•First quarter net revenue of $12.2 billion, down 12% from the prior-year period and down 5% in constant currency •First quarter non-GAAP diluted net earnings per share from continuing operations of $0.36 - within the previously provided outlook of $0.33 to $0.38 per share •First quarter GAAP diluted net earnings per share from continuing operations of $0.36 - above the previously provided outlook of $0.27 to $0.32 per share •First quarter returned more than $1.0 billion to shareholders in the form of share repurchases and dividends •First quarter net cash used in operating activities was ($108) million
HMH reported net sales of $1,416 million for the full year 2015, up 3% or $44 million compared with $1,372 million in 2014. Full year billings were $1,541 million, down 4% or $62 million lower compared with $1,602 million in 2014. Operating loss for the full year 2015 increased $31 million, or 36%, to a loss of $116 million from $85 million in 2014 due to the aforementioned factors related to net sales, cost of sales and selling and administrative costs. Partially offsetting the loss was a $24 million net reduction in amortization expenses related to publishing rights, pre-publication costs and other intangible asset amortization as well as a $3 million reduction in severance and other charges from 2014. Net loss for the full year was $134 million, up 20% or $22 million from a net loss of $111 million in 2014, primarily due to the same drivers impacting operating loss. Additionally, interest expense for the full year increased $14 million, or 76%, to $32 million from $18 million for the same period in 2014, substantially due to the increase to our term loan from $243 million to $800 million.
West Texas Intermediate for April delivery fell as much as 71 cents to $31.44 a barrel on the New York Mercantile Exchange and was at $32.00 as of 12:01 p.m. London time. The contract rose 28 cents to $32.15 Wednesday. Total volume traded Thursday was about 43 percent above the 100-day average. Brent for April settlement lost as much as 88 cents, or 2.6 percent, to $33.53 a barrel on the London-based ICE Futures Europe exchange. The contract advanced $1.14, or 3.4 percent, to $34.41 on Wednesday. The European benchmark crude was at a premium of $2.11 to WTI after reaching $2.37 earlier, the widest gap since Dec. 14.
Adjusted earnings per share for the year ended Jan. 30, 2016, which exclude a $78.1 million ($0.23 per share) first quarter pre-tax gain on the sale of the company’s remaining interest in the third-party apparel sourcing business, increased 14% to $3.99 compared to $3.50 for the year ended Jan. 31, 2015. Full-year operating income increased 12% to $2.192 billion compared to $1.953 billion last year, and adjusted net income was $1.184 billion compared to $1.042 billion last year. Net sales for the year ended Jan. 30, 2016, were $12.154 billion, an increase of 6% compared to $11.454 billion for the year ended Jan. 31, 2015. Comparable store sales for the year ended Jan. 30, 2016, increased 5%.
Quad/Graphics will be closing its plant in Lenexa, Kan., by the end of this month, the company revealed in an earnings call on Tuesday. The move will impact 95 employees. Dave Honan, executive VP and CFO, noted that the moves were part of an initiative to reduce $100 million from the printer’s cost structure for 2016. The work from these plants is being consolidated into what Honan characterized as mega-plant facilities. Claire Ho, company spokesperson, noted that with open capacity in the retail insert platform, the company needed to become more efficient.
•Fourth-quarter net sales of $2.9 billion declined 4.4% from the fourth quarter of 2014; organic net sales declined 2.8% from the fourth quarter of 2014 •Fourth-quarter GAAP net earnings attributable to common shareholders of $71.0 million, or $0.34 per diluted share, compared to GAAP net earnings attributable to common shareholders in the fourth quarter of 2014 of $19.5 million, or $0.10 per diluted share •Fourth-quarter non-GAAP net earnings attributable to common shareholders of $101.0 million, or $0.48 per diluted share, compared to non-GAAP net earnings attributable to common shareholders in the fourth quarter of 2014 of $105.8 million, or $0.52 per diluted share •Fourth-quarter non-GAAP adjusted EBITDA of $329.0 million, or 11.2% of net sales, compared to $326.9 million, or 10.7% of net sales, in the fourth quarter of 2014
Domestic revenue of $12.5 billion decreased 1.5% versus last year. This decrease was primarily driven by a comparable sales decline of 1.8%, excluding the estimated 10-basis point benefit associated with the classification of revenue for the mobile carrier installment billing plans3, and the loss of revenue from 13 large format and 17 small format Best Buy Mobile store closures. These declines were partially offset by an estimated 10-basis point benefit associated with installment billing3 and an approximate 80-basis point periodic profit sharing benefit from our externally-managed extended service plan portfolio. Domestic gross profit rate was 21.6% versus 21.2% last year. This 40-basis point increase was primarily due to a 65-basis point impact from a periodic profit sharing payment based on the performance of the company’s externally managed extended service plan portfolio and improved rates in the mobile and computing categories primarily driven by our more disciplined promotional strategy. These increases were partially offset by (1) an increased mix of lower-margin wearable devices; (2) a decreased mix of higher-margin digital imaging products; (3) a lower rate in televisions driven by a decline in average selling prices and higher distribution costs; and (4) an investment in services pricing.
Best Buy Co., Inc. today announced that its Board of Directors authorized a plan to return excess capital to shareholders as follows: • A 22% increase in the regular quarterly dividend to $0.28 per share, effective immediately; • A new $1 billion share repurchase plan expected to be completed over the next two years; and • A special dividend of $0.45 per share, or approximately $145 million; related to the net after-tax proceeds from certain legal settlements and asset disposals.
“We believe that the strategic framework of the Greatness Agenda is working as evidenced by our achievement of five consecutive quarters of positive comparable sales increases. I am particularly encouraged by the 4% increase we saw between Thanksgiving and Christmas. At the most competitive time in retail, customers were choosing Kohl’s,” said Kevin Mansell, Kohl’s chairman, president and chief executive officer. “This strength, however, was substantially offset by softness in early November and in January when demand for cold-weather goods was especially low, resulting in a quarterly comparable sales increase of 0.4%, which was below our expectations.”
For the fourth quarter, net sales were $627.4 million, a decrease of 4.5% compared to $656.9 million in last year's fourth quarter, primarily due to a 3.2% decrease in comparable sales and a decline in Boston Proper sales. The 3.2% decrease in comparable sales for the fourth quarter was following a 4.3% increase in last year's fourth quarter, and reflected a decrease in average dollar sale partially offset by an increase in transaction count. For fiscal 2015, net sales were $2.642 billion, a decrease of 1.2% compared to $2.675 billion in fiscal 2014, primarily reflecting a 1.5% decrease in comparable sales and a decline in Boston Proper sales, partially offset by the benefit of new stores. Comparable sales decreased 1.5% for 2015 compared to flat comparable sales in 2014, and reflected a decrease in average dollar sale and flat transaction count. Gross Margin For the fourth quarter, gross margin was $318.5 million compared to $328.2 million in last year's fourth quarter. Gross margin was 50.8% of net sales, an 80 basis point increase from last year's fourth quarter, primarily reflecting improved inventory management in fiscal 2015 and charges related to non-go-forward inventory in fiscal 2014. When excluding Boston Proper in fiscal 2015, gross margin was $314.7 million, or 51.4% of net sales.