Finance & Capital Management

Expansion-minded Ross Stores turned in a solid performance in its first quarter amid what its CEO called “uncertainty and volatility” in the retail environment.    The off-price retailer, which is opening some 80 to 90 stores annually, reported earnings per share for the quarter ended April 29, 2017 of $.82, up from $.73 in the year-ago period. Net earnings grew to $321 million, compared to $291 million in the prior year.   

When it comes to expanding globally, the United States is the leader of the pack.   That’s according to CBRE Group Inc.’s 10th annual study of international retail expansion, which surveyed 166 cities across 51 countries regarding how many international retailers had debuted in their markets in 2016. The survey found that retailers’ expansion into new markets increased by 2% in 2016, down from 3.1% in CBRE’s 2015 study.    

At headline level, Target's results are a lot better than feared. The pace at which total and comparable sales are declining has eased over the prior quarter, and the company helped itself to a 7.7% increase in net earnings. Against a tumultuous retail backdrop, this is a not so terrible performance.  

Target Corp.’s efforts to turnaround its business appear to be taking hold — at least based on its better-than-expected first quarter performance.     The discounter broke through the gloom that has characterized many other retailers’ first quarter results with earnings and sales that beat the Street and its own expectations. The company also gave a brighter outlook for the full year.   

Amazon may have its sights set on a new, multi-billion dollar market.   The online giant may be on the cusp of entering the pharmaceutical dispensing business, according to a report by CNBC. The company reportedly has hired a general manager whose role is said to be helping the online retailer explore how to hang a pharmacy shingle.  

Washington Prime Group and O’Connor Capital Partner announced the formation of a joint venture partnership in seven open-air retail centers. WPG will be the controlling partner with a 51% stake.   The seven properties are:   • Arbor Hills in Ann Arbor, Michigan;  • Classen Curve/Nichols Hills Plaza/The Triangle at Classen Curve in Oklahoma City;  • Gateway Center in Austin, Texas;  • Palms Crossing in McAllen, Texas;

Ralph Lauren Corp. has named a 25-year Proctor & Gamble executive to head up its ongoing turnaround effort.     The company appointed Patrice Louvet as president and CEO, effective July 17, 2017. At the time, he will also be appointed to the board. Louvet will dual report to founder Ralph Lauren in his capacity as executive chairman and to the company’s board.  

American Eagle Outfitters’ profit shrunk in the first quarter amid charges and discounting.  

A month after it announced it would close 400 stores, the other shoe has dropped at Rue 21.   The Warrendale, Pennsylvania-based retailer announced it has filed for Chapter 11 bankruptcy protection and entered into agreements with some of its lenders to reduce the company's debt and provide additional capital in support of its restructuring. The company, which expects to continue normal business operations throughout the process, listed its assets and liabilities in the range of $1 billion and $10 billion, according to its court filing.

The world’s largest home improvement retailer raised its earnings expectations as it announced first quarter sales and earnings gains that beat the Street.   Net earnings for the first quarter of fiscal 2017 were $2.0 billion, better than expected, compared with net earnings of $1.8 billion, in the same quarter last year. For the first quarter of fiscal 2017, diluted earnings per share increased 16.0% from the same period in the prior year.