Department Store

By Evan Gold, VP of client services, Planalytics

The winter of 2014 brought record cold and snow throughout North America and its impact on business and consumer spending were widespread and significant. How impactful was it? Well, for the S&P 500 companies, the word “weather” was mentioned in almost 200 earnings calls from January through March, which is a 81% increase compared to last year.

Menomonee Falls, Wis. -- Kohl’s Corp. missed Wall Street expectations for profits, revenue and same-store sales during a difficult first quarter. Net income, which had been expected to rise slightly, fell 15% to $125 million, from $147 million.

In addition, net sales declined 3% to $4.07 billion from $4.2 billion, while analysts had expected them to rise to $4.22 billion. Same-store sales, also expected to increase, fell 3.4%.

Dallas -- J.C. Penney topped expectations for the first quarter, reporting a 6.2% increase in same-store sales that easily topped views. Revenue for the quarter, which ended May 3, rose to $2.80 billion, above the $2.71 billion analysts expected, up from $2.64 billion in the year-ago period.  

It was the second consecutive month of same-store sales gains for Penney, and the retailer said sales improved sequentially each month within the quarter.

Penney lost $352 million for the quarter, not as much as analysts expected.

Arlington, Va. - The Retail Industry Leaders Association (RILA), along with several retail brands, has launched the Retail Cyber Intelligence Sharing Center (R-CISC), the centerpiece of which is a Retail Information Sharing and Analysis Center (Retail-ISAC).

Dallas -- Zale Corp. on Thursday restated its support for Signet Jewelers Ltd.'s $1 billion acquisition offer, urging shareholders to support the deal despite opposition from a large investor. The deal, under which Zale stockholders would receive $21.00 per share in cash, has been unanimously approved by the Zale board of directors.

Zale’s investor TIG Advisors LLC has called the deal "grossly unfair," saying the jewelry retailers should be able to get $28.60 a share in cash and stock.  

New York -- Kohl’s Department Stores and Toshiba Global Commerce Solutions have teamed up with Plug and Play to participate in Plug and Play Retail, an accelerator program that is focused on technologies and teams innovating in the retail industry. (Based in Sunnyvale, California, Plug and Play is a business accelerator that specializes in growing tech startups.)

Hoffman Estates, Ill. – Sears Holdings Corp. on Wednesday confirmed it is exploring strategic options for its 51% interest in Sears Canada Inc., including a sale. To assist in its efforts, the retailer said it will hire to an investment banking firm.

Sears Canada's board of directors and management intend to cooperate fully with Sears Holdings in this process. Net loss attributable to Sears Holdings’ shareholders was $358 million and $1.4 billion, respectively, for the fourth quarter and full year of 2013.

Burlington, Mass. — Big Lots has signed a lease for 31,000 sq. ft. at Wonderland Marketplace in Revere, Massachusetts. KeyPoint Partners represented the landlord in the transaction.

Wonderland Marketplace is a 135,000-sq.-ft. shopping center anchored by Marshalls and Staples. In line tenants include Hair Cuttery, Ninety-Nine restaurant, and the U.S. Post Office. The Big Lots space is in a former Stop & Shop. Another 33,687 sq. ft. is available for lease in that building.