Consumer Business Recap: Macy’s SUES J.C. Penney’s, Wal-Mart’s EARNINGS Call
The announced price reductions for Barnes & Noble Inc. (NYSE:BKS) Nook lineup is killing the prices of its shares, as they have now dropped more than 14 percent of their value since word got out about the cuts. Moreover, chatter that the Microsoft Surface could go under $200 can’t be helping the situation.
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Macy’s Inc. (NYSE:M) brings a lawsuit against J.C. Penney & Co. (NYSE:JCP) in New York State, which alleges ‘tortious interference’ on the part of the latter, when it broke what was thought by Macy’s to be an exclusive arrangement thorough which only its merchandise would be showcased. Then came Penney’s Chief Executive Ron Johnson, with his shop-within-a-shop remake that placed goods of Martha Stewart Living Omnimedia, Inc. (NYSE:MSO) in a prominent place. Who would not have seen a lawsuit coming from this?
The earnings call conducted by Wal-Mart Stores, Inc. (NYSE:WMT) took no questions and answers, but executives stress the retailer’s consistency in the face of a paycheck cycle that remains pronounced. Pressures on pricing in the club channel and food costs cut into profits, but were outweighed by factors such as deflation in key categories like dairy and electronics. Sales at the Walmex division rose by 10 percent in the second quarter. Finally, the company intends to launch between 95 and 100 total new units in the third quarter.
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