Strategy

Shareholders of Victoria’s Secret parent company L Brands received an early Valentine’s Day gift after the company said fourth quarter profits were much better than expected and it would pay a $2 a share special dividend.

The company said same store sales increased 7% and total sales for the four week period ended Jan. 31 increased 7% to $783.1 million. Sales for the full fourth quarter period also increased 7% to slightly more than $4 billion while same store sales grew 6%.

The retail industry’s data security efforts were upgraded week when the Retail Industry Leaders Association named the former Texas chief information security officer to lead the trade group’s new intelligence sharing organization.

RILA said Brian Engle would serve as executive director of the Retail Cyber Intelligence Sharing Center (R-CISC) and be responsible for managing the organization’s daily affairs.

Nashville, Tenn. -- It’s a changing of the guard at Kirkland's. Following its successful holiday performance, the home goods company announced that current president and COO Mike Madden will step into the CEO role, effective Feb. 8. He succeeds Robert Alderson, who will remain on the company’s board, which is being expanded to accommodate his addition.

San Jose, Calif. -- Orchard Supply Hardware announced it has opened three new stores, including a location in Portland, Oregon, and two in California (Irvine, and Cerritos).

In addition to the 300 jobs these new stores have created, the retailer plans to hire an additional 1,000 associates as it prepares for the busy spring season, and to support its continuing growth.
 

New York -- A mixed economic backdrop is expected to drive modest retail sales growth in the 3% to 4% range in 2015, compared to 5.5% average growth in 2010-2012 and 5.8% in 2002-2006, according to GE Capital. Low- and mid-income households will be particularly constrained by stagnant earnings despite improvements in employment status and the housing market as well as lower gas prices.
 
According to GE Capital, the key trends in retail include the following:

It was a happy holiday in the home décor category and Kirkland’s is celebrating with the appointment of a new CEO and an elevated profit forecast.

Steinmart plans to pay a $5 special dividend thanks to the availability of low cost financing that allowed the company to more than double the size of its credit facility.

Boston -- Three of the nation’s largest asset disposition companies were the successful bidders in the race to liquidate inventory at Target’s 133 Canadian locations.
 
Gordon Brothers Group, Hilco Global (through its Canadian division  Merchant Retail Solutions) and affiliates of Great American Group secured approval from Target Canada and an order from a Canadian court to manage the store closing process for Target’s 133 Canadian locations, with store closing beginning February 5, 2015.