The News Review:
- Tiffany’s 1Q profit tumbles but meets view
- HDGiants Lays ff Sales Marketing Staff
- Heinz 4Q profit falls 10 percent
Tiffany’s 1Q profit tumbles but meets view
The Associated Press
as consumers continued to shy away from luxury purchases. Still the earnings matched Wall Street’s expectations and the company maintained its profit outlook for the full year. Tiffany said it cut spending in the first quarter to offset weak sales by cutting 10 percent of staff — or 900 people — and lowering marketing spending. Tiffany like many other luxury companies has seen sales soften as consumers cut back on big-ticket discretionary purchases amid the recession. Tiffany said sales of items over $50000 were particularly weak and lower-priced silver and gold jewelry performed better. The New York-based retailer earned $24. 3 million or 20 cents per share for the three months ended April 30 down from $64.
Related from Mexview: Mexico’s Bank Industry 1Q Profit Tumbles 20% To MXN17.74 Bln
HDGiants Lays ff Sales Marketing Staff
Twice
“HDGiants was running out of funds to go to the next level” the executive told TWICE. The company’s private investors were unable to agree on terms for raising additional capital the executive added. “All sales and marketing are on hold” the former employee said. nly CE Scott Bahneman and perhaps one person in technical support were still on the job as of Friday. The executive did not know if the company would continue to offer its services under Chapter 11 but as of Friday May 29 the download site was still operating. The service downloads music from the big four music labels and others to PCs and to select residential custom-installed music servers which are equipped with HDGiants software the executive noted. Those servers include models from Qsonix and Niveus Media.
Heinz 4Q profit falls 10 percent
The Associated Press
dollar also hurt the quarter pushing profit down 10 percent because the bulk of Heinz’s business is done abroad. The company gave fiscal 2010 guidance somewhat below analyst estimates. It said it plans to keep its costs under control but boost marketing to keep sales in line. Heinz also won’t cut prices like competitors especially in frozen foods where its Weight Watchers Smart nes products compete. North American Chief Executive Dave Moran said Heinz is committed to strong pricing in 2010. Instead the company will drive sales through innovation and marketing. He said competitors have been discounting frozen food but the category hasn’t seen any benefit.