Corporate Governance

Sears loss widens but beats estimates; doubles 2014 store closings
Hoffman Estates, Ill. – Sears Holdings Corp. reported a third quarter fiscal 2014 net loss of $548 million, up from the $534 million loss it reported in the year-ago period but smaller than its previously estimated. Cost-cutting measures helped Sears reduce its net loss growth. The discounter also revealed that it plans to close a total of 235 underperforming stores in 2014, which is nearly double the projection of 130 it made in August. Sears said eliminating those stores should boost EBITDA by $50 million.
Aeropostale closing 75 stores as Q3 loss widens and same-store sales fall 11%
New York - On the heels of its eight straight quarterly loss, Aeropostale said it would close about 75 stores in the current quarter, and could close 50 to 75 more namesake locations in 2015, and 126 P.S. from Aeropostale stores by the end of January. The struggling teen retailer reported a net loss of $52.3 million in the third quarter ended Nov. 1, up from $25.6 million, in the year ago period. It also forecast a bigger-than-expected fourth-quarter loss.

PacSun beats Street; 11th quarter of same-store sales increases

Anaheim, Calif. – Pacific Sunwear of California Inc. reported a $469,000 net loss in the third quarter of fiscal 2014, compared to net earnings of $17.7 million the same period the prior year. The loss, which included a charge stemming from a $60 million term loan with Golden Gate Capital, was smaller than expected by Wall Street and driven by one-time charges. Net sales were $212.3 million, up 4.4% from $202.8 million. Same-store sales rose 4%.
New York & Company to enhance efficiencies after tough Q3

New York – An increase in selling, general & administrative (SG&A) expenses helped increase net loss at New York & Company Inc. to $9.7 million in the third quarter of fiscal 2014, up from $3.4 million a year earlier. Net sales declined 3% to $210.6 million from $217.3 million, and same-store sales dropped 3.4%. New York & Company cited soft performance in its wear-to-work category and the impact of product delays resulting from West Coast port labor issues as negatively impacting sales.
Destination Maternity swings to Q4 loss on higher costs

Philadelphia – Destination Maternity Corp. swung to a net loss of $2.48 million in the fourth quarter of fiscal 2014 from net earnings of $5.63 million in the same quarter last year. Higher cost of goods sold, as well as higher selling, general and administrative (SG&A) charges and other charges, helped push Destination Maternity out the black and into the red. Net sales fell 5% to $122.05 million from $128.25 million. Same-store sales dropped 5%.
Express Q3 net income falls, still tops Street

Columbus, Ohio – Express Inc. topped Wall Street expectations with net income of $14.6 million during the third quarter of fiscal 2014, a 24% decline from $19.3 million the same quarter the previous year. Increased buying and occupancy costs contributed to the decline in profits. Net sales decreased 1% to $497.6 million from $503.8 million. Same-store sales, including e-commerce sales, decreased 5%. E-commerce sales rose 11% to $79.1 million.
Cache has interested buyer

New York – Specialty retailer Cache Inc. has received an inquiry about a potential sale of the company to a third-party buyer. The Cache board will explore and evaluate strategic alternatives including a possible merger, sale or other form of business combination.
Google earns top corporate responsibility reputation

New York – Earning a reputation is not always a good thing, but in Google’s case it is a positive development. Google has received top ranking in the new Corporate Social Responsibility (CSR) RepTrak Study from Reputation Index. Google beat out number two company Microsoft, which held the top spot in 2012 and 2013. Nestle exited the top 10 list this year, while Lego is the one new entrant. The full top 10 list is: 1. Google 2. Microsoft 3. Walt Disney
Avison Young completes $15 million sale of Brannon Crossing

Atlanta - Avison Young has completed the $15 million sale of Brannon Crossing, an upscale shopping center with 60,780 sq. ft. of leasable space located at 405-435 Peachtree Parkway in Cumming, Georgia, just outside of Atlanta. The transaction comes on the heels of the firm’s recent disposition of the 27,057-sq.-ft. Lindbergh Crossing Shopping Center in Atlanta for $7.06 million.
Baker Katz completes leases of five Chipotle locations in Texas

Houston - Baker Katz, an X Team International partner and full-service commercial real estate brokerage firm, announced that it has negotiated five Chipotle leases in Texas. Jason Baker negotiated the leasing of the five Chipotle locations, ranging in size from just over 2,000 sq. ft. to 3,000 sq. ft. with a variety of different brokers.
Avison Young completes $15 million sale of Brannon Crossing

Atlanta - Avison Young has completed the $15 million sale of Brannon Crossing, an upscale shopping center with 60,780 sq. ft. of leasable space located at 405-435 Peachtree Parkway in Cumming, Georgia, just outside of Atlanta. The transaction comes on the heels of the firm’s recent disposition of the 27,057-sq.-ft. Lindbergh Crossing Shopping Center in Atlanta for $7.06 million.
Dollar General to open 730 stores and remodel 875 locations in 2015; entering three new markets