Retail-related briefs: Management promotions, exits, layoffs

by The City Wire staff ([email protected]) 79 views 

• Barnes & Noble names new CEO
Barnes & Noble Inc. promotes Michael Huseby to be its next CEO. This management change was announced by the board of directors today, Jan. 9.

Huesby has served as the retailer’s chief financial officer and president as CEO William Lynch departed in July amid struggling sales among the retailer’s 670 stores and its Nook e-reader market.

Analysts said this move was a “safe play” given Huesby understands the company and the direction Barnes & Noble wants to move toward.

• Macy’s to slash 2,500 jobs

Department Store giant, Macy’s said it will reduce its workforce by 1.4% with the elimination of some 2,500 jobs as it seeks to generate $100 million in cost savings.

This week the retailer, reported a 4.3% rise in same-store sales for the holiday season, but also announced plans to close five namesake stores, open five others and add three new Bloomingdale's locations.

"We have identified some specific areas where we can improve our efficiency without compromising our effectiveness in serving the evolving needs of our customers," Macy's CEO Terry Lundgren.

• Bloom exits Family Dollar after weak results

Family Dollar Stores Inc. said Michael Bloom, its president and chief operating officer has resigned to pursue other interests. 

The announced came Thursday, (Jan. 9) as the retailer reported weaker than expected quarterly result and cut its fiscal-year outlook.

 The lackluster results were linked to forced deep discounting throughout the holiday season, as the retailer tried to win its share of shopper amid a very competitive climate. 

Family Dollar began selling tobacco products and renovated thousands of stores this past year and while those efforts lured more customers, they also resulted in margin pressure and higher store manager turnover, CEO Howard Levine told investors.

Family Dollar slashed its earnings outlook for the fiscal year to a range of $3.25 to $3.55 a share. It previously had called for $3.80 to $4.15, citing more competition from other discounters and looming macroeconomic challenges.

Net income fell to $78 million, or 68 cents a share, in the first quarter ended Nov. 30 from $80.3 million, or 69 cents a share, a year earlier. Analysts on average were expecting a profit of 69 cents a share.
 Net sales rose 3.2% to $2.50 billion, but missed the analysts' estimate of $2.51 billion. Comparable sales declined 2.8% from a year ago.