Wal-Mart files $5 billion suit against Visa over card fees
Bentonville, Ark. – Wal-Mart Stores Inc. filed suit with the U.S. District Court for the Western District of Arkansas suing Visa for $5 billion, alleging that the financial services company overcharges on the credit and debit card swipe fees it charges retailer.
The suit claims that Visa colluded with banks to fix swipe fees between January 2004 and November 2012, forcing it to raise prices and reduce customer service, resulting in lost retail sales.
Wal-Mart claims the swipe fees violated federal antitrust regulations and generated $350 billion for card issuers and banks during the period covered by the suit.
Wal-Mart would not publicly comment on the possibility of suing MasterCard. Other major retailers that did not take part in the class action settlement include Target and Amazon.com.
In December, a judge approved a settlement over card fees between 19 merchants and Visa and MasterCard. The settlement was originally valued at $7.25 billion. But it was reduced to about $5.7 billion because some retailers opted out.
Restoration Hardware swings to Q4 profit; plans seven new stores
Cortre Madera, Calif. – Restoration Hardware Holdings Inc. (RH) swung to a profit in the fourth quarter of fiscal 2013 amid ongoing sales growth. The retailer posted net earnings of $26.64 million, compared to a net loss of $28.36 in the year-ago period.
Net revenues grew 18.5% to $471.69 million, from $398.05 million. Same-store sales grew 17%.
RH also announced the appointment of Doug Diemoz as chief development officer. He joins the company after 20 years at brands such as MEXX, Williams-Sonoma, and Gap, and will be responsible for guiding the company’s future international growth and global expansion efforts.
“In 2013, RH continued to outperform the home furnishings industry by a wide margin,” said Gary Friedman, chairman and CEO. “We increased net revenues 33% on a comparable week basis, and comparable brand revenue increased 31% on top of 28% last year, delivering our fourth consecutive year of more than 25% comparable brand revenue growth. As we enter 2014, we remain focused on our two largest value-driving strategies–the expansion of our offer and the transformation of our retail stores."
The company said it will open new stores in Greenwich, Conn., Los Angeles, and its first next-generation “Full Line Design Gallery” in Atlanta. The company is significantly expanding the size of its New York store, adding two additional floors.
“We now have signed leases for five next generation Full Line Design Galleries and are in negotiations for an additional 25 locations. Once our real estate transformation is complete in North America, we believe we will deliver $4 billion to $5 billion in annual sales, achieve mid-teens operating margins, and generate significant free cash flow,” Friedman added.
As of Feb. 1, RH operated a total of 70 stores, consisting of 62 Galleries, five Full Line Design Galleries and three Baby & Child Galleries, as well as 17 outlet stores throughout the United States and Canada.
During the full fiscal year, net income was $18.19 million, compared to a net loss $12.79 million the prior fiscal year. Net revenues increased 30% to $1.55 billion, from $1.19 billion. Same-store sales rose 27%.
Finish Line net income jumps in Q4
Indianapolis – The Finish Line Inc. reported net income of $42.75 million during the fourth quarter of fiscal 2014, up 28% from $33.47 million in the year-ago period.
Net sales grew 17% to $518.87 million from $442.68 million and same-store sales rose 6.3%. Finish Line credited its omni-channel strategy, among other factors, as driving its impressive quarterly performance.
“The successful execution of our consumer centric omni-channel strategy drove solid gains in our core business while growth initiatives contributed meaningfully to our record full year revenue and profits,” said Glenn Lyon, chairman and CEO. “We have a clear vision for building on our strong market position through innovative product, superior service, and effective consumer engagements. With that vision and our strong team, we move forward optimistic about our near and long-term growth prospects.”
During the full fiscal year, net income rose 8% to $76.9 million from $71.47 million and net sales grew 16% to $1.67 billion from $1.44 billion. Same-store sales increased 4.2%
For fiscal year 2015, Finish Line expects comparable store sales to be up mid-single digits and earnings per share to increase in the high single to low double-digit range from fiscal year 2014.