Party City Corp. 2Q Profit Falls
Rockaway, N.J., Party City Corp.’ second-quarter profit fell on lower sales and higher costs for investments in merchandising and logistics, sharply missing Wall Street estimates.
For the three months ended Jan. 1, net income fell to $14.7 million, or 74? a share, down from $19.3 million, of 98? a share, a year ago. Revenue fell to $174.3 million from $182.6 million. General and administrative expenses rose to $10.7 million from $7.5 million. The company said it expects to benefit from its investments beginning in the fourth quarter.
Same-store sales at company-owned stores dropped 5.6% during the quarter, while franchise stores posted a 2.8% decline. Total chain net sales fell 3% to $356.8 million.
Carrefour CEO Ousted in Shakeup
New York City, Carrefour today removed chairman and CEO Daniel Bernard, who led the company for 13 years and faced pressure to boost the chain’s French mega stores. The company appointed Luc Vandevelde, former head of Marks & Spencer, as non-executive chairman. Also departing during a management shakeup was Joel Saveuse, who has been Carrefour’s head of European operations for less than two months.
Tractor Supply Shows Strong Q4 Growth
Brentwood, Tenn., Tractor Supply Co.’s net income for the fourth quarter ended Dec. 25 increased 32% to $22.3 million. Net sales for the quarter increased 17.4% to $456 million from $388.5 million last year. Same-store sales increased 7.7% vs. last year’s 9.6% gain.
“We are optimistic about 2005,” said president and CEO Jim Wright. “We are taking actions that we believe will support our growth, including continuing to invest in distribution capacity and systems, and executing our store rollout plan.”
For the fiscal year, net sales increased 18.1% to $1,738.8 million and same-store sales increased 9.9%. Net income for fiscal 2004 increased 15.8% to $65.4 million.