DSW shareholders approve split
Columbus, Ohio – On Oct. 14, 2013, shareholders of DSW Inc. approved a two-for-one stock split of DSW’s common shares, along with approving an increase in the number of Class A common shares authorized for issuance. The company plans to effect the stock split on Nov. 2, 2013, by filing an amendment to its articles of incorporation.
Each shareholder of record on the effective date will receive one additional Class A common share for each Class A and Class B common share then held, without any further action on the part of DSW’s shareholders. Shareholders do not need to exchange existing share certificates and will receive additional shares as a result of the stock split on Nov. 4, 2013.
Upon completion of the stock split, DSW will have approximately 90.4 million common shares outstanding, comprised of approximately 82.5 million Class A common shares and 7.9 million Class B common shares. The company will report its third quarter results and its prior year’s results on a split-adjusted basis.
Overstock.com’s Club O rewards program bolsters Q3 results
Overstock.com’s growing Club O rewards program helped to drive 18% revenue growth and $3.5 million in net income for the third quarter ended Sept. 30.
"In Club O, we built what we believe is the best, most generous loyalty program on the Internet, with free shipping, 5-25% rewards on products, and books priced at Amazon prices but with 15% rewards, all for $19.95 per year,” said chairman and CEO Patrick Byrne. “Our Club O customers are rewarding us with their business. In addition, with the opening of our new warehouse in Pennsylvania, we are now providing even faster delivery to our customers on the east coast."
The company reported total net revenue of $301.4 million for the quarter, an 18% increase from $255.4 million for the prior-year quarter. The growth in net revenue was primarily due to a 16% increase in average order size, from $147 in last year’s quarter to $170 in this quarter, coupled with a 2% increase in orders. Net income was $3.5 million for the quarter.
The company’s gross profit for the quarter was $59.2 million, a 27% jump from $46.5 million for the prior-year quarter, representing 19.6% of total net revenue for the period. The increase in gross profit was primarily due to higher revenue and a shift in product sales mix into higher margin home and garden products.
During this year’s third quarter, Google tested and later implemented changes to its search engine algorithms which reduced Overstock.com’s ranking in certain Google search results and slowed its revenue growth in the natural search channel. While the company worked on adapting to Google’s changes, it emphasized other marketing channels such as sponsored search, which experienced higher revenue growth but with higher marketing expenses as a percentage of revenue than for natural search.
NPD Group: Holiday shoppers to spend more; seek out deals
Port Washington, N.Y. — The majority of consumers intend to spend the same as or more than last year, with fewer saying they plan to spend less, according to The NPD Group’s Holiday Spending Survey, the twelfth annual survey of consumers’ holiday spending intentions.
“Consumers are feeling better about the economy compared to last year and they plan to take advantage of sales during key periods,” said Marshall Cohen, chief industry analyst, The NPD Group. “But this year’s holiday will be a tricky one for retailers. With fewer days between Thanksgiving and Christmas, Government distractions, and lack of newness in the marketplace, retailers will have to rely more on promotions to excite the consumer.”
Comparison shopping and comparing prices online remain consumers’ top pre-purchase actions. One-third of consumers plan to buy all of their holiday gifts on sale.
Overall, the holiday shopping season will get off to an earlier start compared to last year. According to the report, this year more consumers have already started, or will start shopping before Thanksgiving.
“Consumers who plan to shop early expect the retailers to respond with extended store hours, and better deals offered earlier,” said Cohen.
Consumers’ purchasing plans are similar to last year, with the same Top 10 items on their holiday shopping list.
“With no new trendy items besides some updated versions of the same hot products from past years, consumers will not shop with fear due to lack of inventory. The must-have items will also be available at a wider variety of retailers, minimizing the panic shopping of years past,” said Cohen.