FINANCE

Costco plans special cash dividend payout on Dec.7; November sales beat Street

BY Marianne Wilson

Issaquah, Wash. — Costco Wholesale Corp. on Wednesday said it will pay a special dividend worth some $3.0 billion to investors, sending cash to its shareholders ahead of a likely increase in the dividend tax. The chain also posted monthly same-store sales that beat analysts’ expectations.

“Our strong balance sheet and favorable access to the credit markets allow us to provide shareholders with this dividend,” Costco CFO Richard Galanti said in a statement.

Costco reported net sales of $8.15 billion for the month of November, up 9% from $7.51 billion during the similar four-week period last year. Total same-store sales for the period rose 6%. The increase was 5% excluding gains from gasoline price inflation and stronger foreign currencies.

For the first fiscal quarter of its 2013 fiscal year (from Sept. 3 through Nov. 25, 2012), the company reported net sales of $23.21 billion, an increase of 10% from $21.18 billion in the first fiscal quarter of 2012. Total same-store sales for the period increased 7%.

In deciding to make the special payout, Costco joins a growing list of companies that have recently declared end-of-year dividend payments or moving up their quarterly payouts because investors may have to pay higher taxes on dividend income starting in January, with the likely increase in the dividend tax rate due to the so-called “fiscal cliff.”

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

Polls

Consumer confidence is high. Is that reflected in your stores’ revenues?

View Results

Loading ... Loading ...
FINANCE

Express Q3 same-store sales down 5%

BY Staff Writer

Columbus, Ohio — Express Inc. reported that its net income for the quarter ended Oct. 27 fell to $17.4 million, from $32.7 million a year earlier, amid a fall in same-store sales.

Net sales fell 4% to $468.5 million. Same-store sales declined 5%.

Express chairman and CEO, Michael A. Weiss, said: “The third quarter was a very challenging one for our company. However, we believe we have identified the issues impacting our performance and have developed, and begun to execute, a plan to fix them. To that end, we re-balanced our sweater assortment, introduced entry price point fashion items in key categories, and began to set and communicate clearer pricing and promotional strategies for our customers. We believe that these actions will position us well for the future.”

Express expects to open eight stores in the fourth quarter, including five stores in the United States and three stores in Canada, to end the quarter with 625 locations and approximately 5.4 million gross square feet in operation.

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

Polls

Consumer confidence is high. Is that reflected in your stores’ revenues?

View Results

Loading ... Loading ...
SUPPLY CHAIN

Toys ‘R’ Us opens new distribution center in Canada

BY Staff Writer

Toronto — To better accommodate its customers in Western Canada, Toys “R” Us has partnered with SCI Logistics to open a new distribution center in Delta, British Columbia. The 180,000-sq.-ft. facility is strategically positioned to receive goods from overseas and domestic manufacturers who can now ship directly to British Columbia for distribution to local Toys “R” Us and Babies “R” Us stores.

“The new west coast distribution center provides us with the additional capacity and flexibility to service our customers and distribution needs in Western Canada,” said Krista Collinson, VP logistics, e-commerce & business development, Toys “R” Us, Canada.

SCI outfitted the new facility to include cross-docking, transload, order fulfillment and store replenishment capabilities, with the use of a fully automated sortation system that scales to support the large seasonal swings of the retail business. The new center adapts quickly to changing volume patterns, while achieving very high performance levels.

keyboard_arrow_downCOMMENTS

Leave a Reply

D.Brisbane says:
Feb-27-2013 08:27 pm

My daughter wanted very much
My daughter wanted very much baby bloomers but I could not find the ones she liked in a lot of shops, hopefully the opening of the new distribution center for Toys “R” Us and Babies “R” US stores will change the situation.

D.Brisbane says:
Feb-27-2013 08:27 pm

My daughter wanted very much baby bloomers but I could not find the ones she liked in a lot of shops, hopefully the opening of the new distribution center for Toys “R” Us and Babies “R” US stores will change the situation.

Polls

Consumer confidence is high. Is that reflected in your stores’ revenues?

View Results

Loading ... Loading ...