Finance & Capital Management

CVS Health Corp. reported lower profit in its first quarter amid pressure by more generic drugs and softer customer traffic.    Net income for the three months ended March 31 decreased 16.9% year over year to $953 million. CVS said the decline was primarily driven by the decline in operating profit, partially offset by lower interest expense of $31 million related to refinancing activity in the prior year as well as the improvement in the effective income tax rate, from 39.4% to 37.3%.    

The company responsible for last year’s hottest holiday toy has bought Marbles: The Brain Store.   Toronto-based Spin Master Corp., creators of hit toy Hatchimal, said its purchase of Marbles builds upon Spin Master's increased presence in the games and puzzles category. Under the terms of the sale, Spin Master will acquire the company's brand name, e-commerce business, portfolio of games and other assets.    

The Outlet Shoppes at Oklahoma City was acquired this week by an unnamed buyer, reported CBL & Associates, which co-owned the center with Horizon Group Properties.   "The Outlet Shoppes at Oklahoma City was the first project we developed with Horizon and has been a huge success,” said Stephen Lebovitz, CBL’s president & CEO. “We are pleased to demonstrate the value of our outlet portfolio and provide additional liquidity to reduce leverage and help fund our redevelopment program."  

The Bon Ton Stores has a new technology leader.   Norm Veit has joined the company as executive VP, CIO, responsible for the chain’s IT strategy and operations.   Veit bring more than 35 years of experience to Bon-Ton, having held a variety of leadership roles in retail companies throughout his career. Most recently, he served as CIO and executive VP, distribution, real estate and facilities for Nine West Holdings, Inc.   

While sales across floral divisions were strong, a late Easter impacted 1-800-Flowers.com’s third quarter revenues.    For the quarter ended April 2, 2017, revenues were $233.7 million, a slight dip compared to $234.2 million in the prior year period. This reflects lower year-over-year profits across the Gourmet Food and Gift Baskets divisions due to the Easter holiday shifting into the company’s fiscal fourth quarter this year.  

There’s been a couple of change in the C-suite of hand-made goods marketplace Etsy.   The company said chairman and CEO Chad Dickerson is stepping down, to be succeeded as CEO by board member Josh Silverman, effective May 3. Fred Wilson, who has served as lead independent director of the Etsy board, since October 2014, will succeed Dickerson as chairman.  

Two private equity firms are “actively” exploring a buyout of Staples, according to a report by CNBC.   Cerberus Capital Management and Sycamore Partners have emerged as the leading frontrunners pursuing a deal, the report said. While other private equity firms, including Clayton Dubilier & Rice LLC, Advent International Corp and Bain Capital LLC, held discussions with the retailer include, they appear to be walked back and are less interested in the deal.  

A men’s grooming shop that provides hand and foot care, haircuts and shaves in a “man cave nirvana” has ambitious designs for expansion.