Chain Store Sales Up Over Last Year
New York City, Retail chain store sales increased by 1.8% for the week ended Feb. 19 vs. the same week from 2004, according to to the International Council of Shopping Centers (ICSC)-UBS Weekly Chain Store Sales Index. On a week-over-week basis, retail sales slowed 0.1% in the week ended Feb. 19.
Redbook Research reports a more robust growth figure for that week. The independent research company says U.S. chain store sales increased by 2.9% year-over-year for the week ended Feb. 19, according to Reuters. Redbook further reported that February sales are up 0.7% to date when compared with January.
“Sales in the week were influenced by spring promotions, Valentine’s Day and the holiday weekend,” Redbook Research said in a statement. “Like other secular celebrations, Valentine’s Day continues to grow in importance.”
PacSun Names d.e.m.o. President
Anaheim, Calif., Pacific Sunwear of California Inc. hired Lou Ann Bett to be division president of its d.e.m.o. division. The appointment becomes effective May 1. Bett most recently served with Limited Corp. as VP and general merchandise manager of Express Men’s.
Kohl’s, Gymboree to Restate Results
San Francisco, Kohl’s Corp. and The Gymboree Corp. are the latest retailers to announce they would need to restate their earnings due to an accounting change. The accounting change relates to the way the retailers account for their leases, and a recent clarification of those accounting principles by the Securities & Exchange Commission (SEC). Gymboree noted that the SEC’s interpretation prompted many retailers to announce adjustments and restatements related to lease accounting.
Kohl’s will restate some information stretching from 1998 to the first three quarters of 2004. The retailer said that the accounting changes would negatively impact net income by $2 million in the fourth quarter of 2004. Among the extra expenses being added to Kohl’s accounting for the first three quarters of 2004 is $3 million in SG&A expenses per quarter and depreciation expenses of $1 million per quarter.
Gymboree will restate quarterly information filed in its 2004 fiscal year, and probably in prior periods, too, the retailer said.
Other retailers have had to restate earnings because of the SEC’s clarification. One of them is Toys “R” Us, which recently said it would restate some information going back to 2003 because of its lease accounting.