Tag Archive | "Promotions"

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Promotions propel August retail sales

Costco Wholesale Corp. and L Brands Inc. reported stronger-than-expected sales in August, though the month was dominated by deals and discounts as retailers tried to boost back-to-school sales.

The warehouse club chain and intimate-apparel and personal-care retailer have hefty weightings in the Thomson Reuters sales index, and both have been standouts of late among retailers.

“Competition for back-to-school dollars has been fierce,” said Ken Perkins of Retail Metrics, referring to the aggressive promotions used by retailers to lure consumers during the critical shopping period, which is second only to the holiday shopping season.

Johnson Redbook Research noted earlier this week that students are increasingly shopping for fall clothes after school starts, pulling some back-to-school sales into September.

Still, concerns about the consumer have been building as typically strong companies like Michael Kors Holdings Ltd. and Kate Spade & Co. pointed last month to a need to ramp up discounts to clear merchandise. And Macy’s Inc., seen as a leader among department stores, lowered its sales forecast for the year, succumbing to similar pressures.

The preliminary reading of the Thomson Reuters sales index indicated retail sales rose 5.6% in August, excluding newly opened and closed stores. Factoring in Gap Inc. and Zumiez Inc., which are expected to report after market close, Thomson Reuters had projected the eight retailers it tracks to post 3.9% growth versus a 3.3% increase a year earlier.

Many retailers, including the major department stores and most big-box retailers, stopped reporting monthly metrics some time ago, making it difficult to gauge the health of the entire industry.

L Brands, formerly L Brands, for its part noted that the merchandise margin rate for August was about flat compared with last year. The company said sales rose 5% last month, topping consensus estimates for a 2.7% increase.

The growth was led by a 5% increase in sales for the company’s Victoria’s Secret brand, which topped expectations for 3% growth. The company noted strength in the brand’s young adult focused Pink line, which had a back-to-school focus during the month.

Meanwhile, the Bath & Body Works brand recorded a 4% sales increase, driven by strength in the brand’s signature collection, home fragrance and soap and sanitizer businesses. Analysts had expected growth of 3.5% for the month.

Costco reported a 7% increase in August sales, excluding gasoline, far surpassing analysts’ estimates for 5.2% growth.

Top-performing categories at Costco included housewares, small appliances, apparel, fresh foods and food sundries like cooler and deli products.

Among teen retailers, Buckle Inc. said sales edged up 0.8%, missing analysts’ projections for 1.2% growth.

Gap, another major component of the index, is expected to report a 1.6% increase, while teen retailer Zumiez, which sells action sports-related apparel, footwear and equipment, is expected to report 2.5% growth.

-Erin McCarthy contributed to this article.

Write to Anna Prior at anna.prior@wsj.com

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SOURCE: http://www.marketwatch.com/story/promotions-propel-august-retail-sales-2014-09-04-94855055

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Infrax Systems Inc. (OTC:IFXY) Starts the New Year with New Promotions

This week, Infrax Systems Inc. (OTC:IFXY) stock started the new year with a new promotional campaign. As seen immediately on the chart, the price and volume action was supported yesterday by the company’s first press release for the year which announced a new acquisition to boost up the revenues.

In yesterday’s trading session, IFXY stock price opened the market with a large jump up and extraordinary demand from traders. At the end of the day, the shares recorded a total value increase of 40.62% and a share volume reaching almost 71.19 million shares. IFXY hit a number of resistances going up to $0.012 and then closed at $0.009 for a share.

Today’s trading session promises to be hot as well, as yesterday afternoon another revenues- and shareholder value-related PR was added to the one from Wednesday. After announcing the acquisition of an engineering and design firm for a total price of $8 million, to be paid with a combination of cash and preferred stock, Infrax will now launch a proprietary Secure Network Interface Card at a technology conference at the beginning of next month.

Even more interesting for traders is though that yesterday a one-day promo campaign for IFXY stock was also launched, maybe to secure the interest of the public market in advance. An amount of $13,250 was paid for the service and the stock was featured in the newsletters of at least five promoters.

Infrax stock price seems to already reflect the expected future growth in the sales, and the shares look overvalued also in regard of the company’s tangible assets. At the endInfrax.jpg of September 2010 Infrax had total assets of $6.92 million and $6.59 million of that amount represents the price paid for the acquisition of the assets of Trimax Wireless Systems, Inc. in June last year. The valuation of the acquired intangible assets is based on their expected future cash flows.

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GreenWorld Development, Inc. (OTC:FRXP) Stacks Up Promotions

GreenWorld Development, Inc. (OTC:FRXP) stock advertising campaign was joined by a second promoter today. The company had their own news to make a further impact as well.

GreenWorld announced intentions to acquire majority shareholding in a UK waste recycling company FE4 Ltd. The process is still in negotiation phase and might not lead to real deal in the end.

Along with the announcement, a $30 thousand dollar promotion run by Raven Consulting Corp. guarantees a one day increase in trading volume. The payment was made by a third party, Wall Street Grand. Two days ago the stock got promoted in another $30 thousand campaign, paid for by Stock Mister LLC, and carried out through newsletter of hototc.com and stockegg.com.[BANNER]

FRXP is one of the wealthier penny stock companies, but still has no business revenue and a questionable balance sheet. For a development stage company, the most troublesome part is the lack of cash or any other liquid assets. The main value lies in property leases, held by GreenWorld. Debt is considerably low, but continues to increase.

greenworld_logo.jpgThe share price advance is limited by the overall value of the company. The market cap is currently near $20 million, thought the net tangible assets of the business are only slightly above $1.3 million. Furthermore, the stock related management’s decisions cause trouble for investors. In addition to continuous stock dilution, shareholders were also presented a 3 for 1 forward split this year.

The share price has been bashing against resistance at 50 cents, and didn’t manage to break that even under very strong volume this month.

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Southridge Enterprises Inc. (PINK:SRGE) Developments Shadowed by Promotions

Southridge Enterprises Inc. (PINK:SRGE) stays with a 150% premium to its share price from last Friday as the company continues posting new developments and getting support from various paid promoters.

Southridge announced that its subsidiary Southridge Minerals, Inc. has signed an agreement to acquire Cinco Minas and Gran Cabrera Gold properties in Mexico. The total purchase price for both properties will be $5.5 million.

Apparently in relation to the lack of available funds, the company also announced yesterday to have secured $5 million financing provided by Quixstone Investments, Inc. through the same wholly-owned subsidiary of SRGE. The funds come in the form of a convertible debenture with a 9.4% annual interest rate and must be repaid in 3 years.

The announcement of the funds raising didn’t have much effect on the stock price, but the costly promotional campaigns rolling out one after another might create an artificial price rally. As always, all the advertising costs were covered by third parties.[BANNER]

The payments done so far in attempt to boost SRGE stock performance:

• Longview Communications Corp. paid $30 thousand to Raven Consulting Corp.
• Longview Communications Corp. paid $45 thousand to WhisperfromWallStreet.com
• Medford Financial paid $20 thousand to Tritos, Inc.
• Longview Communications Corp. paid $15 thousand to Access Media Network Corp.

Southridge_minerals_logo.jpgIn total, $110 thousand were spent on promoting the stock of a gold exploration company that has just now acquired some properties with borrowed capital and has no recent financial track record. The stock is listed on OTCmarkets.com with a Caveat Emptor (Buyers Beware) notice. Furthermore, the business apparently carries a very dark trail related to the former management.

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