Big Income Growth for bebe
Brisbane, Calif., For the fourth quarter ended July 2, bebe Stores posted a net earnings increase 132.1% to $19.5 million, compared to $8.4 million for the same period of the prior year. Net sales for the fourth quarter of fiscal 2005 were $136.9 million, up 47.0% from $93.1 million reported for the fourth quarter a year ago. As previously reported, same-store sales for the quarter increased 34.2% compared to an increase of 9.0% in the prior year. “The fourth quarter and fiscal year were truly amazing with comparable-store sales increasing 34% and 26%, respectively,” said Greg Scott, bebe’s CEO.
Net earnings for the year-to-date period ended July 2, 2005, were $66.3 million, an increase of 96.2% from $33.8 million for the year-to-date period Net sales for the year-to-date period ended July 2, 2005, were $509.5 million, up 36.9% from $372.3 million reported for the year-to-date period ended June 30, 2004.
Same-store sales for the year-to-date period beginning July 1, 2004, and ending July 2, 2005, increased 25.7%.
High Gas Prices Hurt BJ’s and Wal-Mart
Natick, Mass. and Bentonville, Ark., The rising price of gasoline is not only affecting consumers. Retailers are also feeling the effects of the increases. BJ’s Wholesale Club reduced its earnings forecast for the year by about 3? per share because of lack of gas profits. The company said although prices and sales of gas rose, the profits in that segment of sales decreased.
Wal-Mart has also felt the increase in gas prices. The company said its sales growth was slowed for the second quarter to the lowest profit increase it has seen in four years because of rising fuel prices. Thomas M. Schoewe, Wal-Mart’s executive VP and CFO, said he believes high gas prices will “continue to impact a large portion of our customer base and put pressure on operating results.”
Kroger Ready to Broadcast
Cincinnati, The Kroger Co entered into a multi-year agreement with InStore Broadcasting Network to provide a television network for customers in more than 2,500 Kroger-owned stores across the country. The satellite-delivered network uses plasma and LCD screens located in key locations throughout the store to deliver information about new products, services, cooking tips and special promotions. Kroger community service and relevant entertainment segments are also highlighted.