Despite challenges, Maurices continues to deliver solid earnings

logo shield 7472 no boarderA very tough overall retail environment resulted in Maurices first comparable sales decrease in over two years, the Duluth-headquartered company announced today.

Total sales for the third quarter, which ended April 23, decreased 2% over the same period last year to $269.4 million as compared to $274.9 million. Comparable sales for the quarter were down 6%. On a year-to-date basis, total sales increased 5% to $843.7 million as compared to $806.6 million for the same period last year. Comparable sales were up 1% on a year-to-date basis.

Profits for the third quarter were still a very solid $34.3 million, or 13% of sales, down from last year’s $47.4 million or 17% of sales.

“Despite the tough results relating to extremely challenging retail industry traffic, we were able maintain our position near the top of retailers from a profit perspective,” said Brian Thun, Maurices SVP/Chief Financial Officer. “Our comp decrease was largely due to a decline in store traffic, and we especially saw this in Midwest states that were impacted by the commodity industry such as oil and farming. We also were up against some fluctuating weather patterns that tempered Spring/Summer product sales.”

“After our solid run of successful comp growth, third quarter results were disappointing,” Maurices President and CEO George Goldfarb said. “However, through our disciplined inventory and expense management, we have been able to navigate through these traffic headwinds and maintain a very healthy margin rate. We enter fourth quarter with inventories well positioned to react as retail traffic rebounds. As always, we remain very confident in our growth strategies and our ability to bounce back even stronger as the environment improves.”

Maurices continues to be pleased with its new store performance, adding roughly 50 new stores this fiscal year as part of its US and Canadian expansion strategy, ending the fiscal year in July 2016 with roughly 990 stores. Maurices plans to hit the 1,000 store mark in the first quarter of fiscal 2017.

Maurices reports solid second quarter results, despite challenging retail holiday period

maurices Headquarters. Submitted
maurices Headquarters. Submitted
Maurices continued its streak of positive comparable sales increases in the second quarter of fiscal 2016 despite industry-wide traffic challenges over the holiday period, the Duluth-based company announced today.

logo shield 7472 no boarderTotal sales for the second quarter, which ended January 23, increased 4% over the same period last year to $291.6 million as compared to $279.8 million. Comparable sales were up 0.5%; representing the eighth consecutive quarter of positive comp growth for Maurices.

Profits for the second quarter were a very solid $26.8 million, or 9% of sales, down slightly from the record profits last year of $29.2M or 10% of sales. Despite the softening in Q2, Maurices achieved record Fall Season profits due to strong Q1 results.

“It was a challenging quarter for Maurices and the retail industry as a whole,” Maurices President and CEO George Goldfarb said. “We were able to successfully manage our way through it and generate sales and profit results near the top of the industry. Our inventories are fashion right and at appropriate levels heading into the Spring season, and we are in a great position to take advantage of increasing traffic as spring weather breaks. We remain very confident in our growth initiatives including the continued Plus expansion and new loyalty program: mymaurices.”

“Despite falling short of our expectations, we were able to weather the extremely promotional Holiday retail environment created by the industry-wide declining traffic to produce very solid sales and profit results,” said Brian Thun, Maurices SVP/Chief Financial Officer

Maurices continues its new store expansion plans, adding 50 new stores as part of its US and Canadian expansion strategy, ending the fiscal year with roughly 985 stores.

Maurices reports record first quarter results

Maurices followed up its record setting 2015 fiscal year with a very strong first quarter in fiscal 2016. Total sales for the first quarter, which ended October 24, increased 12% over the same period to $282.7 million as compared to $251.9 million last year. Comparable sales were up 7, representing the seventh consecutive quarter of positive comp growth for Maurices.

Profits for the first quarter were a record $39.7 million, or 14% of sales, which is a 48% increase over the same period last year.

Maurices CEO George Goldfarb. Howie / HowieBlog.com
Maurices President and CEO George Goldfarb. Howie / HowieBlog.com
“While we are extremely proud of our record profit growth, we are confident we can continue this momentum, from both a sales and profitability perspective,” said Maurices President and CEO George Goldfarb. “Although the retail industry is experiencing traffic challenges heading into the Holiday season, we are positive that our fashion is right and will resonate with our customer. We also rolled out our expanded Plus size offerings to about two thirds of our chain, and we are seeing a positive reaction from our customers. Our new loyalty program, mymaurices, was launched in October and provides greater rewards and benefits to our customers heading into the Holiday shopping season.”

Maurices continues its new store expansion plans, adding 50 new stores as part of its US and Canadian expansion strategy, ending the fiscal year with roughly 985 stores.

“It is exciting to see the momentum from fiscal 2015 carrying into 2016. We continue to focus on a few key initiatives that we believe will drive growth into the future,” said Brian Thun, Maurices SVP/Chief Financial Officer.

maurices profits surge 42% in 3rd Quarter

By Laura Seiger

maurices sales results for the third quarter ending April 25, 2015, increased $23.2 million, or 9.2%, to $274.9 million versus $251.7 million for the same quarter last year.

Construction of the new Maurices Headquarters is underway in Downtown Duluth. Submitted
Construction of the new Maurices Headquarters is underway in Downtown Duluth. Submitted
Comparable sales for the quarter were up 6%, driven by both strong brick and mortar and digital growth over last year. This is maurices’ fifth straight quarter of positive comps. Third quarter profits were $47.4 million, or 17.2% of sales, which is a 42% increase over the same quarter last year.

“These results were driven by strong merchandise margins, which expanded by 370 basis points,” said Brian Thun, maurices SVP/Chief Financial Officer.

For the nine month period ending April 25, 2015, sales of $806.6 million increased $62.3 million, or 8.4% to the same period last year. Profits for the period were $103.5 million, or 12.8% of sales; up $18.3 million or 21% from the same period last year.

“We are very excited to achieve record sales and profit results on both a quarter and YTD basis,” said maurices President George Goldfarb. “Our results continue to be at, or near, the top of the industry. Our Spring and Summer “on-trend” fashions are connecting well with our customer as we continue to see growth across many of our product categories. Early reads from expanding our Plus collection in stores and online are very good, and we are aggressively rolling out our expanded Plus assortment for Fall.”

“We continue to execute well against our growth plans and priorities,” Goldfarb continued. “In addition to continuing to focus on our omni-channel initiatives (creating a seamless shopping experience whether online, in stores or on mobile), we are on track to open approximately 40 new stores in fiscal 2015, including continuation of our Canadian expansion. We’ve been very pleased with our new store openings and plan to end our fiscal year in July 2015 with 950 stores.”