Top Retail News - Week Ending 03-18-16
***Apparel Stores***
 
**Guess plans dramatic growth by 2019**
MARCH 17, 2016,  The combination of an unspecified number of new stores, e-commerce and same store sales growth will enable Guess Inc., to surpass annual sales of $3 billion in three years, according to new CEO Victor Herrero.
 
**Guess** ended its most recent fiscal year with total sales of roughly $2.2 billion, but CEO Victor Herrero, who joined the company last July from Inditex, believes the company can add $800 million in worldwide volume in the next three years, despite sales and profit declines last year. Total net revenue for the fourth quarter decreased 5.5% to $658.3 million and earnings declined 11.4% to $47.8 million and earnings per share fell 9.5% to 57 cents. The negative impact of currency on earnings per share in the fourth quarter of fiscal 2016 was approximately $0.19 per share. For the full year, revenues declined 8.8% to $2.2 billion, earnings declined 13.4% to $94.6 million and earnings per share, including a 43 cent a share impact from currency exchange, declined 13.5% to 96 cents.
 
 
**Profit rises 14% at Children's Place in Q4**
MARCH 15, 2016,  The Children's Place posted strong same-store sales for the fourth quarter as the children’s clothes retailer also released an upbeat forecast for the year.
 
For the fourth quarter ended Jan. 30, net sales increased 4% to $498.5 million. Same store sales increased 6.7%. Net income was $17.5 million, or 87 cents per diluted share, in the fourth quarter of 2015, compared to net income of $17 million, or 79 cents per diluted share, the previous year.   For the full year, net sales declined (2%) to $1.73 billion. Same store sales increased 0.4% in fiscal 2015. Net income was $57.9 million, or $2.80 per diluted share, in the fiscal 2015, compared to net income of $56.9 million, or $2.59 per diluted share, the previous year.
 
 
**Charming Charlie continues global expansion**
MARCH 14, 2016,  Charming Charlie is expanding its Middle East footprint.
 
The specialty retailer has opened its first location in Qatar, at the Ezdan Mall in Doha. The 2,900-sq.-ft. store is operated by Apparel Group, Charming Charlie’s international licensing partner, which has further growth planned for the brand in the Middle East this year.
 
 
**Sales, profit decline at Citi Trends**
MARCH 11, 2016, Growth at Citi Trends Inc. seems to be slowing, as the retailer reported a drop in comps and profit in the fourth quarter.
 
For the fourth quarter ended Jan. 30, total sales decreased 2.8% to $176.1 million compared with $181.1 million in Q4 of 2015. Same store sales decreased 5%. Net income was $3.5 million, or 24 cents per diluted share, compared with $4.7 million, or 31 cents per diluted share, in last year’s fourth quarter.  For the full year, total sales increased 1.9% to $683.8 million compared with $670.8 million in 2015. Same store sales decreased 0.1% for the full year. Net income was $15.5 million, or $1.03 per diluted share, in fiscal 2015 compared with $9 million, or 60 cents per diluted share, in fiscal 2014. The company says it opened 13 stores, relocated or expanded 13 others, and closed three stores in fiscal 2015.
 
 
**Another retailer with growing online sales and declining profits**
MARCH 10, 2016,  Women’s apparel specialist Christopher &amp; Banks saw its online sales surge in the fourth quarter, but it wasn’t enough to keep the company from posting an even bigger operating loss than it did the prior year.
 
Minneapolis-based Christopher Banks, operator of 514 stores, said its sales declined to $94.6 million in the quarter ended Jan. 30 from $98 million the prior year, as it operated fewer stores. Same-store sales declined 3.4% but online sales surged nearly 50%. The company reported an operating loss of roughly $7.4 million compared to a prior year operating loss of nearly $6 million.
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***Auto Parts Related Stores***
 
Discount Tire opens 13 stores in 11 states
March 10, 2016,  SCOTTSDALE, Ariz. — Discount Tire/America’s Tire opened 13 stores in 11 states in the past several months, expanding the dealership’s network to nearly 920 stores nationwide.
 
The store openings, which date as far back as September, all were in states where Discount Tire already operates, including Kentucky, Missouri and Oklahoma — where the company opened its first stores just in the past year or two. The states with two opening each were Tennessee and Texas.  The new stores in Tennessee — in Cordova (Memphis metro area) and Nashville — raise the number of stores in the Volunteer State to 20. 
 
