Consumers Upbeat About Economy
New York City, Consumer confidence in the economy rebounded over the last month, suggesting that people are taking still-elevated gasoline prices and the presence of even higher borrowing costs in stride. The RBC CASH Index, based on results from the international polling firm Ipsos, showed that confidence was at 84.1 in early June, a big improvement from May’s reading of 67.1, a seven-month low. June’s number marked a return to a more normal reading for the confidence barometer since consumer confidence stood at 84 a year ago. “In spite of high energy costs and all the uncertainties around them, consumers are holding in there. It’s still a decent economy,” Joel Naroff, president of Naroff Economic Advisors, told the Associated Press. “Consumers seem to be weathering a lot of storms out there.”
Joseph A. Bank Profit Falls in 1Q
New York City, Joseph A. Bank Clothiers Inc. on Wednesday posted weaker profit in its fiscal first-quarter, as higher costs offset revenue growth. Net income fell to $5.9 million for the quarter ended in April, from $6.7 million in the year-earlier quarter. Sales rose 18% to $113.7 million from $96.6 million a year ago on stronger revenue from both sales and direct marketing. Same-store sales rose 4.7% during the quarter.
Amazon Rumored to be Eyeing Movie Gallery Purchase
Chicago, Reuters has reported rumors that Web retailer Amazon may be considering an acquisition of movie-rental chain Movie Gallery. The speculation sent shares of Movie Gallery, Inc., up as much as 26%.
Amazon spokeswoman Patty Smith declined to comment, saying that the company does not confirm or deny rumors or speculation. Movie Gallery has not yet been reached for comment.
Last February, Movie Gallery stock spiked 20% on rumors that the company was considering taking itself private or being bought out. In March, shares dropped to their lowest level since 2001 on concerns over Movie Gallery’s financial future.