OfficeMax swings to loss in Q2, more closures planned
Naperville, Ill. — OfficeMax reported Tuesday that it swung to a loss of $3.02 million in the quarter ended June 25, compared with net income of $11.8 million in the year-ago period.
Total sales dipped 0.3% to $1.648 billion from $1.653 billion, but beat Wall Street expectations of $1.63 billion. In the retail segment, sales decreased 0.7% to $767.3 million from $772.7 million. Same-store sales dipped 0.5%, but results were helped somewhat by stronger same-store sales in Mexico.
“We remain focused on executing the fundamentals better, enhancing the management team and improving the operations of the business," commented Ravi Saligram, president and CEO.
During the quarter, OfficeMax closed eight stores in the Unite States. This year, plans call for one store opening and as many as 20 store closures in the United States, and eight to 10 store openings in Mexico.
Coach posts 4% profit rise in Q4
New York City — Coach reported Tuesday that net income for the fourth quarter rose 4% to $202.5 million, compared with $195.5 million in the year-ago period.
Revenue surged 9% to $1.03 billion, edging Wall Street estimates. Same-store sales rose 10.1% in North America.
Coach’s performance is in line with overall strength in the luxury category. During the recessionary onslaught, the company pushed sales of handbags priced under $300, but said its average retail price of handbags is now inching back up.
For the year, net income rose 20% to $880.8 million. Revenue rose 15% to $4.16 billion.
Wall Street, however, isn’t responding as positively to the results, as analysts say they have come to expect outperformance by the retailer.
Subway opens 600 new locations over three months
Milford, Conn. — Subway Restaurants said Monday that its franchisees have opened nearly 600 new locations in 48 countries, 42 U.S. states and seven Canadian provinces over the past three months, bringing the total of new Subway restaurants to just over 1,200 for the year so far.
The new restaurants account for 1.4 million sq. ft. of retail space.
According to the company, milestones for the period include reaching more than 600 locations in Brazil, 300 locations in Oregon, 200 in Russia and the very first Subway restaurant in Liechtenstein.