Top Retail Stories 5-23-2008

Report: NexCen Hires Financial Advisor

New York City (May 22, 2008) NexCen Brands has hired Rothschild as its investment advisor, according to a report in Women's Wear Daily. Rothschild is expected to help the company decide which of its assets it should sell, the report said. NexCen's holdings include the Bill Blass and Waverly brands along with the Marble Slab Creamery, MaggieMoos, Pretzel Time, Pretzelmaker, and Great American Cookies franchised brands.

On Monday, NexCen raised questions about its survival and said it planned to explore strategic alternatives, including the sale of one or more of its businesses, to increase its liquidity.

Borders Group CEO Denies Sales Discussion

Dearborn, Mich. (May 22, 2008) Borders Group Inc. has not had substantial discussions regarding a possible sale of the bookseller and is moving forward on efforts to improve its business, CEO George Jones said Thursday.

The CEO provided the update to investors during the Ann Arbor company's annual meeting of shareholders in Dearborn, according to the Associated Press. The meeting came a day after a report in The Wall Street Journal that rival bookseller Barnes & Noble Inc. had assembled a team to study the possibility of acquiring Borders.

Hot Topic 1Q Loss Widens on Same-Store Sales Drop

City of Industry, Calif. (May 22, 2008) Hot Topic Inc. said Wednesday its first-quarter loss widened on a drop in same-store sales.

For the quarter ended May 3, Hot Topic posted a loss of $1.4 million, compared with a loss of $809,000 in the year-ago period.

The Buckle Same-Store Sales Surge 1Q Results

Kearney, Neb. (May 22, 2008) The Buckle Inc. on Thursday said fiscal first-quarter profit rose 54% on a surge in same-store sales. Earnings for the quarter ended May 3 rose to $18.7 million compared with $12.2 million.

Revenue rose 32% to $160.3 million from $121.1 million last year, while same-store sales grew 25.6%.

Dick's Sporting Goods 1Q Profit Slips

Pittsburgh (May 22, 2008) Dick's Sporting Goods Inc. said Thursday its fiscal first-quarter earnings fell 4%, as declining sales at established stores overshadowed gains from newly opened ones.

For the quarter ended May 3, the company earned $20.8 million compared with $21.7 million in the year-ago quarter.

Casual Male 1Q Earnings Fall on Sales Weakness

Canton, Mass. (May 22, 2008) Casual Male Retail Group Inc. said Thursday its first-quarter earnings fell as a pullback in consumer spending hurt sales of big-and-tall men's clothing.

First-quarter earnings dipped to $96,000 from $1.1 million in the prior year. The 2007 results include a loss from the company's discontinued Jared M. custom-clothing business of $400,000.

Children's Place Profit Rises

New York City (May 22, 2008) Children's Place Retail Stores reported higher quarterly profit on Thursday, helped by its exit from the Disney Stores business and increased same-store sales.

The company said net income rose to $19.5 million in the first quarter that ended on May 3, from $14.7 million a year earlier.

Barnes & Noble Posts Loss

New York City (May 22, 2008) Barnes & Noble Inc. reported a first-quarter loss on Thursday, hurt by a charge. The bookseller also lowered its second-quarter and full-year forecast for sales at existing stores, citing the difficult retail environment.

The retailer reported a loss of $2.2 million for its fiscal first quarter ended May 3, compared with a loss of $1.67 million a year earlier.

Starbucks to Buy 40 Stores from Canadian Licensee

New York City (May 22, 2008) Starbucks Coffee Co. said Wednesday its Canadian subsidiary agreed to buy 40 stores from its licensee in Canada, Coffee Vision Inc. and Coffee Vision Atlantic Inc. The financial terms of the deal were not disclosed.

The company said it will turn the stores into company-operated locations.

GameStop Boasts Strong Profit in 1Q

New York City (May 22, 2008) GameStop Corp. said Thursday its fiscal first-quarter profit more than doubled on strong sales of "Grand Theft Auto IV," "Super Smash Bros. Brawl" and other games.

