Susan Dickenson

Results: Sears, Havertys, Kirkland's, Blyth, Williams-Sonoma, Tuesday Morning; Stein Mart ceo resigns
August 30, 2007

Sears Holdings Corp.’s second quarter net income fell to $176 million from $294 million reported for the second quarter of 2006, reflecting lower operating results at both Sears Domestic and Kmart, partially offset by improved operating results at Sears Canada. Sears Domestic's comparable store sales declined 4.3% for the quarter, while Kmart's comparable store sales declined 3.8%. Total revenues for the second quarter fell $0.6 billion to $12.2 billion, compared to $12.8 billion for the second quarter of fiscal 2006.

Havertys Furniture Cos. reported August sales decreased 8.3% to $70.7 million, compared with $77.1 million in August 2006. On a comparable-store basis, August sales decreased 10.1%. Sales for the first eight months of 2007 decreased 9.4% to $516.7 million compared with $570.6 million in 2006 and for comparable stores, sales decreased 11.0% for the first eight months. Clarence H. Smith, president and chief executive officer, said, "Early September sales are trending better with total written business for the Labor Day weekend off 3% compared to last year's mid-teen percentage increase. In fact, written business this Labor Day set an all-time record for any single day at Havertys." 

Kirkland's, Inc. reported net sales for the 13-week period ended August 4, 2007, of $87.4 million compared with $91 million for the 13-week period ended July 29, 2006. Comparable store sales for the second quarter decreased 10.5% compared with a 9.0% decrease in the prior-year quarter. Net sales for the 26-week period ended August 4, 2007, were $169.7 million compared with $183.6 million for the 26-week period ended July 29, 2006. Comparable store sales for the 26 weeks ended August 4, decreased 14.7% compared with a 7.1% decrease in the prior-year period. On August 1, Kirkland's opened a 27,500-sq.-ft. sales support office in Nashville, and has announced plans to sell its 40,000-sq.-ft. headquarters building in Jackson, Tenn. The company expects to open approx. 13 stores and close 1 store during the third quarter. For the full year, the company expects to open approximately 35 new stores and close 40 to 45 stores.

Greenwich, Conn. -- Blyth, Inc. today reported an 11% decline in net sales for the fiscal second quarter to $234.9 million compared to $262.6 million for the prior year period. Net sales for the six months ending July 31, 2007, declined 7% to $505.2 million from $542.9 million for the same period a year ago. Negatively impacting the numbers were the sale of Blyth HomeScents International and lower sales in PartyLite's U.S. market. Lower sales in the company's wholesale segment were partially offset by sales growth in the catalog and Internet segment. Blyth, Inc. markets home fragrance products, decorative accessories, seasonal decorations and household convenience items directly to the consumer under the PartyLite and Two Sisters Gourmet brands, through catalog and Internet channels under the Miles Kimball, Exposures, Walter Drake, The Home Marketplace, Easy Comforts and  Boca Java brands, and to retailers under the Colonial Candle, CBK and Seasons of Cannon Falls brands. 
  
Williams-Sonoma's fiscal second-quarter earnings fell 27%. The company, reporting yesterday, Aug 29, said for the quarter ended July 29, earnings were $26 million compared with $35.6 million for the same period a year ago. Net revenue rose 4% to $859.4 million from $825.5 million a year ago, and Selling, general and administrative expenses rose to $277.2 million from $260.3 million from a year earlier. Williams-Sonoma, based in San Francisco, plans to merchandise and upgrade some of its Pottery Barn stores and will begin shipping smaller Pottery Barn catalogs to select customers this fall in an attempt to reverse a decline in same store sales over the past four quarters. 

Tuesday Morning Corp. this week reported a drop in second-quarter earnings of 30% as sales growth was offset by rising expenses. Second-quarter earnings fell to $2 million from $2.9 million in the prior year. Quarterly net sales rose 6% to $219.4 million, compared with $207.7 million in the second quarter of 2006. The company's selling, general and administrative expenses increased 9% to $75.7 million from $69.2 million in the prior-year period. Same-store sales increased 0.1% during the quarter, attributed to a 2.6% increase in average ticket price and a 2.4% decline in traffic. 

Jacksonville, Fl. -- Stein Mart, Inc. announced the appointment of new president and ceo Linda McFarland Farthing following the resignation of Michael D. Fisher, who has held that position since 2003. "We appreciate Mike's service to our company over the last 14 years, and in particular, his leadership during the last four years," said Jay Stein, chairman of the board. Farthing has been a member of Stein Mart’s board of directors since 1999 and chair of the company's audit committee since 2003. She has an extensive retail leadership background, most notably as president, chief operating officer and director of The Cato Corporation from 1990-1997 and president, chief operating officer and director of Friedman's, Inc. in 1998. Prior to those roles, she was senior vice president and general merchandising manager for the J.B. Ivey Company, a Charlotte, NC-based regional department store chain, for 11 years. Mr. Fisher's resignation is effective immediately. Ms. Farthing will assume her new duties on or about September 24, 2007. Stein Mart is home to the Nina Campbell Collection.

Posted by Susan Dickenson on August 30, 2007 | Comments (0)