Tipsheet: Costco’s “Cavalier Attitude” | TJX +3% | HD +6.3% | Dick’s Miss

 

Home Depot Q2 comp sales +6.3% “Comp sales for U.S. stores were positive 6.6 percent…diluted earnings per share increased 14.2 percent from the same period in the prior year.” Press release

 

TJX Q2 comp sales +3% “Net sales for the second quarter of Fiscal 2018 increased 6% to $8.4 billion and consolidated comparable store sales increased 3% over last year’s 4% increase.” Press release

 

Dick’s Q2 comp sales +0.1% (vs. company guidance of 2-3%) “We continued to capture market share and generated strong results in eCommerce, footwear and golf, although sales were pressured by weakness in hunting, licensed and athletic apparel” said Edward W. Stack.” Press release

 

…CNBC: Dick’s Sporting Goods shares crater on disappointing sales, poor outlook for the year. “By design, we will be more promotional and increase our marketing efforts for the remainder of the year, as we will aggressively protect our market share,” said Edward W. Stack, chairman and CEO.” Read more

 

Advance Auto Parts Q2 Comp Sales Flat “Total sales for second quarter came in at $2.26 Billion, a 0.3% increase vs. the prior year period.” Press release

 

Coach net sales fall 1.8% to $1.13 billion Press release

 

…Fox Business: Coach’s forecast, quarterly sales miss estimates “Coach issued a full-year sales forecast that missed analysts’ estimates and reported lower-than-expected quarterly sales, as it pulls back products from department store shelves to maintain its premium brand cachet.” Read more

 

“CAVALIER ATTITUDE” – Costco ordered to pay $19.4M for misleading ‘Tiffany’s’ jewelry at NY Post. “Costco’s upper management, in their testimony at trial and in their actions in the years prior to the trial,” Manhattan federal court judge Laura Taylor Swain wrote in her 17-page opinion, “displayed at best a cavalier attitude toward Costco’s use of the Tiffany name in conjunction with ring sales and marketing.” Read more

 

…Costco to Appeal “Costco respectfully submits that the ruling is a product of multiple errors in pretrial, trial, and post-trial rulings and intends to appeal.” Press release

 

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Target takes a page out of Wal-Mart’s acquisition playbook, with plans to grow same-day delivery by Lauren Thomas at CNBC. “Target announced plans on Monday to acquire Grand Junction, a San-Francisco based transportation technology company whose software manages retailers’ local deliveries. This partnership will allow Target to send packages to guests faster and more efficiently, according to Target’s chief supply chain and logistics officer, Arthur Valdez.” Read more | Press release

 

Retail Giants Are Now Flocking to Iceland at Bloomberg. “Costco has already sold more than 80.000 membership cards, meaning one in four Icelanders have snapped one up…Hagar has already closed a number of clothing stores in anticipation of H&M’s arrival.” Read more

 

…Locally grown strawberries rot in greenhouses as imports flood market at Iceland Magazine. “Some local growers have stopped picking berries this summer, as the produce cannot be sold at a price which covers the cost of harvesting and getting them to the market. The arrival of retailing giant Costco has been identified as a main culprit.” Read more

 

Publix names Erik Katenkamp as Vice President of Omnichannel and Application Development Press release

 

Target appoints Walmart, General Mills executives to shore up grocery business at Reuters. “Mark Kenny, former senior director of private brands, deli and bakery at Wal-Mart, has been appointed as Target’s vice president of meat and fresh prepared food. Liz Nordlie, former president of General Mills’ baking division, was named vice president of product design and development for food and beverage, Target said.” Read more | Press release

 

Google will pay Apple about $3 billion this year to remain the default search engine on iOS devices at CNBC. “…up from $1 billion just three years ago, and that Google’s licensing fees make up a large bulk of Apple’s services business.” Read more

 

Under Armour CEO adds his name to those leaving Trump’s manufacturing council at CNBC. Read more

 

North Face parent buys Dickies workwear brand by Brooke Sutherland at Internet Retailer. “VF, which sells North Face jackets and Lee jeans among other brand-name clothing, announced Monday that it would acquire workwear maker Williamson-Dickie Manufacturing Co. for $820 million. This is the company’s first major purchase since it agreed in June 2011 to buy Timberland Co. for about $2 billion.” Read more

 

CVS, Walgreens Press Bid To Block Cherokee Opioid Suit by Bonnie Eslinger at Law 360. “CVS, Walgreens, McKesson and other companies bolstered their bid to block the Cherokee Nation’s tribal court lawsuit seeking to hold the pharmacy and drug distributor giants accountable for the opioid crisis plaguing its members, saying the alleged conduct “did not occur in Indian country.” Read more (subs.)

 

J.Jill Appoints Avon COO to Board of Directors “Prior to his role at Avon Products, Inc., (James) Scully served as Chief Operating Officer of J. Crew Group…Prior to working at J. Crew, Mr. Scully spent eight years at Saks.” Press release

 

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