Report: Consumer confidence drops to lowest level in a month
Washington, D.C. — A report released Thursday showed that consumer confidence fell last week to the lowest level in a month, negatively impacted by rising fuel prices.
The Bloomberg Consumer Comfort Index dropped to minus 44.5 in the week ended March 6, from the prior week’s minus 39.7, which was close to the highest in almost three years. Surging gas prices have left Americans concerned about personal finances.
“Rising gasoline prices extracted a toll,” Joseph Brusuelas, a senior economist at Bloomberg LP in New York City, told Bloomberg. “Those at the lower end of the income ladder and those in the middle are being squeezed by rising costs of fuel and food, which does not bode well for discretionary spending.”
Same-store sales gaining momentum
Speaking at the Raymond James and Associates investor conference earlier this week in Orlando, Sam’s Club president and CEO Brian Cornell reaffirmed that Sam’s would achieve its first-quarter sales plan that calls for comp growth in the range of 1% to 3%.
Cornell wasn’t sticking his neck out too far with that claim, as sales for all of February and early March were in the books at the time of his comments. However, if Sam’s wants to continue demonstrating the type of upward momentum achieved throughout 2010 it will need to come in at the high end of its guidance range. More specifically, Sam’s would need to achieve a gain of 2.7% or better, as that was the rate of same-store growth in the fourth quarter. That was on top of a 2.4% increase in the third quarter, a 1% increase in the second quarter and 0.7% in the first quarter.
Cornell contends Sam’s sales growth will come from a combination of remodeling, opening and expanding clubs, enhancing member value, leveraging insights and gaining market share from competitors. He talked about getting up everyday focused on direct competitors such as Costco and BJ’s, but added, “We also recognize that a significant amount of growth we are fighting for comes from the food, drug and mass channels.”
Aside from his comments about sales and trade channels that will serve as a source of market share gains, Cornell’s presentation was filled with generalities that would seem to be of little use to investors. He talked about how Sam’s understands who its member is and is focused on serving them category by category. He noted that technology will continue to play an important role in the future of retail and rising gas prices and a high unemployment rate are impacting the market.
The Buckle profit rises in Q4
Kearney, Neb. — The Buckle reported Thursday that net income for the quarter ended Jan. 29 rose to $49.5 million, compared with $42.1 million in the year-ago period.
Sales rose 10.4% to $303.1 million, from $274.4 million.
Same-store sales increased 6.3%.
For the full year, The Buckle reported that net income rose to $134.7 million from $127.3 million in 2009. Yearly sales increased 5.7% to $949.8 million, from $898.3 million. Same-store sales edged up 1.2%.