Canadian Tire reports strong Q3 results; names president
Toronto – Canadian Tire reported strong financial results for the third quarter of fiscal 2013. These include an 11% increase in net income, to $139 million from about $128 million.
In addition, revenue grew to $2.83 billion from $2.7 billion. Consolidated same-store sales grew 3.1% across the Canadian Tire, FGL Sports, and Mark’s banners.
"This has been a particularly strong quarter for our retail businesses,” said CEO Stephen Wetmore. “Performances in our sports and apparel businesses continue to show strength and I’m encouraged by the continued sales momentum in our automotive business.”
Canadian Tire also has appointed Michael Medline as president of Canadian Tire Corporation. Medline’s 13 year career with CTC has included overseeing a revamped strategy for the automotive business, leading the company’s corporate services group as chief corporate officer and serving as a director on the board of Canadian Tire Bank. In addition, Medline has led all of the company’s acquisitions and integration efforts in the last 11 years, including Mark’s, FGL Sports and Pro Hockey Life.
Report: Hedge fund buys Men’s Wearhouse stake, wants Jos. A. Bank merger
Houston – The Eminence Capital hedge fund has reportedly purchased a 9.8% stake in Men’s Wearhouse. According to the New York Times, Eminence Capital wants Men’s Wearhouse to reconsider the $2.3 billion buyout offer it recently rejected from Jos. A. Bank.
Eminence reportedly believes Jos. A. Bank is willing to make a higher bid if Men’s Wearhouse will consider it. The fund manages about $4.5 billion. Neither Eminence nor Men’s Wearhouse has commented publicly on the purchase.
October same-store sales improve across verticals
New York – Retailers across a variety of verticals reported improved same-store sales during October 2013, compared to the same month in the previous year. Even embattled department store retailer J.C. Penney saw its same-store sales grow for the first time since December 2011, and specialty and apparel retail conglomerate L Brands and discount club retailer PriceSmart reported particularly impressive same-store sales results.
Many analysts have predicted a softening in holiday-related spending this year. While October is too early to say for certain how holiday sales for 2013 will turn out, many retailers began holiday promotions in October and even September, giving some hope for the season.
Retailers reporting October same-store sales include:
- The Buckle: 2.6% increase
- Cato: 3% increase
- Costco: 3% increase
- Fred’s: 1.4% increase
- J.C. Penney: 0.9% increase
- L Brands: 8% increase
- PriceSmart: 8.8% increase
- Stein Mart: 5.8% increase