Corporate Governance

Return fraud will cost retailers $10.9 billion in 2014
Washington, D.C. – Apparently, a lot of fraud artists will get their names on the “naughty list” this year. According to the National Retail Federation (NRF) 2014 Return Fraud Survey completed by loss prevention executives at 60 retail companies representing grocery, department, discount, specialty and small retailers, the industry will lose an estimated $10.9 billion to return fraud this year.
Finish Line pulls ahead with Q3 income
Indianapolis – The Finish Line Inc. reported an 11% improvement in net income during the third quarter of fiscal 2014, rising to $2.58 million from $2.32 million. Lower impairment and store closing charges, a slowed pace of growth in cost of sales, and an income tax benefit all helped spur the growth in profit. Consolidated net sales were $395.8 million, an increase of 9% from $364.45 million. Same-store sales rose 4.5%.

Pier 1 meets Street with Q3 profit decline

Fort Worth, Texas – Pier 1 Imports Inc. met Wall Street expectations with a 33% year-over-year decline in profits during the third quarter of fiscal 2015. Net income fell to $17.9 million from $26.8 million, with an increase in selling, general and administrative (SG&A) expenses driving the reduction.
Consumer spending reaches 11-month high

New York - The Deloitte Consumer Spending Index reached its highest point since November 2013, rising to 4.5 from 4 the prior month. The Index tracks consumer cash flow as an indicator of future consumer spending. The Index comprises four components – tax burden, initial unemployment claims, real wages and real home prices. Highlights include: Tax Burden: The tax rate has been effectively unchanged from the previous month at 11.8%.
RadioShack marketing head leaves company

Fort Worth, Texas – The management shakeup continues at RadioShack Corp. Jennifer Warren, chief marketing officer of the troubled consumer electronics chain, has reportedly left the company. According to the Wall Street Journal, Warren, who had served as chief marketing officer since early 2013 and was responsible for a highly publicized Super Bowl ad featuring 1980s celebrities, no longer works for RadioShack. There are no other details on her departure and Warren and RadioShack declined further comment.
Finish Line lowers outlook despite Q3 income

Finish Line CEO Glenn Lyon cited the company’s struggle to keep up with customer demand for new products even as the firm reported an increase in profitability for the third quarter.

The company reported an 11% improvement in net income during the third quarter, rising to $2.58 million from $2.32 million. Lower impairment and store closing charges, a slowed pace of growth in cost of sales, and an income tax benefit all helped spur the growth in profit.
Pier 1 reports Q3 profit plunge

Despite reporting a 33% year-over-year decline in profits during the third quarter, Pier 1 Imports CEO Alex Smith said he is confident in the chain’s value proposition going forward in 2015.
Marketing exec at RadioShack is out

The person behind the retro marketing campaign at RadioShack is out.

Jennifer Warren, chief marketing officer at RadioShack, is the latest top executive to leave the troubled electronics retailer as it tries to stave off bankruptcy. The company recently replaced its CFO for the third time this year as it reshuffled restructuring advisers.

Warren joined RadioShack in April 2013 and was one of CEO Joe Magnacca’s first hires when he was putting together his turnaround team.
Demand drives up Nike in Q2

Citing strong consumer demand for its products, Nike reported a big boost in revenue and profit for the second quarter.

“Our strong second quarter results once again demonstrate NIKE is a growth company,” said Mark Parker, president and CEO of NIKE Inc. “The power of our portfolio continues to unlock growth, as we keep a laser focus on our biggest opportunities. The breadth and depth of that portfolio has helped us consistently deliver strong results –- quarter after quarter, year after year.”
Kohl’s promotes “We’re Open Non-Stop” Dec. 19 through Christmas Eve

Menomonee Falls, Wisconsin - Kohl’s Department Stores has gotten in on the non-stop holiday shopping action by promoting itself as the place to be for “A Sale So Big We’re Open Non-Stop” beginning 6 a.m. on Friday, Dec. 19 through 6 p.m. on Christmas Eve, Wednesday, Dec. 24.
Mixed-Use project gets go-ahead in Minnetonka

St. Pau, Minnesota - Paster Properties and Bader Development announced that the City of Minnetonka City Council has approved the development of a six-story, 155,000-sq.-ft., mixed-use development at 1730 Plymouth Road, Minnetonka, Minnesota.
2015 commercial construction predictions: improved economy to mean more construction and renovations

Chicago - Top commercial construction trends for 2015 include an increase in retail and restaurant ground-up construction and a rise in shopping mall renovations, according to national general construction firm Englewood Construction.