FINANCE

A current retail CEO and a former one found themselves at odds on Tuesday at a Capitol Hill hearing on the proposed border adjustment tax.    “Under the new border adjustment tax, American families – your constituents – would pay more so many multinational corporations can pay even less,” said Target CEO Brian Cornell. “Eighty-five percent of Americans shop at Target every year. We believe this new tax would hit those families hard, raising prices on everyday essentials by up to 20%.”

A department store chain is pursuing a new business opportunity.   J.C. Penney now offers business-to-business solutions for operators and facility managers in the hotel and lodging industry, as well as the multi-unit residential industry. And the chain has a few categories that fit the bill.   

Destination XL Group Inc. posted disappointed earnings and sales in its first quarter, but sounded a confident note that it was back on track.   In its quarterly earnings release, the big-and-tall apparel retailer also refuted a recent report, which it said had been repeated by various media outlets, that called into question the company’s ability to repay its debt.  

Foot Locker posted weaker-than-expected earnings and sales for its first quarter after high promotional activity and getting off to a slow start in February.        Net income for the company's first quarter ended April 29, 2017 was $180 million, or $1.36 per share, compared with net income of $191 million, or $1.39 per share in the year-ago period.  

Harrys of London has a new owner with an interesting portfolio who wants to expand the brand.   The luxury footwear and accessories brand has been acquired by Charles S. Cohen, a New York real estate developer and media entrepreneur. Cohen, who acquired 100% interest in Harrys from Palladin Consumer Retail Partners, will assume the position of chairman. Palladin acquired a majority stake in Harrys in 2014.  

Expansion-minded Ross Stores turned in a solid performance in its first quarter amid what its CEO called “uncertainty and volatility” in the retail environment.    The off-price retailer, which is opening some 80 to 90 stores annually, reported earnings per share for the quarter ended April 29, 2017 of $.82, up from $.73 in the year-ago period. Net earnings grew to $321 million, compared to $291 million in the prior year.   

The Buckle is losing its finance chief.   The apparel retailer on Thursday said that Karen B. Rhoads, senior VP of finance and CFO, will retire later this summer. She will continue to serve as a member of the board. Rhodes joined the Buckle in 1980, and has served as CFO since 1991.     The retailer has hired an executive search firm to assist with the search for Rhoads’ replacement. Rhoads will remain in her role to support the search and to assist with the transition.  

Walmart showed its muscle in the first quarter, reporting a big jump in online sales, an increase traffic at its U.S. stores, and earnings that beat the Street.