Sears Holdings 3Q Profit Plunges 99%
Hoffman Estates, Ill., Sears Holdings Corp. reported a 99% drop in third-quarter profit Thursday on weak sales at its Sears and Kmart department stores and continuing investment losses under hedge-fund manager chairman Eddie Lampert.
It was the worst quarter since Lampert formed the company by combining Sears and Kmart in March 2005, heightening questions among investors about Lampert’s strategy for reviving two faded chains, according to a report by Reuters.
The company, which earlier this week said it may buy out the rest of retailer Restoration Hardware Inc., reported net income declined to $2 million from $196 million a year ago when results were padded by $64 million in investment gains.
Sales for the quarter ended Nov. 3 slipped 3% to $11.5 billion from $11.9 billion in the fiscal 2006 period. Meanwhile, same-store sales decreased 4.2% for the quarter at Sears stores and 5% at Kmart, with notable declines in clothing, and lawn and garden at both
“We are very disappointed in our performance for the third quarter. We cannot blame our results entirely on the retail and macro-economic environments. We have much on which to improve and are working hard to do so,” said Aylwin Lewis, Sears Holdings’ CEO and president.
Sears also warned it expects difficult economic conditions to persist in the near-term, with sales and gross margin likely continuing to be pressured through the rest of the year.
Dress Barn reports 3% 1Q comps decline
SUFFERN, N.Y. Dress Barn Tuesday reported that total net sales for the first quarter of fiscal year 2008 were $363.7 million, an increase of 1.5% over $358.4 million for the same quarter a year ago. According to the company, the increase in net sales resulted from the opening of new stores, partially offset by a same-store sales decline of 3%.
Net earnings for the first fiscal quarter decreased to $19.6 million from $27.4 million for the same period of the prior year. Diluted earnings per share for the first quarter were 30 cents versus 40 cents per share in the same period of fiscal 2007.
Hy-Vee teams up with Crown Poly
DES MOINES, Ia. Grocery retailer Hy-Vee is making environmentally conscious decisions by reducing plastic bag use.
According to reports, the company has partnered with California-based Crown Poly to offer the Hippo Sak front-end bagging system.
Hippo Sak is a patented, reinforced, bottom seal T-shirt bag, which can carry over 26 one-pound cans without breaking or tearing holes at the bottom. The bags can hold 10-12 items per bag compared to the current national average of 3.4 items, and can replace upward to three current plastic bags.
Hippo Sak achieved an annualized reduction in bag use of over 25%.