Financial reports: Staples, Henry Schein, and more

Quill Contributes to Staples’ Strong Year

Office products cataloger Quill Corp. continues to be the most profitable segment within the North American Delivery division of Staples (Nasdaq: SPLS). But the Framingham, MA-based office supplies marketer as a whole performed well in fiscal 2001. It posted net income of $306.9 million, up 17% from $261.2 million for fiscal 2000. Cost-cutting efforts and fewer special charges accounted for the improvement, despite nearly flat sales. For the 52 weeks ended Feb. 2, total sales were $10.74 billion. For the 53 weeks ended Feb. 3, 2001, sales were $10.67 billion.

The North American Delivery business (Quill, Staples Contract, and the Staples Website and catalog) contributed $3.01 billion in sales for the year, up 8% from $2.78 billion for fiscal 2000. The division’s net income for the year was $205.6 million, up 83% from $112.1 million the previous year.

Henry Schein Annual Income Up 25% Fourth-quarter earnings at medical, dental, and veterinary supplies cataloger Henry Schein (NasdaqNM: HSIC) rose 22%, and annual net income jumped 25%, as higher sales to physicians’ offices offset softness in the dental supplies segment.

For the year ended Dec. 29, the Melville, NY-based company posted net income of $87.4 million, compared with $70.1 million for 2000. Fourth-quarter earnings were $27.1 million, up from $22.2 million the previous year year.

Annual net sales climbed 8%, to $2.6 billion from $2.4 billion. Fourth-quarter revenue increased 7%, to $698.2 million from $655.6 million.

Tiffany Catalog Sales Up, Overall Sales Down New York-based Tiffany & Co. (NYSE: TIF) suffered a 4% drop in annual net sales and a 9% decline in annual net earnings. For the fiscal year ended Jan. 31, the jewelry and upscale gifts cataloger/retailer posted earnings of $173.6 million on net sales of nearly $1.61 billion. For the previous year, net earnings had been a record $190.6 million on record sales of $1.67 billion.

For the fourth quarter, net sales declined 2%, to $565.8 million. Net earnings also fell 2%, to $82.7 million.

Catalog and Internet sales actually increased, both for the fourth quarter (30%) and for the year (23%). But business sales fell 23% for the fourth quarter and 13% for the year. As a result, sales within what Tiffany calls its Direct Marketing division, which consists of catalog, Web, and business sales, rose only 2% for the fourth quarter, to $61.4 million, and 3% for the year, to $160.7 million.

Catalog Sales at Peet’s Coffee & Tea Up 11% Emeryville, CA–based Peet’s Coffee & Tea (Nasdaq: PEET) enjoyed an 11% rise in annual catalog and Internet sales, to $11.7 million for the year ended Dec. 30. Total net sales for the multichannel wholesaler/retailer rose 12%, to $94.4 million from $84.3 million the previous year. Net income was $1.2 million, a turnaround from the $2.3 million net loss posted in 2000. The company said the improvement was due to improved margin, leveraged operating efficiencies, and lower interest expense.

Record Year, 4Q for Chico’s Apparel cataloger/retailer Chico’ s FAS (NYSE: CHS) is on quite a run, establishing company records in both fourth-quarter and annual sales.

For the fiscal year ended Feb. 2, net income rose 49%, to $42.2 million from $28.4 million the previous year. Net sales increased 46%, to $378.1 million from $259.4 million. Catalog and Web sales skyrocketed 277%, to $10.2 million from $2.7 million.

Fourth-quarter net income rose 72%, to $9.8 million, while net sales climbed 39%, to $101.4 million. Catalog and Web sales increased 71%, to $2.9 million.

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