Lower Gasoline Prices Impact Warehouse Clubs
New York City The falling price of gasoline in December impacted same-store sales for the month at both Costo Wholesale Corp. and BJ’s Wholesale Club.
Costco reported a 4% decline in same-store sales. However, excluding the impact of lower gas prices and currency fluctuations, U.S. same-store sales rose 2%, better than analysts had expected. International same-store sales excluding the impact of foreign exchange rose 9%.
BJ’s Wholesale Club Inc. said Thursday its same-store sales grew 1.6% in December as lower gasoline sales weighed on results. Excluding gas sales, same-store sales grew 5.9%, surpassing Wall Street’s expectations for 1.6% growth
For January, BJ’s expects to report a 6% increase in same-store sales, excluding gasoline sales.
Wal-Mart, Netflix accused of monopoly building
NEW YORK Wal-Mart Stores and Netflix have been accused of trying to build a monopoly for online DVD rentals in a consumer lawsuit filed Jan. 2 in the U.S. District Court of the Northern District of California, according to reports.
The plaintiffs claim that in 2005, Wal-Mart agreed to end its online rental business and refer customersto Netflix, which in turn agreed to promote Wal-Mart’s DVD movie sales.
Family Dollar posts 1Q earnings growth
MATTHEWS, N.C. Family Dollar Stores reported that net income per diluted share for the first quarter of fiscal 2009 increased 13.5% to 42 cents compared with 37 cents for the first quarter of fiscal 2008. Net income for the quarter increased 14.1% to $59.3 million compared with net income of $51.9 million for the first quarter of fiscal 2008.
As previously reported, sales for the first quarter of fiscal 2009 were approximately $1.754 billion, or 4.2% above sales of approximately $1.683 billion for the first quarter of fiscal 2008. Comparable-store sales increased 2.1%.
For the fiscal year ending August 29, 2009, the company expects net sales will increase 4% to 6% and expects comparable-store sales will increase 2% to 4%. Anticipating continued strong sales of consumable merchandise, the company expects earnings per share will be between $1.63 and $1.81 in fiscal 2009.