Corporate Governance

The news that Zappos opened its first freestanding store caught by the industry by surprise. Here are two expert views:   

New Albany, Ohio - Abercrombie & Fitch Co. has entered into a franchise agreement with Grupo AXO to establish a retail store presence in Mexico. The franchise arrangement, the first in the company`s history, will encompass both the Abercrombie & Fitch and Hollister brands.  

Canton, Mass. – Destination XL posted a loss of $6.3 million in the third quarter of fiscal 2014, up from a loss of $4.1 million the same quarter a year earlier. Transition costs, including lease exits and pre-opening costs, contributed to the growing loss.  

Washington, D.C. - The National Retail Federation (NRF) supports immigration reform, but does not think President Obama’s executive action on immigration regulations is the right approach.   The NRF has issued a statement from president and CEO Matthew Shay on the announcement that President Obama will issue a series of executive actions on immigration:  

Omaha, Neb. – Gordmans Stores Inc. has named Lisa Evans as executive VP and chief merchandising officer effective Jan. 5, 2015. Evans was most recently the executive VP and brand leader for children’s apparel brand Carters, and previously was senior VP and general merchandising manager with Macy's.   Evans’ earlier experience included a variety of senior merchandising leadership roles with the Kaufmann's and Foley's divisions of the former May Company.

San Francisco – Gap Inc. failed to meet Wall Street expectations for net income and revenue in its third quartet as its namesake brand continues to struggle. The retailer cut its annual forecast as sales at its namesake brand continue to fall, Gap’s net income rose 11% to $351 million from $337 million, helped by lower cost of goods sold and taxes.  

New York – Ann Inc. beat Wall Street expectations for the third quarter with net income of $29.9 million, down 27% from $41.2 million the same quarter a year earlier. Pre-tax and after-tax charges associated with the closure of the Madison Avenue Ann Taylor store helped drive down net income.  

Coppell, Texas – Bankrupt retailer Alco Stores is going out of business, and closing its 198 stores, a victim of both the economy and the changing retail landscape.   

By Phillip M. Perry New York  - Blue skies and cool breezes.  That’s the economic forecast as the calendar turns for a new year. Retailers looking to bolster revenues and profits over the next 12 months should benefit from a gradual improvement in the ability and willingness of shoppers to spend.   

NEW YORK - Macy’s is enhancing its Black Friday promotions by giving away  a million dollars in prizes in stores nationwide during doorbuster hours. Beginning at 6 p.m. local time on Thanksgiving Day, customers will have a chance to win big, scoring digital gift codes that can be used instantly for Black Friday purchases.