Jos. A. Bank Clothiers Blames Catalog Shortfall on Web Cannibalization
Hampstead, MD-Mens’ apparel cataloger/retailer
Jos. A. Bank (Nasdaq: JOSB) says for the year ended Feb. 3, 2001, net income was $5 million compared to recurring income of $3.3 million for the year ended Jan. 29, 2000. Annual sales increased 6.6%, to $206.3 million, compared to $193.5 million in 1999. For the same period, comparable store sales increased 6.8%.
But while Internet sales increased 188%, catalog sales decreased 11.7%, which Jos. A Bank blames on cannibalization from the Internet. For the fourth quarter ended Feb. 3, total sales increased 14.5%, to $71 million, compared to $62 million in 1999. For the same period, comparable store sales increased 14.6%, Internet sales increased 157% and catalog sales decreased 14.1%.
Quarterly Earnings Up 12% at Lands’ End
Dodgeville, WI-Apparel giant Lands’ End (NYSE: LE) reported that total sales for the fourth quarter of fiscal 2001 were $538.6 million, up 11.5% from $483.1 million in the prior year. Net income for the quarter increased 12.3%, to $31.8 million, from $28.3 million a year ago. Annual sales increased 3.2%, to $1.462 billion from $1.417 billion in the prior year. Net income for the year was $34.7 million, down 27.8% from the $48 million earned in fiscal 2000.
Lands’ End says growth in its core business segment was led by the coed division, which grew by 23% in the fourth quarter and 16% for the year. It’s no surprise that Lands’ End Corporate Sales, which has had double-digit increases throughout the year and had sales of $170 million in fiscal 2001, was the strongest performer. During the fourth quarter, the Kids division had a low double-digit sales increase, and linens title Coming Home posted mid single digit sales growth, although both those business had a slow start in the beginning of the year. Sales in Germany and the U.K. improved in the fourth quarter, though overall performance in the international business segment was weak, mainly due to soft sales in Japan and currency issues.
Internet, Quill Catalog Strong for Staples
Framingham, MA-Office supplies cataloger Staples,/b>, (Nasdaq: SPLS) which mails the catalog, had sales of $10.7 billion in fiscal year 2000, up 19% from $8.9 million in fiscal 1999. The company’s net income was $59.7 million, down from $315 million, a drop Staples attributed to one-time charges.
While the company did not break out its sales among all channels, it noted that comparable sales among its retail stores grew 4%, while revenue at its online arm, Staples.com, grew by more than 500%, and its Quill catalog business had double-digit growth.
Gaiam Operating Income Doubles
Broomfield, CO-Gaiam (Nasdaq: GAIA) reported that annual sales for the period ending Dec. 31, increased 33%, to $60.6 million, from $45.7 million in the same period of 1999. For the fourth quarter ending Dec. 31, sales increased to $23 million from $17.9 million in the quarter last year.
Operating income for 2000 increased 108%, to $4.4 million, from $2.1 million during 1999. Operating income for the fourth quarter increased to $2.7 million, up from $1.9 million for the same period of 1999.
Gaiam is consolidating a majority of Real Goods’ operations, which it acquired on Jan. 29, into Gaiam’s established infrastructure. With the costs of consolidation, including the closing of parts of operations, and the expected cost savings of the combined operations, the transaction is expected to contribute approximately $10 million to 2001 revenue; it will be neutral to Gaiam’s 2001 earnings per share and accretive in 2002.
Proceeds from Land Deal Rescue Concepts Direct
Longmont, CO-Personalized paper and gifts marketer Concepts Direct, which mails the Colorful Images, Linda Anderson, Linda Anderson Collectibles, Snoopy, and The Music Stand catalogs, (Nasdaq: CDIR) posted net income of $3.7 million for the quarter compared to net loss of $1.7 million in the same period of 1999. During the fourth quarter, Concepts Direct recorded a one-time net income gain of $2.4 million from the sale of surplus land adjoining its Longmont facility. Sales for the quarter ended Dec. 31, decreased 2%, to $20.1 million, from sales of $20.6 for the same period in 1999. Concepts Direct says sales were off slightly vs. the prior year because it reduced catalog circulation for the Linda Anderson and Collectibles brands.
For the fiscal year ended Dec. 31, sales were $55.4 million, unchanged from fiscal 1999 sales of $55.4 million. Concepts Direct reported a net loss of $2.7 million for the fiscal year, compared to a net loss of $3.6 million for the same period in 1999.
Schein Reports 43% Increase in Fourth Quarter Earnings
Melville, NY-Medical and dental supplier Henry Schein (Nasdaq: HSIC), reported for the three months ended Dec. 30, that net income in the fourth quarter rose 43%, to $22.2 million, compared with adjusted net income of $15.5 million, in the fourth quarter of 1999. Net sales increased by 7.5% to $656 million, from $610 million in the fourth quarter of last year. For the year ended Dec. 30, Henry Schein reported net sales of $2.4 billion, up 4%, over 1999. Net income for the year increased 17%, to $70.1 million.
According to Schein, cash flow from operations increased to $68 million during the quarter, while the company also paid down an additional $32 million in debt. For the full year 2000, cash flow from operations was $153 million, and it paid down approximately $89 million in debt.
“We expect full-year 2001 earnings per share growth rates to be in the mid teens. We look for these year-over-year growth rates to accelerate each quarter during the year, building on first quarter EPS growth of approximately 10% to 12%,” said CEO Stanley M. Bergman in a statement.
Venator Group Reports Fourth Quarter Results
New York–Venator Group (NYSE:Z), which owns retailers the Foot Locker and Champs, said on Feb. 7 its fiscal fourth-quarter profits rose to beat analysts’ expectations.
As a result of the success of Foot Locker and the company’s divestiture of some of its noncore business units, such as the Northern Group, Venator said it expects to report adjusted earnings per share of 20 cents to 22 cents for the first quarter and 90 cents to 94 cents for the current fiscal year. Venator said adjusted operating income for the quarter ended Feb. 3 jumped to $37 million from $3 million a year earlier.
In addition, the company plans to increase its direct-to-consumer business, generate positive cash flow to further strengthen its financial position, and complete the divestiture of its nonathletic businesses. For the latest year, Venator said its e-commerce operations achieved $45 million in sales and were profitable. The company said it plans to boost its capital expenditure program to about $150 million this year from about $100 million last year. During the fourth quarter, Venator closed 43 stores, 13 of which were shuttered as a part of its 1999 restructuring program. Results exclude Northern Group, a noncore business that the company said earlier this year that it plans to sell. Divesting the casual apparel unit, whose sales were disappointing, would allow Venator to focus on its growing athletic business. Adjusted sales for the quarter rose 14%, to $1.2 billion from $1.028 billion a year earlier, while comparable stores sales were up 9.3%.
Target Corp. Reports Fourth Quarter Earnings
Minneapolis-Retailer Target Corp. (NYSE: TGT), reported that fourth-quarter net earnings increased 5.9% to $552 million, compared with $522 million in 1999.
For the year, net earnings were $1.264 billion, up 6.7% compared with $1.185 billion. For fiscal 2000, a 53-week year, total revenues increased 9.5 % to $36.903 billion from $33.702 billion in 1999, a 52-week period. For the 14-week quarter, revenue increased 12.8%, to $12.324 billion from $10.930 billion in the same period last year. Thirteen-week comparable-store sales for fourth quarter 2000 increased 1.8%.