Corporate Governance

Fort Myers, Fla. – Chico’s FAS announced that CEO and president David F. Dyer intends to retire in spring 2016, at the end of the company’s fiscal year.

He will remain in his current role until a successor is appointed, and will remain on the board in the newly-created role of vice chairman until June 2016. The women’s specialty apparel retailer has retained executive search firm Herbert Mines Associates to assist in finding a new chief executive.

New York – Robert Lynch, CEO of embattled Lumber Liquidators Holdings, has unexpectedly resigned as the Justice Department seeks to file criminal charges for the company’s allegedly selling Chinese hardwood laminate products that had illegal levels of formaldehyde. In a brief statement, Lumber Liquidators gave no reason for Lynch’s departure.

Minneapolis – Domestic demand for large-screen TVs and mobile phones helped Best Buy Co Inc. beat Wall Street projections for profits and sales in the first quarter of fiscal 2016. Net earnings fell 72% to $129 million from $461 million a year earlier, largely due to corporate restructuring charges.

San Francisco – Williams-Sonoma Inc. exceeded Wall Street expectations with earnings and sales in the fiscal 2015 first quarter. From the same period the previous year, net income declined 3% to $44.79 million from $46.16 million.

Increases in cost of goods sold and selling, general and administrative (SG&A) expenses helped reduce net income. Net revenues rose 6% to $1.03 billion from $973.33 million. The West Elm banner had particularly strong sales growth.

Nashville, Tenn. – Kirkland’s Inc. topped Wall Street predictions for earnings and sales in the first quarter of fiscal 2015. Net income increased 23% to $2.53 million, from $2.05 million a year earlier.

Growth in cost of sales and operating expenses lagged the rate of revenue growth, boosting net income. Net sales rose 9% to $118.31 million, from $108.25 million. Same store sales, including e-commerce sales, grew 3%.

Jacksonville, Fla. – Earnings dipped at Stein Mart Inc. during the first quarter of fiscal 2015, even as net sales improved. Net income fell 3% to $13.6 million from $14.1 million a year earlier, with higher loan interest expense a major contributor.

Net sales increased 7% to $353.5 million, from $328.9 million. Same-store sales rose 4.8%. Higher store traffic and e-commerce sales boosted same-store sales results.

Evansville, Ind. – Shoe Carnival Inc. saw net income and sales increase during the first quarter of fiscal 2015 as selling, general and administrative (SG&A) expenses and cost of sales rose at a slower pace than revenues.

Net income totaled $10.4 million, up 8% from $9.2 million the same period a year earlier.

Net sales increased 7% to $252.77 million, from $235.77 million. Same-store sales climbed 3%.

York, Pa. – Net loss at The Bon-Ton Stores Inc. widened to $34.1 million in the first quarter of fiscal 2015, from $31.5 million in the same quarter the prior year. Increased cost of sales and depreciation and amortization helped increase net loss.

Total sales inched up to $610.9 million from $607.5 million, while same-store sales increased 0.8%. E-commerce sales increased at a double-digit rate due to a higher conversion rate.

Chesapeake, Va. – Dollar Tree Inc. plans to sell about 330 Family Dollar stores to obtain Federal Trade Commission (FTC) approval of its pending $8.5 billion acquisition of Family Dollar Stores.  

The company has not identified the buyer, the sale amount or which stores will be closed. The 330 Family Dollar stores represent about $45.5 million in operating income, according to Dollar Tree. Dollar Tree expects the Family Dollar purchase to go through in July 2015.

West Elm helped Williams-Sonoma deliver another solid financial performance in the first quarter despite negative effects from the West Coast port dispute and sluggish consumer spending.

Total revenue for Williams-Sonoma Inc. in the first quarter ended May 3 grew 5.8% year over year, to $1.03 billion, versus $974 million in the first quarter of 2014. Same store sales from its flagship Williams-Sonoma brand grew 2.7%, Pottery Barn sales increased 2.4%, West Elm delivered a 15.3% increase in comps, Pottery Barn Kids grew 0.8%, and sales from PBteen increased 3% year over year.