Finance & Capital Management

Fort Myers, Fla. – Chico’s FAS Inc. reported net income of $30.1 million in the second quarter of fiscal 2014, down 31% from $43.6 million in the year-ago period. Price cuts needed to clear seasonal merchandise were a primary driver of Chico’s lower net income. Its results missed Wall Street expectations.

Net sales for the quarter ended August 2, 2014, were $671.1 million, up 3.3% from $649.5 million in the previous year, primarily reflecting the addition of 98 net new stores.  

Total same-store sales rose 0.3%.

Minneapolis -- Best Buy Co. earned $146 million in the second quarter, down from $266 million in the year-ago period, topping analysts earnings estimates even as its revenue fell short. Its results were helped by ongoing cost reductions. Best Buy cut $40 million in annual costs last quarter, bringing the total to $900 million.

For the quarter ended Aug. 3, revenue dropped to $8.89 billion from $9.27 billion. Analysts had expected $8.99 billion. Same-store sales fell 2.7%, which was more than analysts had expected.

Greenwich, Conn. – Women’s lifestyle brand Vince Camuto will deploy Island Pacific SmartSuite solutions in all Vince Camuto retail stores. Island Pacific's SmartRetail core merchandising application, part of the Island Pacific SmartSuite of solutions for specialty retailers, will provide Vince Camuto parent company Camuto Group with an integrated end-to-end solution for the company’s headquarters and retail stores.

Columbus, Ohio -- DSW reported that its second quarter profit rose 1.8%, better than expected, with sales up across all its segments. Profit for the quarter ended Aug. 2 was $34.3 million, up from $33.7 million in the year-earlier period.
   
Sales rose 4.5% to $587.1 million. Same-store sales increased 0.8%. Both metrics surpassed Wall Street forecasts.
    

Toronto - Hudson’s Bay Company has appointed John Caplice to the position of senior VP treasury and investor relations, effective Sept. 2. He most recently served as senior VP treasurer & investor relations at Shoppers Drug Mart Corp. from 2000-2014.

While at Shoppers Drug Mart, Caplice was responsible for treasury and compliance activities, as well as developing and implementing communication strategies.

Caplice will be based in Toronto and will report to Paul Beesley, CFO, Hudson’s Bay Company.   

Miami -- Burger King Worldwide agreed to buy Canadian quick-serve chain Tim Hortons for approximately $11.4 billion, creating the world’s third largest quick-serve restaurant company. Under a tax inversion deal, the corporate headquarters of the new company will be in Canada, where the combined company’s biggest market will be.  

Colonia, N.J. -- Muscle Maker Grill, a fast-casual restaurant franchise that serves freshly prepared health-conscious meals, will be opening 22 new locations throughout the country, which will raise the number to more than 75 units.

Recent store openings include Las Vegas, Dallas, a third location in Connecticut, located in Hamden and a second location in Staten Island, New York. An additional 22 new franchises will result in the development of restaurants across the country, from California to New York.

Fort Worth Texas – Hedge fund Standard General LP, RadioShack’s second-largest shareholder, is reportedly trying to negotiate a “rescue package” by obtaining debt and equity financing from outside investors. According Bloomberg, Standard General is also meeting with RadioShack management to create a plan that will let the retailer avoid filing for Chapter 11 bankruptcy.