Retail Sales

Microsoft Reportedly Releasing an 8-inch Surface in June

Jim Probasco — Thu, 16 May 2013 16:29:40 +0000

Microsoft (NASDAQ: MSFT) plans to launch an 8-inch Surface tablet in June, according to a report in DigiTimes. The same report also hints at a 10.x-inch model sometime in Q3.

All this is part of Microsoft’s push to gain a stronger share of the tablet market. IDC statistics indicate 49.2 million tablets were shipped globally during the first quarter of 2013. Of those Apple, Inc.’s (NASDAQ: AAPL) share was 19.5 million units, Samsung shipped 8.8 million units, and Amazon sold 1.8 million.

Microsoft hopes to break one million with its two new tablets, which is an optimistic goal given the fact it only shipped 900,000 of its existing units in Q1.

According to DigiTimes, the 8-inch Surface will use touch panels supplied by Samsung Electronics and processors developed by Nvidia. ODM Pegatron will produce the tablets.

CNET reported that there has been no word on pricing for the 8-inch Surface, although ...

Macy's Shows 20 Percent Profit on Strong Q1 Sales

Jim Probasco — Wed, 15 May 2013 17:43:44 +0000

Cool temperatures and consumer economic concerns did not dampen enthusiasm of shoppers at Macy’s Inc. (NYSE: M) during Q1.

At least, not too much. The company reported a 20 percent bump in profit and is increasing its dividend to 25 cents from the current 20 cents, according to The Associated Press.

The good news was tempered, somewhat, by comments from Macy’s chairman and CEO, Terry Lundgren, who pointed to weak spending by Macy’s budget-conscious consumers as well by high-income customers at Macy’s-owned Bloomingdale's Department Stores.

"We are especially pleased with our first-quarter sales and earnings performance given the challenges we overcame in this period,” Lundgren said.

During a conference call Wednesday, Macy’s CFO, Karen Hoguet said Q2 sales will lag, but less than originally forecast.

As the first major retailer to report first-quarter results, Macy’s numbers might indicate that while the economy, job, and housing markets are all improving, consumers at both ends of ...

Hey McDonald's, Where's That All-Day Breakfast?

Jim Probasco — Mon, 13 May 2013 15:58:02 +0000

Standup comedians joke about it.

The 1993 film, Falling Down turned it into part of the reason Michael Douglas went berserk. “It,” of course, is the McDonald’s (NYSE: MCD) “Breakfast Rule.” The McDonald’s “Breakfast Rule” says that no matter how hungry you are for an Egg McMuffin, you can’t have one after 10:30 a.m. local time weekdays or 11 a.m. on weekends.

All that changed in April when McDonald’s President and Chief Executive Officer Don Thompson said on CNBC that the company was considering serving breakfast all day. “Hallelujah,” screamed millions of “Pancakes-at-noon” addicts the world over! “Praise Ronald McDonald,” exclaimed throngs of “Bacon-egg-and-cheese-bagels for dinner” fans! Except it didn’t happen. At least not yet.

So, what’s the holdup? It could be logistics, according to restaurant-franchisee consultant and former McDonald’s restaurant owner, Richard Adams. In a Bloomberg Businessweek report. Adams said “It’s been tried and failed repeatedly. It just makes the operation too complicated.”

Don Boodel, who ...

Comparing Windows 8 to New Coke is Just Plain Mean

Tim Parker — Mon, 13 May 2013 13:59:30 +0000

This was rough.

In fact, it was so rough that Microsoft (NASDAQ: MSFT) wrote a weekend blog post to respond to the comparison. When Windows 8 was compared to New Coke, everybody old enough to remember Coca-Cola’s (NYSE: KO) biggest misstep thought the same thing: “Now that’s just mean!”

For those of you who aren’t in your late 30s and didn’t get to have a can or two of New Coke, here’s a small history lesson. Coca-Cola was facing stiff competition from rival, Pepsi (NYSE: PEP) because it was a sweeter soda. Possibly more important, the cola category, in general, had become boring and needed something new to put it back in the forefront.

After Coca-Cola reformulated its flagship product, research revealed that a large percentage of customers preferred the taste.

Preliminary polling showed the new formula to be well accepted and in 1985, it was introduced as the replacement. The backlash was fierce. Something that had become an American staple was ...

Another Great Weekend for Movie Studios With 'Iron Man 3'

Tim Parker — Mon, 13 May 2013 13:37:46 +0000

Last weekend, we reported that Disney (NYSE: DIS) had to be doing the collective happy dance after Iron Man 3, the third installment in the Iron Man franchise brought in an impressive $175 million domestically and $623 million internationally. This was so impressive that it placed the film as number two on the list of best opening weekend hauls.

The second weekend for Iron Man 3 was down 58 percent from its first weekend but at $72.5 million, any studio would be happy to report those earnings after a first weekend. That puts Iron Man 3’s total international sales at $944 million.

For a film that cost about $200 million to make, Iron Man 3, which is sure to cross the billion dollar mark, will be the belle of the ball when Disney releases its next earnings report. Count on that!