For the three months ended May 3, the company earned $62.1 million up from $24.7 million in the same period a year earlier.

Limited Brands 1Q Earnings Up on Sale

Columbus, Ohio (May 22, 2008) Limited Brands Inc. said Wednesday its first-quarter earnings nearly doubled on an asset sale.

The operator of Victoria's Secret and Bath & Body Works said it made $97.8 million for the quarter ended May 3, compared with a profit of $52.9 million a year ago. Sales fell 17% to $1.9 billion from $2.3 billion, while same-store sales declined 8%.

Zale's Losses Widen as Inventory is Reduced

Dallas (May 22, 2008) Zale Corp. said Thursday its losses widened in the third quarter, as expected, after the company began its initiative to permanently reduce inventory levels.

Third-quarter losses totaled $16.8 million compared with $4 million in the prior year. Excluding income from discontinued operations, quarterly losses totaled $17.4 million compared with a loss of $5 million.

AnnTaylor Posts Lower Profit, Details Expansion

New York City (May 22, 2008) AnnTaylor Stores Corp. reported lower quarterly profit on Thursday, hurt by restructuring costs.

Net income fell to $25.9 million in the first quarter that ended on May 3 from $31.5 million a year earlier.

Report: Barnes & Noble Eyeing Borders

New York City (May 21, 2008) Barnes & Noble is looking into a possible bid for competitor Borders Group, according to a Wall Street Journal report.

Barnes & Noble has put together a team of executives and advisers to look into the possible acquisition, the report said.

Gap to Expand in Russia

San Francisco (May 21, 2008) Gap Inc. said it will open Gap and Banana Republic stores in Russia through a franchising agreement with Fiba Holding A.S.

Financial terms were undisclosed.

Nordstrom Launches 'Buy Online, Pick Up In-Store' Service

Seattle (May 21, 2008) Nordstrom has introduced a "Buy Online, Pick Up In-Store" option for online shoppers. Customers can now pick up select merchandise purchased through Nordstrom.com at a Nordstrom location of their choice.

In response to customers asking for "Buy Online, Pick Up In-Store," the company is testing the service with items from its women's apparel, men's apparel, women's shoes and cosmetics departments. Nordstrom plans to offer this service for all merchandise categories by September.

West Marine Opens Store in Turkey

Watsonville, Calif. (May 21, 2008) Boating supplies and accessories retailer West Marine on Wednesday  announced an agreement with East Marine Denizcilik & Turizm A.S. to open its first franchise store in Istanbul, Turkey. Industrialist and ardent sailor Rahmi M. Koc is the chairman and controlling shareholder of East Marine.

The new West Marine store in Turkey is set to open in July. It's part of a multi-store development agreement for Turkey. Other locations are being identified along Turkey's Aegean and Mediterranean coasts.

BJ's Profit Up 26%

Natick, Mass. (May 21, 2008) BJ's Wholesale Club Inc. on Wednesday reported a 26% jump in quarterly profit, beating Wall Street expectations, as shoppers headed to its stores for discounts on food and fuel. The retailer also boosted its full-year earnings forecast.

BJ's said profit for its fiscal first-quarter ended May 3 rose to $17.2 million from $13.7 million a year earlier.

Movie Gallery Names New CEO, Exits Bankruptcy

Dothan, Ala. (May 21, 2008) Movie Gallery Inc. named C.J. Gabriel Jr. as president and chief executive.  He succeeds founder Joe Malugen.

Gabriel was previously executive VP of marketing, merchandising and supply chain management at grocery chain Albertsons Inc.

Corporate Express Thwarts Staples' Bid

Amsterdam, Netherlands (May 21, 2008) Office-supplies distributor Corporate Express NV showed its determination to fend off a hostile takeover by Staples Inc. on Wednesday, announcing plans to instead buy French peer Lyreco SAS for about $2.7 billion in cash and shares.

If approved by shareholder and regulators, a Corporate Express-Lyreco combination would create a sizable international competitor to Massachusetts-based Staples. Corporate Express-Lyreco would be larger than Staples in business-to-business sales in the United States, Europe and Asia.

