Havertys Annual Profit Falls
Atlanta Haverty Furniture Cos. reported an earnings plunge in 2007, hurt by weaker sales.
The Atlanta-based furniture retailer had a net income of $1.8 million on $784.6 million in sales, compared with a net income of $16 million on $859.1 million in sales in 2006.
“Early last month we announced that our fourth-quarter sales declined once again in an increasingly difficult macro environment,” said Clarence H. Smith, president and CEO. “We face a continued challenge to review all aspects of our business operations and have made good progress in several areas. Good reductions were shown in delivery and administrative expenses for both the quarter and year. Occupancy costs have risen as four new stores were opened during the year and two were relocated to better sites. Expenses for third-party credit promotions have grown as we outsourced a larger portion of financed sales and used more appealing and costly credit offerings.”
Havertys has 124 showrooms in 17 states in the South and Midwest.
Whole Foods reports 31.4% 1Q sales increase
AUSTIN, Texas Whole Foods Market today reported that first quarter sales 31.4% to approximately $2.5 billion. Comparable-store sales increased 9.3% on top of a 7% increase in the prior year. Identical-store sales, excluding five relocated stores and three major expansions, increased 7.1% on top of a 6.2% increase in the prior year.
According to Whole Foods, net income was approximately $39.1 million, and diluted earnings per share were 28 cents. The company estimates the negative impact on net income from Wild Oats was approximately $11.9 million, or 8 cents per diluted share, in the quarter.
“We realize there are a lot of questions out there about how a slowing economy might impact our sales. Historically, our sales have been highly resilient during economic downturns. We attribute our strong sales to many factors, including our loyal core customers and their dedication to a natural and organic lifestyle, our high percentage of perishable product sales, and our extensive selection of high-quality prepared foods that attracts customers trading down from restaurants,” said John Mackey, chairman, ceo, and co-founder of Whole Foods Market. “In addition, we sell a high percentage of relatively small-ticket items, and we are better positioned today than we ever have been from a value perspective. Given our prior experience, strong year-to-date comps, easier year-over-year comparisons, and the increased number of new stores entering the comp base, we are confident in reaffirming our comp guidance of 7.5% to 9.5% for the fiscal year.”
Safeway reports slight 4Q earnings drop
PLEASANTON, Calif. Safeway today reported that net income for its 2007 fourth quarter fell to 301.1 million from $307.9 million in the fourth quarter of 2006. Diluted earnings per share were 68 cents in the fourth quarter of 2007 compared to 69 cents in the fourth quarter of 2006. The company noted that diluted earnings per share in the fourth quarter of 2006 was increased by 8 cents due to various favorable tax items.
The company reported that total sales increased 6.8% to $13.4 billion in the fourth quarter of 2007 compared to $12.5 billion in the fourth quarter of 2006. Safeway said that contributions from Lifestyle stores, increased fuel sales and an increase in the Canadian dollar exchange rate drove this increase. Identical-store sales increased 4.4% in the fourth quarter of 2007. Excluding fuel, identical-store sales increased 2.7%.
“We are pleased with our performance in the fourth quarter of 2007,” said Steve Burd, chairman, president, and ceo. “Excluding the 8 cents tax benefit in the fourth quarter of 2006, our diluted earnings per share increased by 11.5%.”
Net income for the year 2007 was $888.4 million ($1.99 per diluted share) compared to $870.6 million ($1.94 per diluted share) in 2006. Sales increased 5.2% to $42.3 billion in 2007 from $40.2 billion in 2006 primarily because of Safeway’s marketing strategy, Lifestyle store execution, increased fuel sales and an increase in the Canadian dollar exchange rate. Identical-store sales, excluding fuel, increased 3.4%.
For the fiscal year 2008, Safeway expects diluted earnings per share to be in the range of $2.25 to $2.35 per share. Identical-store sales, excluding fuel, are expected to grow 3% to 3.2%.