Destination XL CFO resigns; board member named interim CFO
Canton, Mass. — Dennis Hernreich, executive VP, COO and CFO of Destination XL Group Inc., has resigned to pursue new challenges and board member John E. Kyees has been named interim CFO. In addition, the company has elected Will Mesdag, 60, to its board of directors.
Kyees, who has served on the Destination XL board of directors since 2010, was CFO of Urban Outfitters from 2003 until his retirement in 2010, and has served as a senior financial executive at several other prominent retailers. The company is conducting a search for a permanent CFO.
Mesdag’s election to the Destination XL board of directors expands the size of the board to 10 members. Mesdag will serve as a director until the company’s next annual meeting of stockholders, at which time he will stand for re-election. Mesdag is currently the managing partner of Red Mountain Capital Partners LLC, Destination XL Group’s largest shareholder, which owns approximately 9.5% of shares outstanding.
In addition, due to a 4% reduction in store traffic between Black Friday and Christmas as a result of poor weather, as well as due to sluggish consumer behavior and a shortened holiday selling season, Destination XL is lowering its guidance for the fourth quarter and full year 2013. Sales for fiscal 2013 are expected to approximate $388 million, compared with the company’s previous guidance of $395.0 million.
For the fourth quarter and fiscal year 2013, comparable sales are expected to increase approximately 3.9% and 2.9%, respectively, from the prior-year period. The increase in comparable sales for fiscal 2013 was previously expected to be approximately 5%. The company expects earnings per share for fiscal 2013 to be a net loss in the range of $(0.11) to $(0.13) per share, compared with previous guidance of a net loss of $(0.05) per share. The guidance excludes severance and post-employment benefits charges.
No comments found
Mercury Payment Systems will defend against Heartland suit
Chicago – Mercury Payment Systems plans to have its day in court against Heartland Payment Systems. Mercury has indicated it will contest the federal lawsuit Heartland Payment Systems filed, charging the company with false advertising, unfair competition, intentional interference with contractual relations, and intentional interference with prospective economic advantage. The suit, filed in U.S. District Court in the Northern District of California, San Francisco Division, alleges that Mercury is illegally competing against Heartland with deceptive trade practices.
“Mercury will vigorously defend against the lawsuit filed by Heartland,” Mercury Payment Systems said in an email to Chain Store Age. “Mercury Payment Systems’ rapid growth in the electronic payments market is directly attributable to the value and flexibility we provide our merchants and partners, and we stand by our business and pricing practices. We are proud of our consistently high satisfaction rates and low merchant attrition rates among merchant acquirers over the past 10 years.”
No comments found
Report: Target offers few details in Congressional briefing; could face $1 billion fine
Minneapolis – A Target representative reportedly offered few new details during a phone briefing with members of Congress about its holiday data breach. According to Reuters, Target official Isaac Reyes spent about an hour on the phone with members of the House of Representatives Oversight Committee on the evening of Jan. 30.
Reyes reportedly told Congress Target was informed of the data breach by the Department of Justice on Dec. 12, but would not say if the retailer knew beforehand, citing ongoing law enforcement investigation. Reyes also reportedly said Target believes it has complied with all state and federal regulations on disclosing the breach.
In addition, Jefferies analyst Daniel Binder said that Target could face between $400 million and $1.1 billion in fines due to the breach, higher than previously thought.
I still find it amazing that retailers are fined for trying to do their job. When banks are robbed do we fine the banks? When a burglary occurs at a business do we fine the business? What about the US Government. Were they fined when Edward Snowden stole information? How about this? Instead of continuing to fine retailers who are striving to protect data and provide services to their customers, the government focuses on (a) finding the perpetrators of these crimes, and (b) increases the penalties for cyber CRIMINALS to levels that would dissuade future activities. Not trying to over simplify this issue. But the people in data security at Target, Neimen, and Michael's all were trying to do the right thing and were certifying to industry practices.