International Business

By Stephen Springham, senior retail analyst Planet Retail
 
After the horror show of Q1, Walmart had so much to prove domestically in Q2. And it has again come up short. A U.S. comp store decline of 0.3% was below earlier management of a 0.2% decline, guidance that was endorsed as recently as the Annual Shareholder Meeting in June. This marks the second quarter that U.S. comps have been both in negative territory and below guidance. Those accusing Walmart of ‘crying wolf’ in its bullishness (ourselves included) may feel vindicated.

Bentonville, Ark. -- Wal-Mart Stores lowered its full year profit forecast early Thursday after reporting weaker that expected second quarter U.S. same-store sales at its U.S. division and suggested global economic conditions remain challenging.

Walmart lowered its full year profit forecast early Thursday after reporting weaker that expected second quarter same store sales at its U.S. division and suggested global economic conditions remain challenging.

Total company net sales increased 2.8% to $116.7 billion on a constant currency basis and profits increased 1.3% to $4.1 billion while earnings per share grew 5.1% to $1.24. That was a penny below the consensus forecast of analysts, although earnings per share included a charge related to international operations that reduced earnings by a penny.

EAST RUTHERFORD, N.J. — Kid Brands, Inc. has appointed Jodie Simon Friedman as the company’s VP, general counsel and corporate secretary. She replaces Marc Goldfarb, who resigned his position as general counsel and corporate secretary to pursue other opportunities. 

Goldfarb has agreed to remain available to the company as a consultant providing legal services.

HERSHEY, Pa. — The Hershey Company has appointed Mary Kay Haben to its board of directors. 

“Mary Kay is a seasoned leader who brings a great wealth of relevant food and confectionery experience to her role as a member of the Hershey board,” said James Nevels, chairman of the board of directors. “She is an accomplished executive with extensive experience managing businesses in the consumer packaged goods industry and has an impressive track record in growing brands and developing new products.”

Canton, Mass. -- Dunkin' Donuts announced the signing of a multi-unit store development agreement with existing franchise group Travel Mart for seven new restaurants in La Crosse and Eau Claire, Wis.

The first restaurant is planned to open in 2014 and the remainder by 2020.

New York -- Swedish retailer Ikea has bought a wind farm in Ireland to power its furniture stores in Dublin and Belfast, according to a report by the Belfast Telegraph.

The Irish facility’s four turbines are expected to generate 25,000 megawatt-hours (MWh) of electricity and bring the total number of Ikea-owned windmills to more than 100 in the U.K., Germany, France, Poland, Denmark and Sweden.

New York -- Canadian home-improvement retailer Rona reported a loss of $136.5 million for the second quarter, compared with a profit of $36.9 million a year earlier, hurt by restructuring costs and tightened market conditions.

According to a report by Reuters, Rona revenue fell 4.6% to $1.21 billion, and same-store sales dipped 1%. Analysts expected revenue of $1.35 billion.

Wayne, N.J. – Toys “R” Us on Wednesday unveiled its global growth for 2013, with the planned opening of more than 100 stores, including new locations, the relocation and conversion of 14 stores to its side-by-side format, and 22 new licensed stores. The openings represent the net addition of over 900,000 sq. ft. of retail space to the company’s store portfolio.