Corporate Governance

Flooring specialist Lumber Liquidators reported a 14.9% second quarter same store sales increase and became the latest company to benefit from a resurgent housing and home improvement market.

Lumber Liquidators, operator of 300 stores, said total sales increased 22.2% to $257.1 million from $210.3 million during the second quarter ended June 30. Gross margins expanded to 41.3% from 37.3%, reflective of a reduced sourcing costs, higher prices and improved operational efficiencies, which translated to significant profit growth. Net income surged 67.7% to $20.4 million.

Eden Prairie, Minn. -- Supervalu has named Bruce Besanko as the company’s executive VP and CFO, effective Aug. 7. Besanko joins Supervalu after serving as executive VP of finance, CFO and CAO for OfficeMax since 2009.

IRVING, Texas — Holiday shifts adversely affected quarter-to-date performance at Michaels Stores, which reported net sales of $631 million for the nine-week period ending July 6, a decrease of 0.1% from $631.8 million for the comparable period last fiscal year. 

Same-store sales for the same fiscal period declined 2.7%. The company's quarter-to-date performance was also adversely affected by the timing of media activity due to the impact of the 53rd week in fiscal 2012. However, as a result of the shifts, the company has seen improvement in July sales performance.

New York -- Berkowitz Development Group has inked a lease renewal with Sports Authority for 43,000-sq. ft. at Kendallgate Shopping Center in Miami.

As part of a nationwide effort, the retailer will redesign the store’s interior and incorporate updated exterior signage.

Indianapolis — Kite Realty Group has leased a 31,541-sq.-ft. location in El Paso’s Sunland Towne Center.

Kite Realty and RJL Realty Advisors represented the landlord, KRG Sunland. Venture Commercial represented Sprout’s.

New York -- Paul Rutenis, the top buyer for J.C. Penney's newly made-over home department, has left the company, according to a report by Citigroup.  

According to Citigroup analyst Deborah Weinswig, the prices of many of the home items have reduced consumer demand.

In related news, Penney has decided not to renew its contracts with marketing consultants Sergio Zyman and Jeff Herbert, which expire this month, Weinseig noted.  

PURCHASE, N.Y. — PepsiCo reported net revenue of $16.8 billion for the second quarter of 2013, a 2% increase from $16.4 billion for the same quarter last year.

Structural changes, principally the refranchising of the company's beverage operations in Vietnam and China, negatively impacted reported net revenue performance by nearly 1% and foreign exchange translation had a 1.5% unfavorable impact in the quarter. Adjusted to exclude the impact of foreign currency translation and structural changes, revenue grew 4.2%.

Toano, Va. – Lumber Liquidators reported impressive gains in net income and sales during the second quarter of fiscal 2013. Net income rose almost 68% to $20.4 million from $12.2 million in the second quarter of the previous year, while net sales grew 22% to $257.1 million from $210.3 million.

Same-store sales increased 14.9%, driven by a 9.1% increase in the number of customers invoiced and a 5.4% increase in the average sale.