Finance & Capital Management

By John Orr, [email protected]

Passive-aggressive, unengaged employees just aren’t that into your customers. Worse, they might be taking it out on customers, whose experience sends them to competitors. Contrast that with the upside of having an engaged staff happy at their jobs and going out of their way to treat customers well.

New York -- Coach Inc. on Tuesday reported a 12% drop in net income in its fourth quarter amid weaker same-store sales in North America, and also said it would sell its Reed Krakoff business to a group led by Reed Krakoff, who will depart the company as executive creative director when the deal is completed.

Seattle -- Nordstrom said it plans to open a Nordstrom Rack at 505 Fulton Street in Brooklyn, N.Y. The approximately 41,000-sq.-ft. store is scheduled to open in spring 2014.  The developer for the project is United American Land LLC.

The store will feature a unique design that will blend the architecture of the site — the landmark Offerman building — with the contemporary style of an adjacent, newly built structure. The single-level store will occupy the second floor retail space.

New York – The proposed acquisition of Saks by Hudson’s Bay Company is spurring investigations by at least three law firms. Law firms Harwood Feffer LLP, Robbins Arroyo LLP and Kahn, Swick and Foti LLP are all investigating concerns such as whether the Saks board of directors is fulfilling its fiduciary duties, maximizing the value of the company, disclosing all material benefits and costs, and obtaining full and fair consideration for shareholders.

Boca Raton, Fla. -- Office Depot reported a net loss, as well as declining total sales and same-store sales, during a disappointing second quarter of fiscal 2013. The retailer’s net loss of $64 million was the same net loss it reported in the second quarter of fiscal 2012. Excluding pre-tax charges, including some relating to the planned OfficeMax merger, and non-cash store asset impairment charges, the net loss would have been $28 million.

Weak second-quarter financial results from Office Depot offered the latest evidence of the strategic rationale underpinning the company’s pending merger with longtime rival OfficeMax.

Office Depot said sales in the second quarter ended June 29 declined 4% to roughly $2.4 billion and it posted a net loss of $64 million, or 23 cents a share, equal to a loss reported in the second quarter the prior year.

NEW YORK — Martha Stewart Living Omnimedia decided to end the publication of two print titles and exit live television programming following lower revenues in publishing and broadcasting, which caused total revenues to decrease 13.5% to $42.2 million in the second quarter ended June 30, from $47.9 million in the same quarter last year. 

SAN DIEGO, Calif. — The Shareholders Foundation has announced that an investor who currently holds Maidenform shares filed a lawsuit to halt the proposed takeover of Leap Wireless International by HanesBrands for $23.50 per share.

Investors who purchased shares of Maidenform Brands prior to July 24, 2013 and still hold them are being asked to contact the Shareholders Foundation at [email protected] or 858-779-1554.

Big 5 Sporting Goods Corporation saw a slight uptick in customer traffic and same-store sales improvement for each of its major product categories — apparel, footwear and hardgoods — which contributed to a 4.4% same-store sales increase for the second quarter ended June 30 compared to the prior-year period. 

Net sales for the quarter increased to $239.9 million from $226.6 million for the second quarter last year. 

Seattle -- Amazon said it will hire more than 5,000 full-time workers in its U.S. fulfillment centers and 2,000 customer service staff, including part-time and seasonal employees, to meet growing customer demand.

The company said it will immediately begin hiring at 17 fulfillment centers for tasks that include picking items from warehouse shelves, packing them for delivery and operating new technology installed to streamline operations.