Finance & Capital Management

Express reported a drop in third-quarter profit and slashed its full-year adjusted earnings outlook, warning that the holiday season will "remain challenging."   In recent days, an array of apparel retailers have expressed caution about the holiday selling season, including Gap, Abercrombie & Fitch  and American Eagle Outfitters.    Express earned $11.6 million, 15 cents per share, for the quarter ended Oct. 29, down from $26.3 million, or 31 cents per share, a year earlier.

Move over Lululemon and Athletica, Sweaty Betty is moving onto your turf.   The London-based retailer of stylish activewear for women opened its ninth U.S. store — and third location in the Los Angeles area — on Melrose Ave. in West Hollywood, reported The Los Angeles Times, with a location in San Francisco up next.  

It’s been quite a tumultuous few years for American Apparel. Between its signature oversexed ad campaigns, founder and former CEO Dov Charney’s fall from grace, and ongoing financial trouble, there’s no shortage of controversy surrounding the apparel company. Most recently, American Apparel filed for bankruptcy for the second time in 13 months amid a $66 million acquisition by Montreal-based Gildan Activewear Inc.   

Howard Schultz is leaving his post as CEO of the company he built into a global coffee empire, but he’s not retiring.   Schultz will step down as CEO of Starbucks Corp. on April 3, at which time he will be appointed executive chairman and shift his focus to the company’s new upscale initiatives — the design and development of Starbucks Reserve Roasteries around the world and the expansion of the Starbucks Reserve retail store format — along with its social impact programs.     

VEREIT has purchased a 10.5-acre Sam’s Club property in Timonium, Maryland—just north of Baltimore — for $18.3 million in cash.   “The seller was able to secure an early lease extension prior to the sale, which created a well-positioned, long-term passive investment for the new ownership,” said Jon Busse, Senior VP at Colliers International, which handled the deal on behalf of the seller, Diamond Timonium LLC.  

Reductions in food-stamp benefits and falling grocery prices took a toll on Dollar General Corp.’s third-quarter performance which came in below expectations and included an unexpected drop in same-store sales.   The company reported a profit of $235 million, or $0.84 per diluted share, in the quarter, compared to net income of $253 million, or $0.86 per diluted share, in the year ago period. Its profit included a charge of about 5 cents per share for store relocation costs and disaster-related expenses.  

JGA has named Joanne Healy to the newly created position of executive VP, chief strategy officer.   Her responsibilities will span across strategy, creative and business development, bringing her unique perspective to the rapidly evolving world of retail, service and brand experience.    

It’s a rough time for many teen apparel retailers and the holiday season may not bring much relief.   American Eagle Outfitters Inc. on Wednesday issued a weaker than expected forecast for the fourth quarter as its CEO cited a “tough” retail environment. Its warnings issues similar statements from the likes of Abercrombie & Fitch and Gap.