Finance & Capital Management

Bentonville, Ark. – Wal-Mart Stores, Inc. has lowered the same-stores sales guidance it previously released for fourth quarter 2013 due to factors including severe winter weather and reduced governmental assistance to consumers. Wal-Mart U.S. guidance for the fourth quarter previously projected same-store sales without fuel to be relatively Sam’s Club same-store sales without fuel to be between flat and up 2%.

Bad weather and a reduction in food stamps led to weaker-than-expected sales at Walmart and Sam’s Club, which combined with greater-than-expected international expense, prompted an uncharacteristic pre-announcement from the company that fourth quarter profits would be worse than expected.

Anna’s Linens has elevated company president Scott Gladstone to CEO. The home furnishings and home décor retailer was founded by Alan Gladstone, and now has more than 300 stores throughout 19 states.

“Scott has spent the last eight years at Anna’s bringing innovation and business improvements to many different areas of the company. I am proud of what we have done together and have absolute confidence that he is the person who can lead us in writing the next chapter of Anna’s history,” said Alan Gladstone.

Kenco, a leading provider of integrated logistics solutions, real estate services, and material handling equipment, has named Frazer Middleton as chief information officer.
 
In this newly created role, Middleton will direct the technology strategy of the company and lead the IT team to enhance performance and functionality. Middleton will also focus on opportunities to expand Kenco’s technological capabilities.
 

Abercrombie & Fitch has promoted Jonathan E. Ramsden, currently the company's EVP and CFO, to the position of COO, a new role at the company. Ramsden will continue to serve as CFO, in addition to his COO role, until a new CFO is appointed.

Tuesday Morning is starting to see the results of its turnaround strategy, which involved the company exiting a number of non-core categories, such as women’s apparel and footwear.

In the second quarter of fiscal 2014, comparable sales in ongoing core categories increased 7% and were led by exceptional strength in furniture, up 57%; sheets and linens, up 23%; and home décor, up 20%.   

Dennis Hernreich, EVP, COO and CFO of Destination XL Group, has resigned and board member John E. Kyees has been named interim CFO. In addition, the company has elected Will Mesdag, 60, to its board of directors.

Kyees, who has served on the Destination XL board of directors since 2010, was CFO of Urban Outfitters from 2003 until his retirement in 2010, and has served as a senior financial executive at several other prominent retailers. The company is conducting a search for a permanent CFO.

Whirlpool reported record earnings in 2013 for the full-year and three months ended Dec. 31, with net earnings more than doubling over 2012.

The company reported net earnings of $827 million compared with last year’s $401 million. Additionally, fourth-quarter earnings of $181 million were 48.4% above year-ago figures.

Overall, net sales for the appliance manufacturer were $18.8 billion for the year — a 3.5% improvement — and $5.09 billion for the quarter, up 6.2% year-over-year.

Salt Lake City – Overstock.com reported substantial increases in net income during the full year and fourth quarter 2013. During the full fiscal year, net income jumped 503% to $88.5 million from $14.7 million the prior fiscal year.

During the fourth quarter, net income rose an ever larger 737% to $73.6 million from $8.8 million. Revenue increased 19% during the full fiscal year to $1.3 billion from $1.09 billion, and grew 16% to $397.6 million from $342 million during the fourth quarter.

Indianapolis – Hhgregg reported net income of $5 million during the third quarter of fiscal 2014, a 71% drop from $17.4 million in the same period the previous fiscal year. Net sales declined about 12%, from $799.6 million to $707 million.

Same-store sales decreased about 11%. Hhgregg cited the drop in same-store sales and shrinking gross margins for its steep decline in net income. Dennis May, president and CEO of Hhgregg, blamed poor electronics/computing sales and heavy promotions for the retailer’s overall disappointing performance.