From roses to chocolates, children of all ages are expected to
spend more on their mothers this year and give the retail sector
a boost over the weekend. The average person will spend $152.52
on gifts, an increase from $140.73 last year, bringing total
spending on mom's to $18.6 billion, according to a report issued
by the National Retail Federation. The report was based on a
survey of 18-year-old or older adults conducted by an outside
party April 3 to 10. Two-thirds of children of all ages will
invest a total $2.2 billion in flowers, benefiting companies like
1-800-FLOWERS.COM (NASDAQ:
FLWS
) that can send flowers to moms no matter how far they are from
their children. The Carle Place, New York-based company
experienced 12.6% growth in its $113 million consumer floral
business in the most recent quarter, it said in a press release
issued 3 May. Consumer floral sales accounted for 63% of revenue.
"Despite grappling with high gas prices, Americans will look for
sentimental and unique ways to shower mom with affection this
year," NRF President and Chief Executive Officer Matthew Shay
said in the press release. About 32% of Mother's Day gift buyers
will spend a total of $1.6 billion on clothing and accessories.
Retail companies like Macy's Inc. (NYSE:
M
), owner of Macy's and Bloomingdale's stores, or Signet Jewelers
(NYSE:
SIG
), owner of Jared and Kay Jewelers, could be looking at
higher-than-average weekend spending starting today as people
purchase last-minute gifts. Macy's earned $181 million, 43 cents
per share, in the first quarter, compared to $131 million, 31
cents per share, a year earlier, as same-store sales increased
4.4%, the Cincinnati-based company said in a press release
earlier this month. Same-store sales increased 9% last year at
Signet Jewelers as pre-tax income rose 67.1% to $502 million, the
Bermuda-based company said in a press release issued in March.
Gift-givers are expected to spend the same amount on electronics
as clothes, sending sales to iPad producer Apple (NASDAQ:
APPL
) or snazzy camera maker Nikon (OTC:
NINOY
). Nikon's net sales rose 3.5% to 918 billion yen in the year
ended March 31, the Japan-based company said in a press release
issued yesterday. Net income nearly doubled to 59 billion yen as
sales for the precision equipment business, which makes
components for touch-screen products, rose nearly 20%. Apple
earned $12 billion in the first quarter of 2012, compared to $6
billion a year earlier, the Cupertino, Calif.-based company said
in an April filing. iPad product and service sales climbed 132%
to 6.6 million in the quarter. More than half of survey
respondents said they were going to take their mother out to
dinner or brunch, a good investment might be your own reservation
at her favorite restaurant.
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