Appliance maker Whirlpool has posted third quarter results that managed to beat Wall Street estimates, even though these estimates were conservative predictions based on Whirlpool’s timid guidance. Even then, Whirpool’s increase in profits came together with a decrease in revenue, which can only mean that cost-cutting measures created the profit.
In the last quarter, Whirlpool was forced to shut down an Evansville, Indiana plant, eliminating 1,200 jobs as part of its cost-cutting measures. It may have come as no surprise to the plant’s employees, though, as Whirlpool announced last year that it would need to cut around 7 percent of its …read more

Wal-Mart has released a sales forecast for its fiscal year ending January 31 stating that the retailer expects to see a 1 to 2 percent gain in annual sales, a figure that marks a sharp slowdown from Wal-Mart’s previous forecasts. However, Wal-Mart expects its sales to rebound in the following year, seeing sales rise 4 to 6 percent.
In addition to expecting larger sales, Wal-Mart also anticipates to spend an additional $1 billion this year over last as it continues to upgrade its stores and to expand its business into new markets. Wal-Mart has stated that it does not expect any …read more

Retail sales increased in August, and Ben Bernanke thinks the recession has come to an end. However, economic recovery is still expected to be a long, slow road.

Weak retail sales data nonetheless shows that things are improving at a slow pace.

Although there had been some reports to the contrary, Versace’s board of directors has denied any sort of conflict between the CEO of the company, Giancarlo Di Risio, and the Creative Director Donatella Versace. The two had reportedly butted heads over cost-cutting measures.
According to a statement by the board of directors, “the board has always unanimously given priority to any actions taken to guarantee the patrimonial and financial stability of the company.” This would seem to suggest that if there was a conflict, the welfare of the company would have come first regardless of any other factors.
Versace’s sales have fallen …read more

Although the retail giant posted a $56 million loss just a year ago, Sears has now posted a $26 million profit. This revelation quickly increased Sears’ shares, which jumped 17 percent after hours.
Expectedly, Sears’ profit does not come from an increase in sales. In the last three months, revenue dropped to $10.06 billion, a 9 percent drop from where Sears had been before. However, the decision on the part of Sears to cut advertising costs and payrolls have allowed the company to turn a sizable profit.
Sears also announced that it will provide $4.1 billion in financing until March of next …read more

In the wake of surprisingly high first-quarter losses, Saks Inc. plans to drastically reduce its overhead costs through a variety of measures. Among these, the department store giant plans to cut staff salaries, adjust their merchandise to each individual region’s tastes, and incorporate lower-priced merchandise throughout its stores.
Although Saks has traditionally strived to maintain its status as a luxury retailer, the state of the economy has made it necessary for the company to diversify its merchandise so that a wider group of shoppers can afford their wares. Unfortunately for Saks, walking the tightrope between luxury and affordability has been less …read more

Wall Street is reacting negatively today to weak retail sales data. Retail sales fell 1.1% in March. As a barometer of consumer spending, this unexpected slump may indicate that the economy is not yet rebounding.
According to the AP, the drop was far worse than the increase of 0.3 percent that analysts polled by Thomson Reuters had been expecting and marked the biggest fall in three months.
“The choppy data that we’re seeing, whether it’s economic or earnings, reminds us that we’re still not out of the woods,” said Sean Simko, head of fixed income management at SEI Investments in Philadelphia. “The …read more

Though discount stores and retailers such as Wal-Mart are maintaining or increasing revenues in the rough economic climate, luxury department stores aren’t doing as well. As expected, most of the major high-end stores are seeing their sales decline much faster than other parts of the retail sector.
On Thursday, Nordstrom and Saks both reported that losses accelerated in February. The International Council of Shopping Centers had projected that luxury retailers would see an 8 percent loss this year, but they have now revise their forecast to 15 percent.
With many people are the country struggling to make their mortgage payments, it’s not …read more