(NYSE: IBI), which mails the Victoria’s Secret catalog, saw second-quarter net income plummet 31%, to $68.9 million for the three months ended Aug. 4, compared to $99.8 million last year. Total sales, which include those from the Victoria’s Secret stores and cataloger/retailer Bath & Body Works, dipped 3%, to $1.15 billion from $1.19 billion last year. Comparable store sales decreased 5% for the quarter. Intimate Brands does not break out catalog or direct sales separately. The Colombus, OH-based company expects to break even in the third quarter and warns that earnings per share for the year will be down significantly from last year.
Riding the strength of its catalog and Internet sales, home products marketer Restoration Hardware (Nasdaq: RSTO) increased its second-quarter net sales 4%, to $74.8 million for the three months ended Aug. 4. Direct-to-customer sales, which include catalog and Internet, soared by 72%, to $6.7 million from $3.9 million a year ago. Comparable-store net sales declined 6%, however. Gross margin as a percent of sales decreased to 20.4% from 26.3%, primarily as a result of markdown activity to clear unproductive merchandise. And the Corte Madera, CA-based company’s net loss widened 42%, to $6.2 million from $3.4 million last year.