Strategy

The CEO of Michaels says an improved merchandising strategy and a focus on the customer experience helped drive sales growth at the specialty retailer in the second quarter.

Total sales increased 3.8% to $984.3 million in the second quarter ended Aug. 1 at Michaels and same store sales increased 2.9%. Michaels reported a profit of $35.7 million, or 17 cents a share, vs. a loss of $46.8 million, or 26 cents a share, a year ago.

Would-be experts are portraying a federal appeals court ruling in the Neiman Marcus data breach case as a tipping point toward victims of cyber fraud, one that may lead to a wave of successful class-action lawsuits filed against retail chains.

This interpretation is premature.

It is an overreach rooted in a lack of appreciation for the overall procedural context in which the court reviewed the case, without accounting for the most important part of any class action lawsuit – class certification.

Books-A-Million needs a lot more best-sellers.

New York — It was tough sledding for J. Crew Group in the second quarter as its namesake brand continued to decline.   The retailer swung to a net loss of $13.6 million for the quarter, ended Aug. 1,  compared with earnings of $10.8 million in the year-ago period.    Revenue fell 5% to $593.6 million.  

Grapevine, Texas – GameStop Corp. on Thursday posted a strong second quarter, with profit and revenue that topped analysts’ estimates.

The retailer’s net income rose 3% to $25.3 million from $24.6 million.

Detroit —  Work wear brand Carhartt on Thursday opened a flagship in Detroit, the city where it was founded in 1889.  

Washington — The National Retail Federation wasted no time responding to a ruling by the National Labor Relations board concerning the redefinition of the concept of joint employees.

NRF and other business groups are concerned that the redefinition  could be used to make large businesses and franchisors responsible for the actions of subcontractors or local franchisees even when they do not exercise direct control over those companies’ employees.

Irvine, Calif. — Tilly’s Inc. missed Wall Street expectations by falling profit and increasing revenue in a mixed second quarter of fiscal 2015. Net income fell 54%, from $1.3 million to $600,000, with a tax settlement hindering profitability.

Total net sales fared better, rising 6%, from $123 million to $130 million. Same-store sales — including e-commerce — climbed 0.5%.

Despite missing Wall Street forecasts and declining profit, President and CEO Daniel Griesmer said he was pleased with results for the quarter.

Memphis —  Fred’s Inc. remained unprofitable for its fifth consecutive quarter as pharmacy continued to weigh the chain down.

Fred’s reported a bigger-than-expected net loss of $4.9 million in the second quarter, down from $16.4 million for the same period last year. 

Reductions in the percent of revenue represented by cost of goods sold and selling, general and administrative expenses helped shrink net loss.

Net sales grew 10%, from $491.18 million to $546.08 million, while same-store sales grew 0.9%.

New York — Bealls Inc. has taken the wraps off its new store banner targeted at millennials.

The department store retailer debuted Bunulu at Coconut Point Mall in Estero, Fla. Two additional locations at the St. Johns Town Center in Jacksonville, Fla. and The Garden Mall in Palm Beach, Fla. are due to open by the end of this year.