Finance & Capital Management

Although Fresh Market’s net sales exceeded Wall Street expectations, the company reported a decrease in profit for the first quarter of fiscal 2014, which it attributed to a slow start to the year brought on by severe weather in the majority of its markets.

Net sales increased 18% to $431 million from $366.63 million in the prior-year quarter, while net income fell 25% to $16.57 million from $22.12 million in the prior-year quarter. Same-store sales climbed 2.5%.

Evansville, Ind. – Shoe Carnival Inc. reported a 3% year-over-year drop in net income to $9.2 million, from $9.5 million in the first quarter of fiscal 2014. The retailer plans to open 23-28 new stores in fiscal 2014, including 16 in the second quarter and seven-to-12 in the fourth quarter.

Shoe Carnival’s net sales grew 1.5% to $235.8 million, from $232.3 million.

Strong demand in Hibbett Sports’ core footwear and brand-focused apparel business helped drive sales in the first quarter. The sporting goods retailer opened a record number of new stores and fully converted operations to its new wholesale and logistics facility, but it’s not done growing its footprint in fiscal 2015.

Woonsocket, R.I. – CVS Caremark is reportedly considering a purchase of Brazilian drugstore chain Drogarias Pacheco São Paulo (DPSP) as it looks to further expand its presence in Brazil, according to news reports.

Following the alleged rejection of its first offer of 4.5 billion Brazilian reais ($2 billion), CVS is reportedly looking to possibly make another offer, the Wall Street Journal reported, citing the local newspaper Valor Economico. DPSP has reportedly set a minimum price for the company at BRL5.9 billion.

Birmingham, Ala. – Hibbett Sports Inc. plans to open 75-80 new stores, expand 10-15 stores and close 10-15 stores during fiscal 2015 (which coincides with calendar 2014). These aggressive growth plans comes as Hibbett reports increases in net income and sales during the first quarter of fiscal 2015.

Digital River, a leading global provider of commerce-as-a-service solutions, has appointed Jeffrey Katz to its board of directors.

A technology and travel industry veteran, Katz recently served as the CEO of Wize Commerce, a global leader in online monetization and traffic acquisition technologies. He was the founding CEO, chairman and president of Orbitz from 2000 to 2004.
 

Greensboro, N.C. – The Fresh Market Inc. reported decreasing profit in the first quarter of fiscal 2014 even as net sales growth exceeded Wall Street expectations. Net income fell 25% to $16.57 million from $22.12 million in the same period the prior year, while net sales increased 18% to $431 million from $366.63 million and same-store sales climbed 2.5%.

Fresh Market plans to open four new stores in the second quarter and 12 to 13 new stores in the second half of the year, as well as remodel four-to-five stores.

Despite posting increases in the last few quarters, GameStop was seeing shares drop because its numbers were falling short of analysts’ expectations. But thanks to growth in its mobile business and demand for new game consoles, the company started the year with better-than-expected profit that drove shares to rise 5%.