Finance & Capital Management

Neither a surge in online sales nor a rebounding U.S. economy has been enough to lift Ikea, as the global furnishings retailer reported flat profits for 2014.

Ikea, which operates 315 stores in 27 countries, said net profit for its fiscal year through August rose 0.4% from the previous year to $3.76 billion, far slower than the 3% growth the retailer logged last year, and its 8% growth in 2012.

Analysts say the results show that IKEA is sticking to its strategy of lowering prices and broadening its e-commerce offering.

Camp Hill, Pa. – Same-store sales rose 4.8% in January 2015 compared to the same month a year earlier at Rite Aid Corp. Front-end same store sales increased 2.9% while same store pharmacy sales, which included negative impact from new generic introductions, increased 5.7%.

Total drugstore sales increased 4.3% to $2.03 billion compared to $1.943billion for the same period the prior year. Prescription sales accounted for 70.3% of drugstore sales.
 

Brentwood, Tenn. – Tractor Supply Company Inc. announced strong results for the fourth quarter of fiscal 2014, including a 17% year increase in net income. The retailer also said it will open 110 to 115 stores and build a new Southwest distribution center, in Casa Grande, Arizona, in fiscal 2015.

Tractor Supply’s net income rose to $112.1 million in the fourth, up from $95.9 million in the year ago period, fueled by the leveraging of store operating costs and reduced year-over-year incentive compensation expense.

Hangzhou, China – Although Alibaba Holding Group Inc. reported a healthy sales increase for the third quarter of fiscal 2015, it became a victim of its own expectations as it still missed on revenue projections and also reported declining profits. Net income totaled $964 million, a 28% drop from $1.36 billion in the same quarter a year earlier.

Gap Inc. has implemented yet another management shake-up, this time eliminating its creative director.

Rebecca Bay, whom the apparel retailer brought in from Hennes & Mauritz in September 2012 to help revive its namesake brand, has left the company.

The retailer also said that it has named Gap Inc. veteran Scott Key as general manager of customer experience, overseeing a newly created e-commerce and marketing organization, as the company aims to sharpen its focus on customers.

Tractor Supply pulled off double-digit sales growth for the fourth quarter and full year ended Dec. 27, 2014, a picture that CEO Greg Sandfort attributed to balanced progress.

Sluggish traffic and weak performance in the consumer electronics segment led Hhgregg to post a 6.3% drop in same store sales in the third quarter.

The retailer reported a loss in profits from the prior year period and missed Wall Street expectations for both profit and revenue. Hhgregg posted a net loss of $86.9 million, compared to net income of $5.05 million, which was a wider loss than projected by analysts.

San Francisco – Sabrina Simmons has been elected to the board of directors of Williams-Sonoma Inc. Simmons has served as executive VP, CFO of Gap Inc. since January 2008.