Corporate Governance

Target in Q4 loss on Canada exit, but sales top estimates
Minneapolis -- Target on Wednesday reported a net loss of $2.6 billion (pre-tax loss of $5.1 billion) in its fourth quarter due to the impact of its exit from Canada, compared to a $520 million gain year-ago period. However, the chain’s adjusted earnings came in at $1.50 per share, beating Wall Street estimates of $1.46 per share.

Target’s sales increased 4.1% to $21.8 billion, also better than expected, on increased store traffic and online growth. It was the chain’s best sales growth in three years.
Hudson’s Bay in joint ventures with Simon Property, RioCan
Toronto -- Canadian retail giant Hudson’s Bay Co. (HBC) has entered into two blockbuster deals, forming joint ventures with Simon Property Group and Canada’s RioCan Real Estate Investment Trust to target real estate growth opportunities in the United States and Canada. Both ventures are structured to facilitate an IPO at a later date.

The partnerships, which combined are valued at about $3.4 billion at the current exchange, are the latest example of retail companies moving to leverage their valuable real estate assets.

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TJX Q4 profit surges 11%; announces employee wage hike

Framingham, Mass. -- The TJX Cos. on Wednesday reported an 11% rise in fourth quarter profit and said it would raise employee pay above the minimum wage. It also announced plans to expand into two more global markets.

On a more downbeat note, the off-price giant said it expected a strong dollar to reduce its profit by 5% and the new wage hikes to lower earnings by 4% the year ending Jan. 30, 2016.
Lowe's Q4 sales, earnings up

Mooresville, N.C. -- Lowe's Cos. reported net earnings of $450 million for the fourth quarter ended Jan. 30, a 47.0% increase over the year-ago period. Sales for the quarter increased 7.6% to $12.5 billion, up from $11.7 billion in the year-ago quarter.
Tractor Supply Company ups domestic store target to 2,500 units

Brentwood, Tenn. - Tractor Supply Company has increased its domestic store growth target to 2,500 stores from 2,100 stores and its long-term operating margin target to 11.5% from 10.5%. The company is basing this enhanced guidance on the positive effects of key sales and gross margin initiatives, along with ongoing system enhancements such as demand planning, inventory allocation, and price optimization
Sears Canada swings to loss in Q4

Toronto – Sears Canada Inc. swung from profit to loss in a dismal fourth quarter of fiscal 2014. The retailer reported a net loss of $123.6 million in the fourth quarter of fiscal 2014, compared to net income of $373.7 million in the same period a year earlier.

The net loss included a pre-tax asset impairment charge of $99.3 million related to leasehold improvements in full-line and Hometown stores, and intangible assets. In addition, the net income a year earlier included several one-time tax gains, real estate sales and legal settlements.
Lumber Liquidators profit drops in Q4; will open 30-35 stores

Toano, Va. – Despite falling net income, Lumber Liquidators Inc. plans to open 30-35 new stores and remodel 15-20 stores, all in an expanded showroom format, during fiscal 2015. In the fourth quarter of fiscal 2014, the retailer reported net income of $17.3 million, down 17% from $20.8 million in the same quarter the prior year.

Selling, general and administrative (SG&A) expenses $6.5 million, or 9%, to $77.8 million primarily due to higher advertising, depreciation, occupancy and payroll expenses.
Survey: Few consumers report recent bad retail experience

Waban, Mass. – In a sign that retailer efforts to enhance customer service may be working, few consumers report having a bad experience with a retailer in the past six months. According to a new Temkin Group report, “What Happens After a Good or Bad Experience, 2015,” only 4% of consumers report having a bad experience with a retailer.

Six retailers are at a 1% reporting level for bad customer experience: True Value, Costco, Bed Bath & Beyond, Ace Hardware, Gap, and Staples.
Study: Millennials help boost casual fashion sales

Port Washington, N.Y. – The affinity of Millennial consumers for casual and activewear has resulted in a small boost in apparel, footwear and accessories sales. U.S. consumers spent $323 billion on apparel, footwear, and accessories in 2014, according to The NPD Group.

The 1% increase compared to 2013, resulting in an additional $2 billion in sales, was driven primarily by growth in sales of activewear, athletic performance footwear, and bags.
Long John Silver’s names Sonic brand exec CEO

Louisville, Ky. - Long John Silver's has named James O'Reilly as CEO. O'Reilly brings to the role more than 20 years of food service executive experience, including his most recent stint as chief brand officer for Sonic Drive-In.

In addition, O'Reilly has served in a variety of domestic and international leadership positions for food service and CPG companies including Einstein Noah Restaurant Group, Yum Brands, and Procter and Gamble.
The Coffee Bean and Tea Leaf appoints Starbucks vet as Asia VP

Los Angeles - The Coffee Bean & Tea Leaf has added Andrew Nathan as senior VP of Asia Pacific and member of the executive team. In this newly created role, Nathan will be the primary driver of the company's growth opportunities in Asia, including responsibility for operations in Singapore and Malaysia.

Nathan assumes responsibilities previously held by Victor Sassoon, CEO of Asia Pacific, who continues as a board member of the company. Nathan will be based in Singapore and report to John Dawson, president and CEO.