American Eagle COO exit; Pentland global changes; True Religion enters Home; Rocky, Delta, Columbia results

American Eagle Outfitters said COO Michael Rempell has decided to leave in early fiscal 2024 after over 23 years with AEO, “to pursue personal interests and spend more time with his family”. It has begun a successor search. Chairman and CEO Jay Schottenstein praised his track record and Rempell said it has been “an honor and privilege” to work at the firm.

Pentland Brands is establishing a new central London Hub to help further its global business, but is also localising some business ops. For Speedo it will create “a global product engine” in the US, while brand leadership and marketing says in the UK. For Canterbury, the global business will be led from New Zealand, while teamwear and licensed properties will be run from the UK. Around 90 jobs will be lost and it said it “plans to focus more resources on product, digital, consumer data and analytics”.

True Religion is to enter the Home market from January in partnership with Envogue to license True Religion-branded products for the bed, bath, living room, and kitchen. True Religion’s CEO said Envogue understands its DNA and its licensed partners have been “instrumental in helping us realize True Religion’s potential as a full lifestyle brand”.

Footwear and apparel company Rocky Brands said net sales fell 38.4% to $99.8 million, or $101.4 million on an adjusted basis, in Q2. Wholesale segment sales fell 45.5% and Retail segment revenue dropped 3.6%. But the gross margin as a percentage of net sales increased 440 basis points to 37.6%. Income from operations was $2.2 million, or 2.2% of net sales, compared to $5.6 million/3.5% a year ago. Adjusted operating income was $5.7 million/5.6%, down from $7.7 million/4.8%. The net loss was $2.7 million.

Delta Apparel’s Q3 saw a “more normalized operating environment” but net sales fell to $106.3 million from $126.9 million and gross margins were 13.1%, down from 24.2%, “driven primarily by production curtailments intended to match manufacturing output with lighter market demand, as well as inflationary cotton costs”. Operating income fell from $9.3 million, or 7.3% of sales, to an operating loss of $4.5 million, or -4.2% of sales. Net income declined from $6.2 million to a loss of $6.3 million.

Columbia Sportswear said Q2 net sales rose 7% to $620.9 million but operating income fell 29% to $6.2 million, or 1% of net sales. Diluted earnings per share increased 27% to $0.14. It saw “varying trends across our global omnichannel business [with] continued strength across many international markets, including China, while the US environment proved more challenging.”