Michaels Stores’ Q2 income up 30%
Irving, Texas — Michaels Stores Inc. reported that its net income rose 30% to $13 million for the quarter ended July 28, from $10 million in the year-ago period. The retailer said an increase in total transactions and custom framing helped boost second-quarter earnings for the arts and crafts retailer.
Total sales for the quarter ending July 28 rose 4.1% to $892 million. Same-store sales increased 2.9%.
Michaels filed for an IPO in March.
Clinton Group names high-profile board nominees for Wet Seal
Foothill Ranch, Calif. — As part of its push toward forcing Wet Seal to put itself up for sale, investor Clinton Group on Thursday named its own slate of board candidates to replace the existing members.
Clinton’s candidates include former United Retail Group chief Raphael Benaroya, former chairman and CEO of Charming Shoppes Dorrit Bern, former Aeropostale co-CEO Mindy Meads, former Aeropostale COO John Mills, and investment banker Lynda Davey.
Clinton Group owns more than 5% of Wet Seal and has been vocal in its criticisms of the chain’s financial struggles. On Wednesday, current Wet Seal chairman of the board Harold Kahn adopted a poison pill defense and also retained Guggenheim Securities and Peter J. Solomon Co. to perform a strategic review of the company to maximize shareholder value.
According to Clinton’s senior portfolio manager Joseph De Perio on Thursday: “This board has failed shareholders. After years of strategy shifts, personnel changes and financial and operational mismanagement, it is time for shareholders to put in place a board that will work feverishly to fix the damage.”
Wet Seal fired its CEO Susan McGalla on July 23, and Clinton Group called for the sale of the company on the same day.
Report: H&M to go big in New York City
New York — H&M will open its largest store in the world, on Fifth Avenue in Manhattan, Women’s Wear Daily reported.
The company will open a six-level, 57,000-sq.-ft. store on Fifth Avenue at the corner of 48th Street sometime next year, according to the report.