Stein Mart, Inc. (NASDAQ:SMRT) announced today sales for the four weeks of July and second quarter ended August 1, 2015. July sales comparisons were unfavorably impacted by the shift of sales tax holidays from July to August in eight states for 102 stores, as well as higher liquidation sales in July 2014 for three stores that were relocated in last year's third quarter. Geographically, the Midwest and Southwest had the strongest sales, while the Northeast, Southeast (sales tax holiday shift) and California performed below the chain. For the second quarter, ladies' apparel had the strongest sales, led by dresses and ladies' boutique, while accessories performed lower than the chain. The Company operated 269 stores at the end of July this year compared to 265 stores last year.
FTD Companies, Inc. (Nasdaq:FTD) ("FTD" or the "Company"), a premier floral and gifting company, today announced financial results for the second quarter and six months ended June 30, 2015. "Our strong second quarter profitability reflects the improved operational and financial disciplines we have applied to our Provide Commerce segment in the six months since the closing of the acquisition," said FTD President and Chief Executive Officer, Robert S. Apatoff. "We continue to make solid progress on our integration efforts as we execute against our strategic initiatives and focus on profitably growing our premier family of brands. We remain very excited about our future as we continue to focus on driving shareholder value."
Legal and regulatory costs, as well as costs related to payroll, severance and commissions, contributed to a surprise net loss during the second quarter of fiscal 2015 at Lumber Liquidators. The struggling retailer also informed financial regulators that it may face legal action stemming from the sale of Chinese hardwood flooring that allegedly contained excessive levels of formaldehyde. Net loss was $20.3 million, compared to net income of $16.6 million the same quarter a year earlier. Net sales were $247.9 million, a 6% decrease from $263.1 million. This figure included a same-store decline of 10%, due to decreases in the number of customers invoiced and the average sale. Lumber Liquidators believes net sales were negatively impacted by allegations of unsafe formaldehyde levels in Chinese flooring products, as well as its decision to suspend sales of those items.
E-commerce continues to grow in importance to QVC. The TV, web and mobile web retailer says U.S. e-commerce sales totaled $655 million in the second quarter, accounting for 47% of total U.S. revenue for the division of Liberty Interactive Corp. A year earlier, web sales accounted for 43% of U.S. sales, the company says. Of those web sales, 47.6% of orders were placed from mobile devices, up from 37.48% a year earlier. Measured globally, mobile accounted for 49.37% of QVC web orders during the quarter, up from 39.86% a year earlier. While up year over year, mobile as a percentage of web sales was down from the first quarter, when mobile accounted for 52.13% of sales. Globally, QVC generated $848 million online in the quarter, up 8.9% from $779 million a year earlier.
Quad/Graphics Inc. has reported results for its second quarter ending June 30, 2015. The reported results include Brown Printing from the day of acquisition on May 30, 2014. Net sales for the second quarter 2015 were $1.1 billion, representing a 1.8 percent decrease from second quarter of 2014. Second quarter Adjusted EBITDA was $90 million compared to $102 million for the same period in 2014, and Adjusted EBITDA margin was 8.4 percent compared to 9.3 percent in 2014. The Adjusted EBITDA variance primarily reflects ongoing industry volume and pricing pressures partially offset by incremental earnings from acquisitions.
FASTSIGNS International, Inc. is having a banner year on all fronts. In the past six months alone, the worldwide franchisor for more than 590 FASTSIGNS® sign, graphics and visual communications centers has reached global revenues of $400 million – an all-time high for the company, along with inking 24 new franchise agreements and opening its first location in Dubai. The company expects to sign an additional 33 franchise agreements by year’s end and is finalizing master franchise agreements in two new countries. FASTSIGNS executives attribute the robust mid-year revenue achievement in large part to the company’s expanded products and services—which aligns with its “More Than” brand positioning—as well as the formation of an outside sales force that has now grown to more than 360 sales professionals. The sales team succeeds by offering businesses specialized, forward-thinking services provided by FASTSIGNS such as digital signage, imaged glass, window shades, exhibits and displays, mobile marketing and digital printing.
Consolidated net sales of $224.1 million in the second quarter of 2015 were down 3 percent compared with $230.4 million in the second quarter of 2014. Volume growth in Technical Products and a higher value mix and selling prices in both segments were offset by currency translation, which reduced consolidated sales by 7 percent or $15 million due to a weaker euro, as well as lower Fine Paper & Packaging shipments. "Our businesses performed well in the quarter, delivering record earnings and cash flows. In Technical Products, impressive organic growth was boosted by last year's filtration acquisition, and Fine Paper and Packaging continues to deliver very attractive financial returns," said John O'Donnell, Chief Executive Officer. "It's a testament to the strength of our teams that they can deliver these record results while at the same time completing a thorough diligence and successful execution of the FiberMark acquisition. We are now focused on integration and excited by the capabilities FiberMark brings to accelerate growth in premium packaging and performance materials. Our balance sheet remains strong, providing future flexibility and the ability to optimize capital deployment among high-returning organic investments, value-adding acquisitions and increasing cash returns to shareholders."
Appvion, Inc. announced today that the company has sold its Encapsys microencapsulation division to an affiliate of Sherman Capital Holdings LLC, a private investment firm based in Baltimore. The purchase price was $208 million. Conditions of the sale include a long-term supply agreement whereby Encapsys will continue to produce and sell microcapsules to Appvion that Appvion uses to produce its carbonless paper. Mary Goggans, vice president and general manager of the Encapsys division under Appvion ownership, has been named president of the now independent Encapsys, LLC. Encapsys discovers, develops and manufactures microencapsulation solutions for use in the building and construction, paper, bedding, and personal and household care industries.
Smurfit Kappa has today launched the Paper Navigator as the new brand positioning for its unrivalled portfolio of paper for packaging. The Paper Navigator signifies the company’s commitment to steer customers through the paper selection process to deliver optimum packaging solutions that drive business value. Smurfit Kappa offers a highly flexible approach to optimising the composition and performance of paper packaging based on a broad range of paper products and services, using both virgin and recycled fibres. For packaging manufacturers and end customers, it takes into account all possible packaging considerations and constraints – from supply chain to product safety, sustainability and print and finish needs – to deliver cost-effective, quality paper solutions to meet specific needs.
American Forest & Paper Association (AF&PA) President and CEO Donna Harman and American Wood Council (AWC) President and CEO Robert Glowinski have issued the following statements expressing concern about the U.S. Environmental Protection Agency’s (EPA) final Clean Power Plan and the proposed Federal Plan released Monday. Donna Harman, President and CEO, AF&PA: “While the final Clean Power Plan and proposed Federal Plan reaffirm the carbon benefits of bioenergy and forest products manufacturing residuals, EPA missed an important opportunity to clarify how biomass energy can be practically used by states to meet emission reduction goals. These residuals would have released CO2 to the atmosphere if they had not been used for energy, so the industry is simply harnessing their energy value and utilizing the full carbon cycle of biomass. EPA’s lack of guidance and direction creates confusion and uncertainty for states and business investment, which hinders the competitiveness of America’s paper and wood products industry.”