Bed Bath & Beyond sees a rockier third quarter
Piscataway, N.J.-based Bed Bath & Beyond has announced net earnings in the third quarter of $138.2 million, down 3 percent from $142.4 million in the same period last year. Net sales rose 10.8 percent to $1.8 billion compared with 1.62 billion in the year-ago period.
Comparable-store sales grew about 0.8 percent; a slower growth rate than the 4.6 percent recorded in lasts year’s third quarter. The company said it predicts a flat comparable-store sales percentage for the fourth quarter.
Most recently, the company opened two new stores, including its first store in Canada.
Bed Bath & Beyond, which also operates the Christmas Tree Shops, Harmon Stores and Buy Buy Baby chains, said it expected quarterly earnings of 64 cents to 67 cents a share, compared with analysts’ forecasts of 77 cents.
As of December, the specialty retail company operated a total of 949 stores, including 859 Bed Bath & Beyond stores, 28 of which were opened during the third quarter.
BMHC announces more closings
Building Materials Holding Corporation (BMHC) announced it will close facilities in Reno and Sparks, Nev., and consolidate other operations in an effort to continue to align costs with current market conditions.
The San Francisco-based building materials company will also close a facility in Sherwood, Ore., and move those operations to a Vancouver, Wash., facility. In Marysville, Calif., BMHC will consolidate its lumber and building materials distribution and wall panel manufacturing operations into existing Modesto, Calif., facilities.
Other consolidations will occur in Texas, Colorado and Arizona.
These actions are expected to be largely completed during the first quarter of 2009, affecting approximately 260 employees. Overall, BMHC has reduced its workforce from 25,000 in 2006 to less than 11,000 as of September.
“The unprecedented national economic and local market challenges require that we continue to realign costs with current market conditions,” said Robert E. Mellor, BMHC’s chairman and CEO. “With the exception of the Reno area, where we will be exiting the market, we will continue to serve our customers with our full range of products and services — including framing, lumber, millwork and trusses — through nearby facilities.”
Mellor went on to say that the closures and restructuring will enable his company to significantly reduce expenses, share key personnel and better utilize facilities and equipment.
Ace appoints director of sales for global division, Asia
Ace Hardware Corporation has promoted Jack Murphy to director of sales for Ace Global Distribution (AGD), Asia, the Oak Brook, Ill.-based co-op announced. AGD is the retail distribution arm for Ace International.
In his new position, Murphy will direct the AGD sales teams in Oak Brook and Shanghai, China, while also working closely with Ace members and the AGD merchandising teams. Responsibilities will include management of global foreign-to-foreign sales and spearheading future initiatives to promote AGD Asia’s worldwide sales growth.
Murphy, 40, most recently served as international regional manager for Asia Pacific, where his responsibilities included growing the Ace brand globally via retail development initiatives and various wholesale strategies. He previously served as a district manager for Ace and once owned and operated an Ace store in Forest City, N.C.
“Jack has a wealth of sales and retail knowledge, culled from his own experience as an Ace retailer and several key management positions,” said Murray Armstrong, president and general manager of Ace International. “He is aware of the strategies needed to help us grow our international sales, particularly in Asia’s emerging markets.”
Murphy graduated from the U.S. Air Force Leadership School and holds a degree in management and operations from Loyola University, Chicago. He will report to Armstrong.