Finance & Capital Management

Johnson Controls has completed its merger with Tyco.   By uniting Johnson Controls, a leading provider of building efficiency solutions with Tyco, a leading provider of fire and security solutions, the new company is positioned as a leader in products, technologies and integrated solutions for the buildings and energy sectors.   

CBL & Associates and High Real Estate Group has the sold their joint interest in High Pointe Commons in Harrisburg, Pennsylvania, to Unison Realty Partners for $33.8 million.    The proceeds will be used by the sellers to retire secured loans totaling $17.4 million, and CBL will use its net proceeds to reduce outstanding balances on its lines of credit.  

Aeropostale Inc. will live to see another day after all.    A consortium, including Simon Property Group Inc. General Growth Properties Inc. and Authentic Brands Group, won the bankruptcy auction for Aeropostale Inc. The group, which also includes liquidators Gordon Brothers Retail Partners LLC and Hilco Merchant Resources LLC,  plans to keep at least 229 of the teen retailer’s stores up and running along with Aeropostale's e-commerce business and  international licensing business.   

Hanjin Shipping Co., the world’s seventh-largest container shipper, is working to ease the potential cargo chaos caused by its bankruptcy filing last week.    The filing rose concerns among some of the nation’s biggest retailers that some merchandise may not arrive in time for the crucial holiday season, blooomberg.com reported.  

Lululemon Athletica Inc. revealed that it plans to open smaller, “local” stores amid results that disappointed Wall Street.   Net revenue for the quarter ended July 31 increased 14% to $514.5 million, just shy of projections, from $453.0 million in the year ago period. Total comparable sales rose 4%, with in-store sales up 3% and direct to consumer sales up 6%.   Net income increased 12.5% to $53.6 million.  

Changing footwear trends took a bite out of Genesco Inc.’s sales in the second quarter.   The company reported net income of $14.6 million, up from a year-earlier profit of $7.5 million.   Genesco’s revenue for the second quarter, ended on July 30, fell 4.6% to a less-than-expected $625.6 million.   Total same-store sales fell 1%, with a 4% decline at the Journeys Group.   

Walmart is eliminating about 7,000 back-office positions at its U.S. stores, with the majority of the cuts in the accounting and invoicing areas.     The move, which was first reported by The Wall Street Journal, follows a test earlier this summer at 500 stores in the West to cut three administrative accounting and invoicing jobs at each store.    

Bids to assume the leases of 120-plus Hastings Entertainment stores will not be accepted after Sept. 15, announced RCS Real Estate Advisors.   The chain’s inventory was earlier purchased by Hilco Merchant Resources and Gordon Bros. Retail Partners after the music, movie, and video game chain was unable to emerge from Chapter 11. Hastings Entertainment was founded in 1972 by Sam Marmaduke, who as head of Western Merchandisers first convinced Walmart to carry music and continued to supply the chain until 1994.  

While some specialty chains struggle to meet earnings predictions, Dollarama reported better-than-expected second quarter results. The Montreal-based discount chain’s net income was $106.4 million for the second quarter of fiscal 2017, ended July 31, 2016 — up 11.4% from $95.5 million for the same period last year.  

Following a revenue miss in the second quarter, sales continue to slide at The Buckle.    For August, same-store sales fell 14.8%, a decrease exceeding the company’s 10.9% same-store loss in July, and a 10.8% drop in the second quarter.    Net sales for August also dipped 14.0% to $87.2 million for the four-week period ended August 27, 2016, compared to $101.4 million for the same fiscal month last year, ended August 29, 2015.