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May-Federated Merger Could Stress Vendors

BY CSA STAFF

New York City, The May-Federated merger, which would create a $30 billion retailer, may put stress on department store vendors, according to analysts. Consolidation may cause store closings and reduce the number of outlets for apparel makers’ merchandise. Additionally, the combined force of May and Federated may leave vendors with less price negotiation leverage.

Fashionable, premium-priced vendors such as Liz Claiborne and Polo Ralph Lauren will likely fare best in the altered department store environment, according to Merrill Lynch analysts. Manufacturer Jones Apparel, which includes Jones New York, Anne Klein, Evan-Picone and Kasper, may be left vulnerable since about one-quarter of its revenue comes from sales to May or Federated stores. Analysts say that manufacturers with distribution channels outside the department store sector will be left less vulnerable to the merger.

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America’s Car Mart Names Director

BY CSA STAFF

Bentonville, Ark., America’s Car Mart Inc. elected William M. Sams to its board of directors. Sams is a former president and chief investment officer of FPA Paramount Fund Inc. and executive VP of both First Pacific Advisors Inc. and FPA Perennial Fund Inc.

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E.Ako says:
Mar-21-2013 02:28 pm

I hope in his supervision there will be a good changes to the betterment of the company. Choosing him is that he really deserves the position and he has all the requirements. - JustFab

E.Ako says:
Mar-21-2013 02:28 pm

I hope in his supervision there will be a good changes to the betterment of the company. Choosing him is that he really deserves the position and he has all the requirements. - JustFab

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BJ’s, Others Report Earnings

BY CSA STAFF

Natick, Mass., BJ’s Wholesale Club Inc. recorded fourth-quarter net income of $49.2 million, down 4.5% from the year-ago period. The figure includes $7.2 million in one-time charges related to a change in the retailer’s lease accounting. Sales increased 7% to $2.01 billion, supported by a 3.4% increase in same-club sales. For the year, BJ’s posted net income of $114.4 million, up 11.2% from the year before. Sales rose 10.2% to $7.2 billion on the strength of a 6% rise in same-club sales.

In other earnings news:

• Payless ShoeSource Inc. reported a net loss of $26.5 million in the fourth quarter of its 2004 fiscal year, compared with a net loss of $17.2 million in the same quarter the year before. The loss includes restructuring charges of $23.9 million before taxes. Sales fell 1.7% to $617.7 million in the quarter and same-store sales dipped 2.3%. For the full year, the footwear retailer posted a net loss of $2 million, vs. a $100,000 loss the year before. This year’s net loss includes $67.9 million in pre-tax restructuring charges. Sales were flat at $2.66 billion despite a 0.5% decline in same-store sales.

• United Retail Group posted fourth-quarter net income of $697,000, vs. a $4 million loss in the same quarter from the previous year. Net sales rose 6.4% to $107.9 million on the strength of 8% comps growth. For the full year, the retailer narrowed its loss to $10.5 million from $19.1 million the year before. Sales increased 0.8% to $399.3 million on same-store sales growth of 2%.

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E.Ako says:
Mar-21-2013 02:32 pm

It is stated the sales is high and increasing. While the company is increasing its profit, its competitor is experiencing a loss. - JustFab

E.Ako says:
Mar-21-2013 02:32 pm

It is stated the sales is high and increasing. While the company is increasing its profit, its competitor is experiencing a loss. - JustFab

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