News

Supreme Court rules healthcare mandate can stay; retailers upset

BY Katherine Boccaccio

New York — The U.S. Supreme Court has just ruled that, while the individual mandate to buy health insurance is unconstitutional, this key part of President Obama’s signature healthcare law can stay as part of Congress’s power under a taxing clause.

In other words, the Supreme Court says that the government will be allowed to tax people for not having health insurance.

“The Affordable Care Act’s requirement that certain individuals pay a financial penalty for not obtaining health insurance may reasonably characterized as a tax. Because the Constitution permits such a tax, it is not our role to forbid it, or to pass upon its wisdom or fairness,” the court said in the ruling.

In a just-released statement by the National Retail Federation, president and CEO Matthew Shay said that retailers are dismayed by the Supreme Court’s decision on the Affordable Care Act.

“The Court missed an opportunity to redress the many shortcomings of the law,” said Shay. “As it stands, the law wrongly focuses more on penalizing employers and the private sector than reducing health costs. This law will have a dramatic, negative impact on every employer and employee in the United States and further constrain job creation and economic growth.”

Shay added that the NRF will redouble its efforts to repeal the law.

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Family Dollar keeps delivering value for shareholders and consumers

BY CSA STAFF

MATTHEWS, N.C. — Dollar stores continue to thrive in this consumer-conscious economy, and Family Dollar is no exception.

The dollar store chain reported a total sales increase of 9.6% to $2.36 billion for the third quarter, compared with $2.15 billion for the same period last year. Same-store sales rose 5%, helped by increased customer traffic and strong performances in the seasonal, electronics and consumables categories.

The company reported net income for the third quarter increased 12.1% to $124.5 million compared with net income of $111.1 million for the third quarter of fiscal 2011. Net income per diluted share for the quarter increased 16.5% to $1.06 compared with 91 cents for the third quarter of fiscal 2011.

“Today, we reported another quarter of strong double-digit earnings growth. I am especially pleased that we delivered these record results even as we launched multiple initiatives late in the quarter to increase our relevancy to the customer and drive greater store productivity,” said Howard Levine, chairman and CEO.

During the first three quarters of fiscal 2012, the company opened 287 new stores, closed 43 stores and renovated, relocated or expanded 583 stores.

For the fourth quarter, Family Dollar expects that comparable-store sales will increase between 5% and 7% and that earnings per diluted share will be between 71 cents and 81 cents, compared with 66 cents in the fourth quarter of fiscal 2011.

For the full year, the company expects that earnings per diluted share will be between $3.60 and $3.70, compared with $3.12 in fiscal 2011.

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CEO and chairman resign from Jones Soda, CFO position cut

BY CSA STAFF

SEATTLE — William Meissner has resigned as CEO and board member of Jones Soda. Richard Eiswirth has also resigned as chairman of the board. Both resignations are effective Jne 30. Jennifer Cue will become the company’s CEO. Mick Fleming, long-standing board member, will assume the role of chairman of the board.

The company also announced the elimination of the CFO position effective June 30. Carrie Traner, VP finance and principal financial officer will assume . Stapleton’s duties.

Commenting on the change in management and strategic direction of the company, chairman Mick Fleming stated, “Our objective is to align the company’s cost structure with its operating resources and position the company for profitable revenue generation. Jennifer Cue, who previously served the company as COO and CFO, has the skills and passion to return the company to a financially sustainable positive cash flow position, and to build upon that. We are grateful for the contribution of Bill, Jim and Rick to Jones Soda. Each individual has worked incredibly hard to advance the Jones brand and the company. On behalf of the entire board, we wish them success in their future professional endeavors.”

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