Ind. retailers optimistic to increase shareholders’ long-term returns for 2013

Some Indiana publicly traded retailers leaped into the new year with high hopes after a bitter holiday shopping season, while others experienced a rise in consumer traffic.

Indianapolis-based electronics chain H.H. Gregg  and athletic apparel chain Finish Line, Inc. experienced double-digit decreases in share price since the beginning of the holiday season.

H.H. Gregg’s net sales dropped 5 percent year over year to $587.6 million, according to a report issued by Zack’s Investment Research of Chicago. Net sales dropped due to an 8.8 percent decline in comparable store sales.

In the same report, Zack’s released a “neutral” rating for H.H. Gregg. Shares at H.H. Gregg are down 14 percent since November.

Zack’s is encouraged by the company’s initiatives to drive additional consumer traffic, also according to the report.

“Strategic initiatives like restructuring of in-store management team and introduction of new categories have grown its appliance market share,” according to the report.

Nationally, a widely watched spending indicator showed a 0.7 percent increase from Oct. 28 through Dec. 24 during the same period a year ago, according to a report from MasterCard Advisors SpendingPulse, which tracks sales of electronics, clothing, jewelry and home goods.

Zack’s awarded Evansville-based Shoe Carnival a No. 1 rating after third quarter earnings were up 15.4 percent year over year. Net sales grew 13.4 percent year over year to $244.4 million during the quarter, aided by comparable store sales growth of 6.2 percent.

The Shoe Carnival board of directors approved the payment of a quarterly cash dividend and a special cash dividend in early December.

“We are extremely pleased to be able to enhance shareholder value through the payment of both a quarterly and a special cash dividend, which reflects the strength of our balance sheet and our consistent cash flow generation,” Cliff Sifford, Shoe Carnival’s president and CEO said in a press release. “We believe we are well positioned for future organic growth as we use our adequate remaining capital to increase our store base in new and existing markets over the next several years. Our executive team remains committed to increasing shareholder return long-term.”

— Matt Stefanski