Coach tops estimates; Reed Krakoff to step down
New York — Coach on Tuesday reported that its net income for three-month period ending on March 30 rose 6.2% to $238.9 million amid strong sales in North America, beating analysts’ expectations. The company also disclosed that its longtime president and executive creative director, Reed Krakoff, will step down when his contract expires next year in order to focus on his own namesake brand, which is owned by Coach. Coach said it is already looking for a successor.
Coach said it will explore options regarding its Krakoff apparel and accessories brand, including a possible sale of the brand to a group including Krakoff.
Total sales in the quarter rose 7.1% to $1.19 billion, better than estimates. Same-store sales in North America increased 1%.
RadioShack’s Q1 loss widens; updating image and stores
Fort Worth, Texas — RadioShack Corp. on Tuesday reported a bigger-than-expected first quarter loss on weak sales of wireless phone contracts. The company also reported that it is updating its brand and will begin remodeling select locations with a new look and feel over the next few weeks.
Joseph C. Magnacca, a former Walgreens executive who became CEO of RadioShack in February, remarked on the initial priorities and initiatives underway. Last week, he named a new chief marketing officer and a new SVP store concepts.
"We are rolling out a new brand image, and you will start seeing changes in our branding and advertising soon,” he said. “For our physical stores, work is underway and will begin with remodeling strategic New York City locations with a new look and feel over the next few weeks. This work will also touch our online and mobile channels over time so our customers receive a compelling, continuous and seamless experience however and whenever they shop with us.”
RadioShack’s loss in the quarter ended March 31, widened to $43.3 million from $8 million a year earlier. Sales fell 7% to $849 million, also missing analysts’ estimates.
The new CEO sounded an upbeat note.
“RadioShack has a uniquely strong franchise,” Magnacca said. “We have a powerful brand that has stood the test of time over nine decades and has a large, loyal customer following. We have strong relationships with leading vendors and a portfolio of trusted private brands that offer highly innovative technology products. We have a vast network of more than 4,300 company-operated stores and approximately 1,000 dealer outlets across the U.S. We have an established international presence in more than 25 countries, including 270 company-operated stores in Mexico. Most importantly, we have approximately 30,000 employees who are genuinely focused on delivering solutions for our customers."
Report: Wal-Mart CEO compensation rose 14% to $20.7 million in 2012
New York — Wal-Mart Stores CEO Mike Duke received pay package in 2012 worth $20.7 million, up 14% from the previous year, according to an Associated Press analysis of a regulatory filing Monday. Duke’s performance-based cash bonus jumped more than 50%.
In the regulatory filing, Wal-Mart said that starting this year, it will tie some of Duke’s compensation, along with that of other top executives, to the company’s success in strengthening its compliance controls. Traditionally, compensation has been based on financial measures.
Duke received a base salary of $1.3 million, up 4% from the year-ago period, along with stock awards of $13.6 million, also up 4%. His performance-based cash bonus increased to $4.4 million from $2.9 million, according to the report.
Duke’s other compensation amounted to $644,450, up from $377,258 in the previous year. The perks included $101,947 for the use of the company aircraft. He also received $644,450 in above market interest credited on deferred compensation.
The Associated Press formula calculates an executive’s total compensation during the last fiscal year by adding salary, bonuses, perks, above-market interest that the company pays on deferred compensation and the estimated value of stock and stock options awarded during the year. It does not count changes in the present value of pension benefits.