Saks to Pay $48.2 Million to Vendors
New York City, Saks Inc. will give $48.2 million to vendors after improperly collecting markdowns from them over an eight year period. The company will return $34.2 million that the Saks Fifth Avenue unit collected. That is more than the $20 million disclosed in May. The company will also pay $14 million in interest.
Saks conducted an internal investigation, which found that one employee gave vendors false information in order to get markdown money. The company said it would discipline the employee but did not name the individual.
Saks asked three senior executives to resign in May over the accusations. The company is currently under investigation by the Securities and Exchange Commission (SEC) and the U.S. Attorney for the Southern District of New York.
Wal-Mart Sells $2.5 Billion in 30-Year Bonds
New York City, Wal-Mart Stores Inc. sold $1.5 billion in 30-year bonds on Wednesday, according to JP Morgan. Initially, Wal-Mart planned to sell $2.0 billion. Before the sale, demand for the bonds was expected to be high since 30-year corporate bonds are relatively rare. This sale is Wal-Mart’s second offering since Aug. 8, when it issued $800 million of five-year notes, according to Bloomberg data.
Coach Profits Bigger Than Expected
Chicago, Coach Inc. reported that its quarterly profit would likely beat expectations. The company said strong sales of its handbags for the fall season drove the increase. Coach said first-quarter earnings would be at least 25? per share on sales of at least $445 million. Analysts expected a profit of 24? per share.
Three top Coach executives signed extensions to stay with the company through August 2011: chairman and chief executive Lew Frankfort, executive creative director Reed Krakoff and COO Keith Monda.