Corporate Governance

Michaels weaves strong profits in Q1
Irving, Texas – Net income at the Michaels Companies Inc. skyrocketed 47% to $67 million in the first quarter of fiscal 2015 compared to $45 million in the same quarter a year earlier. A large drop in interest expense helped fuel strong profit growth.

Net sales climbed 2% to $1.08 billion, from $1.05 billion. Same-store sales rose 0.3%. Michaels said unfavorable weather and a strong U.S. dollar hindered sales growth.
Five Below profit rises in Q1; plans 155 new stores
Philadelphia – Five Below Inc. reported healthy profit and sales gains in the first quarter of fiscal 2015 and is planning to open 155 stores in the next two fiscal years. The retailer’s net income totaled $4.28 million, up 39% from $3.08 million a year earlier.

Higher gross profit and the elimination of debt extinguishment loss helped Five Below reach above in net income. Five Below plans to open 70 stores and enter six new states in 2015, and plans 85 openings for 2016.

Lumber Liquidators compliance chief quits

New York – Top management continues to leave Lumber Liquidators Holdings Inc. in the wake of accusations the retailer sold Chinese hardwood laminate products that had illegal levels of formaldehyde. Ray Cotton, chief compliance officer of Lumber Liquidators, has resigned from the company.
Amazon, Publix, Whole Foods have best reputations

Boston - For the third year in a row, Amazon claims the top spot in Reputation Institute’s annual survey of America’s top 50 most reputable companies in the retail industry. Amazon is the only company of all the retail companies surveyed to achieve an excellent reputation.

Supermarket chains moved up in the ranking this year, with Publix ranking second and Whole Foods jumping five spots to third place in 2015.

America’s top 10 companies in the retail industry in 2015 are:

1. Amazon.com
American Greetings tops in online trust

Bellevue, Wash. – American Greetings is the most trusted online retailer. According to the 2015 E-Commerce Online Trust Audit and Honor Roll from The Online Trust Alliance (OTA), 2015’s top 10 most trustworthy online retailers (11 due to a scoring tie) are American Greetings, Cabela's, Drs. Foster & Smith, Fanatics, GameStop, The Honest Company, Jomashop, Kate Spade New York, LivingSocial, Netflix, and SparkFun Electronics.
NRF: Hiring managers value retail experience

Washington, D.C. - A majority of hiring managers across all U.S. industries view retail experience positively and value the foundational job skills that retail instills in its employees. According to the new “Retail’s Value on a Resume: How Jobs in Retail Prepare America’s Workforce for Success” study from the National Retail Federation (NRF), 69% of those surveyed said retail workers have the skills and qualities they look for when hiring.
Sam’s Club, SmartBiz partner on digital lending platform

Bentonville, Ark. - Sam’s Club is partnering with SmartBiz as the exclusive platform for SBA-guaranteed loans for Sam's Club Business Lending Center, a digital platform for small businesses. As a Business Lending Center participant, SmartBiz will provide qualifying Sam's Club business members with SBA loans.
Michaels' profit jumps despite exchange rates, weather

The Michaels Companies overcame weak same store sales growth to deliver strong profit growth in the first quarter.

The Texas-based retailer reported that for the first quarter ended May 2 its net income increased to $67 million or 32 cents per share from $47 million or 25 cents per share in the prior-year quarter. Net sales for the quarter grew 2.4% to $1.08 billion from $1.05 billion in the same quarter last year. Same store sales increased by 0.3%.
No end in sight for Lands' End sales troubles

Lands’ End Inc. reported profit and sales declines in the first quarter as the retailer grappled with West Coast port delays and headwinds from foreign exchange rates.
GS1 honors Macy's, other retailers for innovation

GS1 US has recognized three companies with GS1 US Apparel and General Merchandise Retail Industry Achievement Awards.
Same store sales rise at Costco in May

Costco reported a bump in U.S. same store sales for the month of May, but international comps declined.
Pharmacy still driving sales at Rite Aid

Same store sales increased 2.1% at Rite Aid in May thanks in large part to growth in the retailer's pharmacy division.