June gloom didn’t hit everywhere, especially when it comes to youth apparel chains like Hot Topic (thanks to music merch and Eclipse merch), Abercrombie & Fitch, Zumiez, and Limited -all of whom reported gains in the last month. This was due in part to the hot weather which brought more people into stores for summer selections, as well as promotions around Memorial Day, and heavy discounts among others in preparation to clear shelves for back-to-school.
Unfortunately, many analysts predict because of the heavy promotions and discounts by such chains, consumers are getting used to slashed prices and/or waiting it out to buy apparel and footwear at discounted costs just before the change of seasons, indicating the back-to-school season could be difficult for retailers.
Looking at financial results more specifically, Zumiez, the action sports retailer, had a good five-week period ending July 3 with net sales increasing 16.4% to $37.2 million up from $32 million last year. Comparable store sales increased 10.9% which is a significant difference from its comparable store sales last year at the same which decreased 19.3%. Zumiez currently owns 389 stores located mostly in various shopping malls, and is making a push into Canada as well.
Fast Retailing, owners of the Japanese-based fast-fashion retailer Uniqlo, achieved significant gains for their 3rd quarter ending in May, 2010 with net sales rising 22.7% for and a net income increase of 35.2%. However they are lowering their expectations for the next quarter. Plans for Uniqlo include opening 31 large-format stores for a total of 808 stores.
Important to note is that Uniqlo is doing very well, especially with their expansions in Asia, the U.S., and Europe, and their first store in Russia which opened in April. One of their top stores is that 4th global flagship in Shanghai West Nanjing Road which opened in May.
Finally, the Shaun White footwear collection which he designed with his brother Jesse, will debut at Target starting this weekend. Prices for the shoes range from $27.99 to $34.99.