Target’s 2Q Profit Drops 7.6%
New York City Target Corp. posted a 7.6% drop in second-quarter profit Tuesday as its customers focused on necessities and had trouble making their monthly credit-card payments.
The company also said it had seen an erratic start to the back-to-school season and that it would open new stores at a slower pace in fiscal 2009 amid the uncertain economy.
Target said it earned $634 million for the three-month period ended Aug. 2, down from $686 million a year earlier. Sales grew 5.7% to $15 billion from $14.2 billion. Same-store sales slipped 0.4%.
“The customer is very cash-strapped right now and in some ways, our greatest strength (has) become somewhat of a challenge,” Target’s president and CEO Gregg Steinhafel told investors during a conference call. “During these tough times, some of our consumers don’t want to be tempted as much as they have in the past.”
Linens ‘N Things earns vendor support
CLIFTON, N.J. Linens ‘N Things announced that it has obtained the support of many key vendors for its Trade Vendor Payment Program, approved by the United States Bankruptcy Court for the District of Delaware last month.
Springs Global US, the Yankee Candle Company, Croscill Home Fashions, and M. Block & Sons, four major suppliers of merchandise to the company, have now agreed to participate in the Trade Credit Program, which provides letters of credit of up to $100 million. The company has agreed to limit participation in the Vendor Program to $100 million. To date, over 40 vendors have signed up for the Vendor Program.
“We are very appreciative of the widespread support shown by our vendors as we progress with our restructuring and head into the busy fall shopping season,” said Michael Gries, chief restructuring officer and interim ceo. “The Trade Vendor Payment Program is critical to maintaining positive relationships with the trade community, as we provide our customers with the wide assortment and depth of quality merchandise they expect from Linens ‘N Things.”
Jones promotes Friedman to ceo, company-owned footwear and apparel
NEW YORK Jones Apparel Group announced that Jay Friedman has been promoted to ceo of company-owned retail footwear and apparel. Friedman, who previously served as president of company-owned retail footwear and apparel, will continue to report to Andrew Cohen, ceo of footwear, accessories and retail.
Cohen said, “Under Jay’s leadership, the team has implemented a number of initiatives to improve the performance of the retail chain, including enhancing merchandise assortments throughout our stores and remodeling and refreshing our store environments to enhance the consumer’s overall shopping experience. I congratulate him on this well-deserved promotion.”