Department Store

Store closures and weak demand for traditional office supplies and computers hurt Staples in the first quarter of fiscal 2014.

The company attributed a 44% drop in net earnings during the quarter to lower sales caused by store closures and a rise in the value of the dollar. But according to reports, the office products company and second largest internet retailer in the United States is facing stiff competition from big box retailers such as Walmart and e-commerce giants such as Amazon.

Framingham, Mass. – The TJX Cos. Inc. increased both net income and sales during the first quarter of fiscal 2015 on a year-over-year basis, although sales missed analyst projections. Net income grew slightly to $454.32 million from $452.89 million, while net sales increased 5% to $6.49 billion from $6.19 billion.

Analysts had expected net sales of $6.6 billion. Same-store sales remained flat. Carol Meyrowitz, CEO of TJX, blamed soft apparel sales for the miss on expected net sales.

New York – Macy’s Inc. is testing the effectiveness of mobile video ads on Facebook. On May 16, the retailer began running video ads using Facebook’s auto-play feature on the mobile newsfeed in its iPhone app.

The ads appear at the top of the newsfeed and start playing when the user scrolls down. If clicked, they become full-screen size and audio turns on. Users are allowed to like, share and/or comment on the ads.

Despite seeing increases in net income and sales for the first quarter, TJX — parent company of TJ Maxx and Marshalls — experienced weakness in apparel sales and missed analysts’ expectations.

Net income for the quarter was $454.32 million, compared to $452.89 million from the prior-year quarter. Net sales increased 5% to $6.49 billion from $6.19 billion, but were weaker-than-expected — analysts were anticipating $6.6 billion.

Same-store sales remained flat.

Philadelphia – Urban Outfitters saw its net income decline 20% to $37.08 million in the first quarter of fiscal 2015, from $47.06 million in the first quarter of the previous fiscal year. This significant net income drop came despite a 6% jump in total net sales to $686.3 million, from $648.2 million.

Net income and sales totals both came in below Wall Street expectations. Total same-store sales remained flat. Higher marketing expenses, which helped boost net sales, contributed to the decline in net income.

New York – J. Crew is reportedly planning to expand into Asia. According to the Wall Street Journal, J. Crew will open two new stores in Hong Kong on May 21.

The Hong Kong stores will be J. Crew’s first Asian stores since it closed its stores in Japan in 2008. In 2012, J. Crew said it planned to open stores in Hong Kong, and the U.K., and opened three U.K. stores in 2013. The retailer plans to open five or six stores in Hong Kong in the next few years, and may also open new stores in Japan.

Minneapolis - Peter Glusker has joined Target as senior VP, new business integration and operations, effective May 19. In this role, Glusker will lead the integration of new acquisitions into Target and develop strategies that ensure a consistent and great guest experience.

Target has appointed Peter Glusker as SVP, new business integration and operations. Glusker will lead the integration of new acquisitions and comes onboard just two weeks after the company terminated chairman and CEO Gregg Steinhafel.