Matthews joins Children’s Place board
SECAUCUS, N.J. The Children’s Place Retail Stores announced the appointment of Norman Matthews to the company’s board of directors.
Matthews served as president of Federated Department Stores until his retirement in 1988. He joined Federated Department Stores in 1978 as chairman – Gold Circle Stores division.
“We are delighted that Norm Matthews is joining The Children’s Place board,” commented Sally Frame Kasaks, acting chair of the board and lead director. “His leadership acumen and industry experience will be invaluable as we navigate the Company through this difficult economic environment. We look forward to his advice and counsel.”
Costco sees sharp decline in 2Q profits
A combination of weak consumer demand and a strong dollar led to a significant decline in Costco’s second quarter profits, the company announced.
Sales dropped 1% to $16.5 billion from $16.6 billion, while net income declined 27% to $240 million, or 55 cents a share, from $328 million, or 74 cents a share. Total company same-store sales for the second quarter declined 3%, but increased 5% if the negative effects of foreign exchange rates and gasoline prices are excluded.
“Second quarter 2009 earnings results were negatively impacted by a variety of factors, primarily centered around overall weak economic conditions,” said Costco CFO Richard Galanti. “In particular, our quarterly results were hurt by the continued weakness in non-foods sales and related margins. Margins in foods and non-foods were also negatively affected by increased pre-holiday seasonal markdowns and other selective price reductions to drive sales and increase market share. In addition, results were hurt by lower year-over-year gasoline profits and lower reported international profits, the latter a result of the significant strengthening of the U.S. dollar when compared to the currencies of Canada, the United Kingdom, Korea and Mexico.”
Membership income did grow however, increasing to $355.6 million from $342.9 million.
The company also announced February sales results for the period ended March 1 that declined 1% to slightly more than $5 billion. February same-store sales declined 3%, consisting of flat sales domestically and a 15% decline internationally. Excluding the effect of gasoline deflation on domestic results, same-store sales at U.S. units increased 4%. Same-store sales internationally increased 8%, excluding the negative effect of exchange rates.
Costco operates 553 clubs, 406 of which are located in the United States and Puerto Rico. Internationally, the company operates 76 clubs in Canada, 31 in Mexico, eight in Japan, six in Korea and five in Taiwan. An additional 10 to 11 new clubs are expected to open by the end of the company’s fiscal year on Aug. 30.
Kmart launches multi-channel campaign partnership with WWE
HOFFMAN ESTATES, Ill. Kmart has partnered with World Wrestling Entertainment for a multi-channel entertainment marketing promotion supporting the 25th Anniversary of WrestleMania. The exclusive “WrestleMania Madness” is only at Kmart.
Kmart stores across the country will feature a front-end product boutique from March 8 to March 21 showcasing the best in WWE licensed products including apparel, toys, bedding, entertainment and gaming accessories. In addition, consumers who purchase $50 or more in WWE merchandise available in Kmart stores will receive $10 off their 25th Anniversary of WrestleMania pay-per-view buy.
Kmart’s promotion also includes a microsite, www.kmart.com/wwe ,Web banners and e-mail blasts. And, for the first time ever, Kmart will host Live Chats on March 9 and March 16 at 8:30 p.m. EDT with WWE Superstars. In addition, Kmart is supporting the promotion with a designated 25th Anniversary of WrestleMania circular spread, in-store radio and TV broadcasts, extensive in-store point-of-sale, including WWE Superstar hanging signs, security shrouds and shelf talkers.