Financial Reports: Staples, Victoria’s Secret, Bluefly

Big 4Q, Year for Staples
Fourth-quarter sales for Framingham, MA-based catalog/retailer Staples grew 18%, to $5.3 billion for the three months ended Feb. 3. Fourth-quarter sales from its North American Delivery Business, which includes the Staples and Quill catalog and online businesses as well as the Staples contract delivery business, rose 24%. North American retail sales increased 14%, and same-store sales rose 5%. Fourth-quarter net income climbed 24%, to $336 million.

For fiscal 2006, revenue rose 13%, to $18.2 billion. Sales for its North American Delivery Business increased 19%. North American retail sales jumped 10%. E-commerce sales rose 28%, to $4.9 billion. And net income increased 24%, to $974 million.

Victoria’s Secret Direct Sales Up for 4Q, Full Year
Fourth-quarter sales for Victoria’s Secret Direct, the catalog/Web division of Columbus, OH-based Limited Brands, increased 18%, to $492.0 million for the 14 weeks ended Feb. 3. Limited Brands’ total sales for the fourth quarter of fiscal 2006 were $4.02 billion, up 14% from $3.54 billion. Net income fell 15%, however, to $439.7 million from $519.2 million.

For the year, Limited Brands’ net income slipped 1%, to $675.7 million from $683.3 million. Net sales increased 10%, to $10.67 billion. For fiscal 2006, Victoria’s Secret Direct sales rose 15.5%, to $1.41 billion from $1.22 billion. In addition to the Victoria’s Secret catalogs, Website, and stores, Limited Brands owns retailers Express, Bath & Body Works, and Henri Bendel.

Revenue Climbs at Bluefly—As Does Net Loss
Fourth-quarter sales at New York-based Bluefly, an online merchant of discounted designer apparel and decor, rose 28%, to $27.1 million for the three months ended Dec. 31. During the same period, however, the company’s net loss reached $3.5 million, compared with a net loss of just $55,000 the previous fourth quarter.

For fiscal 2006, sales increased approximately 31%, to $77.1 million from $58.8 million. But the company’s net loss more than tripled, to $12.2 million from $3.8 million in fiscal 2005.

Nonetheless, Bluefly CEO Melissa Payner was upbeat in a statement: “We are pleased by the company’s record revenue for the year. Our strong growth in the face of slow cold-weather product sales throughout the industry is a testament to our continued progress and to the investment we have made in growing our customer file through our increased marketing efforts.”

Partner Content

The Gift of Wow: Preparing your store for the holiday season - Netsuite
Being prepared for the holiday rush used to mean stocking shelves and making sure your associates were ready for the long hours. But the digital revolution has changed everything, most importantly, customer expectations. Retailers with a physical store presence should be asking themselves—what am I doing to wow the customer?
3 Critical Components to Achieving the Perfect Order - NetSuite
Explore the 3 critical components to delivering the perfect order.
Streamlining Unified Commerce Complexity - NetSuite
Explore how consolidating multiple systems through a cloud-based commerce platform provides a seamless experience for both you, and your customer.
Strategies for Maximizing Mobile Point-of-Sale Technology - NetSuite
Learn the top five innovative ways to utilize your mobile POS technology to drive customer engagement, increase sales and elevate your brand.