Author: Helen Thomas

Lowe’s reported an 8.4% increase in profit for Q2 2015, with net earnings of $1.3 billion and $1.20 a share. This up from last year’s Q2 earnings of $1.04 billion and $1.04 per share. Analysts were expecting results of $1.24 per share.

The home improvement retailer’s net sales rose 4.5%, which was in line with expectations. Same store sales at stores open at least a year were up 4.3%.

“We posted solid results for the quarter and were able to capitalize on big-ticket market share opportunities with strong growth in categories like appliances and outdoor power equipment,” Lowe’s CEO Robert Niblock said in a statement.

As of July 31, 2015, Lowe’s operated 1,846 home improvement and hardware stores in the United States, Canada and Mexico representing 201.4 million square feet of retail selling space.

For fiscal year 2015, Lowe’s expects to add 15 to 20 new home improvement and hardware stores, and expects total sales to increase 4.5% to 5%.

Sources: USA Today, MarketWatch

Home Depot Inc. announced Tuesday that an improving housing market helped it to beat quarterly sales forecasts in Q2 2015. Net income rose to $2.23 billion. Net sales rose 4.3% to $24.83 billion, beating analysts’ estimates of $24.69 billion. Same-store sales rose 4.2%.

Home Depot raised its projected sales for the year to a growth of 5.2%-6%, above its earlier 4.2%-4.8% previously projected range.

US housing starts rose to an 8-year high in July as builders increased construction of single-family homes.

“We saw balanced growth across our business resulting from strength in the core of the store as well as the continued recovery of the U.S. housing market,” said Home Depot CEO Craig Menear.

Sources: Reuters, USA Today

The US Consumer confidence index decreased in August to a score of 92.9, down from July’s 93.1. The index score was expected to increase.

Retail sales increased 0.6% in July, attributed to employment rates rising. July’s unemployment rate hitting a seven year low of 5.3%.

“Renewed strength in personal finances largely offset slight declines in prospects for the national economy and buying conditions. The declines in prospects for the economy probably reflect the expected increases in interest rates, while the eventual but small impacts from falling commodity prices,  and a weaker global economy have yet to occur,” stated Richard Curtin, director of the Michigan Survey of Consumers.

Source: PYMNTS.com

Nordstrom announced Thursday total net sales increased 9%, with comparable sales of $3.6 billion increasing 4.9 % over Q2 2014. Comparable sales increases by channel were: US stores up 0.8%, Nordstrom.com up 20%.

Top performing merchandise categories were cosmetics and women’s apparel. Top performing regions were the Southwest and Southeast.

Ending inventory increased 11% over Q2 2014, and was consistent with expectations and projected growth initiatives.

The company opened 350,000 new Nordstrom Rewards accounts, growing to 4.5 million members. Sales from members increased 10% in the second quarter and represented 44% of total sales.

Official remarks from Blake Nordstrom, Co-President, Nordstrom, Inc., included, “our customer is at the center of our strategy as we focus on creating a differentiated experience in each of our businesses. While we’ve been pursuing distinct strategies to grow each business, we’re also working to link them together to provide our customers with a seamless experience. This is important because we know that when customers engage with us across multiple touch points, their lifetime value and spend increase significantly.”

Source: Nordstrom.com

Macy’s delivered their quarterly earnings today, stating that earnings and revenue fell short of expectations. They also announced a revision in its 2015 sales forecast.

Analysts expected earnings per share of $0.76 and revenue of $6.23 billion. Macy’s earned $0.64 per share, down from $0.80 this quarter last year. Revenue fell to $6.1 billion from $6.27 billion a year ago.

Macy’s shares were down 3.5% following the announcement.

“The consumer didn’t shop in our categories to the degree that we thought the consumer would,” Macy’s Chairman and CEO Terry Lundgren said, citing slowing tourism as a drag on sales. European, Chinese and Brazilian tourists “are not coming to America, and the strength of the dollar is impacting that.”

Macy’s also cut its sales forecast for the year to a 1% decline, compared to previous expectations of 1% growth.

Source: CNBC

Lowe’s used feedback from professional customers to test and launch an improved LowesforPros.com website. Professional customers can make and track purchases of more than a half a million items via computer, tablet or smartphone. Customers can choose to buy online and pick-up in store or have their orders delivered directly to their business or job location.

Lowe’s intent is to make their LowesforPros.com a complete online solution to develop requisition lists, access purchasing reports and create custom catalogs that enable their customers to maintain their brand across multiple buyers and locations. The site also provides customers with purchase approvals and ability to process tax-exempt purchases.

The site also provides industry resources and gives 5% off online purchases with Lowe’s Business Credit.

“LowesForPros.com helps Pros save time, money and run their businesses as efficiently as possible,” said Mike Horn, Lowe’s vice president of ProServices. “Pros have the ability to buy online and pick-up in-store or have orders delivered directly to their business or jobsite while taking advantage of the 5 percent discount every day wherever they choose to shop with us – through their mobile device, tablet or computer. This new website was designed by the Pro, for the Pro.”

Source: Retailing Today

The volume of import cargo for major US retailers is expected to increase 3.6% in August 2015 from August 2014, as retailers prepare to stock for the holiday season. Imports for the year, according to the National Retail Federation, is expected to be up 4.2% from 2014.

Some retailers are paying less to transport their merchandise due to larger capacity ships. Import levels in May were normal, showing a recovery from the port issues in 2014 and the beginning of this year.

“Consumers might be out buying back-to-school supplies but toys and sweaters are starting to show up on the docks,” NRF VP for supply chain and customs policy Jonathan Gold said. “There are still some lingering congestion issues, but retailers are working with their supply chain partners to make sure all of that merchandise flows smoothly to store shelves.”

Source: Chain Store Age

Dropping tourism numbers and consumers saving rather than spending money saved from lower gas prices will affect retailer earnings announcements, say industry analysts.

Several retailers will be making earnings announcements this week: Macy’s on Wednesday, Dillard’s, Kohl’s and Nordstrom on Thursday, and JC Penney on Friday. Analysts report that value retailers with loyalty programs like Kohl’s should report better results than others.

Although retailers saw a weak first two quarters of 2015, analysts are optimistic about the second half of the year looking better. In the apparel and general merchandise category, jewelry is doing well and cosmetics are doing extremely well.

Source: CNBC

US consumer confidence declined 5.3 points in July, dropping to the lowest point since November 2014. The majority of those surveyed, 70.8%, believe the economy is fair or poor, and 41.4% believe it is getting worse. The perception of personal finances remained stagnant, a greater percentage this month felt finances were getting worse. 47.2% report they do not expect added expenses or a shortfall in the next 30 days and 36.8% believe that they will.

Retail spending also decreased in July, down to the lowest level since January. Household improvements still has the largest percentage of adults that say they will spend more this month with 19.8%, but this percentage was 22.9% last month. While spending in household improvements and discretionary spending has gone down, expected spending on clothing, footwear, or accessories, and household expenses has gone up. Change in August is not expected, as 46.8% reported expecting to spend about the same amount next month.

Source: Chain Store Age