Men’s Wearhouse to repurchase $100 million in stock
Houston – The Men’s Wearhouse, Inc. has reached an agreement to repurchase $100 million worth of common stock from JPMorgan Chase Bank, NA under an accelerated share repurchase program. The retailer will buy the shares as part of an ongoing $200 million share repurchase program announced in March of this year. Men’s Wearhouse expects to close the transaction by the end of fourth quarter 2013.
Initially, the retailer will get nearly 2,197,000 shares from JPMorgan, approximately 85% of the total number of shares projected to be repurchased. The price at which Men’s Wearhouse will acquire these shares will be calculated on the basis of volume-weighted average share price. The company intends to fund this accelerated share repurchase program with cash in hand and/or by utilizing its existing credit facility.
Lumber Liquidators grows Q2 income, sales
Toano, Va. – Lumber Liquidators reported impressive gains in net income and sales during the second quarter of fiscal 2013. Net income rose almost 68% to $20.4 million from $12.2 million in the second quarter of the previous year, while net sales grew 22% to $257.1 million from $210.3 million.
Same-store sales increased 14.9%, driven by a 9.1% increase in the number of customers invoiced and a 5.4% increase in the average sale.
"The team focused on our key strategic initiatives and achieved outstanding results through the important spring remodeling season,” said Robert M. Lynch, president and CEO of Lumber Liquidators. “Our value proposition of price, selection, quality, availability and expertise continues to be recognized by a growing customer base, and our commitment to continuous improvement drove strong performance throughout the organization."
Based on these results, Lumber Liquidators forecasts net sales for the full year in the range of $940 million to $963 million, up from a previous range of $913 million to $942 million; same-store sale increasing in the high-single to low double-digits; and the opening of a total of 16 to 20 new store locations in the second half of the year, for a total of 28 to 32 new store locations in 2013, narrowing the previous range of 25 to 35 new store locations.
OfficeMax promotes CAO to interim CFO
Naperville, Ill. – OfficeMax Inc. is promoting Deb O’Connor, senior VP of finance and chief administrative officer, to interim CFO. She will replace Bruce Besanko, executive VP and CFO, who will leave the company to become the executive VP and CFO of Supervalu Inc. His last day at OfficeMax will be Aug. 6. A five-year veteran of OfficeMax, O’Connor previously served as senior VP and controller of the ServiceMaster Company.
"I am delighted to promote Deb and welcome her to our executive committee as we move through this transformative period and historic proposed merger with Office Depot," said Ravi Saligram, president and CEO of OfficeMax. "Deb brings not only broad and deep financial experience, but also a very personal and hands-on knowledge of our business, markets and most critical strategic initiatives."
Effective immediately, Steve Parsons, executive VP and chief human resources officer, will serve as co-leader of the Office Depot merger integration planning process along with Mike Newman, executive VP and CFO of Office Depot. Saligram and Neil Austrian, chairman and CEO of Office Depot, will continue to provide overall sponsorship and stewardship of the integration planning process.