Wal-Mart cuts CEO Duke’s pay 73% last year
Bentonville, Ark. — Wal-Mart Stores Inc. cut some stock awards and reduced outgoing CEO Mike Duke’s compensation package 73% to $5.6 million in 2013, according to a report by the Associated Press.
Last year, Duke didn’t get stock awards that are given in anticipation of future performance, and his performance-based bonus was reduced, resulting in a compensation package worth about $5.6 million including a base salary of $1.4 million and a performance-based bonus of $2.8 million for the fiscal year ended Jan. 31.
Other compensation totaled $490,090, including retirement contributions and $144,586 for personal use of company aircraft, according to the AP.
Cabela’s sees profit plummet by half in first quarter
Sidney, Neb. — With last year’s strong first quarter fueled by a firearms and ammunition sales surge, outdoor retailer Cabela’s Inc. saw this year’s quarter end on a less stellar note.
Revenue in the first quarter fell 9.6% to $725.8 million; retail store revenue decreased 9.4% to $440.9 million. Same-store sales plunged 21.7%, compared to the same period last year.
Net income was $25.7 million, compared to $49.8 million in the year-ago quarter.
CEO Tommy Millner cautioned that the dips were not unexpected and said growth and expansion remain in the company plan.
“With continued strong new store performance, retail store expansion remains on track with plans to open approximately one million square feet per year for the next several years,” said Millner.
Destination Maternity net income drops in Q2 on adverse weather
Philadelphia — Destination Maternity Corp. reported that net income for the quarter ended March 31, 2014 dipped to $3.2 million, compared to $5.9 million in the same period last year.
Revenue fell 6.5% to $126.1 million from $134.9 million, and same-store sales decreased 5.1%. CEO Ed Krell blamed the disappointing results on inclement weather.
“We believe the primary driver of this sales weakness was the adverse weather conditions across much of the United States during the quarter, which included significantly colder than normal temperatures and much more inclement weather than normal,” he said.
The company is currently in the throes of relocating its corporate headquarters and distribution operations from Philadelphia to southern New Jersey. The headquarter office move is slated for late this year, and distribution will be relocated by early to mid 2015.
Last November, the company announced its planned expansion into Mexico through an international franchise agreement with El Puerto de Liverpool, the largest department store company in Mexico. Through this franchise relationship, Destination Maternity will introduce its Motherhood Maternity, A Pea in the Pod, and Destination Maternity brands into Mexico, with the first franchised locations opening by the end of April 2014. Destination Maternity brands will initially be sold through shop-in-shops in Liverpool department stores throughout Mexico, with plans to open freestanding Destination Maternity stores in Mexico later in 2014 and beyond.
In all, the retailer said it remains on track to open 21 to 23 new stores during 2014, including five-to-six new multi-brand Destination Maternity nameplate stores, and close approximately 49 to 54 stores, with nine-to-10 of these planned store closings related to openings of new Destination Maternity nameplate stores.