Finance & Capital Management

Men's Wearhouse and Jos. A. Bank may be inching closer to a deal. Men’s Wearhouse announced that it had reached a nondisclosure agreement with its rival, setting up talks that could lead to a merger of the two retailers.

The two firms announced they are exchanging certain confidential information with each other and working in good faith to evaluate a potential combination.

As part of the agreement, Jos. A. Bank submitted a draft of a merger agreement to Men’s Wearhouse.

As Kimberly-Clark continues to focus on driving global expansion, the company has made executive changes so it can execute its business goals.

Elane Stock, group president of Kimberly-Clark Professional (KCP), has been elected group president of K-C International (KCI), and is succeeding Christian Brickman, who is leaving to pursue a senior executive officer position outside of K-C. Kim Underhill, currently president of K-C's European consumer business, has been elected president of KCP.

Ascena Retail Group, the operator Lane Bryant, Justice and Dress Barn stores, cited increased spending on growth initiatives and a challenging sales climate for a second quarter profit decline and its second full year earnings guidance reduction in two months.

Zaandam, The Netherlands -- Ahold plans to significantly expand its Peapod presence in the U.S. market.

"Peapod is expected to double its capacity in the U.S. in 2014," Dick Boer, Ahold CEO, told analysts during the company’s fourth-quarter earnings call.

Forth Worth, Texas -- Pier I reduced its fourth quarter and fiscal 2014 profit forecasts, blaming the negative impact of severe winter weather. The home furnishings chain is the latest in a series of retailers to credit the extremely cold weather as the main reason for its reduced outlook.

New York -- The Thomson Reuters/University of Michigan's consumer sentiment index inched up to 81.6 in February from 81.2 in January.

"The most significant implication is not whether consumers have correctly assessed the weather's negative impact on the economy, but the resilience consumers have demonstrated in the face of the polar vortex as well as higher utility bills and minimal employment gains," said survey director Richard Curtain.

Dallas – Zale Corp. reported a 10% in net earnings during the second quarter of fiscal 2014, rising to $51 million from $41 million in the same quarter the prior year. However, revenues dipped 2% to $656 million from $671 million, while same-store sales rose 1.9%.

Zale attributed the decline in revenues primarily to the net decrease of 86 stores compared to fiscal 2013 and a decline in the Canadian exchange rate, partially offset by the 1.9% constant currency same-store sales growth.

Phoenix – Same-store sales and strong performance at new stores helped drive impressive net come and revenue growth at Sprouts Farmers Markets Inc. during the fourth quarter and fiscal year 2014. On a year-over-year basis, net earnings more than doubled to $9.3 million from $5.9 million in the quarter and almost tripled to $51.3 million from $19.5 million.

Atlanta - The Home Depot has named Craig Menear president, U.S. retail, effective immediately. Menear was previously executive VP, merchandising, responsible for all merchandising departments and merchandising services and strategy; the company's supply chain network; global sourcing; vendor management; marketing; and online sales.

Hampstead, Md. – Jos. A. Bank Clothiers Inc. has officially rejected Men’s Wearhouse’s latest $1.78 billion buyout offer. But in yet another twist to the long-running saga between the two companies, in open letter to Men’s Wearhouse president and CEO Douglas S. Ewert, Jos. A. Bank said it is willing to meet with its rival.