American Eagle incoming CEO receives $3.3 million signing bonus
New York City — American Eagle Outfitters will pay a signing bonus of $3.3 million along with a base salary of $1 million to its new incoming CEO Robert L. Hanson, the Pittsburgh Business Times reported.
Hanson takes over for the chain’s longtime chief executive James V. O’Donnell, who is set to retire Jan. 28.
For the full story, go to: bizjournals.com/pittsburgh/news/2011/11/21/american-eagle-new-ceo-gets-33m-bonus.html?ana=yfcpc
O’Reilly selects OneView Commerce’s platform
Boston — O’Reilly Auto Parts, one of the largest auto parts retailers in the United States with over 3,700 stores in 39 states, has chosen OneView Commerce’s Enactor Commerce Platform as the foundation software for delivering point-of-sale and other commerce solutions to its stores nationwide.
With Enactor, O’Reilly will have the power to tailor the business process flows to meet their unique business requirements while supporting their traditional POS, as well as other opportunities all from the same code base. With over 37,000 POS terminals at O’Reilly, the Enactor platform will provide a foundation for increasing agility and will align with overall strategic objectives.
As part of this initiative, O’Reilly will leverage the benefits and flexibility of a services-oriented-architecture (SOA) to maximize the return on existing technology assets while gaining agility across the retail systems landscape. The Enactor commerce platform will allow O’Reilly to rapidly and effectively respond to the changing needs of its internal and external customers.
"After careful consideration, we have secured OneView’s next-generation Enactor Commerce Platform as it was best suited to meet our needs," said Steve Jasinski, VP information systems, O’Reilly Auto Parts. "The Enactor Commerce Platform will be part of O’Reilly’s focus on increasing overall technology efficiency and improving the delivery speed to meet the continuously changing needs of our business.”
Target tops own, analysts’ profit expectations
Third-quarter results at Target were pretty darn good, but they were actually even better than they seemed depending on how one compares this year’s number to the prior year performance. Profits grew 10.2% to 82 cents in the third quarter compared with 74 cents the prior year, thanks to a 4.3% same-store sales increase and ongoing improvement in the company’s credit card business.
The company had forecast earnings per share would fall in a range of 70 cents to 75 cents and analysts’ consensus estimate was 74 cents, so the 82 cents that was reported was a significant earnings beat. What makes the performance more noteworthy, is the current quarter contained expenses related to entry into Canada which negatively affected earnings, while the prior-year period contained tax benefits which artificially inflated earnings. As a result it made comparisons more challenging. For example, Target’s third-quarter 2010 results were aided by a six cents a share tax benefit, while this year’s third-quarter results were negatively affected by expenses of five cents a share from cost related to the Canadian market entry where the retailers first stores aren’t due to open until 2013. Excluding these variables, adjusted earnings per share increased 28% to 87 cents compared with 68 cents.
No wonder Target chairman, president and CEO Gregg Steinhafel said the company was very pleased with results as they reflect strong performance of its U.S. retail and credit card businesses and add increased confidence to the view that the company has the right strategy to drive further improvements.
Sales at the company stores increased 5.4% to $16.1 billion compared with $15.2 billion the prior year, and same-store sales grew at 4.3%. The top line growth translated to operating profits for the division that increased 14.1% to $931 million compared with $816 million. The company also reported that its gross margin rate declined to 30.5% from 30.6%, but expenses declined more significantly, dropping to 21.4% from 21.8%.
The company’s credit card segment also contributed to profits. Although the volume of receivables declined 9.9% to an average of $6.2 billion, the credit quality of the individuals who owe that debt is better which means Target’s bad debt expenses declined to $40 million in the third quarter compared to $110 million the prior year. As a result, the credit card segment’s operating profit increased 10% to $143 million compared with $130 million.