Dick’s Sporting Goods revenues rise; not to Street expectations
Pittsburgh – Although Dick’s Sporting Goods reported a year-over-year increase in revenues for first quarter 2013, performance still fell short of Wall Street expectations. The sporting goods retailer reported first quarter revenues of $1.33 billion, a 4% increase from $1.28 billion. However, analysts expected revenues for the quarter to total $1.36 billion.
Net income grew 13%, from $57.2 million to $64.8 million.
“In the first quarter, we generated earnings in line with our original guidance, but were not pleased with our sales results, which came in below our expectations,” said Edward W. Stack, chairman and CEO.
Stack said Dick’s will focus on store remodeling, tighter inventory management and closer cooperation with golf vendors to boost near-term performance.
Net sales drive Urban Outfitters earnings
Philadelphia – Urban Outfitters, Inc. reported stronger than expected net sales, which drove a 39% increase in net earnings. The specialty retailer reported record total net sales of $648 million during first quarter fiscal 2014, up 14% from $568 million in the same quarter last year. Net earnings for the quarter were $47 million, higher than analyst expectations and up 39% from first quarter fiscal 2013.
CEO Richard A, Hayne credited direct-to-consumer sales as a major driver of Urban Outfitters’ successful quarter. "Our focus on the direct-to-consumer channel has paid off nicely and we plan to continue to make the investments necessary to support its robust growth," said Hayne.
This fiscal year, Urban Outfitters plans to open 35-40 new stores, including 16 Urban Outfitters stores, 14 Free People stores, nine Anthropologie stores. In the most recent quarter, the company opened five new domestic stores as well as one Canadian and one European location.
Best Buy reports net loss
Minneapolis – Best Buy reported a net loss of almost 10% for first quarter fiscal 2014, seeing its revenue drop from roughly $10.34 billion the prior year to $9.38 billion. Increased price competition and the closure of 49 large-format stores contributed to the electronics retailer’s decline in revenue. A shift in the Super Bowl, which typically drives TV sales, to the prior quarter and reduced non-core sales also impacted revenue.
Best Buy CEO Hubert Joly said that the retailer is already seeing benefits from its “Renew Blue” restructuring program, which eliminated $175 million during the most recent quarter in annualized costs through efficiency improvements and removal of management layers. Renew Blue has reduced annualized costs by a total of $350 million since its implementation last year, and Joly expects the savings to continue.
“Looking ahead, we remain focused on making progress on our Renew Blue priorities announced last November and reiterated in March,” said Joly. “During the second quarter, we will, in particular, complete the deployment of the Samsung Experience Shops and make significant progress in our efforts to optimize the allocation of our retail floor space to more attractive product categories, so as to increase revenue and operating profit per square foot.”