Financial News

Which retail companies have reported the most successful year-over-year growth? How much did company X spend on its latest expansion? In the Retail TouchPoints Financial News section, industry insiders can find out what their peers are spending and how they are faring in the marketplace. This information can be useful for future implementation strategies, real estate ventures and growth opportunities.

Stein Mart August Sales Grow 3.8%

Stein Mart, a national women’s and men’s fashion retailer, reported a 3.8% increase in year over year August sales, resulting in $86.5 million in total revenue for the month. Comparable store sales for the month increased 2.5% from 2013 totals. The retailer’s total year-to-date sales reached $713.5 million, increasing 2.6% from last year’s totals. Comparable store sales in 2014 increased 2.0%.

Big Lots Reports $17.2 Million Profit, 1.2% Revenue Increase

Closeout retailer Big Lots reported a net profit from continuing operations of $17.21 million in Q2 2014. The retailer increased its year over year net sales by 1.2% to $1.19 billion in Q2 2014. Comparable store sales increased 1.7% for the quarter, meeting the company’s estimated guidance of a 1% to 3% growth. “I'm very pleased with the results we reported today,” said David Campisi, CEO and President of Big Lots. “For the second consecutive quarter, our comps were positive and comfortably within the guidance range we provided, and our earnings were above the high end of our range. We believe this is an indication that our core customer, Jennifer, is responding to our improved merchandising strategies and marketing execution.”

Best Buy Experiences 4% Revenue Decline

Best Buy reported a 4% year over year revenue decline, with Q2 2015 sales falling to $8.89 million. Quarterly comparable store sales decreased 2.7%, with company executives expecting the low single-digit decline to continue into Q3 and Q4 2015. The retailer earned a net profit of $146 million in the quarter, or $0.42 in GAAP diluted earnings per share, but the number fell 45% from the $226 million posted in Q2 2014.

The Honest Company Captures $70 Million In Funding

The Honest Company, a provider of natural and non-toxic products for families, has closed a $70 million financing round.  Wellington Management Company LLP led the round, while Dragoneer Investment group contributed. Existing investors, including General Catalyst Partners, ICONIQ Capital, Institutional Venture Partners and Lightspeed Venture Partners, also participated.

Staples Earnings Hindered By Store Closures, Foreign Exchange Rates

Staples Q2 2014 total company sales decreased 1.8% to $5.2 billion, compared to $5.3 billion in Q2 2013. Foreign exchange rates and North American store closures negatively impacted sales by approximately 1%. The company also has predicted Q3 2014 total sales to decrease from last year. Helping to mitigate some losses, the retailer closed 80 North American stores in Q2, and will reportedly close 140 in total by the end of the year. As part of a two-year cost savings plan designed to cut as much as $500 million off the company budget, Staples will close up to 225 stores by the end of 2015. Staples currently has secured approximately $150 million of cost savings to date, according to a company statement.

Target Reports 61.7% Drop In Profits

Target reported higher sales in its U.S. and Canadian divisions during a quarterly earnings report call. Total sales reached $17.4 billion, a 1.7% improvement from Q2 2013. Yet total profit fell from $611 million in 2013 to $234 million due to stagnant same-store sales and costs associated with the data breach that occurred during the 2013 holiday season. U.S. sales increased 0.7% from $16.8 billion to $17.0 billion year over year. However, Target’s Canadian business experienced the most significant boost, rising 63% from $275 million in Q2 2013 to $449 million in Q3 2014. The significant growth of Target’s Canadian segment was attributed to 48 new stores in the area that “became mature at various points during the quarter,” according to a press release. However, same-store sales remained flat in the U.S. and decreased 11% in Canada, which was driven by grand opening sales for new locations.

PetSmart Acquires Pet360, Increases Net Income By 5.1%

PetSmart has acquired online pet products retailer and integrated media company Pet360 for $130 million to ramp up its e-Commerce business. With the purchase, PetSmart will provide customers with seamless access to the Pet360 e-Commerce site, digital media programs and content sites. The transaction is expected to close in September 2014 and is subject to customary closing conditions. “As discussed previously, although online sales are still a relatively small part of the pet products industry, we expect them to become a more relevant source of revenue in the future,” said David Lenhardt, President and CEO of PetSmart. “Combining PetSmart’s unparalleled strengths in traditional outlets with Pet360’s established digital footprint will perfectly position PetSmart to capitalize on this evolution and enhance our ability to serve pet parents across all distribution channels.”

Walmart Lowers Financial Forecast For 2014

Walmart has lowered its 2014 FY forecast, citing “incremental investments in e-Commerce” and higher-than-estimated health care costs. Initially, the retailer predicted that shares for 2014 would reach between $5.10 and $5.45. Forecasted earnings per share now are expected to range between $4.90 and $5.15. U.S. comparable store sales saw no growth (0.0%) in Q2 2014, with the company expecting sales to remain flat in Q3. Walmart is reporting quarterly earnings of $1.21 per share, or 1.6% lower than the same period last year.

Omnichannel Helps Macy’s Boost Sales By 3.3%

Macy’s Inc. reported sales of $6.3 billion for Q2 2014, a 3.3% increase over the same period in 2013. For the first half of 2014, sales for Macy’s, Inc. reached $12.5 billion, up 0.7% year over year.   During a quarterly earnings report, Macy’s, Inc. Chairman and CEO Terry Lundgren noted that the entire organization has “confident optimism” for the rest of the year following a successful quarter.

Nordstrom Sees 6.2% Growth In Net Sales, Shares Details On Trunk Club Acquisition

Nordstrom executives shared details on the retailer’s acquisition of Trunk Club during the Q2 2014 earnings call, citing that the deal, including Trunk Club’s operating performance, would reduce earnings per diluted share in the 2014 FY by up to 5%. However, Nordstrom’s quarterly results were on track with expectations; the retailer reported an increase of 6.2% in net sales versus Q2 2013. Total comparable sales for the quarter also increased 3.3%.

Windsor Circle Raises $5.25M In Series B Funding

Customer retention software company Windsor Circle has secured $5.25 million in Series B funding. The funding round was led by Comcast Ventures. Existing investors including IDEA Fund Partners, Triangle Angel Partners and AOL founder Steve Case also participated.

Data Breach Costs Target $148 Million In Gross Expenses

Target is struggling to financially recover from the much-publicized data breach announced last year. The December 2013 breach cost Target $148 million in gross expenses — including a $38 million insurance receivable — throwing off the retailers’ earnings results significantly, Target reported in a press announcement. Breach-related expenses include an increase in estimated probable losses, most of which Target expects to be actual and potential breach-related claims from customers and payment card networks.

Amazon Stocks Tumble Amid Q2 Net Losses stocks plummeted approximately 10% on Friday, July 25, after the retailer reported a Q2 2014 net loss of $126 million. While the company has committed to expanding its reach and increasing its product offerings, investors have shared concern regarding the retail giant’s profitability. The company expects Q3 2014 operating…
Subscribe to this RSS feed