Finance & Capital Management

DEERFIELD, Ill. - Walgreens president and CEO Greg Wasson informed the company’s board of directors that he will retire shortly after the completion of the merger between Walgreens and Alliance Boots, of which shareholders are scheduled to vote on Dec. 29, 2014.    

ATLANTA - EarthLink Holdings Corp., a managed network and cloud solutions provider, announced that Mississippi-based Hancock Fabrics recently selected EarthLink to simplify infrastructure operations via a comprehensive, secure managed network solution.    Once implemented throughout all locations, Hancock Fabrics will rely on its private EarthLink MPLS network to run in-store applications including point-of-sale, inventory management and employee communications and training.  

Bentonville, Ark. - Wal-Mart Stores has promoted Judith McKenna to COO for Walmart U.S., effective immediately.  She succeeds Gisel Ruiz, who has been appointed executive VP of Walmart’s International People Division, effective immediately.    McKenna  will continue to report directly to Walmart U.S. president and CEO, Greg Foran. Ruiz will report to Walmart International president and CEO, David Cheesewright. 
  

Arlington, Va. - Gift cards will surpass $124 billion in sales in 2014, up 5% from 2013. According to from advisory firm CEB TowerGroup, the gift card market should undergo an annual growth rate of 5-6% through 2017, but double-digit growth rates experienced in recent years have peaked and subsided.

Independence, Mo. – Natural Grocers by Vitamin Cottage, Inc. plans to open 18 new stores in fiscal 2015. As part of the plan, Natural Grocers has closed its previously announced agreement to acquire natural foods retailer Nature’s Pantry Inc. in Independence, Missouri.   The transaction closed on Dec. 7, and Natural Grocers began officially operating as a Natural Grocers store on Dec. 8. 

Houston –  Francesca’s Holding Corp. reported that its net income dropped 19% to $7.3 million in the third quarter of fiscal 2014 from $8.7 million the same period the prior year. Increases in cost of goods sold and selling, general and administrative (SG&A) expenses drove the decline in profit.  The specialty retailer also lowered its earnings outlook for the year.   Francesca’s plans to open one new store in the fourth quarter, bringing total new stores opened in the fiscal year to 88.

Issaquah, Wash. – Costco Wholesale Corp. beat Wall Street expectations for net income and sales during the first quarter of fiscal 2015.  Net income totaled $496 million, up 17% from $425 million the same period a year earlier.   Lower opening expenses and higher interest income helped boost profits.   Total revenue grew 7% to $26.87 million from $25.02 million. Total same-store sales rose 5%.

New York - The cost of healthcare, the ability to maintain margins
 and the ability to continue to grow revenue are the top business challenges in the retail sector. That’s according to GE Capital’s new national survey of c-suite executives at middle-market companies (ranging from $10 million - <$1 billion in sales).  

The holiday season started strong at Costco where U.S. same store sales advanced 7 percent during the company’s first quarter ended Nov. 23.

Total company sales during the period increased 7 percent to nearly $26.3 billion from $24.5 billion. Membership income grew slightly slower, advancing 6 percent to $582 million. Same stores sales excluding the effects of the strengthening U.S. dollar and fuel price deflation were 7 percent and U.S. and international locations.

A trio of top executives at The Buckle were elevated to new roles at the 463 store specialty retailer.

Kelli Molczyk, with the retailer since 1999, was named Vice President of Women’s Merchandising after most recently serving as Divisional Merchandise Manager. Prior to that she held a variety of roles with the company in which she was instrumental in design and marketing efforts.