Costco Q4 profit falls 6% but beats Street
Issaquah, Wash. Costco Wholesale Corp. said Wednesday that its fiscal fourth-quarter profit fell 6% partly on the stronger dollar and increased employee benefit costs, but results beat analysts’ estimates.
The warehouse club operator earned $374 million for the quarter ended Aug. 30, down from $398 million a year earlier.
Revenue slipped 3% to $22.38 billion from $23.1 billion, but surpassed Wall Street’s $22.34 billion sales estimate.
Same-store sales were down 5% in the quarter, with a 6% decline in the United States and a 3% drop-off internationally. Removing the effect of the stronger dollar and lower gas prices, same-store sales were up 1%.
International same-store sales rose 7% excluding these two factors, with Costco saying the stronger dollar mostly hurt results at stores in Canada, the United Kingdom and Korea. U.S. stores reported a smaller 1% decline.
For the year, net income slipped 15% to $1.09 billion, compared with $1.28 billion last year.
Annual sales fell 2% to $71.42 billion from $72.48 billion.
Report: DVDs not winning for Walmart
BENTONVILLE, Ark. As part of its effort to streamline the in-store experience, Walmart reportedly will no longer use display cases to promote the latest movies.
The Wall Street Journal reported that Walmart is changing its DVD selling strategy to correspond with its Project Impact initiative that focuses on giving more shelf space to top-performing categories and less to those that are slacking. In addition, the article noted that the company is looking to cut back on aisle clutter in order to attract a higher-end consumer.
Walmart, along with other retailers have been adding DVD rental kiosks near store entrances.
It appears from the report that DVDs are falling in the wrong end of Walmart’s “Win. Play. Show.” strategy.
From Project Runway to Macy’s
Project Runway designer Irina Shabayeva has won the opportunity to design a holiday dress for Macy’s INC International Concepts brand.
Part of Macy’s participation in Project Runway Season 6 was to create a challenge that would be judged by Martine Reardon, EVP Macy’s Inc. “It is tremendous to see what these young and talented designers can do in a very short time and with such imagination. Irina’s fresh take on fashion is the ideal fit for our INC brand,” said Reardon. “Our customer will love her ultra-feminine aesthetic.”
Shabayeva’s rayon matte jersey dress with butterfly embellishments will be available in sizes small through x-large, retailing for $139.00. Irina along with her model Katie Sticksel will be featured modeling the dress on macys.com.