Chico’s misses as Q2 profit falls 18.4%
Fort Myers, Fla. — Chico’s FAS reported an 18.4% decline in second quarter net profit, after increased promotional activity took a toll on same-store sales.
Chico’s net income totaled $43.6 million from $53.4 million in the year-ago period.
Net sales for the second quarter rose 1.2% to $649.5 million, primarily reflecting 112 net new stores. Same-store sales for the second quarter decreased 2.6% following a 5.6% increase in last year’s second quarter, which Chico’s said reflecting lower transaction count and average dollar sale primarily as a result of the impact of lower traffic and the cycling of strong same-store sales last year.
CVS to shorten length of customer receipts
Woonsocket, R.I. — CVS Caremark plans to shorten the length of in-store receipts members of its ExtraCare loyalty program receive by about 25%. In a recent Facebook posting, CVS announced that in response to customer complaints it had found a way to shorten the length of receipts without reducing the amount of ExtraCare rewards and savings offered on them.
In addition, next year CVS will allow ExtraCare members to receive all rewards and savings directly to their card. Currently only select offers can be stored paperlessly on ExtraCare cards.
According to various reports, CVS’ effort to shorten its receipts comes in response to a viral phenomenon of people posting photos of themselves holding ExtraCare Receipts that are several feet long, along with sarcastic comments, on social media networks such as Twitter. In its Facebook posting CVS made indirect reference to these photos.
Wet Seal swings to profit in second quarter; to add in-store plus collection
Foothill Ranch, Calif. — The Wet Seal Inc. swung to a profit in the second quarter, reporting net income of $1 million, compared to a net loss of $12.4 million a year earlier. The retailer also announced it is introducing its Wet Seal Plus Collection, previously available only online, to 36 stores, on Aug. 30.
In addition, net sales totaled $137.2 million, up about 1% from $135.3 million in the second quarter of 2012. Same store sales grew 3.7%, while e-commerce sales remained flat. Overall results were in line with Zack’s consensus estimates.
“During the second quarter we achieved strong year-over-year improvement across all of our key financial metrics,” said John D. Goodman, CEO of Wet Seal. “We delivered comparable store sales growth of 3.7%, expanded our merchandise margin, reduced expenses and attained profitability. Our performance reflects the benefits of our fast fashion operating model, ongoing progress against our turnaround strategies and strong inventory management."
During the quarter, the company opened one and closed one Wet Seal store, resulting in a total count of 525 stores in 47 states and in Puerto Rico as of Aug 3.