Gordman’s Stores reports lower net income
Omaha, Neb. – Gordman’s Stores reported declining net income even as net income grew in the third quarter of fiscal 2013. Net income for the third quarter of fiscal 2013 was $1.1 million, down 72.5% from net income of $4 million in the third quarter of the prior year.
Meanwhile, net sales grew 5.8% to $151.3 million from $143.1 million. A same-store sales decrease of 6.1%, as well as an increase in sales, general and administrative costs, may have negatively impacted net income. During the quarter, Gordman’s opened three new stores in two new markets and one existing market.
For the fourth quarter of fiscal year 2013, the company currently expects net sales to be between $204 and $206 million, which reflects a mid-single digit same-store sales decrease. For the fiscal year 2013, the company expects net sales to be between $623 million and $625 million, which reflect a mid-single digit same-store sales decrease.
"Third quarter net sales in total were in line with expectations, driven by the 10 new stores that we opened throughout the first nine months of the year,” said Jeff Gordman, president and CEO. “While same-store sales for the third quarter were below expectations, trends improved in October, with same-store sales even with that of a year ago. This improvement was primarily attributable to the initiatives we put into place in the first nine months of the year, including the implementation of our marketing and merchandising strategies as well as the rollout of our loyalty program. Moreover, we were aggressive with our markdown cadence during the quarter in our ongoing efforts to position our inventory levels ahead of the critical holiday selling season."
Starbucks prices $750 million of senior notes
Seattle – Starbucks has priced an underwritten public offering of senior notes. The company plans to use the net proceeds from the offering of $400 million of 0.875% senior notes due 2016 and $350 million of 2.000% senior notes due 2018 to fund a portion of the payment required by the previously announced arbitration award in the Kraft litigation matter.
The remaining net proceeds from this offering will be used for general corporate purposes, which may include business expansion, payment of cash dividends on Starbucks common stock, the repurchase of common stock under the company’s ongoing share repurchase program, or financing of possible acquisitions. The offering of the notes is expected to close on Dec. 5, 2013, subject to customary closing conditions.
BofA Merrill Lynch, J.P. Morgan and Morgan Stanley are serving as the joint book-running managers of the offering. The offering is being made under an automatic shelf registration statement on Form S-3 filed with the Securities and Exchange Commission (SEC) on September 3, 2013.
Study: Millennial, Boomer shoppers have similarities
New York — There are significant similarities between Millennial and Boomer shoppers. A study of Millennial and Boomer purchasing trends conducted by Radius Global Market Research shows that while there are certainly differences, there are also significant similarities between the groups.
Top Similarities: Millennials versus Boomers
New media and technology are not just for the young. An overwhelming number of both Millennials (90%) and Boomers (86%) routinely research products online. Boomers and Millennials are both engaging via social media at healthy rates. Female Boomers and Millennials use Facebook at a nearly identical rate (90%). And streaming movies and television programming is a reality for both Millennials (77%) and Boomers (40%).
Millennials and Boomers have similar concerns when making purchases. Both focus primarily on quality or price/value, depending on the category.
Millennials and Boomers have the same habits when it comes to where they shop. Retail is the prominent channel for buying most everyday packaged goods, apparel, and electronics.
Top Differences: Millennials versus Boomers
Millennial consumers are more optimistic. They have a more favorable outlook on the economy (71%) and were more apt to maintain/increase spending during the recession (55%).
Millennials and Boomers have different buying priorities. Millennials place travel and apparel as their top two priorities for increased spending in 2014. Boomers are more focused on "necessities" like packaged foods and insurance.
Boomers and Millennials access product information differently. While product research via PC is high with both groups, 60% of Millennials research via smart phone (versus only 14% of Boomers). Boomers are twice as likely (at 38%) to research in newspapers or magazines.
Word-of-mouth sways Millennials. The younger consumers rank word-of-mouth most influential as they make purchase decisions across all categories. Boomers tend to rely on advertising and advice from sales reps.
"While it is beneficial to understand the similarities and differences between generational groups, it is also important for marketers to look beyond these over-arching categories," said Radius GMR senior VP Lesley Brooks. "Nuances such as gender require at least as much attention when it comes to engaging both Boomers and Millennials."