined 2.6% to $95 million, while same-store sales fell 0.7%.
Analysts polled by Thomson Reuters had most recently forecast earnings of 6 cents on $94 million in revenue.
Gross margin rose to 45.9% from 42.6%.
The company said same-store sales at its namesake businesses fell 2.4%, while its Rochester business saw a 4.6% increase.
Separately, New York & Co.’s fiscal first-quarter loss narrowed slightly as improved sales more than offset sliding selling prices.
The retailer expects second-quarter per-share loss to widen from a year earlier on continuing promotions and discounts. Analysts expect a five-cent loss, according to Thomson Reuters, while the prior-year red ink was eight cents.
Chairman and Chief Executive Richard P. Crystal said on Thursday that during the quarter the company had focused on driving sales with great "NY Style" and value while continuing to reduce inventory. "Nevertheless, the retail environment remains highly promotional which put pressure on our merchandise margin versus the strong levels we achieved last year," Crystal added.
New York & Co. was in the red for five consecutive quarters before it posted a profit in the fourth quarter as gross margin improved and same-store sales increased. The retailer started a restructuring effort last year and expects total savings of $175 million in a five-year period.
For the quarter ended May 1, the company reported a loss of $4.86 million, or 8 cents a share, compared with a prior-year loss of $4.89 million, or eight cents a share. Sales increased 1.8% to $237 million as same-store sales rose 2.9%,tiffany key rings, compared with a 15% decrease in same-store sales in the prior year.
Analysts polled by Thomson Reuters most recently estimated a loss of 8 cents a share and $234 million in revenue.
Gross margin fell to 24.7% from 25.3% on lower prices.
Rachel Rosenthal contributed to this article.
Write to Jodi Xu at jodi.xu@wsj.com and Nathan Becker at nathan.becker@dowjones.com
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