Costco sales rise but miss forecasts in Q4
New York — Changes in foreign exchange rates had a negative impact on Costco’s comparable store sales for the fourth quarter ended Sept. 1, but the wholesaler still reported increases in both its U.S. and international markets.
The company’s comparable sales for the quarter increased 5%. U.S. comparable store sales increased 5% for the quarter, while international comparable store sales increased 4%.
Excluding the impact of changes in foreign exchange rates, the company’s comparable sales for the quarter increased 5%. U.S. comparable store sales for the quarter increased 5%, while international comparable store sales increased 7%.
Net sales for the 16-week fourth quarter were $31.77 billion, an increase of one percent from $31.52 billion in the 17-week fourth quarter of fiscal 2012 ended September 2, 2012. Net sales for the 52-week fiscal year 2013 were $102.87 billion, an increase of six percent from $97.06 billion in the prior 53-week fiscal year.
Net income for the quarter was $617 million, or $1.40 per diluted share, compared to $609 million, or $1.39 per diluted share, during the prior-year quarter.
Costco currently operates 638 warehouses, including 454 in the United States and Puerto Rico, 85 in Canada, 34 in Mexico, 25 in the United Kingdom, 18 in Japan, 10 in Taiwan, nine in Korea and three in Australia. The company plans to open an additional 11 new warehouses before the end of calendar year 2013.
Bon-Ton Stores enters Utah
New York — The Bon-Ton Stores has signed a lease with Rouse Properties for a new Herberger’s store at Cache Valley Mall in Logan, Utah — its first in the state.
The company expects to begin remodeling the 62,000-sq.-ft. facility in early spring 2014 and to be completed in the second half of 2014.
“We are excited to be entering both a new market and a new state through this latest transaction with Rouse Properties. We believe this is an attractive market for a Herberger’s store and will enhance the overall shopping experience for consumers in this market.”
The Herberger’s store, which will feature a full merchandise assortment, including home, will join J.C. Penney and T.J. Maxx as anchors at the center. In addition, Cache Valley Mall is also home to several specialty stores, including Aeropostale, American Eagle, Buckle, The Children’s Place, Rue21, Bath & Body Works and Justice.
The Bon-Ton Stores, Inc., with corporate headquarters in York, Pa., and Milwaukee, Wis., operates 272 department stores, which includes 10 furniture galleries, in 25 states in the Northeast, Midwest and upper Great Plains under the Bon-Ton, Bergner’s, Boston Store, Carson’s, Elder-Beerman, Herberger’s and Younkers nameplates. The department stores offer a broad assortment of national and private brand fashion apparel and accessories for women, men and children, as well as cosmetics and home furnishings.
Penney names Saks CEO Stephen Sadove to board
Plano, Texas — J.C. Penney Co. announced that departing Saks Inc. CEO and chairman Stephen Sadove has been elected to its board of directors.
Sadove’s election is effective upon his leaving Saks, which will occur once the acquisition of the upscale department store by Hudson’s Bay Company is completed, which is expected by the end of the year.
Sadove is a highly regarded industry veteran. He is the current chairman of the National Retail Federation.
Penney also announced that Geraldine Laybourne is stepping down from the board to focus more time as chairman of Kandu, a startup tech company for kids.