3Q Profits Slide
Goodlettsville, Tenn., Several retailers on Tuesday reported profit declines for their most-recently completed quarters. Dollar General said its third-quarter net income slipped despite higher revenue, as higher expenses and increased markdowns cut into earnings. For the quarter ended Oct. 28, the company earned $64.4 million, or 20? per share, down 9% from last year’s $71.1 million, or 22? per share. Sales totaled $2.06 billion, up 9.5% from last year’s $1.88 billion. Same-store sales rose 1.4%.
Other retailers reporting on Tuesday included: •Memphis-based based Fred’s Inc. saw its third-quarter profit drop 15%, hampered by hurricane-related expenses and an accounting charge related to the early renewal of a wholesale contract. The company reported net income of $6.3 million, or 16? a share, vs. a year-ago profit of $7.4 million, or 19? a share. Sales rose 8% to $376.8 million. Same-store sales slipped 1%.
•Dollar Tree Stores’ third quarter declined 2%, as sluggish customer traffic outweighed higher average purchases and cost controls. The chain reported net income of $31.1 million, or 29? a share, vs. a year-ago profit of $31.9 million, or 28? a share. The per-share results rose as Dollar Tree bought back 2.2 million shares of its own stock during the quarter, reducing the amount of shares outstanding. Sales rose 10% to $796.8 million. Same-store sales were off 1%.
•Philadelphia-based Mothers Work Inc. posted a wider fourth-quarter loss, weighed by competitive pressures, a surplus of merchandise and deep markdowns by competitors. Losses totaled $5.3 million, or $1.01 per share, compared with a year-ago loss of $3.9 million, or 76? per share. Net sales increased 12% to $135.2 million from $121 million in the year-ago period. Same-store sales decreased 1%.
Jo-Ann Stores Splits Exec Roles
Hudson, Ohio, Jo-Ann Stores split the role of chairman and CEO within its organizational hierarchy. The company said the change would allow it to accelerate its ongoing strategic transformation while bringing sharper focus to the execution of the strategy and the management of day-to-day operations.
Under the new structure, Alan Rosskamm, currently chairman, president and CEO, will serve as executive chairman with primary responsibility for the strategic direction, vision and culture of the company. An immediate nationwide search will be launched to fill the new position of president and CEO.
RadioShack and Wal-Mart Lead Wireless Retail Pack
Port Washington, N.Y., According to a new report from The NPD Group, consumer satisfaction with the wireless retail shopping experience is low across the board, with only 24% of recent mobile-phone purchasers stating that they had an excellent or good experience. While NPD’s survey confirms that the vast majority of mobile phone and service purchases are made at carrier-owned stores, consumers who purchased from other types of stores, including mass merchants and electronics retailers, reported higher levels of satisfaction. RadioShack and Wal-Mart were the top two retailers in terms of overall shopping experience, and also ranked high in other metrics including helpful sales staff, variety and selection of wireless products, and store layout.