GNC net income slips in Q2
Pittsburgh – Net income at GNC Holdings Inc. slipped during the second quarter of fiscal 2014, falling 2% to $69.89 billion from $71.69 billion in the prior year period. For second quarter 2014, the company reported consolidated revenue of $675.2 million, a decrease of 0.2% as compared to consolidated revenue of $676.3 million for second quarter 2013.
Same-store sales in domestic corporate stores fell 4%. GNC cited factors including traffic challenges, slower industry growth, dependence on bundled promotions and lack of product innovation for its performance. For the full fiscal year, GNC expects flat revenue growth.
Almost half of U.K. online shoppers make international purchases
London – Almost half (48%) of U.K. online shoppers have made an online purchase with a retailer based outside the U.K. According to the latest eCustomerServiceIndex (eCSI) results from EDigitalResearch and IMRG, 60% of the respondents who have shopped cross-border said that they choose to purchase with a retailer outside of the U.K. because of better prices, while another 60% said that they made the purchase because they couldn’t get the product they wanted in the U.K.
Another 18% stated their purchase decision was driven by better products on offer. Clothing, footwear and jewelry are the most popular items with British online shoppers to purchase from a retailer aboard, followed by music, books and gifts. However, there is also an appetite for home and consumer electronics.
The results reveal that the majority of U.K. consumers spend up to $85 per transaction with international retailers. Two-thirds (64%) of cross-border shoppers who have purchased clothing, footwear or jewelry have spent up to $85 while a similar number (68%) have spent a similar amount with retailers outside the U.K. when purchasing gifts.
However, delivery charges and timescales still remain the biggest barriers for people purchasing overseas. Of those online consumers surveyed, all 2,000 feel that costly delivery charges could prevent them from making a purchase with a non-U.K. retailer, followed by 85% who could be put off by long delivery timescales and 79% who have concerns around security.
"Cross-border shopping is not only a huge opportunity for U.K. retailers to expand their customer base and following across the globe, but can also be seen as a threat as more non-U.K. retailers look to enter the market,” said Derek Eccleston, commercial director at EDigitalResearch,. “Our results show that purchasing with international brands is mainly driven by price and product availability, and therefore U.K. retailers need to ensure that they offer an exceptional customer experience to all customers around the world to encourage individuals to spend their hard earned cash with them."
Tile Shop net income falls in Q2
Minneapolis – Tile Shop Holdings Inc. reported a 38% dip in net income during the second quarter of fiscal 2014 compared to the same period a year earlier. Net income fell to $3.96 billion from $6.48 billion, with Tile Shop citing adverse macroeconomic conditions, including home sales, as having a generally negative impact on the business.
Net sales rose 15% to $66.7 million for the quarter compared with $58.1 million, largely driven by sales from stores not included in the same-store sales base. Same-store sales increased 0.3%. For the full fiscal year, Tile Shop expects same-store sales to range from flat to a single-digit increase.