Asda sales drop in Q1
London The Walmart-owned retailer that is Britain’s second-largest grocer experienced a sales dip of 0.3% in the first quarter ended May 1, compared with a rise in sales of 4.6% a year ago.
The sales decrease was the grocer’s first drop in four years.
“High petrol prices and the prospect of tax increases from the incoming government are weighing heavily on [consumers’] minds,” Andy Clarke, the incoming chief executive, told the Financial Times.
Andy Bond, who gave up the chief executive post at Asda last month to become chairman, described the results as “disappointing” but said Asda had been harder hit than competitors by heavy snow at the beginning of the year.
“Many of our big stores were indisputably hit by bad weather. If you take that out, the slowdown [in sales] is roughly in line with everyone else,” he told the Times.
Bond added that Asda, which sells itself as an “everyday low- price” retailer, has not helped itself by jumping on to the promotional bandwagon. The grocer has just launched a price guarantee deal to customers. It has also pledged to leapfrog Tesco to become Britain’s biggest non-food retailer in the next five years.
Huffy CEO named to Bikes Belong board
CENTERVILLE, Ohio Huffy Corporation’s president and CEO Bill Smith has been named to the board of directors of the Bikes Belong Coalition.
Bikes Belong promotes bicycling nationally by securing federal funding and awarding grants to improve bicycling infrastructure, sponsor community programs, and ensure cooperation throughout the bicycling industry.
“Throughout its history, Huffy Corporation has been involved with helping cycling communities benefit from an expanding trail system, growing safety efforts, racing programs and more. These initiatives show Huffy’s unyielding support of the bicycling industry,” says Bruno Maier, VP Bikes Belong. “Bill’s experience and leadership will be a great benefit to our organization.”
Dick’s beats Q1 earnings estimates
PITTSBURGH Dick’s Sporting Goods reported consolidated net income for the first quarter ended May 1 of $26.2 million, or 22 cents per diluted share. The first quarter earnings per diluted share exceeded estimated earnings expectations provided on March 9 of 12 cents to 13 cents per diluted share. For the first quarter ended May 2, 2009, the company reported consolidated non-GAAP net income of $12.8 million, or 11 cents per diluted share.
Net sales for the first quarter of 2010 increased by 9.2% to $1billion due primarily to an 8.2% increase in consolidated comparable-store sales and the opening of new stores, the company reported.
“In the first quarter, we grew earnings through higher sales and improved margins, increased our cash position by $161 million, and effectively managed our inventory levels,” said Edward Stack, chairman and CEO. “At the same time, we continued to invest in the future growth of our business through the opening of new Dick’s Sporting Goods stores, investing in technology and ramping up marketing initiatives geared towards driving market share gains.”
Based on an estimated 121 million diluted shares outstanding, the company said it currently anticipates reporting consolidated earnings per diluted share of approximately $1.41 to $1.44 for the full year. Comparable-store sales are expected to increase approximately 3 to 4% compared with a 1.4% decrease in 2009.
Based on an estimated 121 million diluted shares outstanding, the company said it anticipates reporting consolidated earnings per diluted share of approximately 37 cents to 39 cents in the second quarter of 2010. Comparable-store sales are expected to increase approximately 4% to 5% compared with a 4.1% decrease in the second quarter last year.