Dollar Tree 2Q Profit Falls, Full-Year Outlook Cut
Chesapeake, Va., Dollar Tree Stores Inc. saw an 8% decrease in its second-quarter profit. The company sited declining store traffic and an increase in merchandise costs as two main reasons for the fall in profit. Dollar Tree’s income for the quarter was $27.3 million, or 25? per share. Last year, income was $29.6 million, or 26? per share. Because of the decrease, Dollar Tree lowered its expectations for the year.
Net sales for the company were $769 million, up 9% from last year’s $704.2 million. Sales also were above analysts’ predictions of $764.1 million. Same-store sales decreased 1.5%. President and chief executive Bob Sasser said, “While we achieved sales within our most recent guidance, it is evident that our customers continue to feel the strain of rising fuel costs, and they are responding with fewer shopping trips.”
2Q Profit Up at Williams-Sonoma
Bentonville, Ark., Williams-Sonoma said quarterly profit rose nearly 12% on strong demand at its Pottery Barn and Pottery Barn Kids stores. Net revenues for the second quarter ended July 31, 2005, increased 12.6% over the second quarter of fiscal year 2004 to $776.2 million. Earnings rose to $30.8 million, or 26? a share, for the quarter, up from $27.6 million, or 23? a share, a year earlier.
Saks Department Store CEO Resigns
Birmingham, Ala., Saks Inc. announced the resignation of George Jones, president and CEO of the retailer’s Saks Department Store Group. The resignation is effective Sept. 30.
Replacing Jones effective Sept. 15 will be Toni Browning. Browning held the post of president and CEO of Saks’ Proffit’s/McRae’s unit, which was sold to Belk last month.