Financial Reports: School Specialty, Tiffany, Too

Net Income Up 13% at School Specialty

Though the economic and funding environment in certain states has resulted in margin pressure, educational products supplier School Specialty (Nasdaq: SCHS) managed to report gains on both sides of the ledger. Quarterly revenue for the Greenville, WI-based company, which mails the Sax Arts & Crafts, Childcraft, ABC School Supply, Frey Scientific, Brodhead Garrett, Teacher’s Video, Premier Agendas, and Sportime titles, rose 2%, to $304.4 million from $298.0 million last year. Net income for the fiscal first quarter increased 13%, to $27.1 million from $24.0 million a year ago.

Direct Marketing Sales Shine at Tiffany Jewelry and upscale gifts cataloger/retailer Tiffany & Co. (NYSE: TIF) reported second-quarter gains in each of its distribution channels. Direct marketing sales, which includes corporate sales, increased 13%, to $43.9 million for the three months ended July 31. Combined Internet/catalog sales rose 21% , while business sales rose 2% in the quarter. U.S. retail sales increased 18%, to $442.5 million. Total second-quarter net sales for the New York-based company increased 18%, to $442.5 million from $374.4 last year. Second-quarter net earnings increased 26%, to $41.1 million from $32.7 million last year. Earnings benefited from the sales increase, an improved expense ratio, and a lower tax rate.

Too Posts 2Q Loss New Albany, OH-based Too (NYSE: TOO) reported slower sales and a loss for the second quarter. For the three months ended Aug. 2, the cataloger/retailer of apparel for tween girls lost $3.8 million on sales of $134.8 million. For the comparable quarter of last year, Too had netted $5.5 million on sales of $141.2 million. The company said that it recorded a slightly higher initial markup for the second quarter, but the heavy markdown rate necessary to clear spring carryover apparel pushed down the latest quarter’s gross income rate as a percentage of sales.