Finance & Capital Management

Atlanta – Lease-to-own retailer Aaron’s Inc. has named Sharon Lawrence VP finance and Kirby Salgado as VP merchandising. Lawrence, formerly Aaron's director of franchise finance, joined Aaron's in 2012 after a 25-plus year career at SunTrust Bank, while Salgado most recently served as VP/general merchandise manager for Sears Holdings.

Phoenix – PetSmart Inc. posted a 1.3% increase in net income during the first quarter of fiscal 2014, rising to $104 million from $102 million in the first quarter of the prior year. Net sales increased 1.1% to $1.7 billion, but same-store sales missed Wall Street expectations by falling 0.6%.

PetSmart cited a challenging and volatile consumer environment and a competitive market as contributing to its weaker-than-anticipated same-store sales results.

Mooresville, N.C. – Lowe’s Companies Inc. had a generally successful first quarter fiscal 2014 with earnings and sales both rising from the same period a year earlier, although sales missed Wall Street estimates. Net earnings rose 16% to $624 million from $540 million, while net sales increased 2% to $13.4 million from $13.1 million and same-store sales climbed 0.9%.

New York -- Michaels posted increases on both net and same-stores sales for the first quarter.

Net sales increased 5.9% to $1.05 billion from $993 million during last year’s first quarter. Comparable store sales increased 3.8% driven by a 2.4% increase in the company's average ticket, a 1.3% increase in transactions and a 10 basis point positive impact from deferred custom framing revenue.

Minneapolis -- Target Corp. posted a 16% drop in first quarter earnings as costs related to its data breach and the company's troubled Canadian operations continue to take a toll on its overall performance. The retailer also cut its annual profit forecast and released a second quarter projection below Street expectations. On a positive note, Target's same-store sales metric improved from the last quarter.

Pittsburgh - Following a comprehensive fleet review, American Eagle Outfitters Inc. has identified 150 stores to close in North America during the next three years, including nearly 100 AE stores. For 2014, the company is planning to close approximately 50 AE and 20 aerie stores in North America.

By Sandy Skrovan, U.S. Research Director, Planet Retail

On Target's Q1 results, Sandy Skrovan, U.S. Research Director at Planet Retail, comments:

"Don't expect a lot from Target this quarter. The data breach and subsequent fallout - including leadership turnover and ongoing shopper trust issues - weigh like an albatross around the retailer's neck. Besides dealing with internal issues, some broader retail metrics don't bode well for Target either, suggesting another disappointing quarter is on the cards."

Boston — Gordon Brothers Group, an advisory investment firm specializing in the retail, consumer products, industrial and real estate sectors, has named Michael P. Muldowney to the post of CFO. He will work with all business units on transactional, strategic, financial and operational initiatives. Muldowney will also serve as a member of the executive committee.

London -- The China-based business of U.K. fashion retailer New Look has selected a POS system enabled with DigitalPersona fingerprint technology. After a successful trial at six of the retailer’s stores in February, New Look is set to expand their use of biometrics in 16 of its stores by the end of 2014, with longer-range plans to equip 100 stores by 2017.

Despite the massive data breach that hurt Target’s fourth quarter, people are not staying away from the retailer. According to a Reuters report, the company saw a dramatic improvement in traffic in the first quarter compared to its late fourth-quarter trends.