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***Department Stores***
 
**This retailer thinks 2016 could be a difficult year**
MARCH 17, 2016,  Cato Corp., just delivered its highest earnings in company history and sales topped $1 billion, but chairman, president and CEO John Cato said the road ahead could be rocky.
 
**Cato**, operator of 1,372 stores in 32 states, said its fourth quarter sales increased 4% to $247.3 million and same-store sales increased 1%. Full year sales increased 2.4% to slightly exceed $1 billion, but the addition of 31 new stores was the primary driver of full year growth as same-store sales were flat. Profits in the fourth quarter increased 28% to $11.8 million, or 42 cents a share while full year profits increased 10% to $66.8 million, or $2.39 a share.
 
 
**Neiman Marcus comps decline for 2nd straight quarter**
MARCH 15, 2016,  Neiman Marcus posted declines in revenue and same-store sales on the same day that the company lost a 25-year veteran who had been responsible for in-store visual design.
 
For the second fiscal quarter ended Jan. 30, the company reported total revenues of $1.49 billion, a decrease of 2.3% compared to total revenues of $1.52 billion for the second quarter of fiscal 2015. Same-store sales decreased 2.4% (the second straight quarter of comp declines) and the company reported net earnings of $7.9 million, compared to net earnings of $27.8 million for the second quarter of fiscal 2015. Adjusted EBITDA was $183 million compared to adjusted EBITDA of $205.9 million in the prior year. For the 26 weeks ended Jan. 30, the retailer reported total revenues of $2.65 billion, representing a decrease of 2.1% compared to total revenues of $2.71 billion in the prior year. During this same period, same-store sales decreased 3.8% and the company reported a net loss of $2.7 million compared to net earnings of $28 million in the prior year. Adjusted EBITDA for the 26 weeks ended January 30, 2016 was $347.3 million, compared to adjusted EBITDA of $400.1 million for prior year.
 
 
**Report: Nordstrom IT staff cuts go deeper**
MARCH 14, 2016,  The technology department at Nordstrom continues getting smaller.
According to Geekwire, Nordstrom has laid off 120 IT employees. The cuts follow 10 technology staff reductions the retailer made at the beginning of March. All the layoffs have been part of an organizational restructuring and leveling of IT spending. The job cuts come on the heels of Nordstrom announcing during its fourth quarter earnings call that it will maintain its fiscal 2015 IT spending level of $300 million during fiscal 2016. That figure represented a 35% increase from the retailer’s 2014 technology budget.
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***Drug Stores***
 
**CVS Health opens first MinuteClinics within Target**
MARCH 15, 2016, The first MinuteClinic walk-in medical clinics inside Target stores in the Charlotte and Raleigh-Durham areas are now open, CVS Health announced Tuesday. The Target-based clinics – located in three Charlotte-area stores in Charlotte and Concord and eight stores in The Triangle in Apex, Carey, Durham, Raleigh and Wake Forest – have been rebranded and converted to MinuteClinic.
 
They join 30 additional MinuteClinic locations in the Charlotte area and 15 in the Raleigh-Durham area inside select CVS Pharmacy stores.
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***Grocery Stores***
 
**Smart &amp; Final sees expansion beyond the West**
Mar 15, 2016,  As Smart &amp; Final converts 33 acquired Haggen stores in Southern California to its own banner over the next year, it is contemplating growth beyond its existing geography in six Western states, a company executive told investors Tuesday.
 
 
Speaking at the Bank of America-Merrill Lynch Consumer and Retail Tech Conference in New York, Richard Phegley, SVP and CFO for the Los Angeles-based non-membership warehouse chain, said the company sees additional growth opportunities throughout California, Nevada, Arizona, Oregon, Washington and Idaho. It also sees room to expand the Smart &amp; Final Extra banner beyond the southern part of its operation while growing the Cash &amp; Carry business-to-business format from the Pacific Northwest into Southern California, Phegley said.
 
 
**Moody's gives Whole Foods vote of confidence**
Mar 15, 2016,  Moody’s Investors Service gave a vote of confidence Tuesday to Whole Foods Market, saying it expects the company to maintain and strengthen its lead in the organic and natural specialty foods sector despite short-term performance declines.
 
“Even though intense competition will continue, Whole Foods has the first-mover advantage in this market and is the brand consumers associate most with the organic food movement,” Moody’s said.
 
