Tesco Profit Rises 19%
London, Tesco PLC reported a 19% increase for the first half of its fiscal year on Tuesday as a strong performance outside Great Britain and growth in nonfood sales helped offset a slowdown in its core domestic market.
Tesco reported a net profit of 936 million pounds ($1.9 billion) for the 26 weeks ending Aug. 25, compared with 788 million pounds in the same period a year earlier. Revenue rose 9.1% at 22.6 billion pounds ($46.3 billion).
“We ended the first half strongly with good sales momentum and, with the launch of our Fresh & Easy stores on the West Coast of the United States now just a few weeks away, I am confident we will make further progress in the second half,” said CEO Terry Leahy.
The company plans to make its U.S. debut in November, opening a “significant number” of stores across the Los Angeles, Phoenix, Las Vegas and San Diego markets. It added that it already has a “substantial number of sites secured for next year and beyond, including a number of regeneration locations.”
Tesco expects the U.S. business to break even at the end of its second year of trading.
Walgreen’s 4Q Drops
CHICAGO One of the nation’s biggest drug store chain operators announced that its fourth-quarter profit dropped nearly 4%, according to Monday’s reports.
Walgreens explained that because of lower reimbursements for popular generic drugs and increased store and staff costs, their net income tumbled.
According to the company’s earnings report, total expenses increased by more than 11% to $12.8 billion, which chairman Jeffrey Rein said was out of line with reimbursements the company received. Prescription sales accounted for nearly two-thirds of the company’s business.
“Managing both expenses and lower reimbursements on some generic drugs is my top priority,” he said in a company release. “We’re going to fix this, and at the same time continue our aggressive growth plan.”
While company’s revenues rose more than 10% to $13.4 billion from $12.2 billion, its net income slipped to $396.5 million, compared to $412.3 million earnings at the same time last year.
For the year, the company said that its earnings increased by to $2.04 billion ($2.03 per share), compared with $1.75 billion ($1.72 per share).
Jonathan Adler creates giftware line for B&N
NEW YORK Barnes & Noble is teaming up with ceramist Jonathan Adler for a new collection this fall.
According to reports, the line will launch in 400 stores on Oct. 20, and will include items such as an umbrella, mug and a vase made exclusively for Barnes & Noble. The collection will range in price from $5.95 and $29.95.