Business Analytics

An LED upgrade has added to Rosenberg True Value Hardware’s to bottom line profitably.     The retailer, who operates two True Value stores in Michigan (in the towns of White Cloud and Grant), switched out the existing T8 fluorescent lamps in the stores in favor of 18-watt, 2200 lumen, 4000K, four-ft. T8 LED linear tubes (from EarthTronics, Muskegon, Michigan).   

After four consecutive quarters of year-over-year earnings decline, DSW Inc. got back on track in its third quarter.   The footwear and accessories retailer had adjusted net income of $42 million, or 51 cents per diluted share, a 16% year-over-year improvement and 3 cents above estimates.  

Dollar Tree on Tuesday reported a third-quarter profit that more than doubled compared to last year amid lower merchandise and freight costs. The retailer also lifted its guidance for the fourth quarter.    Dollar Tree’s net income for the quarter, ended Oct. 29, rose to a better-than-expected $171.6 million, or 72 cents a share, up from $81.9 million, or 35 cents a share, in the year-ago period. The prior year included some charges and markdowns related to the Family Dollar business, which Dollar Tree acquired in 2015.

Cost cuts help improve Barnes & Noble’s profitability in the third quarter even as its sales continued to decline.    “While we are pleased to have improved our performance due to expense reductions, we did experience sluggish sales, which we believe are directly related to the election cycle,” said Len Riggio, chairman and CEO of Barnes & Noble. "With the election behind us, we hope and expect sales will improve over the holidays."  

Mid-America Asset Management has named Tracee Johnson senior asset manager, investing her with full responsibility for maintaining relationships with retail tenants.   Johnson, a 10-year veteran of Mid-America, will also be responsible for budgeting and operational planning and oversight of the more than 60 million sq. ft. of retail the company leases and manages throughout the Midwest.   Johnson is a licensed real estate broker in Illinois.

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Ace Hardware Corporation reported a sales miss in the third quarter -- even if the co-op wasn't expecting to match its impressive results in the prior-year quarter.   “The third quarter of last year was the best in company history, with revenues up 13.2% and net income up 45.3%,” said John Venhuizen, president and CEO. “As a result, our expectation for the third quarter of this year was modest sales growth and lower net income. We whiffed on sales, but exceeded our net income budget for our domestic business."

Best Buy Co.’s sales and profits in the third quarter topped forecasts, but the retailer warned that the recall of a Samsung smartphone is likely to impact its holiday sales.   Best Buy’s profit jumped 55% to $194 million, up from $125 million in the same period a year ago. Adjusted for one-time expenses, it earned 62 cents a share, which was higher than the 47 cents analysts were expecting.  

Sales were up in the third quarter, but Lowe’s Companies’ financial performance impressed neither its investors nor its CEO.   The home improvement retailer’s net income dropped dramatically, owing to $462 million non-cash pre-tax charges. Net income declined to $379 million, compared to $736 million in the same quarter last year.  

Improving traffic and sales, particularly in the digital channel, helped Target Corp. easily beat third-quarter profit expectations as the discounter raised its year-end outlook.    Target’s profit increased 10.7% to $608 million, or $1.07 cents a share, up from $549 million, or 88 cents a share, in the year-ago period. Adjusted for one-time expenses, it earned $1.04 cents a share, which was better than the 83 cents analysts had expected.