IN BRIEF
CHICAGO
Sales report sends warning to merchants
A disappointing October sales report sent a clear signal to retailers that they will have to pull out all the stops to get shoppers into their stores this holiday as declining home values, tighter credit terms and rising gasoline prices appear to have left consumers feeling spent.
The nation’s biggest chain stores posted the second consecutive month of weak sales results, underscoring their concerns that sales growth this holiday season could be the slowest in five years.
Sales at chain stores opened at least a year rose 1.6 percent in October compared with the same month last year, and below the forecast of 2.4 percent growth put forth by the International Council of Shopping Centers. September sales rose 1.7 percent.
Wal-Mart Stores, the world’s largest retailer, eked out a 0.4 percent sales increase by getting a jump on the holiday with early discounts on toys and electronics. Midtier department stores and mall-based specialty stores fared poorly, posting across-the-board declines. The lone standouts were luxury department stores.
Same-store sales fell 1.4 percent at Bon-Ton, 3.8 percent at Kohl’s Corp., 1.8 percent at J.C. Penney Corp., and 1.5 percent at Macy’s Even Nordstrom, which had been largely untouched by the slowdown thanks to its upscale slant, saw its same-store sales fall 2.4 percent.
Indiana regulators OK Harrah’s buyout
Casino giant Harrah’s Entertainment said Thursday that the Indiana Gaming Commission has approved the $17.1 billion buyout of the company by private equity firms.
The transaction, announced in December, still requires approval by other jurisdictions in which Harrah’s operates.
Apollo Management and Texas Pacific Group agreed to buy the world’s largest casino company by revenue for $90 per share.
Shareholders approved the deal in April. It is expected to close by early next year.
LOS ANGELES
Growth at ESPN buoys quarter for Disney
Net profit rose 12 percent at The Walt Disney Co. in the fourth quarter, led by growth at its ESPN cable channel, more visitors at theme parks, and increased sales of consumer products, the media conglomerate reported Thursday.
Disney reported net income of $877 million, or 44 cents per share, for the quarter ended Sept. 29, compared with $782 million, or 36 cents per share, a year earlier.
Earnings benefited from a 2 cents per share gain related to prior-year income tax matters. Without the one-time item, earnings for the quarter were 42 cents per share.
Revenue rose 3.2 percent to $8.93 billion from $8.65 billion.
TOKYO
Save now, or face one angry piggy bank
A new piggy bank bomb could make saving money more of a thrill. Japanese toy maker Tomy Co. Ltd. is releasing a bomb-shaped piggy bank that shakes, shines, beeps and “explodes” to remind the user to feed it coins.
When a user fails to add cash to the battery-operated piggy bank every day, it vibrates and makes noises hourly. The loud reminders conclude when the bank “explodes,” automatically opening its skull-marked door and scattering the contents.
The bank, which goes on sale next week, costs about 3,000 yen ($27) and, despite the odd explosion, can be used repeatedly.
NEW YORK
Treasurys rise after 30-year bond auction
Treasury prices closed mostly higher Thursday, benefiting from a successful auction of new 30-year bonds and continued uncertainty in the stock market.
The 10-year benchmark note rose 0.13 to 99.78 with a yield of 4.27 percent, down from 4.30 percent late Wednesday. Prices and yields move in opposite directions.
