For the Second Quarter • Net sales increased 20.6% to $1,289.9 million from $1,069.2 million in the second quarter of fiscal 2016; • Comparable sales (sales for stores open at least 14 months and e-commerce sales) increased 11.7% compared to an increase of 14.4% in the second quarter of fiscal 2016. The 11.7% comparable sales increase was driven by 5.5% transaction growth and 6.2% growth in average ticket; • Retail comparable sales increased 8.3%, including salon comparable sales growth of 7.7%; • Salon sales increased 15.3% to $68.0 million from $59.0 million in the second quarter of fiscal 2016; • E-commerce sales grew 72.3% to $96.3 million from $55.9 million in the second quarter of fiscal 2016, representing 340 basis points of the total company comparable sales increase of 11.7%; • Gross profit as a percentage of net sales increased 40 basis points to 36.4% from 36.0% in the second quarter of fiscal 2016, due to improvements in merchandise margins and leverage in fixed store costs; Click Read More below for additional detail.
News Corp Chief Executive Robert Thomson has responded to news of the Havas Media Group UK withdrawing advertising from Google and YouTube by noting that advertisers “need to go back to basics to protect their brands from serious damage.”
“Ad fraud is being perpetrated ad nauseam. It is rife throughout the digital world, and is facilitated by some ad agencies, which themselves make money from artificial audiences and pretend page views,” said Mr. Thomson. “Advertisers need to go back to basics to protect their brands from serious damage and to protect themselves from being involved in potentially criminal activity, whether it be supporting extremist groups or funding hardcore pornography.”
Mr. Thomson has been a longtime evangelist for the view that large tech platforms are “platforms for piracy” and fail to respect the fact that “there is a hierarchy of journalism.”
Excerpts of past remarks by Mr. Thomson:
Morgan Stanley Technology, Media & Telecom Conference, March 1, 2017
“Well, provenance is profoundly important and it’s becoming increasingly important to advertisers. Because you’ve seen the articles of late, The Times of London, they did a brilliant series on companies like Land Rover pulling out of digital and social because it is concerned about their ad placement on completely unacceptable sites….”
News Corp Earnings, February 9, 2017
“…We are in an era in which integrity is priceless, yet digital distributors have long been a platform for the fake, the faux and the fallacious, highlighting an issue which we have long stressed – that they have eroded the integrity of content by undermining its provenance. Put simply, content distributors are profiting at the expense of content creators and at the expense of veracity.
….And in the ad market, there has been an awakening, and there will surely be a reckoning.
Advertisers want reassurance that their products are displayed in suitable surroundings – they don’t want muddled metrics and they don’t want digital platforms and ad agencies arbitraging ambiguity.
The dangers of Chief Marketing Officers chasing fashion rather than function was highlighted in The Times of London today – some of the world’s best-known, most prestigious brands are inadvertently funding extremists and hardcore pornographers.
more at: http://newscorp.com/2017/03/17/statement-of-robert-thomson-chief-executive-of-news-corp-on-havas-media-group-uk-decision-to-pull-advertising-from-google-and-youtube/