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Lowe’s Q2 results miss Street; cuts guidance

BY Marianne Wilson

Mooresville, N.C. — Lowe’s Cos. Inc. on Monday reported lower-than-expected second quarter results, with its results hurt by a timing shift and a charge tied to job cuts. The chain also lowered its fiscal 2012 earnings and revenue outlooks.

Lowe’s earned $747 million for the period ended Aug. 3, down from $830 million in the year-ago period. Sales fell 2% to $14.25 billion. Same-store sales fell 0.4% and dipped 0.2% at U.S. locations.

The company noted that fiscal 2012 has one less week than last year.

"Our results fell short of our overall expectations," said Robert A. Niblock, Lowe’s chairman, president and CEO in a statement. "However, I have confidence in our strategy and in our employees, and while we recognize the significant magnitude of change that we’ve asked the organization to absorb as we transform our business, we fully understand that we must improve our level of execution."

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D.Peyton says:
Jan-26-2013 04:49 am

Lowes has good news for
Lowes has good news for job-seekers across the country, as well as for the state of the nation's housing recuperation. It will be including 45,000 seasonal workers to its payroll this spring. Another 9,000 permanent part-time associate jobs will even be added to its retail shops across the nation in the coming months. Source for this article: Lowes adding 54,000 jobs for spring season

D.Peyton says:
Jan-26-2013 04:49 am

Lowes has good news for job-seekers across the country, as well as for the state of the nation's housing recuperation. It will be including 45,000 seasonal workers to its payroll this spring. Another 9,000 permanent part-time associate jobs will even be added to its retail shops across the nation in the coming months. Source for this article: Lowes adding 54,000 jobs for spring season

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TLC style expert to host NYC & Co.’s Fashion’s Night Out

BY CSA STAFF

NEW YORK — Stacy London, host of TLC’s "What Not To Wear," will serve has host during New York & Company’s Fashion’s Night Out event on Sept. 6.

The retailer’s participation in the event will include an in-store DJ at its 58th & Lexington Store, who will spin music while London and her team help style customers.

In addition, the first 100 customers who make a purchase during the event will receive a complimentary copy of Stacy’s new book, "The Truth About Style," ahead of the fashion pack—as the book will not officially be released until October.

Says Eran Cohen, EVP, chief marketing officer of New York & Company, said, "We’re thrilled to give our customers at FNO the chance to be styled by Stacy, who will help them find the perfect look to fit and flatter each customer individually."

Stacy’s favorite, personally-selected NY&C apparel and accessories—"Stacy’s Picks"—will be featured in a designated area in the store for one night only, so customers at FNO will be able to see what Stacy recommends for the office to evening. "Stacy’s Picks" of favorite NY&C styles will also be featured on www.nyandcompany.com for two weeks after the event.

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Best Buy names CEO as former chairman seeks control

BY CSA STAFF

Hubert Joly is the new CEO at Best Buy.

Best Buy named former food service and hospitality executive Hubert Joly as president and CEO even as uncertainty lingers regarding a possible leveraged buyout engineered by former chairman and founder Richard Schulze.

Joly joins Best Buy after serving since 2008 as CEO of Minneapolis-based Carlson, a global hospitality and travel company known for such brands as Radisson hotels and TGI Friday’s restaurants. From 2003 to 2007, he led Carlson’s travel division.

In announcing Joly’s appointment, Best Buy touted the executive’s experience in turnaround situations. In the case of Carlson’s travel unit, Best Buy said Joly increased sales to $25 billion in 2007 from $8 billion in 2003 and positioned the company as a leading edge, technology empowered, professional services provider that delivered savings, service and security to corporate and government clients, both off-line and on-line. As CEO of Carlson, Best Buy said Joly crafted and led the implementation of a strategy called Ambition 2015 that was designed to strengthen the company’s 900 T.G.I. Friday’s restaurants and worldwide network of 1,000 hotels.

Prior to Carlson, Joly was with media company Vivendi from 1999 to 2001 and with EDS from 1996 to 1999. Much of his career, from 1983 to 1996, was spent with McKinsey & Company Inc., working in the firm’s Paris, New York and San Francisco offices. He is a graduate of École des Hautes Études Commerciales de Paris and of the Institut d’Etudes Politiques de Paris. He is expected to join Best Buy early next month after securing a visa.

“Hubert was an outstanding candidate for this position and I am confident he will be a great fit for Best Buy,” said Best Buy chairman Hatim Tyabji. “Hubert’s range and depth of experience in transforming companies is exactly what the company needs at the moment, as is his energetic, imaginative and experienced leadership in executing strategies.”

Joly replaces interim CEO Mike Mikan who stepped in back in April to fill the void created when Best Buy dismissed former CEO Brian Dunn after it was determined he had an inappropriate relationship with a subordinate. After Joly joins the company, Mikan will remain on the board as serve as chairman of the audit committee.

“I look forward to working with the company’s management team and employees to pursue what are exciting growth opportunities for Best Buy – both online and offline, through a combination of competitive prices, superior service, new growth engines and innovations, as we deliver to millions of customers the technology solutions that enable easy access to people, knowledge, ideas and fun,” Joly said in a statement. “Building on the company’s strengths and ongoing work, I believe Best Buy has the capacity to write an exciting new chapter in its history. I sincerely look forward to writing this chapter with the Best Buy team and putting in place the short term and medium term actions that will help ensure its success.”

His appointment comes as Best Buy’s future as a public or private company remains murky. Company founder, former chairman and Best Buy’s largest shareholder, Richard Schulze, has indicated he would like to take the company private, but over the weekend those plans seemed to unravel. In a statement, Best Buy said Schulze declined to participate in a due diligence arrangement that would have given him access to material non-public information so as to better evaluate a buyout.

In response, Schulze issued a statement indicating he was disappointed and surprised that the Best Buy board terminated discussions around a possible buyout.

“For the record, we engaged in good-faith negotiations with Best Buy’s board and its
advisors over the weekend and expected to conclude this matter before the company’s earnings announcement early this week,” Schulze said.

He said terms of the board’s proposal were completely unacceptable given urgent change is needed at Best Buy the company’s value is eroding every day change isn’t made.
Schulze said he was shocked by the company’s announcement that he had declined to participate in the due diligence arrangement.

“I am shocked by this course of action but as the largest shareholder of Best Buy, I remain hopeful that the board will engage in good faith discussions with us for the benefit of shareholders, employees and customers. Time is of the essence, and it is imperative that shareholders’ interests are not further jeopardized,” Schulze said in a statement.

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