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.
Dunkin’ Donuts to enter United Kingdom with 50 locations in five years
Canton, Mass. — Dunkin’ Donuts announced that it has signed agreements with two franchise groups to begin developing Dunkin’ Donuts restaurants in the United Kingdom. The two agreements call for the development of 50 Dunkin’ Donuts restaurants in Greater London over the next five years, with an initial focus on North London and East London.
"We feel there is significant opportunity for Dunkin’ Donuts in the U.K., and we have had a tremendous response from potential franchisees interested in developing the brand across the country," said Giorgio Minardi, president, Dunkin’ Brands International. "We are especially excited to begin the expansion of Dunkin’ Donuts into the U.K. with The Court Group and DDMG Ltd., two experienced franchisees who have a deep passion for the brand and a solid understanding of the local market. We look forward to working with them to make Dunkin’ Donuts’ high-quality beverages, baked goods and sandwiches part of the way of life in the U.K."
The chain is also in advanced discussions with additional franchise partners to help develop a total of 150 Dunkin’ Donuts restaurants in the U.K. over the next five years, which includes the two signed agreements.
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.”