Weather Trends retail forecast
Temperatures in June 2013 will trend similar to last year for the United States as a whole, with warmer year-over-year temperatures on the East and West Coasts and cooler temperatures across the Central states. Seasonal warm weather categories will see the strongest demand along the East and West Coasts for the month overall, while the week leading up to the Independence Day holiday will be most favorable (warm and dry) in the West. Meanwhile, the Central states will be stuck in a cooler pattern during the latter half of the month, which will dampen seasonal category demand.
Compared with a very dry June 2012, this year will be much wetter from the Rockies to the Mid-Atlantic, which will result in stronger demand for indoor-related project items than last year. There will be an increased threat of severe weather across the Plains this year, which would increase home center traffic and demand for items such as chainsaws, plastic sheeting, plywood and other storm-related merchandise.
Last year, there were two tropical systems that brought flooding rain to Florida, increasing demand for items such as bleach, paint, plastic sheeting and desiccants. Tropical activity should be much less in June 2013, however, if any storms develop the greatest risk of impact would be along the Gulf Coast.
American Woodmark Q1 net sales rise
Winchester, Va.-based American Woodmark posted first-quarter net income excluding restructuring charges of $1.0 million, compared with a net loss of $2.7 million in the first quarter of its prior fiscal year.
Results in the first quarter included net-of-tax restructuring costs of $0.5 million, related to the permanent closure of two manufacturing plants in April 2012 and May 2012. Net income for the first quarter of fiscal year 2013 inclusive of these charges was $0.6 million.
Net sales in the first quarter ended July 31 totaled $148.25 million, up 13% from $131.20 million in the prior-year quarter. The company experienced sales gains of more than 40% in its new construction business, while its remodeling sales were in line with the prior year’s first quarter.
American Woodmark manufactures and distributes kitchen cabinets and vanities for the remodeling and new home construction markets.
Lowe’s sells Long Island site to Target
Lowe’s pullback on its expansion on Long Island, N.Y., provided an opportunity for Target, which purchased an 18-acre site in Huntington Station from the home improvement retailer, according to a report in the Long Island Business News.
Target paid approximately $22.5 million, according to a town source, for the property Lowe’s purchased in 2007 for $35 million. The North Carolina retailer, which spent another $8 million in improvements to the site, decided not to build a 130,000-sq.-ft. store there in October 2011, according to the article. At the time, Lowe’s closed 20 underperforming stores and canceled a number of other projects.
The Huntington Station store will be Target’s 13th location on Long Island.