Best Buy swings to loss in Q3
Minneapolis — Best Buy Co. woes continue, as the electronics retailer reported Tuesday a loss of $10 million for the quarter ended Nov. 3, compared with net income of $156 million in the year-ago period. Results were hurt by restructuring charges and slowed sales.
Sales slid 4% to $10.75 billion, but met Wall Street expectations. Same-store sales dropped 4.3%.
"In-line with trends experienced over the last three years, Best Buy’s third quarter financial performance was clearly unsatisfactory," said new CEO Hubert Joly. A week ago, Joly – a turnaround expert brought in last July to shore up the retailer – put forth his plan to improve results around improved customer service and strategic cost-cutting.
“The results we are reporting today only strengthen our sense of urgency and purpose,” Joly said.
Urban Outfitters Q3 profit misses; to open 49 stores next year
Philadelphia — Urban Outfitters reported Monday that net income in the third quarter rose 17.4% to $59.5 million, compared with $50.7 million in the prior-year period but missing Wall Street estimates.
Sales rose 13.6% to $692.9 million, narrowly missing analysts’ expected $692.5 million in revenue. Same-store sales dipped 1%.
“Favorable customer response to our product offerings and better marketing resulted in record third quarter sales and significant margin improvement,” said CEO Richard A. Hayne. “We see this trend continuing into the fourth quarter which bodes well for our holiday season.”
Revenue has increased for four consecutive quarters, and the company is planning significant growth. On tap for fiscal 2013 are 49 new stores, including 18 Urban Outfitters, 15 Free People, 14 Anthropologie and one BHLDN and one Terrain. For the fourth quarter, the company said it expects to open 10 stores.
Chico’s profit soars in Q3
Fort Myers, Fla. — Chico’s FAS reported Tuesday that net income for the quarter ended Oct. 27 surged 57.4% to $41.7 million, compared with $26.5 million in last year’s third quarter.
Sales increased 18.2% to $636.7 million, and same-store sales grew 9.9%.
By banner, Chico’s/Soma Intimates same-store sales increased 11.6%, and White House|Black Market rose 6.4%.