Finance & Capital Management

PHILADELPHIA — Destination Maternity its total sales for the second quarter fell 2.1% to $134.9 million from $137.8 million. The company attributed the drop to the closure of all of its remaining leased departments within Babies “R” Us stores in October, along with the closures of underperforming stores.

Despite the sales drop, Destination Maternity said it now expects its second-quarter profit to fall in the top half of its previously projected range of 38 cents to 44 cents per share, crediting tight management of its expenses.

Lynn Bradley, senior director, retail development, is out at Handy Hardware Wholesale, a cost-cutting move according to the Houston-based co-op.

Handy Hardware Wholesale, which filed for bankruptcy protection in January, eliminated the position of “senior director, retail development,” as part of a cost-reduction plan, according to Morrie Aaron, president of MCA Financial Group. MCA is Handy’s financial advisory firm that specializes in restructuring.

New York -- A Wednesday report by Women’s Wear Daily quoted activist investor Bill Ackman, whose Pershing Square Capital Management is the largest shareholder of J.C. Penney Co., as saying that he won’t abandon the retailer following this week’s CEO shake-up.

"We are not going anywhere," Ackman told WWD in his first public comments since Ron Johnson was fired as CEO on Monday. "In fact, we're going the other direction. We're digging in."

Union, N.J. -- Bed Bath & Beyond Inc. reported Wednesday that net income for the quarter ended March 2 increased 14% to $373.9 million, compared with $351 million in the year-ago period. But the retailer’s guidance for the current quarter came up short.

Sales leaped 24.5% to $3.401 billion, from $2.732 billion, and same-store sales rose 2.5%.

For the fiscal year, net earnings rose 12% to $1.038 billion), from $989.5 million. Full-year revenue rose 14.9% to $10.915 billion, and same-store sales for fiscal 2012 increased 2.7%.

New York -- A Wednesday report by Reuters said that Jerry Murray, the Wal-Mart finance VP who called the chain's early February sales "a total disaster" in an email made public by Bloomberg, has left the company, effective April 5.

Wal-Mart Stores has confirmed the report, telling Reuters that it was Murray's decision to leave and that his last day at Wal-Mart was Friday.

Abilene, Kansas -- Alco Stores Inc. said Wednesday it is moving its corporate headquarters from Abilene, Kan., to a suburb of Dallas, citing the need to be “in a more metropolitan area.”

The new Coppell, Texas offices will give the company easy access to many of its stores, other major retailers and transportation for its workers and business partners, CEO Rich Wilson said in a Wednesday statement.

The move is slated to occur in June.

Arlington, Va. -- A statement by The Retail Industry Leaders Association regarding President Obama’s 2014 budget proposal was issued Wednesday, saying, “While we applaud the President for recognizing the urgent need for revenue neutral corporate tax reform, his proposal falls short of the bold reforms needed.” said Bill Hughes, SVP government affairs.  

New York -- In not-so-unexpected news, a regulatory filing with the SEC on Wednesday revealed that J.C. Penney’s new CEO Mike Ullman has resigned from Saks Inc.’s board of directors, effective Monday.

Saks has not yet named a replacement for Ullman.

Green Bay, Wis. -- Shopko said Wednesday that it has named Michael B. Cooper as senior VP marketing for the company, charged with leading the branding strategy and marketing initiatives.  

Cooper joined Shopko from Office Depot, where he was most recently VP marketing, and directed the office supply retailer’s strategic planning and allocation of the company’s marketing budget.

By Rafi Musher, [email protected]