Sears to Open Direct Delivery Center

Hoffman Estates, Ill. (May 21, 2008) Sears Holdings Corp. said Wednesday it will open a new direct delivery center in Jacksonville, Fla.

The company said the 811,672-sq.-ft. center will distribute home appliances, TVs and other big-ticket items to local warehouses at 112 Sears and Kmart store locations in Florida, Georgia, South Carolina, the Virgin Islands and Puerto Rico.

Talbots Operating Profit Tops View, Net Income Tumbles

Hingham, Mass. (May 21, 2008) The Talbots Inc. posted higher-than-expected quarterly operating profit on Wednesday and affirmed its full-year forecast. The retailer said better inventory management, expense controls and monthly markdowns contributed to a "dramatic improvement" in its merchandising gross margin.

Talbot's net income for the period ended May 3, dropped 69%. Earnings slipped to $1.6 million, compared with $5.2 million in the prior year.

Office Depot First to Achieve Volume LEED Pre-Certification

Delray Beach, Fla. (May 20, 2008) Office Depot Tuesday announced that it has achieved volume pre-certification under the pilot Leadership in Energy and Environmental Design (LEED) Portfolio Program for its store prototype design from the United States Green Building Council (USGBC).

"Office Depot is to be commended for this achievement," said USGBC's market development VP, Doug Gatlin. "And we are also grateful for their leadership participation in this initiative. The Portfolio Program pilot is breaking new ground for LEED and adding to our ability to scale green building's immediate and measurable results at a much faster level."

Talbots Appoints Senior VP

Hingham, Mass. (May 20, 2008) Talbots Inc. appointed Chris Jackson, senior VP of apparel, design and development of the Talbots brand. Jackson brings more than 18 years of design experience to his new position, where he will be responsible for the concept and design of all apparel under the Talbot's line. He will be based in Talbots' New York creative studio.

Previously, Jackson, 40, was the senior VP of design for the Calvin Klein Bridge and Better Sportswear collections.

Staples Profit Inches Up

Framingham, Mass. (May 20, 2008) Staples Inc. posted a 1.5% increase in quarterly profit on Tuesday, and stood by its outlook for the full year. The increase matched Wall Street's expectations. The retailer, which has launched a hostile bid to buy smaller Dutch rival Corporate Express NV, warned it expects weak economic conditions to persist through 2008.

Earnings were $212 million in the first quarter that ended May 3, compared with $209 million in the year-earlier period. Quarterly sales rose 6% to $4.9 billion. International same-store sales rose 4% in the quarter, but North American retail same-store sales fell 6%.

Brooks Brothers Announces California Flagship

La Jolla, Calif. (May 20, 2008) Madison Marquette, a Washington, DC-based developer, announced that Brooks Brothers has leased a 14,000-sq.-ft. space in the Village of La Jolla, in La Jolla, Calif. The new flagship location, due to open in fall 2008, will be the retailer's first in the region.

Additionally, Madison Marquette also has a commitment from Brooks Brothers to open its new Country Club format at Garden Walk in Anaheim, Calif.

Home Depot Profit Falls on Housing Weakness

Atlanta (May 20, 2008) The Home Depot said on Tuesday that quarterly profit fell 66% as the U.S. housing meltdown hurt sales and it took a charge to close stores and curb expansion plans.

Net income fell to $356 million in the first quarter ended May 4, from $1.05 billion a year earlier. Results included a charge of $543 million to close 15 underperforming U.S. stores and scrap plans to open 50 stores that had been in the company's pipeline.

Saks Profit Jumps 66%

New York City (May 20, 2008) Saks Inc. reported Tuesday a 66% increase in first-quarter earnings compared with weak year-ago results. The results, however, were below analysts' expectations. Saks said increased discounting hurt profit margins as even wealthy customers were feeling squeezed.

Saks earned $18.27 million for the three months ended May 3, compared with $11.04 million in the year-ago period.

