Collective Brands 3Q comps up, earnings down
TOPEKA, Kan. Collective Brands reported that third-quarter 2009 net earnings were $36.9 million, or 57 cents per diluted share, compared with $47.5 million, or 74 cents per diluted share, in the third quarter of 2008.
Collective Brands’ third-quarter 2009 net sales were $867 million, up 0.5% versus last year and up 2.9% versus last year on an adjusted basis. The company’s third-quarter 2009 comparable-store sales increased 3.1%.
“Our strong third quarter operating results demonstrate the success of our strategy in the midst of a difficult economy,” said Matthew Rubel, chairman, CEO and president of Collective Brands. “Sales increased, operating margins improved, and we generated substantially greater free cash flow. At Payless, we had strong children’s results that produced a successful back-to-school season, and we had a strong boot performance as well. Saucony and Sperry Top-Sider also showed continued strength. Across Collective Brands, we delivered on our customer promise with innovative and fresh product, outstanding customer service, effective marketing, and efficient merchandise flow, all of which led to strong results.”
Walmart promotes gaming deals
BENTONVILLE, Ark. Walmart announced that through Dec. 24, it will offer 15% to 20% savings on 25 top video game titles, including games for kids, families and extreme gamers, in stores. In addition, starting Saturday, Dec. 5, the retailer is giving away a $50 gift card with the purchase of a $199 Wii console in stores, through Dec. 12 while supplies last.
“We have promised shoppers that through the holidays, even after last week, we would continue to offer real savings on items we know are on shoppers’ minds, and this offer is for anyone buying games as gifts or even for themselves,” said Greg Hall, vice president media and services, Walmart Entertainment. “Regardless of whether you have a PS3, Xbox or Wii, these savings will help anyone to build a gaming library with great new titles.”
Jo-Ann sees increase in 3Q income
HUDSON, Ohio Jo-Ann Stores announced that net income for the third quarter was $24.1 million, or 90 cents per diluted share, versus net income of $10.2 million, or 40 cents per diluted share for the third quarter last year.
Large-format store net sales for the quarter increased 8.7% to $272 million compared with the same period last year. Same-store sales for large-format stores increased 2.3% compared with a decrease of 3.8% in the same period last year. Small-format store net sales for the quarter increased 3% to $228.5 million compared with the same period last year. Same-store sales for small-format stores increased 6.7% compared with an increase of 1.2% for the same period last year. Internet sales through Joann.com for the quarter increased 6.2% to $8.6 million compared to the same period last year.
Based upon the company’s year-to-date results and management’s operating assumptions for the remainder of the year, the company expects a same-store sales increase of approximately 2.3% to 2.7% for the year and earnings per diluted share in the range of $1.95 to $2.05 for the year.