News

Just days after it agreed to sell itself to Ascena Retail Group for $2.2 billion, Ann Inc. posted another mixed financial report.

For the first quarter ended May 2, same-store sales declined 1.5% overall at Ann Inc., as Ann Taylor brand sales fell 3% and Loft brand sales were down 0.6%. The company reported a profit of $13.6 million, or 29 cents a share, up from $5.2 million, or 11 cents a share, a year ago.

I’ve been attending the annual CIO Symposium hosted by the MIT Sloan School of Management for several years now, and always walk away with a fresh batch of thoughts from top business, IT and academic minds. Here are three of the most valuable insights I learned at the recent 2015 edition of the conference.

Know Your Customer – Now

The CEO of Gap Inc. says efforts to improve "product acceptance" at Gap and Banana Republic stores is a work in progress that continues to drain on the company's financial results, which included an 8% decline in its first-quarter profit.

Office Depot is seeking to attract more veterans and their families to its stores with a new discount program.

The retailer is teaming up with Veterans Advantage to reward active duty and retired military, veterans, National Guard and Reserve, and their families with a 20% discount on office supply purchases. Veterans Advantage discounts are available every day on regularly-priced items and can be combined online with the company’s standard free delivery on qualifying purchases of $50 or more within our local delivery areas.

San Francisco — Gap Inc. posted an 8% decline in its first-quarter profit amid currency fluctuations, merchandise delays from the West Coast ports slowdown, and sluggish sales at its namesake and Banana Republic stores. On a positive note, Old Navy continued its strong performance. 
 

A new wave of consumers is quickly becoming the most powerful economic force in retail, and it is causing retailers to refine plans on how to meet the needs of this new generation.

While some retailers may see Millennials as a unique group that forces massive change, GameStop sees them as well-informed, independent consumers who are causing us to rise to an even higher level of service.

Chicago – Real estate investment trusts (REITs), which represent a sizable share of retail real estate activity, are worried about possible increases in interest rates. According to a report by consulting firm BDO USA LLP, 97% of REITs mention risks related to increases in interest rates and hedging.    This is up from 90% in 2014 and 88% in 2013, according to the 2015 BDO RiskFactor Report for REITs, which analyzes the most recent SEC 10-K filings for the 100 largest publicly traded REITs in the U.S.

Dublin, Calif. – Ross Stores Inc. topped Wall Street expectations with net earnings of $282 million in the first quarter of fiscal 2015, up 15% from $244 million in the year-ago period. A one-time benefit related to timing of packaway costs (when a discount retailer buys end-of-season merchandise to sell at a markup the following year) boosted profits.
  The off-price retailer reported that its sales rose 10% to $2.93 billion from $2.68 billion in the year-ago period.  Same-store sales increased 5%.