Gordon Brothers appoints Michael P. Muldowney CFO
Boston — Gordon Brothers Group, an advisory investment firm specializing in the retail, consumer products, industrial and real estate sectors, has named Michael P. Muldowney to the post of CFO. He will work with all business units on transactional, strategic, financial and operational initiatives. Muldowney will also serve as a member of the executive committee.
Muldowney comes to Gordon Brothers from Foxford Capital, a strategic, financial advisory and investment management firm. There he led the planning, start-up and growth of this boutique business that advised more than 75 high-profile financial services companies.
Michaels solid in first quarter
While many retailers were still reeling from a prolonged winter that hurt their first quarter results, Michaels saw solid results in its first quarter, posting increases in both net and comparable-store sales.
Net sales increased 5.9% to $1.05 billion from $993 million during last year’s first quarter. Comparable store sales increased 3.8% driven by a 2.4% increase in the company’s average ticket, a 1.3% increase in transactions and a 10 basis point positive impact from deferred custom framing revenue. The Canadian foreign exchange rate negatively impacted comparable-store sales by 80 basis points.
Gross profit for the quarter increased 4.9% to $429 million from $409 million during last year’s first quarter. Gross profit as a percent of net sales decreased approximately 40 basis points to 40.8%. This decrease was driven by increased freight and distribution costs, higher remodel costs and lower merchandise margin.
Net income for the quarter increased 21.7% to $56 million and increased approximately 70 basis points as a percent of net sales to 5.3%.
During the quarter, the company opened eight and relocated five Michaels stores and closed three Aaron Brothers stores. The company operated 27 net new Michaels and Aaron Brothers stores in the past 12 months. The company now operates a total of 1,262 stores including 1,144 Michaels stores and 118 Aaron Brothers stores.
eBay database breached by cyberattackers
eBay will be asking its users to change their passwords thanks to a cyberattack that compromised a database containing encrypted passwords and other non-financial data.
After conducting extensive tests on its networks, the company said it has no evidence of the breach resulting in unauthorized activity for its users, and no evidence of any unauthorized access to financial or credit card information, which is stored separately in encrypted formats. However, the company said that changing passwords is “a best practice” and will help enhance security for its users.
“Information security and customer data protection are of paramount importance to us,” the company said in a statement, adding that it regrets any inconvenience or concern that the password reset may cause its customers. “We know our customers trust us with their information, and we take seriously our commitment to maintaining a safe, secure and trusted global marketplace.”
Cyberattackers gained access to “a small number of employee log-in credentials,” allowing unauthorized access to eBay’s corporate network, the company said. Working with law enforcement and leading security experts, the company is investigating the matter and looking into protecting its customers.
The database, which was compromised between late February and early March, included eBay customers’ names, encrypted passwords, email addresses, physical addresses, phone numbers and dates of birth. eBay reiterated that the database did not contain financial information or other confidential personal information.
The company said that the compromised employee log-in credentials were first detected about two weeks ago. Extensive forensics subsequently identified the compromised eBay database, resulting in the company’s announcement today.
eBay said it has seen no indication of increased fraudulent account activity on its site and that it has no evidence of unauthorized access or compromises to personal or financial information for PayPal users. PayPal data is stored separately on a secure network, and all its related financial information is encrypted.
Users will be notified via email, site communications and other marketing channels beginning later today to change their password. In addition to asking users to change their passwords, the company said it also is encouraging any users who utilize the same password on other sites to change those passwords, too, cautioning that the same password should never be used across multiple sites or accounts.