American Eagle sets special dividend
Pittsburgh — American Eagle Outfitters Inc. said Wednesday that its board declared a special cash dividend of $1.50 and a regular quarterly dividend of 11 cents.
The retailer said the total cash dividend of $1.61 will be paid on Oct. 10 to shareholders of record as of Sept. 26.
American Eagle said the dividends are part of its cash strategy to invest in the company, while still returning profits to its shareholders.
NRF warns of ‘regulatory train wreck’ with healthcare regulations
Washington, D.C. — The National Retail Federation told a congressional panel Wednesday that the Departments of Health and Human Services, Labor and Treasury have used too much informal guidance and not enough formal rulemaking in developing regulations to implement the new healthcare reform law, complicating retailers’ and other employers’ ability to plan for what will be required in 2014. NRF is concerned that the situation is the latest example of regulatory uncertainty that is hampering businesses’ attempts to expand and create jobs.
“Our nation cannot afford for the ACA to stumble out of the starting gate,” NRF VP and employee benefits policy counsel Neil Trautwein said. “A cascade of last-minute regulations will create confusion and thus could encourage more employers to back out of coverage. We are trying to help prevent what threatens to become a regulatory train wreck.”
Trautwein is scheduled to testify at a hearing Wednesday afternoon by the House Ways and Means Committee’s Health Subcommittee on implementation of healthcare exchanges and other provisions that will be required under the Affordable Care Act beginning in January 2014.
Trautwein said retailers typically plan health care benefits for their employees six to nine months in advance, meaning that details of the 2014 requirements need to be known no later than the end of first quarter 2013. Retailers would like to have regulations in place this year, and are “greatly concerned” that “fast-approaching deadlines for key issues” might not be met.
Toys ‘R’ Us holiday plans include ‘hot toy’ reservations and 150 to 200 pop-up stores
New York — Toys “R” Us’ holiday 2012 plans include a “hot toy” reservation program, free and expanded layaway services and offering more exclusive toys from branded manufacturers along with more proprietary products. The nation’s largest specialty toy retailer also will open 150 to 200 temporary locations for the holidays under the Toys “R” Us Express banner.
“The pop-ups are important because they expand our reach and put us in places where the customer otherwise wouldn’t fine us,” chairman and CEO Jerry Storch said during an event Wednesday at the company’s Times Square flagship.
Storch stroke a confident note about the upcoming season, and noted, as he has in past years, that while he can’t predict the economy, the last thing that parents will cut back at Christmas is on toys for their children.
“Our inventories are in very healthy shape as we approach the holidays so we can go after products we really believe in,” Storch added.
The chief executive highlighted the company’s recent performance, adding that it has had three consecutive years of adjusted EPITDA in excess of $1 billion from 2009 to 2011. He also made a strong defense of Toys “R” Us’ big-box positioning and expressed his frustration with the notion that the future belongs to Internet-only companies.
“The future belongs to brands — not channels — that build the best consumer-facing network, which include stores, Internet, social and mobile,” Storch said.
The chain’s new “Hot Toy” reservation system is designed to put an end to frantic, last-minute searching for coveted items, according to Storch, The program will be available for the 50 items on Toys “R” Us’ annual Holiday Hot Toy List (the toys have not yet been revealed).
Customers will be able to reserve any of the toys on the list with a 20% down payment, and reservations will be taken through Oct. 31. Customers will be able to reserve an item even if it is not in-stock at their local store. They receive email notification when the items are available and will have to Dec. 16 to pick up their orders.
Owing to the complexity of the program, and to avoid the potential for online scams, the reservation system is only being offered in Toys “R” Us stores.
“No one has ever done anything like this,” Storch said.
In other holiday news, Toys “R” Us said it is waving the upfront service fee for all layaway orders in its stores through Oct. 31. Also new: Layaway will be available at the company’s pop-up Express stores and outlet locations.
In addition, Toys “R” Us will roll out a "ship to store" program to allow customers to send online purchases to their local Toys “R” Us or Babies “R” Us store free of charge. It is also setting up merchandise pick-up kiosks in stores to reduce wait times for shoppers who are coming to pick up pre-ordered items.