FINANCE

The number of bankruptcy filings by U.S. retailers nearly doubled in 2016, and 2017 looks bleak for the industry.   That is according to a report by The Deal, a business unit of TheStreet.  

Retailers, trade organizations and business leaders are teaming up and taking steps to stop the border adjustable tax proposal.   The Retail Industry Leaders Association (RILA) joined more than 120 other trade associations and businesses to launch “Americans for Affordable Products,” a national campaign aimed at ending the border adjustable tax. The tariff, which is a component of the tax reform proposal under consideration in the U.S. House of Representatives, would impose a 20% tax on all imported goods.  

Consumer confidence slipped slightly in January after reaching a 15-year high in December, though outlook for the present overrode the outlook for the future.   The index now stands at 111.8 (less than an expected 113), down from 113.3 the previous month.  

After a decade-long increase, Valentine’s Day sales may be less rosy this year.   U.S. consumers are expected to spend an average $136.57, down from last year’s record-high $146.84. Total spending is expected to reach $18.2 billion, down from $19.7 billion last year, which was also a record, according to the National Retail Federation and Prosper Insights & Analytics, which surveyed 7,591 consumers about their Valentine’s Day plans.  

Fred’s Pharmacy confirmed its agreement to purchase divested stores remains in effect following Monday’s news that Walgreens Boots Alliance and Rite Aid extended the deadline for their potential merger agreement.  

Despite a volatile global retail environment, Coach increased sales and profits for its fiscal second quarter.   The luxury handbag and accessories retailer reported revenue of $1.32 billion for the quarter ended December 31, 2016, up 4% from $1.27 billion last year. The retailer’s net income was $200 million, up from $170 million in 2015.  

Despite a profitable second quarter, 1-800-Flowers.com fell short of expectations.   The company reported a 1.1% revenue growth to $554.6 million for the quarter ending Jan. 1, from $548.4 million the previous year. The company credited its 1-800-Flowers.com and BloomNet segments for the increase, along with modest growth in its Gourmet Food and Gift Baskets segment, and e-commerce growth across the Harry & David, Cheryl’s, The Popcorn Factory and 1-800-Baskets brands, the company said.  

In addition to disappointing fourth quarter sales, Under Armour announced that its CFO is stepping down.   The company reported that CFO Chip Molloy is leaving the company “due to personal reasons,” and David Bergman, Under Armour’s senior VP, corporate finance, will serve as acting CFO. Molloy will remain with the company in an advisory capacity to assist with the transition, the brand said.