Men’s Wearhouse lowers forecast as Q1 profit disappoints; on track to close nearly 50 stores
Houston — The Men’s Wearhouse reported Wednesday that net income for the first quarter dipped 2% to $26.9 million, dragged down by negative same-store sales at its K&G off-price unit. Its results missed expectations.
Revenue rose 1% to $586.6 million, missing Wall Street’s forecasted $593.7 million in revenue.
The company has lowered its second-quarter outlook, and said it remains on track to close as many as 47 Men’s Wearhouse and Tux stores and two K&G locations during the currently fiscal year. It will open as many as 29 Men’s Wearhouse stores, three Moores stores, and a K&G.
American Greetings acquires 400 U.K.-based stores
Cleveland — American Greetings said Thursday it has acquired 400 Clinton Card stores, a U.K.-based chain that was one of American Greeting’s biggest customers.
The struggling retailer had about 750 stores in the United Kingdom before being placed under administration last month. About 350 stores were closed and the remaining 400 will stay under administration, said American Greetings, and the other assets will be liquidated to pay off creditors.
Best Buy founder and chairman vacates board earlier than planned
Minneapolis — Best Buy Co. said Thursday that its founder and chairman Richard Schulze is resigning from his position on the board, one he has held for more than 40 years.
He said he will explore options for his 20.1% stake in the electronics retailer. "There is an urgent need for Best Buy to reinvigorate growth by reconnecting with today’s customers and building pathways to the next generation of consumers," Schulze said in a statement. "Accordingly, I have shared my views with the board and today informed them of my decision to resign as chairman and a director, effective immediately, in order to explore all available options for my ownership stake.”
Schulze, 71, previously planned to step down after the company’s 2012 annual meeting on June 21 and to remain a director through the 2013 annual meeting.