Family Dollar posts lower profit in Q1; 500 stores planned
Matthews, N.C. — Family Dollar Stores Inc. reported Thursday a profit of $80.3 million for the quarter ended Nov. 24, compared with $80.4 million in the year-ago period.
The company said that higher sales on everyday items like cigarettes and soft drinks put pressure on margins.
Net sales increased 12.7% to $2.42 billion in the period, and same-store sales grew 6.6%.
According to CEO Howard R. Levine, results were at the low end of the company’s guidance. “The holiday selling season proved to be more challenging than we expected as customers faced increasing financial uncertainty,” he said.
Looking ahead, the company said it expects an increase in same-store sales of 4% to 6% in 2013 and plans to open about 500 new stores and close 70-90 existing locations.
Gap widens its reach, acquires new brand
SAN FRANCISCO — Gap has added one more brand to its existing portfolio, purchasing Intermix Holdco for approximately $130 million in cash.
Intermix is a New York-based multi-brand specialty retailer of luxury and contemporary women’s apparel and accessories. It operates 32 boutiques across North America, along with an e-commerce site, offering a mix of luxury brands, including up-and-coming designers. Gap intends to expand Intermix’s network of stores, as well as add significant visibility and enhancements to its online site.
“Intermix has a distinctive position in this growing market with clear competitive advantage,” said Glenn Murphy, chairman and CEO of Gap. “Their record of merchandising with a keen eye towards mixing multiple designer labels, complemented with exclusive product, is appealing to their loyal customers. This strategy reflects the strength of their brand vision and leadership team.”
Gap acquired Athleta in 2008 and the multi-brand, premium product offering at Piperlime. With Gap Inc.’s guidance in the past four years, Athleta has expanded its e-commerce platform and grown its brick-and-mortar presence, with about 35 retail stores opened in the past two years.
“We’re thrilled to have found a partner that has the global scale and infrastructure required to support our vision for growth,” said Khajak Keledjian, co-founder of Intermix. “Gap Inc. shares many of our entrepreneurial roots, passion for innovation and customer experience. Together, we’ll continue to shape the future of retail by offering the most exciting fashion trends with the finest designers in the world.”
Keledjian will remain CCO and Adrienne Lazarus will remain president, and will report to Art Peck, president of Gap’s growth, innovation and digital division.
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Global freight manager gets new COO
Global freight management firm Geodis Wilson named Eric Martin-Neuville as chief operating officer and a board member.
Martin-Neuville will be assuming COO responsibilities from Fernando Gea who is retiring. Martin-Neuville joined the Geodis Group in 1985 and has held the position of managing director, Geodis Wilson France, for many years, and spent considerable time working for the company in Asia-Pacific. Prior to becoming deputy COO in July 2011, Martin-Neuville worked as a consultant on the implementation of Geodis Wilson’s new transportation management system known as NextGen.
"Combining the NextGen implementation with a continuous enhancement of our logistics services will enable us to meet our global growth objectives," Martin-Neuville said. "Taking this position at a time when operational excellence is a key component of Geodis Wilson’s strategic plan is thrilling."
Geodis Wilson is recognized as a leading global freight management company with 7,400 employees in more than 50 countries. Geodis Wilson is the freight forwarding arm of Geodis Group which became part of the French rail and freight group SNCF Geodis in 2008.
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