Monday Afternoon Earnings Roundup
•Freeport, Maine-based L.L. Bean announced annual net sales of $1.4 billion for the 2004 fiscal year ended Feb. 27, which is a 9% increase over 2003 net sales of $1.3 billion. In addition, comp-store sales increased 7% over 2003.
The company plans to convert a factory store in New Hampshire to a retail store this year, and also intends to open two new stores in 2006, and three stores in 2007. The new stores all are planned for the New England/mid-Atlantic region.
•San Francisco-based Dick’s Sporting Goods reported net income for the year ended Jan. 29, 2005, was $75.1 million, or $1.42 per share, compared to net income of $50.7 million, or $1.01 per share, for the 2004 fiscal year. Total sales for the year increased 43% to $2.1 billion, while comp-store sales increased 2.6%. For the fourth quarter ended Jan. 29, Dick’s reported net income of $39.9 million, or 75? a share, compared to $26 million, or 50? per share, for the same period in 2004. Net sales increased to $788 million from $474.4 million. Fourth-quarter net earnings were bolstered by Dick’s July 2004 acquisition of Galyan’s Trading Co.
•Hudson, Ohio-based Jo-Ann Stores reported that net income for the year ended Jan. 29 increased 15.2% to $46.2 million, compared to $40.1 million in fiscal 2004. Net sales for the fiscal year increased 4.5% to $1.81 billion from $1.7 billion in 2004. Comp-store sales increased 3.2%. For the fourth quarter, Jo-Ann reported net income of $32.4 million, compared to $26.7 million in the prior year. Fourth-quarter net sales increased 6.4% to $588.2 million from $552.6 million a year ago. Jo-Ann Stores, which ended the year with 851 stores, expects to open about 40 superstores this year and close about 50 traditional units.
BI-LO and Bruno’s Cut Back Stores
New York City, Weighed down by pressure from Wal-Mart Stores and Publix Super Markets, Bruno’s Supermarkets plans to close 20 stores in March. Of the 20 stores on the list for closure, 13 are in Alabama, four are in Georgia, two are in Florida and one is in Mississippi. The company said the cutbacks allow the chain to weed out underperforming stores and improve its focus on more profitable markets. Demographic shifts and traffic patterns also factored into the decision.
BI-LO, which operates 282 supermarkets in the Carolinas, Georgia and Tennessee, on Tuesday announced plans to close nine of its locations.
The two chains were purchased by Lone Star Funds, a Dallas-based private investor, in a $660 million deal late last year. The two grocery chains, which combined have more than 400 stores in the Southeast, plan to merge their operations as BI-LO Holdings LLC, and relocate Bruno’s corporate offices to Mauldin, S.C.
Wal-Mart Contributes to College Fund
Bentonville, Ark., Wal-Mart Stores provided an award of $1.5 million to the United Negro College Fund (UNCF) that includes a $1 million grant to establish the Wal-Mart Emergency Assistance Fund and $500,000 in operating support for UNCF member schools.