Home Depot net income rises in Q1, misses estimates
Atlanta – Severe weather dampened net income and sales growth at The Home Depot during the first quarter of fiscal 2014, causing increases in those figures to fall short of Wall Street estimates. Net income improved 17% to $1.4 billion from $1.2 billion.
Total sales for the first quarter of fiscal 2014 were $19.7 billion, a 2.9% increase from $19.2 billion in the first quarter of fiscal 2013. Same-store sales for the first quarter of fiscal 2014 were up 2.6%. Frank Blake, chairman and CEO of Home Depot, cited the negative impact of the weather on growth in the quarter, especially on early spring sales.
"The first quarter was impacted by a slow start to the spring selling season,” said Blake. “But we had solid results in non-weather impacted markets and expect our sales for the year to grow in line with the guidance we previously provided," said Blake. "I would like to thank our associates for their hard work and dedication."
The company reaffirmed that it expects fiscal 2014 sales will be up approximately 4.8% from fiscal 2013.
Genco Marketplace appoints new operations chief
Product lifecyle and reverse logistics leader Genco has appointed Jeremy Witte as chief operating officer for its wholly owned subsidiary, Genco Marketplace.
"Jeremy joins Genco Marketplace at a time of many exciting changes in our business, with our customers and throughout our industry," said Laurie Barkman, president and CEO of Genco Marketplace. "He brings a unique combination of analytics and innovation acumen as we seek to advance technologies and expand operations within the industry. His experience and knowledge aligns well with our vision to be the leader in multi-channel liquidation fulfillment."
"Retail. Reverse Logistics. Technology. All are things I am extremely passionate about," said Witte. "I am deeply honored to join Genco Marketplace, the undisputed leader in this industry and excited to lead the operations and technology teams. I’ve seen many companies in this business — vendors, customers and partners alike. Genco is one of a kind and I am thrilled to be a part of it."
Witte has more than 10 years of experience in operations, technology and retail. He most recently served as CEO for Elovations Services Group, where he launched operations supporting the global shipping program of the world’s largest online auction platform. Witte brings retail and reverse logistics experience from industry leaders Walmart and Amazon.com. He began his career as a commissioned officer in the U.S. Army, serving in leadership roles in light-cavalry and infantry organizations with two combat deployments.
Falling sales cause Staples earnings to tumble
Framingham, Mass. – Staples Inc. attributed a 44% drop in net earnings during the first quarter of fiscal 2014 to lower sales caused by store closures and a rise in the value of the dollar. Net earnings of $96 million were 44% below net earnings of $170 million reported a year earlier.
Net sales dropped 3% to $5.65 billion from $5.81 billion. Staples said about 1% of that decline was caused by 16 North American store closures and fluctuations in foreign exchange rates. For second quarter 2014, the company expects sales to decrease versus second quarter 2013.
“We’re making progress meeting the changing needs of our customers as we reinvent Staples,” said Ron Sargent, Staples’ chairman and CEO. “Despite a slow start to the first quarter, our results were in line with our expectations and we expect to build momentum throughout 2014.”