NEW YORK — With strong second-quarter profits under its belt, ShopKo Stores Inc. is looking toward retail expansion in 2004.
Net income climbed 177.8 percent to $7.2 million, or 25 cents, during the quarter, from $2.6 million, or 9 cents, a year ago. Excluding the amortization of goodwill and other intangible assets a year ago, profits surged almost 85 percent compared with profits of $3.9 million, or 13 cents a share, in the second quarter of 2001.
Revenues for the period ended Aug. 3 dipped 1 percent to $786.6 million from $794.5 million in the year-ago period. Comparable-store sales declined 0.6 percent.
The Green Bay, Wis.-based firm’s ShopKo division saw operating profits pick up 15.7 percent to $28.6 million, while revenues rose 1.1 percent to $586.1 million during the quarter. Same-store sales inched up 1.1 percent.
While the Pamida unit’s revenues slid 6.5 percent to $200.4 million, it drove operating earnings up 99.9 percent to $3.7 million. Comps slid 5.2 percent.
"With a solid financial foundation in place, we believe that we are now positioned to reengage in planning for long-term growth," said Jeff Girard, interim chief executive and vice chairman of finance and administration, in a statement. The firm’s board green-lighted a capital expenditure budget for 2003 of $80 million that focused on store remodels, systems and planning for new stores.
After the effects of an accounting change, losses for the half widened to $178.4 million, or $6.10 a diluted share, from $1.5 million, or 5 cents, a year ago. Effective at the beginning of the fiscal year, the firm reduced goodwill arising from its Pamida acquisition by $186.1 million. Without this non-cash charge, ShopKo managed profits of $7.7 million, or 26 cents a diluted share.
Sales for the six months faded 3.9 percent to $1.51 billion from $1.57 billion a year ago.
For the third quarter, ShopKo is looking for losses, excluding charges, of 8 to 12 cents a share. The bottom-line expectations for the full year swing to a profit of $1.35 to $1.45 a share, before charges.
@margotrobbie steps out onto the red carpet wearing @miumiu. The actress is nominated for “Outstanding Performance by a Female Actor in a Leading Role” in “I, Tonya” at the #SagAwards. (📷: Stewart Cook) #wwdfashion
For @massimogiorgetti of @msgm, the Nineties are his favorite decade. “They had a huge impact on my personal growth. What I like of the Nineties is that they are not so precise in terms of style as other decades…there was actually a bit of everything,” he said. As seen on MSGM’s Spring 2018 show: tie-dye and a bit of grunge, two styles that are synonymous with the decade #wwdfashion #wwddecades (📷: @kukukuba)
Breaking News: @hedislimane joins @celine as its new artistic, creative and image director. One of fashion’s preeminent image-makers and trendsetters, Slimane is to join the LVMH brand on Feb. 1 and unveil his first fashion proposition for men and women next September during Paris Fashion Week. It marks a major homecoming for Slimane, who cemented his reputation – and influenced men’s tailoring for more than a decade – as the designer of Dior Homme between 2000 and 2007. He went on to reinvent and ignite the house of Yves Saint Laurent, which he rechristened Saint Laurent, between 2012 and 2016 – all the while maintaining a close relationship with the Arnault family, which controls LVMH and Dior. Read the full exclusive story on WWD.com. Link in bio. #wwdnews #wwdfashion
“Personally I believe the Eighties have been the richest and more vivacious period for international fashion,” Giorgio Armani said when asked what his favorite decade of fashion is. It was a moment of disruption and experimentation and only thinking back to the first years of that decade is always an emotion for me, for what they have meant to me and my work.” The influence is clear in @giorgioarmani spring 2018 collection, pictured here, which was full of bright colors and unexpected prints. Read more about which decades designers loved most on WWD.com #wwdfashion #wwddecades (📷: @aitorrosasphoto)
For Lady Gaga’s only Italian show on her “Joanne World Tour,” the singer wore a range of @versace_official outfits. The standout piece: this custom-made bodysuit inspired by the brand’s spring 2018 collection. #wwdfashion (RG: @ladygaga)
@_camillaruth_ is expanding on the wellness-craze concept with @westbourne – a new NYC restaurant that’s both a healthy-minded café as well as a business that gives back to the community. Marcus works with the Robin Hood foundation to give back to The Door, a non-profit providing youth development services, and also hires employees through The Door. Read our full interview with Marcus on giving back through food on WWD.com. #wwdeye (📷: @lexieblacklock)