Furniture helps drive 27% profit in Berkshire's retailing business
August 7, 2017,
OMAHA, Neb. — Berkshire Hathaway reported a 1% decrease in second quarter revenues at its retailing business segment and a double-digit jump in pre-tax profit as furniture helped offset lower revenues at the corporation’s auto dealerships.
Retailing business revenues decreased 1.3% to $3.76 billion in quarter ended June 30, from $3.81 billion for the same period a year ago. Pre-tax earnings for the segment increased 26.7% to $204 million from $161 million in the second quarter last year.
Berkshire’s retailing segment includes the Top 100 Berkshire Hathaway furniture division’s Nebraska Furniture Mart, R.C. Willey, Star Furniture and Jordan’s; Berkshire Hathaway Automotive, which includes 83 auto dealers; three jewelry chains; See’s Candies; Pampered Chef; and other businesses.
In the quarterly report, Berkshire said the decrease in retailing revenues was due primarily to lower revenues at its automotive business, “partly offset by increases in revenues of our home furnishings retailers, Pampered Chef and See’s Candies.”
The jump in pre-tax earnings reflected higher earnings for Berkshire Hathaway Automotive, the home furnishings retailers, Pampered Chef and See’s Candies. The furniture division earnings increases were due to increased gross margins “and relatively lower operating expenses,” Berkshire said.
Berkshire’s overall revenues for the second quarter increased 6% to $57.52 billion, while net earnings attributable to shareholders declined 14.7% to $4.26 billion.
Most Viewed Articles
Related Content By Author
Parting thoughts on High Point Market
RSA Insights & Intelligence
RSA Insights & Intelligence gives you, the retail sales associates, critical intelligence and insights. We make it easier for you to sell by providing actionable tips and key takeaways you can and should use for every sale. Check out our latest two articles:
* How to use an implied close
* The low cost of mattresses