But that wasn’t the ...

ESPN Wants to Subsidize Smartphone Data Plans

Jim Probasco — Fri, 10 May 2013 16:13:38 +0000

Is this awesome or what? ESPN, aka, “The Worldwide Leader in Sports” wants to help pay for smartphone users’ monthly data plans.

The plan isn’t really a plan and no actual number crunching has taken place yet, but sentiment counts for something, right? The point, according to The Wall Street Journal, is that ESPN, a subsidiary of The Walt Disney Company (NYSE: DIS), realizes many sports fans drain their monthly data buckets viewing ESPN mobile content and they want to help.

ESPN also realizes that people who use up their data stop viewing. Ultimately this costs the network revenue once advertisers see mobile viewership has gone down because users have maxed out their data plans for the month.

The Wall Street Journal says ESPN has talked with at least one major carrier about a plan in which ESPN subsidies would mean ESPN content wouldn’t count against monthly data caps. Sadly, no deal is really in the works. According to WSJ, ...

Grainger Reports 9% Increase in US Sales for April

Eddie Staley — Fri, 10 May 2013 13:04:51 +0000

Grainger (NYSE: GWW) today reported sales results for the month of April 2013. Daily sales increased 8 percent versus April 2012, and included 3 percentage points from volume, 2 percentage points from price, 2 percentage points from acquisitions and 2 percentage points from the timing of the Easter holiday, partially offset by a 1 percentage point decline from foreign exchange. The month of April 2013 had 22 selling days versus 21 selling days in April 2012. The 2013 second quarter will have 64 selling days, the same as the 2012 second quarter. ...

Consumer Reports Rates Tesla Model S the Best – Maybe Ever

Jim Probasco — Fri, 10 May 2013 13:03:21 +0000

Consumer Reports magazine, it seems, has fallen in love - with the Tesla Motors Inc. (NASDAQ: TSLA) Model S sedan.

"If it could recharge in any gas station in three minutes, this car would score about 110," said Jake Fisher, head of auto testing for Consumer Reports, according to CNNMoney.

The consumer organization put the object of Fisher’s affection through its paces recently. Consumers Union, publisher of the magazine, known for its tough, unbiased reviews of all types of consumer products ranging from lawn tractors to toothpaste, is the ratings agent of choice for car buyers everywhere.

Ratings by Consumer Reports are on a 0 to 100 scale. Tesla’s almost unheard of score of 99 matches the score earned by the Lexus LS460 in 2009, according to CNNMoney, and is as high as the consumer magazine’s automotive scores have ever gone. In fact, no car at any price has ever scored higher.

The uncharacteristic sweet talk, on the part of CR, doesn’t stop with Fisher’s comments. At the head of the article, listing accolade after accolade, Consumer Reports said, “The Tesla Model S ...

Gap Reports 7% Increase in Same Store Sales for April

Eddie Staley — Thu, 09 May 2013 20:01:07 +0000

Gap (NYSE: GPS) today reported net sales for the first quarter of fiscal year 2013 increased 7 percent compared with the first quarter of fiscal year 2012 and that April 2013 net sales increased 5 percent compared with last year.

“We are pleased with our sales performance this month, led by our largest brands, Gap and Old Navy,” said Glenn Murphy, chairman and chief executive officer of Gap Inc.

Net sales for the first quarter, which ended May 4, 2013, were $3.73 billion compared with $3.49 billion for the first quarter last year. In addition, net sales for the four-week period ended May 4, 2013 were $1.21 billion compared with net sales of $1.15 billion for the four-week period ended April 28, 2012.

Due to the 53rd week in fiscal year 2012, comparable sales for April 2013 and the first quarter of fiscal year 2013, respectively, are compared to the four-week and 13-week periods ended May 5, 2012. On this basis, the company's comparable sales for April 2013 were up 7 percent compared with a 2 percent decrease for April 2012 and the company's first quarter comparable sales were up 2 percent compared with a 4 percent increase in the first quarter last year.

April Comparable Sales Results

Comparable sales for April 2013 were as follows:

Gap Global: positive 8 percent versus positive 1 percent last year Banana Republic Global: positive 1 percent versus flat last year Old Navy Global: positive 9 percent versus negative 6 percent last year First Quarter Comparable Sales Results

Comparable sales for the first quarter of fiscal year 2013 were as follows:

Gap Global: positive 3 percent versus positive 2 percent last year Banana Republic Global: flat versus positive 5 percent last year Old Navy Global: positive 3 percent versus positive 4 percent last year First Quarter Guidance

The company expects diluted earnings per share for the first quarter of fiscal year 2013 to be in the range of $0.68 to $0.69. ...

McDonald's Down on Slow April – Avian Flu, Stiff Competition, Poor Customer Service All Cited

Jim Probasco — Thu, 09 May 2013 12:42:18 +0000

McDonald's (NYSE: MCD) certainly has a mixed bag of problems to deal with.

The company said Wednesday that sales at restaurants open more than a year slipped again in April, according to The New York Times. The company laid blame, in part at least, on declines in Asia, where fears over a new strain of avian flu have hurt revenue.

