Earnings roundup: 'No quick fixes' as Penney's posts big 2nd-quarter loss

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Posted: Wednesday, August 21, 2013 12:00 am

NEW YORK (AP) — J.C. Penney Co. reported another big loss on a nearly 12 percent drop in revenue for the second quarter, underscoring big challenges the retailer is facing as it tries to recover from a botched transformation plan spearheaded by ousted CEO Ron Johnson.

The results, released Tuesday, mark the sixth straight quarter of big losses and steep revenue drops for the retailer.

CEO Mike Ullman was rehired in April to bring back frequent sales and basic merchandise that were eliminated by Johnson in a failed attempt to attract hipper, more affluent customers.

The Plano, Texas-based department store chain said it lost $586 million, or $2.66 per share, for the three months ended Aug. 3. That compares with a loss of $147million, or 67 cents per share, a year earlier.

Revenue reached $2.66 billion, down from $3.02 billion.

Analysts were expecting a $1.07-per-share loss on revenue of $2.77 billion.

Revenue at stores open at least a year dropped 11.9 percent, worse than the 8.3 percent analyst expected. That was on top of a 21.7 percent drop a year ago. However, the sales drop in the latest quarter is smaller than the 16.6 percent drop in the first quarter.

MINNEAPOLIS (AP) — Best Buy's net income rose sharply in the second quarter, as the struggling electronics retailer slashed costs and worked to make its website more competitive.

Notably, online sales rose 10.5 percent for the period. Meanwhile, revenue in stores open at least a year slipped 0.6 percent. But that slip is much better than the 3.3 percent decline last year at this time.

The company in the U.S. earned $266 million, or 77 cents per share, for the period ended Aug. 3. A year earlier it earned $12 million, or 4 cents per share.

Earnings were 32 cents per share excluding one-time items, much better than the 12 cents per share that analysts had been looking for, according to a poll by FactSet.

Revenue fell slightly to $9.3billion, from $9.34 billion last year. Analysts expected $9.13billion.

ATLANTA (AP) — Home Depot's second-quarter net income jumped 18 percent as surging home sales drove comparable-store sales up by double digits at home and abroad.

The nation's biggest home improvement retailer beat Wall Street expectations and it raised its full-year earnings and revenue expectations again.

For the three months ended Aug. 4, Home Depot Inc. earned $1.8billion, or $1.24 per share. That compares with $1.53 billion, or $1.01, a year ago.

Revenue for the Atlanta company climbed more than 9 percent to $22.52 billion, from $20.57billion.

NEW YORK (AP) — Barnes & Noble's first-quarter net loss more than doubled and the struggling bookseller's former chairman, Leonard Riggio, said he's calling off his offer to buy the bookseller's retail business.

The loss was larger than expected.

Barnes & Noble faces tough competition from discounters such as Amazon and a shift toward electronic readers. The company has invested heavily in making its Nook e-reader, but said earlier that it would stop making its Nook color touchscreen tablets because they failed to keep up with competitors. It continues to sell several other versions of the device.

The company's net loss for the three months ended July 27 totaled $87 million, or $1.56 per share. That compares with a loss of $39.8 million, or 76 cents per share, last year.

Excluding a noncash valuation allowance against some deferred tax assets, the loss totaled 86 cents per share.

Revenue fell nearly 9 percent to $1.33 billion from $1.45 billion last year.

© 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


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