 
**Albertsons acquires remaining 29 Haggen locations**
MARCH 15, 2016,  Albertsons on Monday submitted a binding bid letter and form of Asset Purchase Agreement to Haggen for the purchase of 29 of Haggen's core stores, confirming reports that Alebertsons would seek to acquire the remaining Haggen core. This is a step in the process to obtain bankruptcy court approval, following Haggen's Chapter 11 filing on September 8, 2015, which is required for consummation of the purchase.
 
The proposed plan would create a separate business unit for 14 Haggen stores which today are part of the original Haggen "legacy" store chain. They would continue to be operated separately from Bellingham under their existing Haggen name along with a legacy Safeway location in Oak Harbor, Washington that was converted to a Haggen location in 2015.  The remaining 14 stores are stores that Haggen acquired from Albertsons in 2015. Following the transaction close, these stores will be transitioned over time back to the Albertsons banner, six of which will be operated by Albertsons' Seattle division and eight by the Portland division. 
 
 
**Shareholders OK Ahold-Delhaize deal**
Mar 14, 2016,  Shareholders of Ahold and Delhaize in separate votes on Monday approved the forthcoming merger of the companies. The deal still requires approval from competition authorities in the U.S. and in Europe and is expected to close mid-year.
 
 
At completion of the merger, Delhaize shareholders will receive 4.75 Ahold ordinary shares for each Delhaize ordinary share. Delhaize said its shareholders approved the merger by approximately 96.2% of the votes cast. Ahold as of mid-day Monday had not disclosed percentages but described overwhelming approval.
 
 
**Weis Markets posts annual sales increase of 3.6% to $2.9 billion**
MARCH 14, 2016,  Weis Markets last week announced that its fourth quarter sales increased 2.8% to $734.1 million while its comparable store sales increased 2.8%, compared to the same period a year ago. 
 
For the 52-week period ended Dec. 26, the company's sales increased 3.6% to $2.9 billion while comparable store sales increased 3.7% compared to the 52-week period ended Dec. 27, 2014.
 
 
**Apollo Global to buy The Fresh Market for $1.4 billion**
MARCH 14, 2016,  The Fresh Market has agreed to be acquired by a private equity firm several months after the retailer said it would initiate a review of strategic alternatives and a possible sale.
 
The struggling grocery chain said it has entered into an agreement with Apollo Global Management, LLC whereby it will acquire The Fresh Market for approximately $1.36 billion. The Fresh Market has been struggling with declining sales through several quarters, and customers have complained about high prices. Recently it had launched an effort to promote "lower prices."  The transaction has fully committed financing in place. It will be financed primarily through the incurrence of $800 million in new senior secured notes and an equity contribution of approximately $525 million from funds managed by Apollo in addition to the equity rollover from the Berrys. The Fresh Market will also enter into a new $100 million revolving credit facility concurrently with the closing of the merger.
 
 
**United to acquire 7 Texas, New Mexico stores**
Mar 11, 2016,  United Supermarkets, the Lubbock, Texas-based wholly owned subsidiary of Albertsons, said Friday it has entered into an agreement to purchase seven stores from Lawrence Brothers — five in West Texas and two in New Mexico.
 
 
The deal is scheduled to close in early summer. Lawrence Brothers, Sweetwater, Texas, will continue to operate 17 other locations. According to Unitied, stores in Abilene, Breckenridge, Clyde and Seymour, Texas, will operate under the United banner; stores in Roswell and Ruidoso, N.M., will become Albertsons; and a store in Seminole, Texas, will reopen as a Super Saver Foods.
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***Home Improvement &amp; Office Products***
 
**Ikea plans more expansion in California**
MARCH 15, 2016,  Ikea had submitted plans to build its ninth store in the state of California, in the Bay Area suburb of Dublin. Pending approvals, Ikea could begin construction of the store in spring 2017, with an opening in summer 2018. The retailer plans to evaluate potential on-site power generation to complement its current U.S. renewable energy presence at nearly 90% of its U.S. locations.  
 
The proposed 339,000-sq.-ft. Ikea Dublin would be located approximately 35 miles east of downtown San Francisco and 23 miles east of downtown Oakland on 21 acres at the northwestern corner of Interstate 580 and Hacienda Drive.
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***Restaurant*** 


**Report: Improved weather, discounting lift February restaurant traffic**
Mar 16, 2016,  Better weather and a discounting war in the quick-service sector brought more people into restaurants in February, helping the industry to 3.2-percent same-store sales growth for the month, according to the latest MillerPulse index.
 
