Retail
January Retail Sales Overshadowed by Special Dividend Payments
Published:
Last Updated:
Retail Metrics has also indicated that fourth quarter earnings guidance has been trending more positive than in any of the previous five quarters. The major news story, however, is a widely expected bankruptcy filing from RadioShack. Sprint Corp. (NYSE: S) is said to be in discussions to acquire the leases to about half of RadioShack’s locations. We may have more by the end of Thursday.
Rite Aid Inc. (NYSE: RAD) previously reported same-store sales growth of 4.8%. Pharmacy sales gains at Rite Aid came in at 5.7%. Front-end sales rose 2.9%. Walgreens Boots Alliance Inc. (NYSE: WBA) is expected to report a same-store sales gain of 6% on Friday, with growth of 9.5% in pharmacy sales and 2% in front-end sales.
ALSO READ: Staples Merger Details: Office Depot Gets an Easy Button
The number of retailers reporting same-store sales has declined significantly over the past few years, but the reported numbers do provide a kind of interim report on quarterly performance at the country’s retail stores. Here is a rundown on stores that have reported sales for January.
Costco Wholesale Corp. (NASDAQ: COST) reported early Wednesday morning that U.S. same-store sales for January were flat with last year. Excluding the negative impact from gasoline sales, sales rose 7% in the United States. Net sales for January totaled $8.6 billion, up 2% over January 2014’s total of $7.99 billion. The big news from Costco is its previously announced $5 per share special dividend.
Costco shares traded down 3.1% in Thursday’s premarket session, at $151.08. The stock’s 52-week range is $110.360 to $156.85. The high was posted on Wednesday.
L Brands Inc. (NYSE: LB) said same-store sales for January rose 7% compared with last year. Retail Metrics had estimated a rise of 2%. L Brands operates Victoria’s Secret, Pink, Bath & Body Works, La Senza and Henri Bendel stores. Net sales rose 7% to $783.1 billion in January. The store also announced an annual dividend hike from $1.36 to $2.00 a share, a special dividend of $2 a share and a new $250 million share buyback program.
L Brands shares were inactive Thursday morning, after closing at $87.06 on Wednesday. The stock’s 52-week range is $52.68 to $87.80. The high was posted Wednesday.
Buckle Inc. (NYSE: BKE) reported same-store sales for January rose 0.8%, compared with the same month a year ago. The Retail Metrics estimate called for a rise of 2.8%. Net sales for all stores rose 3.6% and totaled $58.9 million for the month.
Buckle’s shares closed Wednesday up 1.2%, at $52.27 in a 52-week range of $41.96 to $56.13. Shares were inactive Thursday morning.
ALSO READ: What Is the Allure of Target?
Stein Mart Inc. (NASDAQ: SMRT) reported a 6.6% increase in same-store sales for January, well above the 3.6% growth estimate from Retail Metrics. Total sales for January came in at $69.7 million, up 8.2% from a year ago. The company announced on Wednesday that it will pay a special dividend of $5 a share later this month.
Stein Mart’s shares jumped about more than 20% in Thursday’s premarket to $17.10. The stock’s 52-week range is $11.25 to $15.45. There is nothing like a special dividend to attract buyers.
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.