Kroger Q2 profit rises 14%
Cincinnati — The Kroger C0.’s second-quarter net income rose 14%, helped by lower charges and increased revenue. The supermarket company also lifted the low end of its fiscal 2013 outlook for a key revenue metric.
"Kroger’s strong second quarter results have us on target to deliver the earnings per share growth we promised for the year," said David B. Dillon, Kroger’s chairman and CEO.
Kroger earned $317 million for the quarter ended Aug. 17, up from $279 million last year, topping estimates.
The latest quarter included an accounting-related charge of $13 million, compared with a $35 million charge in the prior-year period.
Revenue increased 5% to a better-than-expected $22.72 billion from $21.73 billion, topping Wall Street’s estimate of $22.69 billion.
The Men’s Wearhouse Q2 down 28%; lowers full-year view
Fremont, Calif. — The Men’s Wearhouse Inc.’s fiscal second-quarter earnings fell 28% amid several one-time charges and a shift in quarterly tuxedo rental revenues. Citing macroeconomic challenges, the company lowered its fiscal 2013 guidance.
For the quarter ended Aug. 3, Men’s Wearhouse reported a profit of $42.9 million, down from $59.4 million last year. Total net sales dropped 2.3% to $647.3 million. Retail segment sales for the quarter decreased by 1.9% or $11.2 million and corporate apparel sales decreased by 6.6% or $3.8 million as compared to the prior year quarter.
Doug Ewert, Men’s Wearhouse president and CEO, commented: “Retail clothing sales during the second quarter were below our internal plan as we experienced a decline in customer traffic compared to last year’s second quarter. We believe this is primarily due to macro issues affecting the apparel retailing space.”
Report: Twitter, tablets gain importance in e-commerce
Conshohocken, Pa. — Twitter and tablets are quickly rising in importance to retailers’ e-commerce efforts, while email is losing steam. According to the second quarter 2013 Monetate E-commerce Quarterly, Twitter experienced the fastest growth among all social networks in referrals to e-commerce sites, moving from 5.4% of social referrals in second quarter 2012 to 9.64% in second quarter 2013 – a 77% gain.
The numbers show Facebook is still the dominant social force in e-commerce with 61.43% of social media referrals to websites in second quarter 2013, up from 56.89% the previous year. Pinterest continues to expand its role, moving from 14.47% to 21.87% in the same interval.
In addition, mobile is expanding its device share of e-commerce traffic, moving from 15.2% in second quarter 2012 to 22.13% in second quarter 2013. Within that share, tablets represent 12.44% of mobile traffic and smartphones hold a 9.69% share. A year earlier, smartphones were slightly more popular as e-commerce devices.
Meanwhile, both referral traffic and conversion rates to e-commerce websites from email decreased since last year. Referral traffic dropped from 3.75% in the second quarter of 2012 to 2.36% in second quarter 2013, while conversions slipped from 3.56% to 3.34% in the same interval.
Interestingly, average order value from email increased during that time, from $89.43 in second quarter 2012 to $99.93 in second quarter 2013.