Finance & Capital Management

SEATTLE — Starbucks reported that its second-quarter profit rose 26% to $390.4 million, up from $309.9 million last year, amid sales increases in the Americas and Asia regions.

Total net revenue for the quarter ended March 31 rose 11% to $3.56 billion, not quite the $3.58 billion Wall Street expected. Global same-store store sales grew 6%, driven by a 4% increase in traffic and a 2% increase in average ticket, marking the 13th consecutive quarter of global comp growth greater than 5%. 

New York -- Giving a much-needed boost to J.C. Penney Co., George Soros’ Soros Fund Management bought 17.4 million shares of the troubled retailer, according to a filing with the Securities and Exchange Commission.  

The stake, which was seen as a vote of confidence in returning CEO Mike Ullman, makes the billionaire investor the fourth-largest Penney shareholder, with a 7.9% stake.

Minneapolis — Supervalu has elected Rite Aid chairman, president and CEO John Standley and Cerberus COO and general counsel Mark A. Neporent to its board of directors.


Standley has spent the past 20 years in executive leadership roles in the grocery and pharmacy retail business. He became Rite Aid Corporation’s president and COO in September 2008, was appointed to the Rite Aid board of directors in 2009 and was named CEO in June 2010. He was elected chairman of Rite Aid’s board of directors in June 2012.

Dallas -- SRS Real Estate Partners and Cresa announced an agreement to form a new company to perform lease administration services for retail, office and industrial clients.

The new company will be known as SRS-Cresa Lease Administration, and will deliver a spectrum of lease administration services including critical date management, CAM audits, occupancy cost reconciliations, and full portfolio lease administration services out of currently established offices in Dallas and in Chicago.

Sunbury, Pa. -- Weis Markets announced it would invest $135 million in its 2013 capital expenditure program, an 8% increase compared to the year prior.
   
“To position our company for continued growth, we have made record investments in our store base,” and vice chairman Jonathan H. Weis, at the company’s annual shareholder meeting. “Look for more of the same in 2013 when we increase our Cap Ex investment to $135 million – an 8% increase compared to 2012 – and a 33% increase compared to 2011.”

PLEASANTON, Calif. — Safeway shares dropped dramatically as the company reported $10 billion in sales for its first quarter 2013 ended March 23, which is essentially flat as compared to the first quarter of 2012. An identical-store sales increase of 1.5% (excluding fuel) was offset primarily by the disposition of Genuardi's stores in 2012 and lower fuel sales in 2013.

HERSHEY, Pa. — The Hershey reported a net sales increase of nearly 6%, driven by core brand volume. Consolidated net sales were $1.8 billion for the first quarter ended March 31, compared with $1.7 billion for the same period last year. 

Reported net income for the first quarter of 2013 was $242 million compared with $199 million for the same period last year.

New York -- The CEO of Best Buy, Hubert Joly, earned compensation worth $19.6 million in his five months on the job in 2012, the Associated Press reported.  

Joly, a turnaround expert, took the reins of the chain in September. Former CEO Brian Dunn left in April when a board investigation found that Dunn violated company policy by having a "close personal relationship" with a female staffer. Board member Mike Mikan, one of Best Buy’s board members, served as temporary CEO before Joly was hired.