Although sales figures included an increase of 0.7 percent in the United States, that wasn’t enough to overcome the combination of lower sales in China and a decline of 2.4 percent in Europe, McDonald’s biggest market by revenue.

Bird flu isn’t the only problem for McDonald's, according to Reuters. The company, along with Wendy's (NASDAQ: WEN) and other U.S. restaurants is battling for the attention of deal-seeking coupon-toting customers checking out limited time offers and other promotions before deciding where to spend their fast food dollars.

Fortunately, overall food costs remain stable, giving McDonald’s ...

Zumiez Reports 4.6% Increase in April Comp Sales

Eddie Staley — Wed, 08 May 2013 20:12:55 +0000

Zumiez (NASDAQ: ZUMZ) a leading specialty retailer of action sports related apparel, footwear, equipment and accessories, today announced that total net sales for the four-week period ended May 4, 2013 increased 12.1% to $43.0 million, compared to $38.4 million for the four-week period ended April 28, 2012. The Company's comparable store sales increased 4.6% for ...

Hot Topic Reports First Quarter Comp Sales Down 1.6%

Eddie Staley — Wed, 08 May 2013 20:04:20 +0000

Hot Topic, Inc. (NASDAQ: HOTT) today announced the sales results for its first fiscal quarter (13 weeks ended May 4, 2013). A summary of the sales results by division (including Internet) is as follows:

Comparable Sales % Change Net Sales This Year (1) Last Year $ Millions % Change To Last

Year FIRST QUARTER: Hot Topic -2.4 % 9.5 % $ 121.8 -1.5 % Torrid 1.0 % 2.5 % $ 53.0 10.7 % Total Co. ...

These Companies are Hoping for NHL and NBA Playoff Drama This Year

Jim Probasco — Wed, 08 May 2013 13:19:58 +0000

In the expensive, high stakes world of sports advertising, winning is not everything. It’s something – just not everything. Brand exposure is everything.

Since most corporations sponsor the event, not specific teams, they don’t really care who wins. They care whether fans are engaged, tuning in, attending and most of all, paying attention to their ads and promotions.

There is an exception in the case of the NHL playoffs. Molson Coors Brewing Company (NYSE: TAP), according to the Winnipeg Free Press, wants Canada’s NHL hockey teams to go deep into the playoffs in order to encourage beer consumption in Canadian arenas, bars, anywhere fans gather to cheer on their favorite team.

The longer Canadian hockey teams – or at least one of them – stay in the hunt, the more engaged Canadian fans will be. Engaged in the sense that they will continue to follow the playoffs and continue to consume Molson Coors products.

Anheuser-Busch InBev (NYSE: BUD), on the other hand, doesn’t care who wins ...

UPDATE: JCP Reports Poor Retail Sales

Eddie Staley — Tue, 07 May 2013 20:10:56 +0000

J. C. Penney Company (NYSE: JCP) today released preliminary unaudited selected financial information for its fiscal first quarter ended May 4, 2013. The Company is providing this information in connection with its previously announced proposed senior secured term loan financing transaction. Given the Company's fiscal first quarter ended three days ago, the information that follows is preliminary and based upon information available as of today. The Company expects to release its full fiscal first quarter results on May 16, 2013.

As of the date of this release, the Company has not completed its financial close process for the quarter. During the course of that process, the Company may identify items that would require it to make adjustments, which may be material, to the information presented below. As a result, the estimates below constitute forward-looking information and are subject to risks and uncertainties, including possible adjustments to preliminary operating results.

Preliminary Unaudited Financial Disclosures

For the first quarter of fiscal year 2013, jcpenney anticipates total sales of approximately $2.635 billion, a decrease of approximately 16.4 percent from $3.152 billion in the same period last year, and a comparable store sales decrease of approximately 16.6 percent for the quarter compared to the same period last year. The sales decline in the first quarter is partially attributable to construction activities in connection with the transformation of the home departments in 505 stores. The Company noted that results ...

Pfizer's New Program May Help Men Get Up the Courage to Treat Erectile Dysfunction

Jim Probasco — Mon, 06 May 2013 18:56:30 +0000

In a move designed to take bashfulness out of the erectile dysfunction equation, drugmaker Pfizer (NYSE: PFE) told The Associated Press that it will begin selling its popular pill, Viagra, directly to patients on its website.

A prescription will still be needed, but coming face to face with a pharmacist in an exchange many consider embarrassing is now a thing of the past. No longer will anxious men feel like they have to step up to the window with eight items they don’t need - including a bottle of yeast tablets, bubble gum, a magazine and a package of light bulbs – then cautiously slide their Viagra prescription across the counter, whispering, “While you’re at it, can you fill this too, please?”

Now, all that will be required is a prescription, a computer and a click of the mouse button. No fuss, no muss. And, best of all, no sense of public shame.

Other major drug makers will watch Pfizer's move closely. If it works, look for a plethora of online offerings, especially for drugs for non-urgent ...