Netflix Markets TV Direct

Los Gatos, Calif. (May 20, 2008) Netflix is coming to TV land. The company joined with Roku, Saratoga, Calif., to offer The Netflix Player, a device that will allow Netflix subscribers to view movies and media directly on their televisions.

The device sells for $99.99 and streams video direct from Netflix to the consumer.

Pennsylvania Lures Amazon DC

Harrisburg, Pa. (May 20, 2008) Associated Press reported that Amazon.com will open a distribution center in Hazleton, Pa. An estimated $1.75 million in economic incentives provided by the state sweetened the deal for Amazon. The planned 600,000-sq.-ft. DC is expected to create 1,100 permanent jobs as well as 800 seasonal jobs.

The report stated that Amazon will spend approximately $20 million on the project and the state has tossed in a $1.25 million "opportunity grant" as well as $500,000 for training.

Tween Brands Names CFO

New Albany (May 20, 2008) Tween Brands appointed Rolando de Aguiar executive VP and CFO, effective June 2. Aguiar, 59, replaces Paul C. Carbone, who resigned in February after more than a year with the company.

Most recently, Aguiar served as a managing director with Abacus Advisors LLC, a New York management advisory company. Prior to that, he was a senior officer of Rocky Hill, Conn.-based Ames Department Stores, which went out of business in 2002.

Retailers Go Live With Google Health

New York City (May 20, 2008) Google Health launched a beta site on Monday that allows individuals to upload and store personal health, medical and prescription info to be shared across the Web portal with their doctors.

A number of organizations announced plans to partner with Google Health including retailers CVS, Longs Drug Stores and Walgreens, as well as Quest Diagnostics and the American Heart Association.

Mervyns to Open Five Stores in 2009

Hayward, Calif. (May 20, 2008) Mervyns will launch an e-commerce site in the fourth quarter of 2008 and open five stores in the company's core markets across California and the Southwest in 2009.

The retailer also plans to sell an estimated five to 10 underperforming locations, and  has retained DJM Realty to manage disposition of this real estate.

Target 1Q Profit Falls

Minneapolis (May 20, 2008) First-quarter profits at Target Corp. dropped almost 8% on softer-than-expected sales and higher costs, but the retailer still beat Wall Street earnings estimates for its first quarter.

The retailer on Tuesday reported a profit of $602 million in the three months ended May 3, down from $651 million during the same period last year. Revenue rose 5% to $14.8 billion from $14 billion. Same-store sales fell 0.7%.

Room & Board to Enter L.A. Market

Santa Ana, Calif. (May 19, 2008) Furniture retailer Room & Board has leased 40,000 sq. ft. of retail space for its first location into the Los Angeles marketplace.

Room & Board's new store will be located in the Plaza at Culver Studios, an 118,500-sq.-ft., three-story mixed-use building scheduled to commence construction this summer.

Report: Consumer Anxiety Up in 2008

Charleston, S.C. (May 19, 2008) About 24.5% of American consumers postponed a major purchase this April, up from 22.9% last year, citing different concerns from those noted in the previous year period, according to a Consumer Mind Reader survey conducted by America's Research Group (ARG). The report cited major ticket items as those above $500.

About 23.5% of those who postponed major purchases in April 2008 said they just didn't want to spend the money, while only 31.4% cited the same reason in 2007. Only 17% said high gas prices deterred spending money on big-ticket items in 2007, while 26.5% cited high gas prices in 2008.

Hastings Entertainment Net Income Up

Amarillo, Texas (May 19, 2008) Hastings Entertainment on Monday reported results for the three months ended April 30. Net income was approximately $3.0 million for the first quarter of fiscal 2008 compared to net income of $2.5 million in the same period last year. It was the fifth consecutive quarter of growth.

Total revenues for the first quarter increased to $131.9 million from $128.0 million in the year-ago period.

Survey: Consumers to Spend Tax Rebate Money on Debt

Las Vegas (May 19, 2008) With over a third of the federal tax rebate money already distributed, consumers mostly intend to use the money to pay down debt, according to the findings from a special International Council of Shopping Centers (ICSC) tax rebate survey that was conducted by Opinion Research Corp.

