Mother's Day Gifts May go to Retailers as Well as Moms
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.
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.