Procter & Gamble names new CEO
Procter & Gamble Co. has named a successor to the man who led the company's recent transformation.
P&G announced that David S. Taylor, Group President of Global Beauty, Grooming and Health Care, will succeed A.G. Lafley as Procter & Gamble’s President and Chief Executive Officer, effective Nov. 1. Taylor has been appointed to the company’s Board of Directors. On Nov. 1, A.G. Lafley will become Procter & Gamble’s Executive Chairman. In this role, Lafley will lead the Board of Directors, and provide advice and counsel to the CEO and P&G leadership on company and business strategies, portfolio choices, and organization decisions.
Jim McNerney, lead director of P&G’s board, said: “We thank A.G. for returning as CEO to lead P&G’s transformation. The Company is now organized into four industry-based sectors with a focused portfolio of 10 categories and 65 brands that play to P&G’s strengths. Productivity results are strong and sustainable. Stronger category business and product innovation plans are in place. Now is the time to transition to David as CEO, while continuing to benefit from A.G.’s strategic counsel as Executive Chairman.”
McNerney expressed the Board’s confidence in David Taylor:“David is a proven leader who has the experience and track record of delivering results. He has a broad understanding of P&G’s business, having worked on several categories in multiple regions around the world. He has helped build many of the Company’s most successful brands and businesses. The board is confident that David will lead P&G to execute the company’s strategies to win with consumers, and improve shareholder value.”
Taylor joined P&G in 1980. He has helped to build many of P&G’s core businesses, including Baby Care, Family Care, Hair Care and Home Care. He has led global businesses, and lived and worked in North America, Europe, and Asia. Most recently, Taylor served as Group President of Global Beauty, Grooming and Health Care. Prior to that, Taylor was responsible for Family Care and Home Care, both of which delivered consistent double-digit profit and mid-single-digit sales growth under his leadership. He has worked closely with Lafley on the Company’s strategy to strengthen and focus P&G’s business and brand portfolio.
“I am honored to serve as P&G’s CEO,” said Taylor. “I believe in the power of P&G people, brands, products and values. P&G is transforming to be a faster-growing, more profitable Company. I am committed to the strategies, and look forward to leading the people of P&G to win with consumers, drive growth and create shareholder value.”
A.G. Lafley served as CEO from 2000 to 2009, and returned from retirement to serve as CEO in 2013. Since 2000, Lafley has played a central role in leading P&G to double the Company’s sales and nearly triple its market capitalization, resulting in significant value creation for shareholders. Since 2013, Lafley has led the P&G team to focus and balance the Company’s goals, strategies, portfolio and structure for improved performance.
“We are leading P&G’s most comprehensive transformation in our history,” said Lafley. “We are a more focused and balanced company, committed to winning with consumers and creating value for shareholders. We have strengthened our brand and product innovation pipeline, while streamlining our cost structure. With our plans for portfolio realignment essentially complete, P&G is positioned to deliver improved results. The Board and I are confident that now is the time to transition the CEO role to David who will sharpen the strategies and lead the execution of the next important phase of building a better P&G.”
O’really, auto parts chain in high gear
O'Reilly Automotive reported another record-breaking quarter of financial results as the retailer revs up plans to expand its distribution network and store footprint.
The auto parts retailer reported that sales for the second quarter ended June 30 increased $188 million, or 10%, to $2.04 billion from $1.85 billion for the same period one year ago. Same store sales increased 7.2%.
This year, O’Reilly plans to add a net 205 stores, compared with 200 stores in 2014. In the latest period, it opened 34 stores.
Greg Henslee, O'Reilly's president and CEO, commented, "We are very pleased to report another record breaking quarter. Our strong results are highlighted by an industry-leading 7.2% increase in comparable store sales, which mirrors the strong 7.2% increase we generated in the first quarter of the year. Our Team's focus on providing consistently high levels of service to our customers continues to drive our strong top-line performance, and I would like to thank each of them for their contributions to our ongoing success."
Gross profit for the second quarter increased to $1.06 billion (or 52% of sales) from $951 million (or 51.5% of sales) for the same period one year ago, representing an increase of 11%.Net income for the second quarter ended June 30, increased $28 million, or 14%, to $234 million (or 11.5% of sales) from $206 million (or 11.1% of sales) for the same period one year ago. Diluted earnings per common share for the second quarter increased 20% to $2.29 on 102 million shares versus $1.91 on 108 million shares for the same period one year ago.
Henslee added: "Team O'Reilly's unwavering commitment to profitable, sustainable growth translated our very strong sales results into a record second quarter operating margin of 19.0% and drove a 20% increase in second quarter diluted earnings per share to $2.29, representing our 26th consecutive quarter of dilutive earnings per share growth greater than 15%. We achieved these record breaking results despite recording a $19 million charge during the quarter as the result of an adverse verdict and associated costs of litigation arising from a dispute with a former service provider. This unusual charge, which is unrelated to our second quarter operations, decreased our second quarter operating margin by 93 basis points."
The company also said it now expects total revenue for the year ending in December to be in the range of $7.75 billion to $7.85 billion, up from its previous projection of $7.6 billion to $7.8 billion. O’Reilly adjusted its full-year guidance to $8.59 to $8.69 a share, up from its previous projection of $8.42 to $8.52 per share.
As of June 30, the company operated 4,465 stores in 43 states.
Jones New York has been saved, sort of
After announcing in January that it would close all of its 127 retail locations, Jones New York is back — at least in the Great White North.
Canadian menswear retailer Grafton Fraser Inc. has acquired Jones New York’s 35 stores in Canada for an undisclosed amount. The Toronto-based company said it is planning "significant growth" in the number of Jones stores going forward.
In addition, Grafton has signed a long-term agreement with Authentic Brands Group, owner of the Jones New York brand, to operate the Jones New York e-commerce business in Canada. ABG purchased the brand in April, from private-equity firm Sycamore Partners. In January, the company announced it would close all 127 Jones stores, including the Canadian ones, by the end of 2015.
“For more than two decades Jones New York has been a trusted fashion brand in Canada that women have looked to for its timeless elegance, great quality and style. We bring 100-plus years of experience to Canadian fashion retail, and see Jones New York as a perfect fit for Grafton, stated Dave McGregor, president and CEO of Grafton.
Grafton operates stores under a variety of banners, including Tip Top Tailors, George Richards Big & Tall, Mr. Big & Tall, and Kingsport.