Retailers Help With Relief Effort
New York City, The nation’s retailers are reaching out to help the victims of Hurricane Katrina. The Home Depot and The Home Depot Foundation have donated $1.5 million in cash to support the relief and rebuilding efforts of areas devastated by the storm. In addition, as part of the company’s community service program, Home Depot associates will contribute some 10,000 volunteer hours to recovery and rebuilding efforts. The home improvement retailer will support these efforts through an additional contribution of more than $200,000 in materials.
Other efforts include:
• Wal-Mart Stores made a $1 million donation to the Salvation Army and another $1 million to the American Red Cross. The chain is also donating truckloads of supplies to help in the affected areas and is encouraging shoppers to donate to emergency relief efforts through its stores.
• Lowe’s Cos. announced that stores nationwide will serve as official cash-donation sites to benefit the American Red Cross Disaster Relief Fund. Lowe’s will match in-store customer contributions up to $1 million. The chain is sending out hundreds of truckloads of emergency supplies for relief efforts along the Gulf Coast.
• Whole Foods Market is also matching customer donations to the Red Cross’ relief efforts, up to a total of $1 million. Shoppers can add the donation to their purchase at checkout. Other retailers donating funds to the American Red Cross and matching shoppers’ donations include Best Buy, The Kroger Co. and Food Lion.
• Pharmacy chains have also pledged aid. CVS and the CVS/pharmacy Charitable Trust will donate $250,000 in cash and $254,000 worth of supplies, including specially designed CVS/pharmacy Care Packages, to the American Red Cross for distribution to hurricane victims. Rite Aid will make a $250,000 donation to the Red Cross for relief efforts. Customers can donate funds to the same by purchasing $1 relief certificates at any Rite Aid store nationwide. All funds raised will be given to the American Red Cross to help the victims of the hurricane.
• PETCO Animal Supplies and the PETCO Foundation are conducting an emergency “round-up” fundraiser at PETCO stores nationwide to raise money for pets impacted by the hurricane. Customers are being asked to round up their purchases to the next highest dollar, with all proceeds going to the PETCO FOUNDATION, with the donations earmarked to support animal-welfare disaster-relief needs in the Gulf Coast region.
Michaels 2Q Profit Jumps
Irving, Texas, Michaels Stores Inc. posted a 15% gain in second-quarter profit. Net income rose to $30.8 million, or 22? a share, from $26.7 million, or 19? a share, a year ago. Sales rose 9% to $745.5 million from $682.9 million a year ago.
Same-store sales increased 4.2% in the quarter, driven by a 2.4% rise in the average ticket and a 1.4% gain in transactions. The best-selling departments were jewelry and beading, paper-crafting, foam and yarn.
The Finish Line Lowers 2Q Earnings Guidance
Indianapolis, The Finish Line Inc. reported net sales of $341.6 million in the second quarter, up 9% year-over-year, despite a 2% dip in same-store sales. The retailer also lowered its guidance on second-quarter diluted earnings to the range of 37?-to-39? per share. The retailer had previously projected the figure would come in between 48? and 50? per share.