Sears launches promotional Web series
Hoffman Estates, Ill. – Sears, Roebuck and Co. is launching a new promotional Web series starting reality TV stars Sean and Catherine Lowe and Sears celebrity designer Ty Pennington. Customers and Shop Your Way loyalty members will be asked to design the patio of the couple’s new home via this Web series from Sears outdoor living.
The promotion includes an online hub where consumers can watch all eight episodes and vote for the patio and grill products they think best suit Sean and Catherine’s needs, enter the sweepstakes to win Shop Your Way points and outdoor living products, and learn about other Sears outdoor living products and features.
Michaels Q1 sales up
New York — Michaels posted increases on both net and same-stores sales for the first quarter.
Net sales increased 5.9% to $1.05 billion from $993 million during last year’s first quarter. Comparable store sales increased 3.8% driven by a 2.4% increase in the company’s average ticket, a 1.3% increase in transactions and a 10 basis point positive impact from deferred custom framing revenue.
Gross profit for the quarter increased 4.9% to $429 million from $409 million during last year’s first quarter. Gross profit as a percent of net sales decreased approximately 40 basis points to 40.8%. This decrease was driven by increased freight and distribution costs, higher remodel costs and lower merchandise margin.
Net income for the quarter increased 21.7% to $56 million and increased approximately 70 basis points as a percent of net sales to 5.3%.
During the quarter, the company opened eight and relocated five Michaels stores and closed three Aaron Brothers stores. The company operated 27 net new Michaels and Aaron Brothers stores in the past 12 months. The company now operates a total of 1,262 stores including 1,144 Michaels stores and 118 Aaron Brothers stores.
Target Q1 profit down 16% amid breach costs, Canada troubles
Minneapolis — Target Corp. posted a 16% drop in first quarter earnings as costs related to its data breach and the company’s troubled Canadian operations continue to take a toll on its overall performance. The retailer also cut its annual profit forecast and released a second quarter projection below Street expectations. On a positive note, Target’s same-store sales metric improved from the last quarter.
Target earned $418 million in the quarter ended May 3, down from $498 million in the year-ago period. Revenue rose 2.1% to $17.1 billion. Target’s Canadian operations had sales of $393 million, up from $86 million last year.
Same-store sales edged down 0.3%, better then the 2.4% drop in the chain’s fourth quarter.
Target said it incurred $26 million in costs related to the breach. Approximately $8 million of those costs were covered by insurance.
“While we are pleased with this momentum, we need to move more quickly,” said Target president and interim CEO John mulligan. “As a result, we have made changes to our management team and are investing additional resources to drive U.S. traffic and sales, improve our Canadian operations and advance our ongoing digital transformation. We have updated our 2014 earnings expectations to reflect the impact of these investments and believe that they position Target for accelerated profitable growth as a leading omnichannel retailer.”
On Tuesday, Target made changes to its management team and replaced the head of its Canadian operations.