The survey found that 51% of consumers receiving a rebate intended to use it to pay off debt, which was up considerably from consumer intentions earlier in the year.

Staples Launches Hostile Bid for Corporate Express

Amsterdam, Netherlands (May 19, 2008) Staples Inc. on Monday launched a hostile 1.5 billion euro ($2.34 billion) bid for Corporate Express NV because the Dutch office supplier was unwilling to negotiate.

Staples said in a statement that Corporate Express shareholders could tender their shares as of Tuesday until June 27, subject to a possible extension.

Nordstrom Lays Off 30 Workers

Honolulu (May 19, 2008) About 30 employees have been laid off from jobs at Honolulu's new Nordstrom store, according to the Honolulu Star Bulletin.

Nordstrom spokeswoman Brooke White said the move was due to softening sales.

Dillard's to Close More Stores

Little Rock, Ark. (May 19, 2008) Dillard's Inc. said Monday it will continue to focus on closing underperforming stores, reducing expenses and improving its merchandise in 2008.

At the company's annual shareholder meeting Saturday, CEO William Dillard II said the company will close another six underperforming stores this year. The company has already closed three underperforming locations in 2008.

Sears.com Embraces Virtual Showroom

Hoffman Estates, Ill. (May 16, 2008) Sears.com has expanded its online shopping experience with a virtual showroom of art, books, movies, software and music.

The addition nearly quadruples the number of products available on the site. The first step toward creating this expanded online inventory came in December 2007 when Sears.com partnered with Alliance Entertainment Corp. (AEC) to offer movies and music to its online shoppers. Sears.com now houses more than 250,000 titles searchable by format, genre, artist and release date. Visitors also can sample previews of the hottest music and movie titles.

Supervalu CEO Makes $9.3M in 2008

Minneapolis (May 16, 2008) Supervalu Inc. CEO Jeff Noddle took in $9.3 million in total compensation for 2008, down from $11.9 million in 2007.

In a proxy statement filed with the SEC on Friday, Supervalu reported that Noddle made $1.1 million in salary for 2008, down slightly from $1 million in 2007.

Safeway Opens New Format

Long Beach, Calif. (May 16, 2008) Safeway has opened its first new small-format location, The Market, in Long Beach, Calif. The new model will be used as an option to renovate older stores and potentially expand into new locations, according to Supermarket News.

The Market made its debut in a former Von's store that closed in January, the report said.

Macy's to Open In-Store FAO Schwarz Boutiques

New York City (May 16, 2008) Macy's Inc. has reached an agreement with FAO Schwarz to open branded specialty toy shops in about 685 Macy's locations during the next two years.

Up to 275 Macy's stores will have FAO Schwarz-operated toy stores in fall 2008, the companies said, in time for the key holiday shopping season.

Report: Wal-Mart to Serve Food in Small-Format Stores

New York City (May 16, 2008) Wal-Mart Stores intends to prepare and serve food in its upcoming small-format stores, the Financial Times said on Friday, as it competes with Tesco's Fresh & Easy markets.

The smaller-format stores, which will operate under the Marketside banner, will include a kitchen, food counters and seating, the report said.

Abercrombie Profit Edges Up

New Albany, Ohio (May 16, 2008) Abercrombie & Fitch said Friday that its first-quarter earnings rose 3% from a year ago on stronger sales.

The company said it earned $62.1 million in the three months ended May 3 compared with profits of $60.1 million a year ago.

Nordstrom 1Q Profit Sinks 24%

Seattle (May 16, 2008) Nordstrom Inc. said Thursday its profit fell 24% in the first quarter. Meanwhile, earnings fell to $119 million from $157 million in the same three months last year.

Revenue slipped 4% to $1.88 billion from $1.95 billion a year ago. Same-store sales fell 6.5% for the quarter, below the expected 3% to 5% drop.

Posted by: Richard