Corporate Governance

J.C. Penney on Friday announced plans to close stores and reduce its workforce even as it reported its first profit since 2010.    In one of its deepest cuts to date, the retailer said it will close 130 to 140 stores, which represent about 13% to 14% of its total, 1,014 store base. The locations to be shuttered are unprofitable, Penney said, and generated less than 5% of total annual sales.     

Weaker results in its European, Saks Off 5th and Gilt operations contributed to lower fourth quarter sales for Hudson’s Bay Company   For the fourth quarter ended January 28, 2017, the company’s consolidated comparable sales decreased 1.2%. Specifically, DSG (Hudson’s Bay, Lord & Taylor and Home Outfitters) same-store sales increased 0.6%, and Saks Fifth Avenue comparable sales increased 0.1%.   

A jolly holiday season helped Gap Inc. post fourth-quarter earnings and sales that beat expectations, leading to speculation that the chain’s turnaround may be starting to take hold.    The nation’s largest apparel retailer reported net income of $220.0 million, or 55 cents per share, up from $214.0 million, or 53 cents per share, last year.   Sales totaled $4.43 billion, up from $4.39 billion and ahead of the $4.41 billion analysts had expected.   

Nordstrom Inc. reported better-than-expected profit for its fourth quarter amid a strong performance by Nordstrom Rack and cost cuts.    The department store retailer reported that it earned $201 million, or $1.15 per share, for the quarter ended Jan. 28, compared with $180 million in the year-ago quarter. Excluding certain items, the adjusted earnings came to $1.37 per share. Analysts had estimated $1.15 a share on average.  

L Brands is preparing for steep losses in the near-future, specifically across its Victoria’s Secret brand.    For the quarter ended January 28, 2017, net sales were $4.489 billion, an increase of 2% compared to $4.395 billion for the quarter ended January 30, 2016. The company’s net income was $631.7 million compared to $636 million last year.  

Bartaco, an expanding food and beverage concept that combines beer, fresh-squeezed juices, and yes, tacos, will debut in Texas at Trademark Property’s WestBend development in Fort Worth.   The mixed-use facility just completed construction on its first phase, which includes office as well as retail space and aims to create a new hub of activity near the campus of Texas Christian University. It features new landscaping, gathering areas along the Trinity River and Trinity Trails, along with a rotating public art program.

Twitter is taking a new approach to “humanize” its business partners’ customer service-based “Direct Messages.”   Twitter’s new feature – “Custom Profiles in Direct Messages” – allows businesses to better emphasize the human element in private conversations, as well as more clearly indicate when a bot is speaking, according to Twitter.   

On the heels of announcing a comprehensive restructuring plan, Sears eliminated 130 jobs at its corporate office on Thursday, Feb. 23.   The layoffs, which are part of a $1 billion cost-cutting plan, were relayed in an email sent to corporate employees Thursday afternoon, according to Business Insider.   

Pret a Manger has signed leases for four new stores in Manhattan and renewed leases on three others, reported RKF, which handled the lease agreements.   In its third location at Penn Station, Pret will debut its wine bar concept for the first time in the U.S. This shop will be located near the station entrance on 34th Street and 7th Avenue. The fast-casual chain’s other new locations in the Big Apple will be on West 27th Street in Chelsea, Park Avenue and 39th Street, and in Midtown at 53rd and Broadway.  

Wayfair credits innovation, increasing brand awareness and repeat customers for its strong fourth quarter growth.   The home decor brand’s total net revenue for the fourth quarter ended December 31, 2016, rose 33.1% from last year to $984.6 million, topping analysts’ expectations for $975.32 million. The company’s gross profit was $238.6 million, or 24.2% of total net revenue.