News

Staples meets Street with Q2 profit decline
Framingham, Mass. – Staples Inc. met Wall Street expectations with declining profit in the second quarter of fiscal 2015. Costs related to restructuring and the pending acquisition of Office Depot drove net income down 56% to $36 million, from $82 million in the second quarter of the previous fiscal year.

Net sales fell 5% to $4.94 billion, from $5.22 billion. North American store closures and unfavorable foreign exchange rates pushed sales totals downward. Same-store sales in North America (including online) fell 3%.
Lowe’s under on profit, over on revenue in Q2; plans 15-20 new stores
Mooresville, N.C. – Lowe’s Companies Inc. missed Wall Street expectations for profit but beat the Street with revenue in a mixed second quarter of fiscal 2015. Net earnings totaled $1.13 billion, up 8% from $1.04 billion the same quarter a year earlier.

Lowe’s achieved its lower-than-expected profit increase by limiting growth of costs and expenses while beating expectations with net sales of $17.35 billion, up 4% from $16.6 billion. Same-store sales increased 4.3%.

American Eagle soars past Street in Q2

Pittsburgh – American Eagle Outfitters Inc. flew high in the second quarter of fiscal 2015, surpassing Wall Street expectations for profit and revenue. AEO reported net income of $33.26 million, an almost six-fold increase from $5.81 million in the prior year period.

The growth pace of cost of sales and expenses was slower than that of sales, helping AEO report such a dramatic rise in profit. Operating income also significantly improved. Total net revenue increased 12% to $797 million from $711 million, aided by an 11% jump in same-store sales.
Michaels partners with DIY marketplace

Irving, Texas – The Michaels Companies Inc. is partnering with trend-driven online DIY marketplace Darby Smart in September to bring select Michaels products to Darby Smart. The partnership will also bring Darby Smart products and community members to Michaels.
Magento expands cloud analytics access

King of Prussia, Pa. - Magento, the e-commerce platform provider that is a division of eBay Enterprise, is partnering with New Relic Inc., is releasing an extension for the New Relic Software Analytics Cloud. The extension is designed to provide customers with a deeper understanding of their applications’ performance and customer engagement activities.
Target trumps Wal-Mart with Q2 success

Minneapolis – Target Corp. exceeded Wall Street projections with net earnings of $753 million in the second quarter of fiscal 2015, a 221% increase from $234 million the same period the prior fiscal year. Declining selling, general and administrative (SG&A) expenses and loss from discontinued operations helped boost profits as sales climbed.

Target reported net sales of $17.4 billion, up 2.8% over the same period last year.
Lowe's still no match for Home Depot

Lowe’s was hoping not to be outshined by Home Depot’s strong financial results, but hopes turned into missed opportunities Wednesday as Lowe's reported disappointing profit growth.

For the second quarter ended July 31, Lowe’s had earnings of $1.13 billion, up from $1.04 billion in the same quarter last year. On a diluted basis, earnings were $1.20 a share, 4 cents below analysts’ estimates. Home Depot reported a much higher profit on Tuesday.
Target trumps Walmart in 2Q

Target’s better than expected second quarter profits, same store sales, rate of e-commerce growth and an increased full year forecast stood in sharp contrast to the disappointing results Walmart reported a day earlier.
Can the Office Depot deal save Staples?

Staples says the $6.3 billion deal to buy rival Office Depot is still on track despite the retailer’s deepening sales declines in the second quarter.
Former Walmart exec joins Alibaba board

Veteran finance executive and former top Walmart executive Wan Ling Martello has joined the board of directors of Alibaba as the Chinese e-commerce giant eyes growth in the U.S.
American Eagle is back in fashion with teens

While Abercrombie & Fitch and Aeropostale continue to struggle against sharp sales declines, American Eagle has managed to win back shoppers, if its second quarter results are any indication.
Gas grills and fertilizer propel True Value sales

True Value's transformation strategy seems to be resonating with shoppers, as the hardware cooperative posted an increase in revenue and sales growth.

The company reported gross billings of $573.6 million for the quarter ended July 4, up 1% from the same period a year ago. Revenue was $431.9 million, an increase of 0.6% or $2.4 million. The cooperative posted a quarterly net margin of $9.3 million.