Lowe’s Q3 profit plummets 44% on store-closing charges
Mooresville, N.C. — Lowe’s Cos. reported Monday that net income for the quarter ended Oct. 28 dropped 44% as store-closing charges undercut a slight uptick in quarterly sales.
The home-improvement retailer reported net earnings of $225 million, compared with $404 million in the year-ago period. Charges related to store closures amounted to a pre-tax earnings reduction of $336 million.
Sales increased 2.3% to $11.9 billion, up from $11.6 billion a year earlier. Same-store sales edged up 0.7%, reversing declines in two prior quarters.
"Our performance is not at the level we expect relative to the market," said Robert A. Niblock, president and CEO. "We are making the changes necessary to right size the organization, improve speed to market and enhance the shopping experience.”
In an effort to improve profitability, Lowe’s is shutting 20 stores, slowing future openings and restructuring its store and merchandising organizations.
Walmart kicks off ’12 Days of Giving’ campaign
BENTONVILLE, Ark. — Walmart has launched a Facebook campaign that is looking to aid local organizations that are providing such basic needs as food, shelter, clothing and baby supplies to their respective communities.
The "12 Days of Giving" campaign invites Walmart Facebook fans to nominate local nonprofits now through Nov. 30. How it works: Visitors can nominate local organizations by submitting a 200-word description, which must include details of how the nonprofit impacts its local community. The description also must be accompanied by photos that illustrate how the nonprofit helps families make ends meet. The photos, Walmart said, will be featured in a gallery on the page that will highlight submissions throughout the campaign.
A panel from Walmart’s charitable arm, the Walmart Foundation, will review submissions and select the grant recipients, which will be announced on Facebook daily from Dec. 12 to Dec. 23.
"Many of our Facebook fans make charitable donations and talk with each other about special needs in their communities, especially during the holidays," Walmart senior director of social media Wanda Young said. "We wanted to go where these conversations are already happening and give users the opportunity to take the next step by nominating organizations they feel are providing especially critical services."
Office Depot names new international president
BOCA RATON, Fla. — Office Depot announced that Steve Schmidt has been named president international. Schmidt, who previously served as EVP corporate strategy and new business development, will continue to report to Neil Austrian, chairman and CEO of Office Depot.
Schmidt will oversee Office Depot’s multichannel (contract, direct and retail) international business that sells to customers directly or through affiliates in 56 countries outside of the U.S. and Canada.
“Steve’s diverse business experience and leadership skills will enable us to execute our portfolio optimization strategy, continue the progress we are making in terms of business restructuring and process improvement, and help us win small- and medium-sized business customers (SMBs) around the globe,” Austrian said. “With Steve at the helm, I am confident that the initiatives we have in place will drive sales, improve our overall cost structure, reduce G&A expenses, and increase shareholder returns – despite the extremely challenging business environment that we are facing in many parts of the world.”
Schmidt joined Office Depot in July 2007 as president North American business solutions division. Before Office Depot, Schmidt was with ACNielsen Corp., the world’s largest marketing information and research company, where he spent 12 years in senior management roles, including almost five years as president and CEO, with direct supervision of 115 countries. Prior to ACNielsen, Schmidt spent eight years at Pillsbury Food Company, serving as the company’s president of Canada and Southeast Asia. He also held management positions at PepsiCo and Procter & Gamble.
Schmidt is a graduate of Purdue University and holds a BA in Industrial Administration. He is a member of the boards of the Purdue Research Foundation and Krannert School of Management