Traffic in the month increased 1.5 percent, the most since the weather-aided month of January 2015. Traffic was particularly strong in the quick-service segment, where restaurants’ customer bases increased by 2.9 percent — the best traffic growth for that sector in four years.
 
 
**Chipotle same-store sales drop 26% in February, but show improvement**
Mar 15, 2016,  Chipotle Mexican Grill Inc.’s same-store sales have begun to recover but were still down 26.1 percent in February, the company said in a late filing Tuesday.
 
The Denver-based chain also confirmed that it has hired Kansas State University meat-science professor James Marsden as its new executive director of food safety.
 
 
**Charlie Graingers Franchising LLC Signs Multi Unit Deal in Florida**
March 15, 2016,  Wilmington, NC,  Charlie Graingers World Famous Hot Dogs based out of Wilmington, NC continues their expansion in Florida with the addition of a multi-unit operator in the Florida Panhandle.
 
Charlie Graingers now has secured commitments for over 145 franchising agreements for their restaurants throughout the southeast. Florida in particular has become a very attractive place for Charlie Graingers. Already having established commitments in Pensacola and Panama City, the new commitments in Okaloosa County connect the dots to allow Charlie Graingers to raise brand awareness in the Panhandle.
 
 
**Jamba Juice blames 4Q loss on refranchising**
Mar 14, 2016,  Jamba Inc. declared its franchising initiative complete with the refranchising of 179 company-owned locations in fiscal 2015.
 
The Emeryville, Calif.-based parent to the Jamba Juice brand said Monday that systemwide same-store sales rose 3.9 percent for the Dec. 29-ended fourth quarter, including a 3.7-percent increase at franchised units and a 5.4-percent jump at company locations.  Revenue for the quarter decreased more than 55 percent, to $19.5 million, in part because of the reduction in company-owned locations.
 
 **El Pollo Loco same-store sales rise on value focus**
Mar 11, 2016,  El Pollo Loco Holdings Inc. credited a focus on value for a 2.2-percent increase in systemwide same-store sales during fiscal 2015, the company said Thursday.
 
For the Dec. 31-ended fiscal year, same-store sales grew 1 percent for company units and increased 3.1 percent at franchised restaurants.  During the fourth quarter, same-store sales rose 1.8 percent, including a 1-percent increase at company locations and a 2.4-percent increase at franchised units. The increase at company locations included a 2.7-percent increase in average check that was offset by a 1.6-percent decline in traffic.
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***Dollar Stores, Warehouse Club &amp; Other Retailers***
 
Online jewelry retailer continues mall expansion with 'Webroom' format
MARCH 16, 2016,  Online fine jeweler **Blue Nile** is set to open its first physical location outside of New York City in an ongoing effort to reimagine the jewelry buying experience.
 
Seattle-based Blue Nile said it would open a store at Tysons Corner Center mall in Fairfax County, Virginia by mid-summer as part of a strategy to open four locations this year. Blue Nile, which generated sales last year of $480 million, entered the physical space in June 2015 at Roosevelt Field Mall in Garden City, New York. The company said the location exceeded its expectations. It plans to open a second location by early summer at the Westchester Mall in White Plains, New York.
 
 
**DSW is edging closer to 500-store mark**
MARCH 15, 2016,  DSW Inc. says strong sales in the fourth quarter show that its growth strategy is working, and the retailer says it plans to open at least 34 new stores this year.
 
For the fourth quarter ended Jan. 30, the company reported a profit of $11.8 million, or 14 cents a share, down from $30.8 million, or 34 cents a share, a year earlier. Revenue rose 5% to $672 million. Same-store sales increased 0.7%. Looking ahead, for the full year ending Jan. 28, the company expects revenue growth of 8% to 10%, with comparable sales growth in the 1% to 2% range. The company expects to open 34 stores and close two stores, which would put the company's footprint at nearly 500 stores.
 


 
**Ulta Beauty sizzles, plans 100 more stores**
MARCH 11, 2016,  No retailer has more momentum right now than Ulta Beauty. The company’s fourth quarter same store sales increased 12.5% on top of a prior year gain of 11.1% and 2016 could be another year of double digits gains.
 
