Strategy

NAPERVILLE, Ill. — Not that anyone needed it, but weak second-quarter sales at OfficeMax provided additional evidence this week that the nation’s business climate remains exceedingly challenging.

ACE Hardware CFO and EVP Dorvin Lively is leaving the Oak Brook, Ill.-based hardware co-op to  pursue other interests.

Lively joined Ace about three years ago and was promoted to EVP in January 2011. On an interim basis, Lori Bossmann will oversee the finance department, while the co-op searches for a new CFO.

Lively was a professional accounting fellow at the Financial Accounting Standards Board in the early 1990s. He later became a senior VP and corporate controller at Toys “R” Us before moving on to Maidenform Brands, and then to Ace Hardware in 2008.

SAN FRANCISCO —  Levi's announced that it has appointed Beto Guajardo as its new global VP strategy. In this role, Guajardo will be responsible for leading the development and execution of the brand's growth strategy and global business development.

Buying online from Amazon.com is a fantastic experience. Between the broad assortment, product reviews, available shipping options, ease of checkout and simple returns process there is a lot to like. It’s why the company’s sales are on fire, profits are beating analysts’ estimates, and the stock has traded above $200 the past month.

Washington, D.C. -- A Tuesday report from the Commerce Department showed that consumer spending dropped 0.2% in June, to $21.9 billion.

Personal income was virtually flat for the month, increasing 0.1% to $18.7 billion, which was in line with estimates.

Indianapolis -- Simon Property Group announced Tuesday that its Premium Outlets division will expand four of its most productive Premium Outlet properties located in California, Florida, Illinois and Washington. 

Construction on these expansions is scheduled to begin in 2012, and total 450,000 sq. ft. of added space.

New York City -- A Monday report by the Associated Press said that Verizon Wireless will install apps for American Express Co.'s new online payment service, Serve, on its phones and tablets.

Terms of the agreement between Verizon Wireless and American Express have not been revealed. Verizon’s Serve online payment service is based on pre-funded accounts, and it enables online transactions without entering a credit card number.
 

Pleasanton, Calif. -- Ross Stores said Tuesday that it will simultaneously open 12 stores on Oct. 8, all located in the greater Chicago area.

The new Ross Dress for Less stores will open simultaneously in Algonquin, Arlington Heights, Bloomingdale, Crystal Lake, Matteson, Naperville, Niles, Orland Park, Rockford, Schaumburg, Skokie and South Elgin.

"We are excited to be entering the Chicago area, which will significantly expand our national footprint," said Michael Balmuth, vice chairman and CEO, Ross Stores.

Naperville, Ill. -- OfficeMax reported Tuesday that it swung to a loss of $3.02 million in the quarter ended June 25, compared with net income of $11.8 million in the year-ago period.

Total sales dipped 0.3% to $1.648 billion from $1.653 billion, but beat Wall Street expectations of $1.63 billion. In the retail segment, sales decreased 0.7% to $767.3 million from $772.7 million. Same-store sales dipped 0.5%, but results were helped somewhat by stronger same-store sales in Mexico.

New York City -- Coach reported Tuesday that net income for the fourth quarter rose 4% to $202.5 million, compared with $195.5 million in the year-ago period.

Revenue surged 9% to $1.03 billion, edging Wall Street estimates. Same-store sales rose 10.1% in North America.

Coach’s performance is in line with overall strength in the luxury category. During the recessionary onslaught, the company pushed sales of handbags priced under $300, but said its average retail price of handbags is now inching back up.