Friday Tipsheet: Amazon +23% | Cabela’s Comp -21.7% | Wmart’s $439 Mil in Legal Fees
“Amazon’s Q1 Sales Satisfy the Street (Reports Profit!)” by Brad Stone at Businessweek. “Amazon reported first-quarter earnings on Thursday, notching $19.74 billion in net sales. That beat Wall Street’s estimates of $19.43 billion and marked a 23 percent jump, compared with the same period a year ago. The company also reintroduced something its investors haven’t seen in a while: a profit. It reported earnings per share of 23¢, in line with estimates.” Read more
“Amazon.com Announces First Quarter Sales up 23% to $19.74 Billion” “Second Quarter 2014 Guidance: Net sales are expected to be between $18.1 billion and $19.8 billion, or to grow between 15% and 26% compared with second quarter 2013. Operating income (loss) is expected to be between $(455) million and $(55) million, compared to $79 million in second quarter 2013.” Read the release
“Cabela’s: Q1 Same-Store Sales Down 21.7%” “Comparable store sales for the quarter decreased 21.7% as firearms and ammunition declined 39% and 32%, respectively,” Millner said. “Through the first six weeks of the quarter, comparable store sales were down 25% to 30%. Comparable store sales improved each month through the quarter, and we expect this trend to continue throughout the second quarter.” Read the release
“The History of Target’s Logo” at a Bullseye View. “A 2003 Target study found more than 96 percent of American shoppers know what that bold, red Bullseye represents…We went through the Target archives to find the story behind our favorite symbol, and then hit the streets of New York (opinions were therefore expressed boldly, to say the least) to find out which iteration they like best. Logo lovers, read on.” Read more
“Amazon launches grocery service for Prime members” by Mae Anderson at Seattle Times. “Amazon is taking aim at grocery stores and discounters like Wal-Mart with a grocery service that lets its Prime loyalty club members fill up to a 45-pound box with groceries and get it shipped for a flat rate of $5.99.” Read more
“Dick’s Sporting Goods Ball-Jokes Ad Infuriates Golf Purists” by Michael McCarthy at Ad Age. “In the spot that’s aired on the Golf Channel, we see a golfer disappointing his buddies by announcing he’s going to “lay up” on his tee shot — rather than manfully driving over a hazard. Suddenly, a Top Flite rep pulls up in her branded golf cart and cheerfully asks: “Does someone here need some balls?”…Golf Digest wrote the new campaign is “sophomoric, inappropriate, and very funny.” Read more
“Stihl Takes on Home Depot & Lowe’s…and is Winning” by Kyle Stock at Businessweek. “To an independent dealer, a Stihl chain saw or weed whacker isn’t just one product in a warehouse stacked with drywall screws, plumbing fixtures, and gallons upon gallons of paint. It’s a survival tool—one of the only ones it has…“Maybe I’m ignorant,” Wilson says. “But Home Depot doesn’t really scare me anymore.” Read more
“Walmart Has Spent $439 Million in Legal Fees the Past Two Years related to Anti-Corruption” by Kim Souza at The City Wire. “Including the costs incurred in fiscal 2014, the company estimates it will spend more than $100 million on compliance systems enhancements around the globe over the course of the next several years.” Read more
“Amazon, in Threat to UPS, Tries Its Own Deliveries” by Greg Bensinger & Laura Stevens at WSJ. “The future of Amazon.com Inc. is hiding in plain sight in a San Francisco parking lot. Adjacent to recently closed Candlestick Park, Amazon is testing its own delivery network for the “last mile,”…Ultimately, a delivery network could transform Amazon from an online retailer into a full-service logistics company that delivers packages for others, according to former Amazon executives. They caution that any such effort likely is years away.” Read more
“J.D. Power Ranks Paint Retailers on Customer Satisfaction: Ace Beats Lowe’s/H.Depot/Wmart” “Sherwin-Williams ranks highest (848) in customer satisfaction with paint retailers. Sherwin-Williams performs particularly well with staff, store services and merchandise and also has the highest repurchase (46%) and advocacy (48%) rates. Ace Hardware follows in the paint retailer ranking with a score of 835 and performs particularly well in store facility.” See the rankings
“Lowe’s Names Customer Experience Executives” “Joseph M. (Mike) Mabry has been named strategy and experience design executive…Michael P. McDermott has been promoted to chief merchandising officer, replacing Michael A. Jones, who will assume the role of chief customer officer, effective April 30. Both Mabry and McDermott will report to Jones.” Read more
“Wal-Mart replaces China CEO in Asia leadership shuffle” at Reuters. “Sean Clarke, a Wal-Mart veteran and current chief operating officer in China, will take over the China CEO role from June 1, a statement from the firm said on Friday. The current China chief executive, Greg Foran, will become Asia CEO.” Read more
“Time’s 100 Most Influential People List (Jeff Bezos Makes the List)” See the Business Leaders
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Have a great weekend!