Overstock.com net income soars in Q4
Salt Lake City – Overstock.com reported substantial increases in net income during the full year and fourth quarter 2013. During the full fiscal year, net income jumped 503% to $88.5 million from $14.7 million the prior fiscal year.
During the fourth quarter, net income rose an ever larger 737% to $73.6 million from $8.8 million. Revenue increased 19% during the full fiscal year to $1.3 billion from $1.09 billion, and grew 16% to $397.6 million from $342 million during the fourth quarter.
The growth in full year net revenue was primarily due to an increase of 17% in average order size, from $135 to $158, coupled with a 2% increase in orders. The growth in fourth quarter net revenue was primarily due to an increase of 13% in average order size, from $132 to $149, coupled with a 3% increase in orders. The increases in average order size are largely due to a sales mix shift into home and garden products.
Hhgregg net income, sales plummet in Q3
Indianapolis – Hhgregg reported net income of $5 million during the third quarter of fiscal 2014, a 71% drop from $17.4 million in the same period the previous fiscal year. Net sales declined about 12%, from $799.6 million to $707 million.
Same-store sales decreased about 11%. Hhgregg cited the drop in same-store sales and shrinking gross margins for its steep decline in net income. Dennis May, president and CEO of Hhgregg, blamed poor electronics/computing sales and heavy promotions for the retailer’s overall disappointing performance.
“As previously reported, our sales of consumer electronics and computing and wireless products were significantly below our expectations during the quarter,” said May. “The broad distribution of these categories across a variety of retail formats combined with the intensely promotional environment led to a challenging operating environment for Hhgregg. While disappointed with the holiday industry trends, we took a balanced approach, choosing not to fully participate in the heavy promotional environment and proactively managing our inventory levels to match the product demand of our business.”
Destination Maternity net income rise, sales drop in Q1
Philadelphia – Destination Maternity reported improved net income but lower net sales during the first quarter of fiscal 2014 as compared to the same period a year earlier. Net income totaled $4.25 million, up 11% from $3.84 million the same period a year earlier.
However, net sales dipped slightly from $135.3 million to $134.8 million. Destination Maternity said the slight decrease in sales for the first quarter of fiscal 2014 compared to fiscal 2013 resulted primarily from decreased sales related to the company’s continued efforts to close underperforming stores, substantially offset by a 0.7% increase in same-store sales. The net sales of $134.8 million for the first quarter were slightly below the low end of the company’s guidance range of $135 to $139 million provided in November 2013.
Looking ahead, Destination Maternity forecasts net sales in the $539 million to $550 million range, representing a projected sales change of between a decrease of 0.2% and an increase of 1.8%, compared to fiscal 2013 net sales of $540.3 million. This sales guidance range is based on a projected same-store sales increase of between 1% and 3%
“Our sales for the quarter were somewhat weaker than planned, reflecting the continued challenging overall economic environment which affected many retailers in the recent holiday shopping season,” said Ed Krell, CEO. “Although our sales for the quarter were slightly below the low end of our expected sales range, it represents our sixth consecutive quarter of achieving a same-store sales increase, showing the continued progress we have made with our sales initiatives, while maintaining strong operational and expense discipline.