Blockbuster Swings to Profit in 1Q
New York City Blockbuster posted a higher-than-expected quarterly profit as it cut costs by closing stores, reducing advertising and overhead expenses.
Blockbuster, which has offered to buy Circuit City Stores for up to $1.3 billion, said domestic same-store sales are up for the first time in five years due to a better line-up of new movies, improved in-store merchandising and more effective pricing.
Net profit was $45.4 million for its fiscal first quarter that ended April 6, compared with a year-earlier loss of $49 million.
While quarterly revenue missed expectations, Blockbuster cut selling, general and administrative expenses by $100.5 million on reduced advertising and lower overheads.
Chairman and chief executive Jim Keyes said in a statement that the company’s Total Access program, which lets subscribers swap DVDs at Blockbuster stores for unlimited free rentals, was now profitable.
Domestic same-store sales rose 2.9%, driven by a 19.7% rise in merchandise sales and a 0.4% in rental revenue, the company said.
Overall quarterly revenue fell 5.4% to $1.39 billion as Blockbuster closed stores.
Spice Depot snags Wal-Mart global sourcing expert
BURNABY, British Columbia Former Wal-Mart global sourcing and supplier development head John Ryan will join Spice Depot as president of retail development worldwide, the company reported.
“The significance of the appointment of Ryan to our senior management team cannot be underestimated,” says Spice Depot president Danny Ferraro. “John is a true giant in the retail sector, known worldwide for the pivotal role he played in developing global sourcing and supplier development for Walmart.”
Global Sourcing is a Walmart-accredited procurement strategy aimed at leveraging global efficiencies in production.
Ryan began his career with Mercantile Stores where he stayed 20 years, ascending ultimately to the position of evp responsible for merchandising and marketing.
Ryan joined Walmart in 1995 as evp of international merchandising and marketing. He later assumed responsibility for global sourcing and supplier development. He retired from Wal-Mart in 2004.
Socol to retire as head of Barneys
NEW YORK Barneys New York announced today the resignation of Howard Socol as chairman, president and ceo. Socol served in that capacity since January 2001 through a period of significant growth at Barneys and through two changes in ownership of the company.
Mr. Socol stated, “After more than seven of the greatest years of my long career in retail, I felt it was time to take time to enjoy all the opportunities that life affords. I felt strongly about remaining with the company for a short period following the sale to Istithmar as well as through the opening of our Las Vegas flagship. With the sale process well behind us and the Las Vegas location having opened in January of this year, this is the appropriate time to move forward. Barneys is very fortunate to have a fantastic management team that has been together for many years and that has led Barneys to the preeminent place in luxury retailing today.”
During Socol’s tenure with Barneys, the Company initiated an expansion program and has opened four flagship stores, 15 Barneys New York CO-OP stores and two outlet stores. Socol will remain with the company through the end of June.