Retail Weakness Seen
In Quarterly Reports
By Steve Smith On Aug 6 2012 - 4:01am
NEW YORK –
Recent released quarterly reports
show weakness at retail from publicly held chains.
Even Amazon, which had double-digit CE sales
gains in the second quarter, posted scant profits
in the quarter due to an acquisition and further investments
in building more warehousing facilities
nationwide to possibly provide same day product
net income dropped 96 percent
in the second quarter while sales rose 29 percent.
Net income was $7 million in the quarter, compared
with $191 million in second quarter 2011. The
reduced income was due to the $65 million estimated
net loss related to the acquisition and integration
of Kiva Systems, Amazon said.
Net sales increased to $12.83 billion in the second
quarter, compared with $9.91 billion in second
quarter 2011. Excluding the $272 million unfavorable
impact from year-over-year changes in foreign
exchange rates throughout the quarter, net sales
would have grown 32 percent compared with second
quarter 2011, the online retailer said.
Worldwide electronics and other general merchandise
sales grew 38 percent to $8.16 billion. Excluding
the unfavorable impact from year-over-year
changes in foreign exchange rates throughout the
quarter, sales grew 42 percent.
North America segment sales, representing the
company’s U.S. and Canadian sites were $7.33 billion,
up 36 percent from second quarter 2011
turned a profit in its fiscal second
quarter, ended June 30, but reported lower sales in
its retail operation.
Net income was $10.7 million, compared with a
net loss of $3 million a year before. Total sales were $1.6 billion, a decrease of 2.7 percent from the second
quarter of 2011.
Retail segment sales decreased 5.7 percent to
$723.6 million in the quarter compared with the prior
year, reflecting a same-store sales decrease of 1.8
percent, due to unfavorable foreign currency translation
and reduced store transactions. Retail segment
income was also lower — $2.8 million in the quarter —
compared with $8 million a year ago.
posted a net loss of $21 million for
the second quarter after generating year-ago profits of
nearly $25 million.
Sales for the three months, ended June 30, edged
up 1.2 percent to $953.2 million, and comp-store
sales were essentially flat.
Consumer electronics sales fell nearly 27 percent,
and “signature” sector sales, comprised of accessories
and headphones, were flat.
reported second-quarter sales were
down 2.6 percent to $849.5 million while the net loss
was $2.24 million, compared with a profit of $15.6 million
for the prior year’s second quarter, due to the performance
of the North American consumer business.
Consumer channel sales dropped 15.3 percent to
$329 million and, on a same-store basis, sales declined
Richard Leeds, chairman/CEO, commented that the
North American consumer business had “a low doubledigit
reduction in top-line sales as the consumer electronics
industry recorded double-digit declines across
several key product categories.” Among the reasons
were “soft demand” and “shifting consumer habits.”
By product category, computer sales were down
2 percent; computer accessories and software were
down 5 percent; CE was down 14 percent; industrial
products were up 31 percent; and computer components
were down 7 percent, Systemax said.