Chico’s net income drops on higher sales
Fort Myers, Fla. – Chico’s FAS reported declining net income during the third quarter of fiscal 2013 even as net sales grew. Net income totaled $35.8 million, down 15% from $42 million in the same period a year earlier.
For the third quarter, net sales were $655.6 million, an increase of 3% compared to $636.7 million in the prior year’s third quarter, primarily reflecting 115 net new stores. Same-store sales decreased 1.4%, which Chico’s said primarily reflects the cycling of strong same-store sales last year and the impact of lower traffic.
Pre-tax, non-cash goodwill and trade name impairment charges of $72.5 million resulting from recent sales declines in the Boston Proper catalog business impacted net income results.
DSW reports strong Q3 results
Columbus, Ohio – DSW Inc. experienced a successful third quarter of fiscal 2013, with net income and total sales both rising from the same period in the previous year. Net income equaled $55 million, up roughly 10% from $50.1 million, while total sales of $633 million were about 7% higher than $593 million.
In one negative result, same-store sales fell 0.7%. However, the retailer opened 16 new stores and launched new omni-channel initiatives.
Mike MacDonald, president and CEO of DSW, credited promotional efforts for helping to drive the company’s overall profitable quarter.
"A solid increase in total sales combined with disciplined execution and inventory management allowed us to increase our adjusted earnings per share by 14%,” said MacDonald. “We achieved our highest level of profitability in the third quarter while navigating through a promotional environment. We were encouraged by the improvement in traffic and sales at the end of the quarter, as the fall selling season got off to a delayed start."
Report: J.C. Penney CEO buys $1 million of company stock
Plano, Texas – Myron Ullman, CEO of embattled department store chain J.C. Penney, has reportedly bought $1 million of company stock. According to the Associated Press, Ullman purchased 112,000 shares at $8.95 apiece on or around Nov. 22.
The timing puts the purchase just before Dow Jones Indices announced Penney was being dropped from the S&P 500 index effective Nov. 29. Penney reported a net loss of $489 million for the recently completed third quarter of fiscal 2013, although it also reported its first same-store sales increase since December 2011 in October of this year.