Bob Nardelli joining Pep Boys board
The former chairman and CEO of Home Depot is joining the board of directors at Pep Boys.
Robert Nardelli, the former chairman and CEO of Home Depot and Chrysler, has been appointed to Pep Boys’ board of directors, bringing the current size of the board to nine directors.
Chairman of the board, Robert Hotz, said: “We are pleased to have Bob join our board and welcome his extensive operating expertise and insight.”
Nardelli is the founder and CEO of XLR-8, LLC, an investment and advisory firm that helps companies identify weaknesses and improve performance. In addition to his roles at Home Depot and Chrysler, he is widely recognized as one the best operating executives in the United States, having served for more than 30 years in senior positions at General Electric.
“I am very excited and proud to be joining the Board of Pep Boys and to be returning to the automotive industry, especially as part of this leading aftermarket service and retail chain,” Nardelli said.
Pep Boys has over 7,500 service bays in over 800 locations in 35 states and Puerto Rico.
GE executive to lead supply chain at Advance Auto Parts
Advance Auto Parts has appointed a longtime GE executive as it supply chain leader.
Todd Greener has been named senior vice president and will lead the company’s supply chain function in its efforts to support Advance Auto Parts stores and customers.
“I am excited to welcome Todd to the Advance team as we work to provide superior availability to our stores and customers,” said Charles Tyson, EVP of merchandising, marketing and supply chain. “Todd has over 20 years of experience in operational excellence with progressive global experience driving significant operational and sustainable strategic improvements across several fast-paced consumer and industrial markets.”
The company said Greener will be instrumental in executing Advance’s system-wide supply chain integration and transportation strategy.
Greener spent over 20 years at General Electric Co., most recently serving as general manager, appliance distribution operations within GE Appliances. He also held leadership positions within GE Transportation, GE Lighting, and GE Corporate Audit Staff.
Advance Auto Parts is based in Roanoke, Va., and operates 5,261 stores.
Abercrombie & Fitch fails with teens in Q4
Troubled retailer Abercrombie & Fitch continued to be out of favor with its teen target market in the fourth quarter, with declines in both income and sales.
Looking ahead, the company said its priorities include increasing comparable sales trends in both its U.S. and international stores, making strategic investments in its omnichannel business, ongoing expense reductions, and selective expansion in high-growth international markets.
Abercrombie’s net income for the quarter ended Jan. 31, declined about one-third to $44.4 million from $66.1 million in the year ago period. The decline, however, beat analysts’ estimates, helped by cost control efforts that saw stores and distribution expense drop to $445.6 million from $505.6 million. Net sales for the quarter decreased 14% to $1.12 billion, driven by a 10% same-store sales decline (with a 6% drop in the U.S. and a 17% decline internationally), the adverse effects of changes in foreign currency exchange rates of approximately 3%, and net store closures.However, direct-to-consumer sales were a lone bright spot, rising 1%.
"2014 was a year of significant change for Abercrombie & Fitch,” said Arthur Martinez, executive chairman (Abercrombie CEO Mike Jeffries stepped down in December and the company is searching for a CEO). “I believe these changes put us on the right path to improve profitability and deliver value to shareholders. Our sales for the fourth quarter were somewhat below expectations, but a slightly better gross margin rate and strong expense management enabled us to deliver EPS within our guidance range."
The teen retailer said it anticipates closing approximately 60 U.S. during the fiscal year through natural lease expiration, and plans to open 15 full-price stores in fiscal 2015 in the key growth markets of China, Japan and the Middle East. In addition, it will open four full price stores in North America., as well as 11 outlet stores. In addition, Abercrombie is targeting capital expenditures of approximately $150 million for the fiscal year, which are prioritized toward new stores and store updates, as well as direct-to-consumer and IT investments to support growth initiatives, such as omnichannel.
“We expect the first half of 2015 to remain challenging, with declines in our logo business in 2014 persisting in the early part of 2015, but at reduced rates, as well as significant currency pressure,” said Martinez. “However, we believe that the benefits of all of the changes we have made will be reflected in improved performance in the second half of the year." For the full fiscal year, net income fell 5% to $51.8 million, from $54.6 million. Total company sales fell 9% to $3.74 billion and same-store sales dropped 10%. Direct-to-consumer sales climbed 10%.