Ross controls costs in Q1
Dublin, Calif. – By controlling inventory and expenses, Ross Stores Inc. was able to report a 4% increase in net income during the first quarter of fiscal 2014 despite bad weather and other negative factors. Net income totaled $243.9 million, up from $234.6 million in the same period the prior year.
First quarter 2014 sales increased 6% to $2.68 billion, up from $2.54 billion in first quarter 2013. Same-store sales rose 1%. Ross Stores expects same-store sales to grow 1%-2% during the second quarter of fiscal 2014.
"First quarter earnings per share performed at the high end of our guidance as strict inventory and expense controls offset the impact from unfavorable weather and a more challenging retail environment,” said Michael Balmuth, vice chairman and CEO, Ross Stores. “Sales trends improved in April with more seasonal spring weather that coincided with the later Easter shopping period.”
Report: CVS considering Brazil drugstore purchase
Woonsocket, R.I. – CVS Caremark is reportedly considering a purchase of Brazilian drugstore chain Drogarias Pacheco São Paulo (DPSP) as it looks to further expand its presence in Brazil, according to news reports.
Following the alleged rejection of its first offer of 4.5 billion Brazilian reais ($2 billion), CVS is reportedly looking to possibly make another offer, the Wall Street Journal reported, citing the local newspaper Valor Economico. DPSP has reportedly set a minimum price for the company at BRL5.9 billion.
CVS spokesperson Mike DeAngelis told Drug Store News that the company does “not comment on market rumors.”
In 2013, the retailer acquired privately held Brazilian drugstore chain Onofre, the eighth-largest drug chain in Brazil, marking its foray into the international drugstore space.
During CVS’ Annual Shareholder Meeting earlier this month, CVS Caremark president and CEO Larry Merlo said of the Onofre acquisition that the company has several pilots underway that are “going well,” and he sees opportunity for further growth within Brazil’s highly fragmented market.
CVS Caremark Corp. is reportedly considering a purchase of Brazilian drugstore chain Drogarias Pacheco São Paulo (DPSP). According to the Wall Street Journal, CVS has already had a $2.5 billion purchase offer rejected by DPSP, but may make a second offer.
Unconfirmed reports indicate DPSP has set a minimum purchase price of about $2.65 billion. CVS already owns a controlling stake in Brazilian drugstore retailer Drogaria Onofre.
Foot Locker has active Q1
New York – Foot Locker Inc. had a successful first quarter of fiscal 2014, with rising sales driving solid net income performance. Net income grew 17% to $162 million, from $138 million in the first quarter of fiscal 2013.
Net sales rose 14% to $1.87 billion, from $1.64 billion. Same-store sales climbed 7.6%.
"We are off to a great start in 2014, with our first quarter results representing the highest quarterly sales and profits in our history as an athletic company, for the third consecutive year," said Ken C. Hicks, chairman of the board and CEO. "Every person in our company is playing an important role in producing our current strong performance, bringing passion, energy, and excellence to the execution of our strategies and initiatives as we work towards the achievement of our long-term financial and operational objectives."