Mergers & Acquisitions

Sears Holdings Corp.'s second-quarter earnings beat the Street as it benefitted from cost-saving initiatives. But it continued to struggle with weak traffic and declining sales, and added 28 more locations to its long list of store closings.    Sears reported that its second-quarter loss narrowed to $251 million, or $2.34 per share, in the quarter ended July 29, helped by cost savings resulting from the streamlining of operations and store closings.  

J.Crew Group named an internal associate as CFO as the retailer continues to struggle to turn around its namesake brand.   The retailer announced that Vincent Zanna, previously senior VP of finance and treasurer, has been promoted to CFO and treasurer, effective immediately. He will continue to report to Michael Nicholson, who was previously CFO and COO, and now serves as president and COO.    

Abercrombie & Fitch on Thursday posted a much smaller than expected second quarter loss and better than expected sales amid strong demand for its Hollister brand.    The company reported a net loss of $15.5 million, or $.23 per share, for the quarter ended July 29, compared to $13.1 million, or $.19 per share last year. Excluding certain one-time items, Abercrombie posted a net loss of $11.0 million, or $.16 per share, compared to $16.8 million last year. Analysts on average had expected a loss of $.33.  

Victoria's Secret loss is American Eagle Outfitters’ gain as the teen apparel retailer posted better-than-expected second quarter results, fueled by strong demand for its Aerie lingerie brand.   Net income fell to $21.2 million, or 12 cents per share, in the quarter ended July 29, from $41.6 million, or 23 cents per share, in the year-ago period. Excluding restructuring and related charges of $0.07 per diluted share, the company’s adjusted EPS was $0.19 for the quarter, above analysts' estimates.  

The biggest retail deal of 2017 has moved one step closer to completion.    Shareholders of Whole Foods Market on Wednesday voted to approve the natural grocer's $13.7 billion acquisition by Amazon. The vote, which took place at Whole Foods' headquarters in Austin, Texas, was expected.   

Target Corp. has tapped a McKinsey & Company veteran to head up its innovation efforts.    The retailer appointed Minsok Pak as executive VP, chief strategy and innovation officer. He replaces Casey Carl, who left the company in May.   

Simon Property Group has agreed to a settlement with the office of New York State Attorney General Eric T. Schneiderman that will have it loosening its stranglehold on the outlet business in Metropolitan New York.   Schneiderman maintained that Simon’s Woodbury Common outlet center in the Hudson River Valley owned a virtual monopoly in the region — including New York City — by virtue of a clause in tenant leases that forbid the opening other outlet stores within a 60-mile radius.   

Build-A-Bear Workshop is holding steady.   The specialty retailer's board of directors has completed its review of strategic alternatives and authorized a share repurchase program of up to $20 million. Build-A-Bear initiated the review in May 2016 after a sharp decline in net income in its first quarter, saying at the time that it would consider "all" options to boost shareholder equity, including a sale.