Ulta Beauty CEO Mary Dillon said the company’s fourth quarter capped an exceptional year and it is easy to see why. The company opened 103 new stores, including 14 in the fourth quarter, to end the year with 874 locations. The 12.5% fourth quarter same store sales increase is stunning, especially considering the company lapped a prior year gain of 11.1% and comes at a time when many retailers have blamed weak results on warm weather, the competitive pressures and the strong dollar. Full year sales increased 21.1% to $3.9 billion and same store sales increased 11.8% compared to a 9.9% increase the prior year. Profit increased 24.5% to $320 million and earnings per share increased 25.1% to $4.98.
 

 
**Hibbett Sports strikes out in Q4**
MARCH 11, 2016,  Weather related closures and tax refund delays hit Hibbett Sports hard in the fourth quarter, as the retailer posted a drop in same store sales.
 
For the fourth quarter and fiscal year ended Jan. 30, the sporting goods retailer said that same store sales decreased 0.6%. Net sales increased 2.7% to $245.7 million compared with $239.3 million in the prior year. Net income was $17.4 million compared with $19.9 million in the prior year quarter. Earnings per diluted share was 76 cents, compared with 79 cents in Q4 of 2015. Net sales for the full year increased 3.2% to $943.1 million. Same store sales decreased 0.4%. Looking ahead to fiscal 2016 the company expects an increase in same store sales in the low single digit range, and expects to open approximately 40 to 50 net new stores.
 
 
**Genesco tops $3 billion mark in 2015**
MARCH 11, 2016,  Specialty retailer Genesco surpassed a significant sales milestone last year, but the operator of nearly 2,700 stores faced some self-imposed profitability challenges as it positioned the business for 2016.
 
Nashville-based Genesco, best known for its Lids and Journeys stores, said sales increased 4.4% to $932 million and same store sales increased 4% during the quarter ended Jan. 30. Comparable sales reflected a 2% increase in same store sales and a 21% increase in e-commerce sales. In the fourth quarter, profits from continuing operations declined to $46.7 million, or $2.15 a share, from $51.8 million, or $2.18 a share, the prior year. Profits declined more severely when results were adjusted to include various non-recurring expenses and one-time gains. Adjusted profits fell to $45.8 million, or $2.11 a share, compared to $54.7 million, or $2.30 a share. Full year sales increased 5.7% to $3 billion and earnings totaled $97.1 million, or $4.22 a share, compared to $99.4 million, or $4.19 a share.
 
 
 
**Retail doldrums drag down The Buckle**
MARCH 11, 2016,  Sales at teen retailer The Buckle slowed down over the holiday quarter, as a steep decline in comps negatively affected revenue.
 
For the fourth quarter ended Jan. 30, net sales decreased 6.1% to $332 million from net sales of $353.5 million for the prior year. Same store net sales decreased 7.2% from same store net sales for the prior Q4. Online sales increased 7.1% to $35.3 million, compared to net sales of $33 million in 2015. Net income for the fourth quarter of fiscal 2015 was $54.3 million, or $1.13 per share ($1.13 per share on a diluted basis), compared with $60.1 million, or $1.25 per share ($1.25 per share on a diluted basis) for the fourth quarter of fiscal 2014.
 
 
**Dollar General expanding test of smaller box**
Mar 10, 2016,  **Dollar General Corp**. said Thursday it plans to continue to open smaller stores in urban as well as rural markets.
 
 
Talking with investors to discuss financial results for the year and fourth quarter ended Jan. 29, Todd J. Vasos, CEO, said the company will focus most of its expansion on its standard 7,400-square-foot store while testing a 6,000-square-foot model in more densely populated metro areas and also more sparsely populated rural locations. The company has approximately 30 smaller-footprint stores, mostly in urban locations, with plans to open 80 more this year, he said.
 
 
Amid sales surge, Dollar General plans 900 new stores
March 11, 2016,  Dollar-store retailer Dollar General announced Thursday plans to open approximately 900 new stores and relocate or remodel 875 stores in fiscal 2016, with plans to open even more in coming years.
 
The retailer also reported fourth quarter sales, which grew 7% to $5.3 billion. Same-store sales increased 2.2%, thanks to increased customer traffic and transaction size.  Full year sales grew 7.7% to $20.4 billion and full year profits grew 9% to $1.17 billion. The company said sales strength was mostly in candy and snacks, perishables, tobacco, and food, as well as in seasonal and home goods. The retailer saw a small decline in apparel sales.
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