follow us

Retail Ventures sees profit on accounting change  

Columbus, Ohio – Off-price retailer Retail Ventures reported a dramatic leap in second-quarter profit to $106.2 million, up a loss of $16.0 million for the same period last year.

However, the gain was attributable to an accounting change from a “change in fair value of derivative instruments” and “hedging activities” -- not to retail operations. The change in value is recognized as earnings, the company said in its SEC filing.

The 383-unit retailer recorded income “related to the change in fair value of warrants” of $99.5 million for the quarter, as well as a charge, or loss, of $15.3 million. For the first half of the year, the yield was: income of $97.4 million and a charge of $80.2 million. Thus for the six months, the net gain to the balance sheet is smaller than for the quarter.

Sales of $732.7 million were up 7.0% from $684.5 million; comps rose 0.3%. Comp sales at upscale Filene’s Basement were up 7.0%, while the lagging discount operation Value City saw a 7.3% comp decline – which the company said was “comprised of declines in all major categories.”

Featured Video

Other Home Furnishings Sites

Casual Living
Gifts and Decorative Accessories
Home Accents Today
Kids Today
Furniture Today