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Destination Maternity sales slip in Q2

BY Dan Berthiaume

Philadelphia – Destination Maternity Corp. reported declining net and same-store sales for the second quarter of fiscal 2014, compared to the same period a year earlier. Net sales decreased 6.5% to $126.1 million from $134.9 million, while same-store sales dropped 5.1%.

Destination Maternity said the decline in net sales resulted primarily from the decrease in comparable sales and decreased sales related to the company’s continued efforts to close underperforming stores.

“Our sales for the second quarter of fiscal 2014 were considerably weaker than planned,” said Ed Krell, CEO. “We believe the primary driver of this sales weakness was the adverse weather conditions across much of the U.S. during the quarter, which included significantly colder than normal temperatures and much more inclement weather than normal, with numerous periods of snow and icy conditions which suppressed store traffic for us and many retailers in many regions of the U.S. We believe that our weaker than planned sales results also reflect the continued challenging overall economic environment, which has affected many retailers in recent months.”

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EBay, Icahn end dispute

BY Dan Berthiaume

San Jose, Calif. – EBay Inc. has reached an agreement with investor Carl Icahn, ending the proxy contest before the company’s upcoming annual meeting of stockholders. Icahn is withdrawing both his proposal to separate the company’s PayPal business and his two nominees to the company’s board of directors.

The company said it has agreed to Icahn’s suggestion to appoint business executive David Dorman as an independent director to its board of directors. This will expand the number of independent directors to 10 on the 12-member board. The other two directors are eBay founder and chairman Pierre Omidyar, the company’s largest shareholder, and company president and CEO John Donahoe.

Dorman, 60, is a founding partner of Centerview Capital Technology and currently chairman of the board of CVS Caremark Corporation. Dorman was a board member of Motorola Inc. beginning in 2006 and served as chairman of the board from 2008 until 2012. After the separation of Motorola Mobility and Motorola Solutions, Dorman became lead independent director of Motorola Solutions. He also serves on the boards of Yum Brands Inc.

Icahn has signed a confidentiality agreement covering any non-public information that directors and certain officers of the company may share with him. In addition, the company agreed not to adopt a policy precluding such persons from speaking to Icahn, and that it would advise them that they may speak to Icahn if they are willing to do so.

“We are very pleased to have reached this agreement with Carl, settling proxy issues and enabling our board and management team to focus our full attention on a goal every shareholder agrees on – growing PayPal and eBay, and delivering sustainable shareholder value,” said Donahoe.

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Men’s Wearhouse extends tender offer for Jos. A. Bank to April 23

BY Dan Berthiaume

Fremont, Calif. — In accordance with the terms of its merger agreement with Jos. A. Bank Clothiers Inc., The Men’s Wearhouse has extended its all-cash tender offer for $65 per share for all of the currently outstanding shares of common stock (including associated stock purchase rights) of Jos. A. Bank to April 23, unless further extended.

The tender offer was previously set to expire on April 9. As of April 9, approximately 20.6 million shares of Jos. A. Bank common stock have been validly tendered in, and not withdrawn from the tender offer. BofA Merrill Lynch and J.P. Morgan Securities LLC are serving as financial advisors to Men’s Wearhouse, and Willkie Farr & Gallagher LLP is serving as legal advisor.

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