Finance & Capital Management

Philadelphia -- Urban Outfitters reported Monday that profit for the quarter ended July 31 dropped 21% to $56.7 million, from $71.7 million a year earlier. The company blamed increased expenses related to investments in e-commerce, retail catalogs and technology for the performance slip.

The operator of Urban Outfitters, Anthropologie, Free People and Terrain clothing stores saw revenue rise 10% to $609.2 million, beating analysts’ expected $604.1 million.

Same-store sales slipped 2%.

 

Bentonville, Ark. -- Wal-Mart Stores reported Tuesday that profit for the quarter ended July 31 rose to $3.8 billion, up from $3.6 billion in the year-ago period. Overall revenue, up 5.4% to $109.37 billion, topped Wall Street’s expectations.

Yet, the world’s largest retailer is feeling the pinch from a tight economy that is slow to loosen. Wal-Mart U.S., the company's biggest unit, posted a 0.9% drop in same-store sales, the ninth consecutive quarterly drop and beneath analysts' estimates for a 0.6% fall.

MOORESVILLE, N.C. — Lowe’s reported sales of $14.5 billion in the second quarter ended July 29, up 1.3% from the same period a year ago.

Comparable-store sales increased 0.3% in the second quarter. The company posted earnings for the quarter of $830 million, down just slightly from $832 million in the same quarter last year.

IRVING, Texas  — Michaels Stores and procurement management firm announced on Friday a five-year agreement under which LogicSource will provide print procurement and related services to Michaels.

More than $250 million of print and promotional spend will be covered over the life of the contract.

Prior to beginning the relationship, LogicSource conducted a strategic analysis of Michaels’s print production ecosystem, from creative through to distribution, and developed a program designed for cost savings and operational enhancements.

Target is set to report second quarter earnings Wednesday morning, and let’s just say it would be a surprise if there were any surprises. The company is pretty thorough when it comes to managing investor expectations and provides commentary regarding whether analysts’ estimates are too high or too low.

That was the case at the end of the first quarter when the company indicated the then consensus estimate of $1 a share for the second quarter was too high, or as CFO Doug Scovanner indicated “above the midpoint of a reasonable range of likely outcomes.”

Target has a lot of things going right for it right now with some decent sales momentum and a mix of current and long term initiatives to drive growth. Even so, Target is in the same boat as other retailers who are posting solid profits, but doing so in an uncertain economic climate where fragile consumer confidence makes it hard to get to aggressive when it comes to forecasting future performance.

Mountain View, Calif. -- A Monday report by the Associated Press said that Google is acquiring cell phone maker Motorola Mobility Holdings for $12.5 billion in cash, a transaction that is Google’s biggest to date.

Google’s Android operating system runs smartphones that compete with iPhones, BlackBerrys and Windows-based mobile devices. Motorola Mobility was separated from the rest of Motorola in January, and has re-emerged as a maker of Android-based smartphones.

Seattle -- Cooking retailer Sur La Table said Monday it will open a flagship store in Hearst Tower, New York City, in late 2011.

The chain’s first NYC space opened in SoHo in 2005 and a second store in the Upper East Side opened in 2010.

The new store will include Sur La Table’s largest kitchen and cooking class program. Customers will be able to take cooking classes, as well as attend events with media partners and renowned chefs from around the world. Cooking classes are currently slated to start in early December.

Mooresville, N.C. -- Lowe’s Cos. reported Monday that profit for the quarter ended July 29 was $830 million, down from $832 million in the year-ago period. The home improvement retailer closed seven underperforming stores on Sunday and trimmed its earnings forecast for the year.

“Despite some recovery in our seasonal business, our performance for the quarter fell short of our expectations," said Robert A. Niblock, CEO.

Net sales edged up 1.3% to $14.5 billion; same-store sales dipped 0.3%.

SEATTLE — In another sign that the U.S. economy is affecting lower-income families more than those in higher earning brackets, luxury retailer Nordstrom reported a same-store sales increase of 7.3% for its second quarter and net sales of $2.72 billion, an increase of 12.4% compared with net sales of $2.42 billion for the same period last year.