FINANCE

A tough February couldn't keep Tilly's down, which reported better-than-expected results for its first quarter.    The teen apparel and footwear retailer narrowed its loss in the first quarter to $161,000, or 1 cent a share, compared with a net loss of $2.7 million, or 10 cents a share, in the year-ago period. Its results were better than expected.    Net sales inched up 0.6% to $120.9 million, better easily beating the Street. Same-store sales rose 0.6%.  

A current retail CEO and a former one found themselves at odds on Tuesday at a Capitol Hill hearing on the proposed border adjustment tax.    “Under the new border adjustment tax, American families – your constituents – would pay more so many multinational corporations can pay even less,” said Target CEO Brian Cornell. “Eighty-five percent of Americans shop at Target every year. We believe this new tax would hit those families hard, raising prices on everyday essentials by up to 20%.”

Sears Holdings Corp. has bought itself a little more time with regard to the maturity of some debt. It also has offloaded some of pension liability.      The retailer announced on Tuesday it has reached an agreement to repay $100 million of its secured $500 million loan facility at its original maturity in July, and extend the remaining amount until January 2018. The agreement includes an option to extend the maturity for an additional six months, to July 2018.  

Footwear retailer DSW Inc. fell short on earnings in its first quarter, even as it topped sales estimates.   Net income fell to $23 million, or 28 cents per share, below analyst expectations, from $30.0 million, or 36 cents a share, in the year-ago period. The company incurred pre-tax charges of $4.1 million, related to its acquisition of Ebuys, restructuring costs and foreign exchange loss assumed in the process of pre-funding the upcoming Town Shoes acquisition.   

Target Corp. has resolved its 2013 data breach with a deal that represents the largest multi-state data breach settlement in history.   The retailer agreed to pay a total of $18.5 million to settle the case. The money will go to 47 states and the District of Columbia, with California receiving the largest share of  the settlement, more than $1.4 million.    

The proposed border adjustment tax would have a negative financial impact on retailers and consumers, as well.    Retailers would “have no choice” but to pass the higher costs on to consumers if Congress passes a proposed $1 trillion border adjustment tax as part of tax reform, the National Retail Federation warned on Tuesday.  

A department store chain is pursuing a new business opportunity.   J.C. Penney now offers business-to-business solutions for operators and facility managers in the hotel and lodging industry, as well as the multi-unit residential industry. And the chain has a few categories that fit the bill.   

Destination XL Group Inc. posted disappointed earnings and sales in its first quarter, but sounded a confident note that it was back on track.   In its quarterly earnings release, the big-and-tall apparel retailer also refuted a recent report, which it said had been repeated by various media outlets, that called into question the company’s ability to repay its debt.