Bed Bath & Beyond profit up, but slowing growth a concern
Union, N.J. — Bed Bath & Beyond Inc. reported Thursday that net income rose 14.5% to $206.8 million, compared with $180.6 million in the year-ago period.
Revenue increased 5.1% to $2.22 billion from the year-earlier quarter, missing Wall Street’s projected $2.25 billion in revenue. Same-store sales rose 3%.
Although the retailer has now seen its net income increase for three consecutive quarters, the rate has been steadily dropping. In the fourth quarter of the last fiscal year, net income rose 23.8% and in the third quarter of the last fiscal year, the figure rose 21.2%.
Revenue also has increased for four quarters in a row, but at a lessening rate. Revenue increased 9.1% to $2.73 billion in fourth quarter of last year, rose 6.8% in the third quarter and climbed 8.3% in the second quarter of last year.
Bed Bath & Beyond announced in May that it will buy home decor retailer Cost Plus Inc. for about $495 million. Earlier this month, it announced it will acquire textile company Linen Holdings LLC.
Kohl’s powers up solar initiative with 30 new locations in 2012
Menomonee Falls, Wis. — Kohl’s Department Stores is strengthening its commitment to renewable energy, by increasing its solar program by nearly 25% in 2012, installing solar panels at approximately 30 additional Kohl’s locations.
While some of the new solar sites will be in states such as California, Connecticut and Maryland — where Kohl’s already has a solar presence — additional sites will be located in new solar states for Kohl’s, including Massachusetts, New York and Ohio. On average, the solar panels will supply 20% to 50% of each store’s energy. Construction of the solar panel arrays on the first phase of stores began this spring. Once the installations are complete by the end of 2012, Kohl’s expects to have more than 150 solar locations across 13 states.
“After adding 20 solar locations in 2011, we’re pleased to continue growing our solar program in 2012,” said John Worthington, Kohl’s chief administrative officer. “Not only do our solar locations provide an immediate cost savings to Kohl’s, they serve as examples of our environmental commitment in action. As a national retailer with more than 1,100 stores, we consistently challenge ourselves to find new ways to reduce the operational footprint of our facilities, to be more energy efficient, use fewer resources and be a good neighbor in the communities where we do business.”
Kohl’s launched its solar program in 2007 with the installation of solar panels at its Laguna Niguel, Calif., store. The company has continued to expand the program to additional locations over the last five years where it is feasible and provides a cost savings. Currently, Kohl’s is one of the largest single hosts of solar electricity in North America and has more than 120 solar locations, including its Milwaukee photo studio and San Bernardino, Claif., distribution center – the company’s largest solar panel array.
With the completion of Kohl’s 30 new locations, the company’s portfolio of solar sites will produce more than 74.2 million kWh of energy annually – equivalent to preventing greenhouse gas emissions from 10,032 passenger vehicles or the carbon dioxide emissions from the electricity use of 6,380 homes for a year.
Wal-Mart Mexico cuts 2012 store openings as new procedures delay process
Mexico City — Wal-Mart Stores’ Mexico subsidiary said Wednesday that new store openings for 2012 will be cut from the originally planned 410 to 430 stores to 325 to 335, due in large part to added real estate documentation procedures.
Expansion plans for new stores will be delayed by 60 to 90 days, said Wal-Mart Mexico, as the retailer institutes reinforced documentation around real estate projects. Wal-Mart Mexico has been in the throes of a bribery scandal involving alleged payments to middlemen to accelerate the store-opening process.
The company said it will spend $17.5 billion – an 11% reduction from the initial plans – to open the downwardly revised 325 to 335 new stores in Mexico and Central America in 2012, representing an 8.1% annual expansion rate. The original 430 store count may still be reached, said the retailer, but it would be by the end of first quarter 2013, rather than end of 2012.