NRF seeks to extend tax rule allowing retailers to depreciate store remodels
Washington, D.C. The National Retail Federation Wednesday asked the House to extend a tax rule that allows retailers to depreciate remodeling and other improvements to their stores over 15 years rather than the previous 39, saying the move would help save “critically needed” jobs.
“If the depreciation provision is not extended, the cost of making needed improvements to a retail store or restaurant must be written off over nearly four decades,” NRF senior VP Government Relations Steve Pfister said. “This would have a significant negative impact on a retailer’s decision to make improvements and in this economic climate could result in more store closures, costing retail industry jobs.”
With tax treatment often affecting the bottom line when businesses make spending decisions, Pfister said renewal of the 15-year period would “provide retailers, restaurateurs and myriad other industries the certainty needed to create critically needed jobs in this recovering economy.”
In addition to the retail jobs affected, the Bureau of Economic Analysis estimates that every $1 million spent in the construction industry creates more than 28 jobs in the overall economy.
Pfister’s comments came in a letter to members of the House, which is expected to vote this week on H.R. 4213, the American Jobs and Closing Tax Loopholes Act of 2010. The “tax extenders” bill would retroactively renew about 50 temporary-but-perennial tax provisions that expired at the end of 2009, keeping them in place through the end of 2010. The measure also deals with unemployment benefits, COBRA health benefits and other issues added since the original version of the bill was passed in December.
Included in the legislation is a provision that allows improvements to retail stores, restaurants and leased commercial property — along with new restaurant construction — to be depreciated over 15 years. The depreciation period was previously 39 years, but was reduced to 15 in 2004 for leased property and restaurants, and expanded in 2008 to include owned retail stores and new restaurant construction.
RadioShack extends partnership with Lance Armstrong
FORT WORTH, Texas RadioShack’s chairman and CEO Julian Day announced at the company’s annual meeting on May 24 that RadioShack has expanded its partnership with Lance Armstrong and the Livestrong foundation. The company said it will introduce exclusive Livestrong-branded products and accessories in all stores beginning in July.
DSW sees improved sales, earnings for Q1
COLUMBUS, Ohio DSW announced net income of $30.2 million on net sales of $449.5 million for the first quarter ended May 1, compared with net income of $7.1 million on net sales of $385.8 million for the first quarter ended May 2, 2009. Same-store sales increased 16.2% versus a decrease of 4.7% last year.
Diluted earnings per share were 67 cents for the first quarter of fiscal 2010 compared with diluted earnings per share of 16 cents last year.
The company reiterated its estimate of an increase in annual comparable-store sales of approximately 6% to 8% and annual diluted earnings per share of approximately $1.65 to $1.75 for fiscal 2010. The estimated year-over-year earnings increase is expected to occur in the first six months of fiscal 2010. The second half performance implied in the guidance recognizes the more challenging last year comparisons for both sales growth and merchandise margins.