Strategy

Target continues to make leadership changes in the U.S. and Canada following Gregg Steinhafel’s ousting from the company in an effort to drive U.S. traffic and sales, improve its ailing Canadian operations and advance its ongoing digital transformation.

Washington, D.C. – Organized retail crime (ORC) is down slightly from 2013 but still a pervasive problem. According to the National Retail Federation’s 10th annual Organized Retail Crime Survey, which polled 76 senior retail loss prevention executives, eight-in-10 (88.2%) retailers report that they have been a victim of ORC in the past year, down slightly from 93.5% in 2013.

Philadelphia – Urban Outfitters saw its net income decline 20% to $37.08 million in the first quarter of fiscal 2015, from $47.06 million in the first quarter of the previous fiscal year. This significant net income drop came despite a 6% jump in total net sales to $686.3 million, from $648.2 million.

Net income and sales totals both came in below Wall Street expectations. Total same-store sales remained flat. Higher marketing expenses, which helped boost net sales, contributed to the decline in net income.

Dick’s Sporting Goods reported healthy net income and increased e-commerce penetration in the first quarter despite experiencing significant challenges in the golf and hunting categories.

Net income increased 8% to $69.98 million from $64.82 million. Net sales increased 8% to $1.44 billion from $1.33 billion while sames store sales at Dick's store increase 2.3% but declined 10.4% and Golf Galaxy locations. The company anticipates an increase of 1.3% in same-store sales for both the second quarter and full fiscal year.

Framingham, Mass. – Staples Inc. attributed a 44% drop in net earnings during the first quarter of fiscal 2014 to lower sales caused by store closures and a rise in the value of the dollar. Net earnings of $96 million were 44% below net earnings of $170 million reported a year earlier.

Store closures and weak demand for traditional office supplies and computers hurt Staples in the first quarter of fiscal 2014.

The company attributed a 44% drop in net earnings during the quarter to lower sales caused by store closures and a rise in the value of the dollar. But according to reports, the office products company and second largest internet retailer in the United States is facing stiff competition from big box retailers such as Walmart and e-commerce giants such as Amazon.

Dallas – Zale Corp. reported net earnings of $9 million in the third quarter of fiscal 2014, an impressive 80% jump from $5 million a year earlier. This soaring growth came even as revenues slipped 3% to $431 million, from $443 million.

A lower cost of sales and higher pretax earnings and operating earnings helped boost Zale’s net earnings. Zale cited the net decrease of 78 stores compared to the prior year and a decline in the Canadian exchange rate, partially offset by same-store sales growth of 1.9%, as driving down revenues.

Dr Pepper Snapple Group has promoted Heather Catelotti to VP of investor relations. Catelotti will report directly to CFO Marty Ellen.

The move comes following Carolyn Ross’s elevation to SVP, strategy and innovation. Ross will continue to report to Ellen.