News

Regional department store chain Gordmans gave shareholders a huge gift this week when the private equity controlled company’s board said it had borrowed $45 million to fund a $3.61 special dividend after reporting lackluster second quarter results.

Los Angeles -- Guess Inc. reported net income for the second quarter above expectations due to improving sales in North America.

Net income fell 7% to $39.8 million, down from $42.9 million a year ago.

Overall sales rose 0.6% to $639 million. In North America, which accounts for about 40% of the chain’s revenue, retail sales were up 1%.

Same-store sales fell 2%, compared to a 10% drop in the first quarter.

Memphis, Tenn. -- Fred's Inc.’s fiscal second-quarter net income fell to $3.3 million from $6.1 million because of a hefty tax benefit a year ago. The company’s adjusted results showed improved profitability, helped by increased customer traffic, higher traffic and lower costs.

The retailer cautioned, however, that its lower-income customers are still feeling economically pressured. Fred's said that it anticipates the operation environment will be challenging in the second half of the year.

Despite challenges in the overall consumer discretionary spending environment, Shoe Carnival saw sales increases for the second quarter ended Aug. 3, which coincided with the back-to-school season, driven primarily by its selection of women’s seasonal and children’s footwear.

The leading retailer of value-priced footwear and accessories reported net sales of $216.4 million for the quarter, an 18.8% increase from $182.2 million for the year-ago quarter. Comparable-store sales for the quarter increased 2.6%.

Retailers will be promoting early and often during the upcoming holiday season, especially with six fewer days between Thanksgiving and Christmas, and mobile is sure to play an even greater role this year than it did in 2012.

MEMPHIS, Tenn. — Fred's experienced growth in sales, customer traffic, average ticket and gross margin for the second quarter ended Aug. 3.

The company’s net income for the quarter was $3.3 million, or $0.09 per diluted share, compared with net income of $6.1 million, or $0.17 per diluted share, in the year-earlier period. However, the prior-year quarter included a benefit of approximately $4 million, or $0.11 per diluted share, for favorable tax credits. 

NEW YORK — Avon Products appointed Brian Salsberg as SVP of global strategy, effective Sept. 23. Salsberg will report to Sheri McCoy, Avon's CEO, and will join the company's executive committee.

Nashville, Tenn. -- Footwear retailer Genesco estimated second-quarter results below analysts' forecast. The company also slashed its adjusted profit outlook for the current year.

“We are disappointed that our second quarter performance fell short of expectations,” said Robert J. Dennis, chairman, president and CEO of Genesco. “Sales trends proved to be more challenging as the quarter progressed and results came in below our plan. The third quarter has gotten off to a difficult start with comparable sales down 3% through Aug. 24.