Stride Rite to open in China
Topeka, Kan. — Collective Brands, parent company to Payless ShoeSource and Stride Rite, said Tuesday it is planning to take its Stride Rite children’s shoe brand to mainland China next year.
According to Bloomberg, the company is teaming up with Li & Fung Retailing and will also open stores in Hong Kong, Malaysia and Singapore starting in December, according to Matthew Rubel, CEO of Collective Brands.
The retailer is entering China with a “prestige” brand to meet demand from a growing middle class, according to Rubel.
The company has not identified number of stores at this time.
Saks profit surges in Q3
New York City — Saks reported Tuesday that its net income rose to $36.3 million for the quarter ended Oct. 30, up from $6.3 million in the year-ago period. Third-quarter 2010 results were helped by a surge in luxury spending and a $26.7 million gain related to income tax reversals.
Revenues rose to $658.8 million for the quarter, compared with $631.4 million the prior year. Same-store sales increased 5.7%.
“We feel much better about the overall tone of business and the way our customers are responding to our initiatives," said Steve Sadove, CEO, in a statement, while acknowledging the economic recovery remains tentative.
Saks’ flagship store on Manhattan’s Fifth Avenue, which accounts for about 10% of chainwide sales, produced strong results in the third quarter, boosted by spending by tourists and Wall Streeters.
The company currently operates 47 Saks Fifth Avenue stores, 58 Off 5th stores, and saks.com.
Sales and profits up at TJX
Framingham, Mass. — The TJX Cos.’ fiscal third-quarter earnings rose 7%, topping its own forecasts, as the discount retailer’s sales improved.
The company reported a better-than-expected profit of $372.3 million, up from $347.8 million in the year-ago period. Net sales rose 5% to $5.53 billion, from $5.24 billion. Same-store sales increased 1%.
"We were able to sustain last year’s significant increase in profit margin by continuing to run our business with lean inventories, which has led to additional improvement in merchandise margins," said president and CEO Carol Meyrowitz said. "Customer traffic continued to be up over large increases last year despite warm weather in September and October, which dampened demand for cold weather apparel."
TJX operates 919 T.J. Maxx, 832 Marshalls, 336 HomeGoods, and 161 A.J. Wright stores in the United States. In Canada, the company operates 212 Winners, 82 HomeSense and 3 Stylesense stores, and in Europe, 304 T.K. Maxx and 24 HomeSense stores.