Finance & Capital Management

Five Below’s profit more than doubled to $8.3 million in the second quarter of fiscal 2014, from $4.1 million in the same period last year. Its results beat expectations. The chain issued a third-quarter earnings estimate slightly below Wall Street views, while increasing its full-year sales and earnings guidance.

Revenue in the quarter increased 30% to $152.5 million. Same-store sales increased by 3.2%.

Fremont, Calif. – Non-deductible costs related to the purchase of Jos. A. Bank helped sharply reduce net earnings at The Men’s Wearhouse during the second quarter of fiscal 2014. The Men’s Wearhouse reported net earnings of $12.3 million, down 71% from $42.9 million the same period a year earlier, although the total still beat Wall Street projections.

Philadelphia – Five Below plans to open a new distribution center in Oldmans Township, New Jersey, in 2015. The center will replace an existing 421,000-sq.-ft. facility located in New Castle, Delaware.

Five Below will occupy approximately 700,000 sq. ft. of the facility to start with, and plans to grow to one million sq. ft. over time. The new distribution center, which is expected to be fully operational in the second half of 2015, will support the company's continued growth and expansion on the East Coast.

Atlanta – A Home Depot customer has reportedly filed a lawsuit against The Home Depot Inc. alleging the retailer did not properly protect consumer data from the recent cyber attack that occurred. According to Reuters, Illinois resident Kelsey O’Brien filed the suit Sept. 9 in Chicago federal court.

New York -- Fitch Ratings downgraded the credit ratings of Sears Holding Corp. from “CCC” to “CC,” citing the “magnitude” of the retailer’s drop in profitability and lack of visibility to turn operations around as a significant concern.

Fitch also cited the company’s cash burn rate, calling it a “significant concern.”

According to Lands’ End president and CEO Edgar Huber, the company is well positioned to continue executing against its strategic initiatives to drive long-term sales and earnings growth.

The retailer, which completed its separation from Sears on April 4, has achieved double digit year-over-year adjusted EBITDA growth for more than four consecutive quarters as of the second quarter of fiscal 2014.

Vancouver – E-commerce company Elastic Path Software Inc. has secured $5.88 million in equity investments led by BDC Venture Capital IT Fund, with participation from Yaletown Venture Partners and individual investors. The company will use the funds to support development for its patent-pending enterprise commerce products.

Starboard Value CEO and chief investment officer Jeffrey Smith has resigned from the Office Depot board, effective immediately. The company’s nominating and governance committee plans to start a search for a replacement.