News

Advance Auto Parts demonstrated strength in its second quarter performance in one of the retail industry’s hottest sectors.

Bentonville, Ark. – Consolidated net income at Wal-Mart Stores Inc. grew 0.6% to $4.1 billion in the second quarter of fiscal 2014 from $4.07 billion in the second quarter of fiscal 2013, with factors including incremental e-commerce investments and healthcare costs dampening profit growth. Wal-Mart cut its profit forecast for the full year as a result.

Overall second quarter performance at Wal-Mart was sluggish. Net sales rose 3% to $119.3 billion from $116.1 billion. Currency exchange rate fluctuations negatively impacted net sales performance.

Loblaw has appointed Pavi Binning, George Weston Limited president, as a director on the company’s board.

Binning has been a director of George Weston Limited since 2012. He joined the company in 2010 as CFO after spending a year as a director of Loblaw Companies Limited. Prior to joining Weston, Binning was at Nortel Networks Corporation, where he held the role of CFO and subsequently chief restructuring officer. Prior to that, Binning held CFO positions at both Hanson plc and Marconi Corporation plc, as well as executive positions at Diageo plc.

Menomonee Falls, Wis. – Kohl’s Corp. had a relatively flat second quarter of fiscal 2014 compared to the same period the previous year. Net income slightly rose to $232 million from $231 million, while sales fell 1% to $4.24 billion from $4.28 billion.

Same-store sales dropped 1.1%, although Kohl’s said they turned positive in July. Kohl’s plans to open four new stores in fall 2014, including one store which was temporarily closed in the first quarter for a complete re-build.

Walmart met low second quarter sales and profit expectations it set for itself but significantly lowered its full year outlook due to a tepid third quarter sales forecast and increased e-commerce and health care costs.

Nordstrom’s second quarter earnings were in line with its expectations. The results come two weeks after the company said it was acquiring Trunk Club, a men’s personalized clothing service, for $350 million.

Profit for the quarter remained flat compared to last year’s second quarter at $183 million. Net sales for the quarter were $3.3 billion, a 6.2% increase from $3.1 billion in the prior-year quarter. Comparable sales increased 3.3%.

Roanoke, Va. -- Advance Auto Parts beat Wall Street projections with a 19% profit increase in the second quarter – from $116.9 million last year to $139.5 million.

The acquisition of General Parts drove sales up 52%, to $2.35 billion, from $1.55 billion in the same quarter last year. Wall Street anticipated $2.32 billion.

"We remain on pace against our base business expectations, integration milestones and with our financial performance,” said Advance CEO Darren Jackson.

In the alternative universe where Amazon resides, surging expenses that eat into the company’s profitability are viewed favorably. If Walmart were afforded the same treatment its stock would have surged after it was revealed increased labor, health care and e-commerce costs eroded second quarter profits.