Andronico’s files Chapter 11
Berkley, Calif. — Andronico’s Community Markets has filed for Chapter 11 bankruptcy protection.
The company is seeking debtor-in-possession financing that would allow it to sell itself to a private investment group that would keep its seven stores in Northern California in operation.
Q2 story not so good at Books-A-Million
BIRMINGHAM, Ala. — Reading into the Books-A-Million results, its easy to see how the liquidation at Borders took a toll on the book retailer’s second quarter. Books-A-Million reported that net sales for its second quarter decreased 11.4% to $106.4 million from net sales of $120 million in the year-earlier period. Comparable-store sales for the second quarter declined 12.9% compared with the 13-week period in the prior year. Net loss for the second quarter was $2.9 million, or 18 cents per diluted share, compared with net income of $1.9 million, or 12 cents per diluted share, in the year-earlier period.
Commenting on the results, Clyde Anderson, chairman, president and CEO, said, “Results for the quarter reflect a continuation of the trends that have been affecting our business since the beginning of the year. A soft publishing lineup, the effect of e-book migration and the impact of Borders’ liquidation all contributed to the decline in comparable-store sales. In this environment we have been focused on further developing the growth categories in our stores in preparation for the second half of the year while our balance sheet remains strong.”
For the 26-week period ended July 30, net sales decreased 11.2% to $210.4 million from net sales of $237 million in the year-earlier period. Comparable-store sales declined 13.1% compared with the same period in the prior year. For the 26-week period ended July 30, the company reported net loss of $6.4 million, or $0.41 per diluted share, compared with net income of $3.9 million, or 25 cents per diluted share, in the year-earlier period.
Late last month, Borders rejectedBooks-A-Million’s offer to buy 30 Borders store.
Ace Q2 revenues increase to $1.021 billion
In a second-quarter earnings season characterized by weather-depressed sales figures, Oak Brook, Ill.-based Ace Hardware Corp. managed to show a gain in revenues.
For the three months ended July 2, Ace saw revenues increase 0.5% to $1.021 billion. For the six-month period, sales increased 1.6% over the same two quarters in 2010.
“We are very pleased with our solid performance during the second quarter despite unfavorable weather conditions in April and May,” said Ray Griffith, Ace president and CEO. “In addition, we are excited about the introduction of our Clark+Kensington paint and primer, which will help drive increased sales and profitability for our retailers.”
The increase in revenue came as the company added 32 new stores and canceled 41. It ended the quarter with a total store count of 4,435, including international locations.
Net income for the quarter was $34.6 million, up 20% from the same period last year.
Other financial highlights from Ace’s second quarter:
• Merchandise sales to comparable domestic stores increased 0.6%;
• Gross profit for the quarter was $125.1 million, a decline of 12.2% from the prior year. Higher inbound freight costs contributed to the decline.
• Operating expenses decreased 15.7% to $83.7 million.