Stein Mart revises 3Q loss after inventory error
Jacksonville, Fla. –Stein Mart Inc. on Thursday said it has had to revise its Q3 financial results, because it mishandled records related to a pending changeover in its electronic inventory system. The computer error led the retailer to miss recording permanent markdowns for the quarter ended Oct. 29.
The adjustment, which will reduce gross margin and inventory, will widen Stein Mart’s third-quarter loss by $1.3-$1.6 million. The retailer had reported a loss of $1.8 million for the period.
Wal-Mart files plan to sell Walton-controlled shares
Bentonville, Ark. –A Friday report by Reuters said that Wal-Mart Stores Inc. disclosed an agreement Thursday to sell more than 70 million shares by a firm controlled by members of the founding Walton family.
Walton Enterprises LLC, controlled by S. Robson Walton, Alice L. Walton, Jim C. Walton and the John T. Walton Estate Trust, registered for sale 70,615,608 shares of company stock. That represents about 2% of Wal-Mart’s outstanding shares.
The 70.6 million shares were registered on behalf of several Walton charitable trusts. The stock will be re-sold by these trusts periodically through the end of 2017.
The descendants of Wal-Mart founder Sam Walton currently own about 49% of the company. These sales will reduce that stake by about two percentage points.
However, Wal-Mart is in the midst of share buyback program, so it’s unclear what portion of the company the Waltons will end up owning after the share sales are completed.
Duckwall-ALCO swings to profit in Q3 with one-time gain
Abilene, Kan. –Duckwall-ALCO Stores reported Friday that it recorded a profit of $0.1 million in the quarter ended Oct. 30, compared with a loss of $2.1 million in the year-ago period.
Sales increased 3.6% to $109.8 million, and same-store sales excluding fuel centers increased 2.7%.
During the third quarter, the company received an insurance settlement for damage sustained during the second quarter of fiscal 2012, due to wind and hail, which led to a one-time gain of $2.3 million. Without the gain, net loss for the third quarter was $1.3 million.