Friday, August 20, 1999
TRISTATE BUSINESS SUMMARY
Dillard's new stores drag down bottom line
Dillard's Inc. reported disappointing earnings in its second quarter as sales at Mercantile Stores acquired last year performed below expectations and costs ran high.
The Little Rock, Ark.-based retailer said net income declined to $36.2 million, or 34 cents a share, in the period ended July 31. That compares with $47.9 million, or 45 cents a share, in the same quarter the year before. Total sales rose to $1.9 billion from $1.5 billion. Same-store sales rose 4 percent.
Despite the sales increase, Dillard's said the acquired Mercantile stores performed at 19 percent below the previous year's sales levels and did not improve at the pace Dillard's had expected.
A clearance of merchandise Mercantile had committed to as well as its private labels also deteriorated margins.
Expenses in the acquired stores also ran higher than expected. Dillard's warned that the trends could continue into the third quarter, but said it remains committed to Mercantile.
Earlier this week, Saks Inc. warned its annual earnings would fall short of expectations, in part because 15 Mercantile stores it acquired from Dillard's were underperforming.
Comair to begin route direct to Mobile, Ala.
Comair Inc., the Erlanger-based regional airline, will start flying to Mobile, Ala., three times a day Nov. 1. Travelers can already start making reservations for the flights.
The flights from Cincinnati/Northern Kentucky International Airport will be operated with the 50-seat Canadair Regional Jet. They will leave Mobile at 6:30 and 10:35 a.m., and 5:10 p.m. The return flights to Mobile leave Cincinnati/Northern Kentucky at 9:30 a.m., and 4:10 and 9:30 p.m.
The flights are operated under Delta Air Lines code, as Comair is a Delta Connection carrier feeding the major airline passengers through its Cincinnati hub.
KB Toys tries Web to boost its sales
After a net loss of more than $8 million so far this year, Columbus-based Consolidated Stores Corp. is counting on online sales with its new KB Toys Web site.
Consolidated joined with Denver-based BrainPlay.com on July 21 to create KBkids.com. Consolidated holds 80 percent and BrainPlay 20 percent. The site offers more than 10,000 toys, games, videos and books — about five times more choices than in a traditional KB Toys store.
Consolidated operates 2,504 stores in all 50 states and Puerto Rico. Of those stores, 1,327 are toy and closeout toy stores operating as KB Toy Works, KB Toy Outlet and with the online shopping.
KB will compete with the Internet's most successful vendor, Amazon.com, which has more than 10 million established customers and added a toys and games site last month.
J. Peterman creditors will see payment plan
Creditors of J. Peterman, the Lexington, Ky., company sold at a bankruptcy auction in March, could get to vote by October on a plan that will outline how much and when they get paid, a lawyer for the company said.
About 4,000 individuals and firms have filed claims against J. Peterman. A disclosure statement, which outlines the history of the J. Peterman bankruptcy filing and financial information, was filed late Tuesday in U.S. Bankruptcy Court in Lexington.
Cintas chief invests in Ky. Speedway
Bar audits add up alcohol
P&G to donate $500,000 for earthquake victims
Providence Capital buys 7.4% of Baldwin
TRISTATE BUSINESS SUMMARY
Columbus-area malls not for sale
INDUSTRY NOTES: MANUFACTURING
Trade imbalance soars
TRISTATE MARKET SPOTLIGHT
