News

Dollar General Q2 profit tops Street, on track to open 730 stores
Goodlettsville, Tenn. — Dollar General posted better-than-expected earnings for the second quarter, but came up short on sales, even amid strong demand for tobacco products and other consumables.

The discounter reiterated plans to open approximately 730 stores in 2015, and relocate or remodel 875 units. To date, the company is on track with its pipeline development to accelerate new store openings to 7% square footage growth in 2016.
Fred’s losing streak continues
Memphis — Fred’s Inc. remained unprofitable for its fifth consecutive quarter as pharmacy continued to weigh the chain down.

Fred’s reported a bigger-than-expected net loss of $4.9 million in the second quarter, down from $16.4 million for the same period last year.

Reductions in the percent of revenue represented by cost of goods sold and selling, general and administrative expenses helped shrink net loss.

Net sales grew 10%, from $491.18 million to $546.08 million, while same-store sales grew 0.9%.

Burlington joins the off-price winner's circle

Burlington Stores Inc. has joined the cadre of profitable off-price retailers in the second quarter with a round of impressive sales results.

The company swung to a net income of $10.9 million in the second quarter of fiscal 2015 from a net loss of $6.47 million the same quarter of last year. Decreases in stock option and interest expenses, as well as some impairment charges, helped bring Burlington to profitability.

Net sales rose 10% to $1.14 billion from $1.04 billion, while same-store sales grew 5.6%.
In The Pink lets customers direct promotions

Falmouth, Mass. – In The Pink wants its customers to feel connected.

The 10-store specialty chain, exclusively selling Lily Pulitzer branded merchandise, offers a product assortment that makes customers feel a high degree of personal connection. Building on this personal relationship, In The Pink allows customers to direct promotions – in the form of 21-second online videos.
Sears grants a wish for Make-a-Wish

Sears Hometown and Outlet Stores raised more than $217,000 for Make-A-Wish this past spring, when it held a two-week charitable program.
West Elm branches out into pop-ups

In a first, West Elm, a Williams-Sonoma subsidiary, will make its products available outside of the brand’s own stores and website.
Stuart Weitzman 'makes that move' with Gisele

Gisele Bundchen may have retired from the runway, but Stuart Weitzman knows the supermodel still appeals to fashionable shoppers.

So the retailer has enlisted the celebrity mom to star in the brand's first TV commercial, which will premiere during this year’s MTV Video Music Awards on Aug. 30.
Destination XL sees more opportunity for expansion

Canton, Mass. — Specialty men’s retailer Destination XL Inc. reported Thursday that it shrank its net loss in the second quarter.

The company also raised its potential store count from 250 to 400. As a result, the retailer expects to open 30 to 40 DXL stores per year through fiscal 2020.

During fiscal 2015, Destination XL plans to open approximately 30 DXL retail and eight DXL outlet stores and close approximately 41 Casual Male XL and three Rochester clothing stores.
Foreign currency hits Guess in Q2

New York — Guess Inc. cited the negative impact of foreign currency fluctuations on earnings and sales in a difficult second quarter of fiscal 2016. Net earnings totaled $18.3 million, a 17% decrease compared to $22 million for the second quarter of fiscal 2015.

Total net revenue decreased 10%, from $608.6 million to $546.3 million. Same-store sales, including e-commerce, dropped 2.8% in the United States and Canada. In one bright spot, top-line e-commerce sales grew 20%.
Fred's focused on boosting pharmacy profits

Fred's Super Dollar says it has contacted a consulting firm to help it improve profitability after the retailer remained unprofitable for its fifth consecutive quarter.