By Phil Wahba

(Reuters) – J.C. Penney Co Inc’s (JCP.N: Quote, Profile, Research, Stock Buzz) shares tumbled on Tuesday, the day after the department store chain’s president abruptly left in the wake of a highly touted advertising campaign that flopped.

Penney shares closed down 8.5 percent as analysts questioned whether the 110-year old company could succeed at its efforts to overhaul pricing, product offerings and store format. On Monday, Penney said President Michael Francis, a member of the “dream team” it started assembling last year to carry out the overhaul, was leaving after just eight months.

By Brad Dorfman and Phil Wahba

(Reuters) – Barnes & Noble Inc reported lower-than-expected quarterly revenue, hurt by disappointing sales of its Nook digital books and e-readers, and the top U.S. bookstore chain expects sales at its stores to fall this fiscal year.

The bookseller’s sales in the fourth-quarter were hurt by returns of the device from retailers as well as price cuts put in place in February on some versions of the device to compete with Amazon.com’s Kindle franchise.

LONDON/NEW YORK (Reuters) – U.S. drug retailer Walgreen Co is buying a 45 percent stake in European health and beauty group Alliance Boots Holdings Ltd for $6.7 billion in cash and stock, creating the world’s biggest buyer of prescription drugs.

The move expands Walgreen out of its U.S. market, where sales have suffered recently, and gives it more clout with global drug companies.

June 18 (Reuters) – Investment firm Neuberger Berman LLC has
called on OfficeMax Inc’s chief executive and board to
return money to shareholders in the form of a dividend or share
repurchases and raised the specter of a proxy fight next year if
the office supply chain fails to comply.

Neuberger, in a filing with the U.S. Securities and Exchange
Commission on Monday, also disclosed it held 5 percent of
OfficeMax’s shares, or 4.35 million, up from 4 percent earlier.

By Phil Wahba

(Reuters) – J.C. Penney Co Inc (JCP.N: Quote, Profile, Research, Stock Buzz) said on Monday that Michael Francis, a key member of the “dream team” the retailer assembled to carry out its transformation of everything from pricing to merchandising, was leaving the company, just months after he was lured from Target Corp (TGT.N: Quote, Profile, Research, Stock Buzz).

The move, announced in a brief statement, comes weeks after the department store operator said it had a worse-than-expected 18.9 percent drop in same-store sales for the first quarter as it tried to wean consumers off of coupons and frequent discounts as it adopted everyday prices.

By Phil Wahba

(Reuters) – The American Booksellers Association, which represents U.S. independent bookstores, has objected to the U.S. government’s proposed settlement of its price-fixing lawsuit against top publishers, saying it would strengthen Amazon.com Inc’s dominance.

The association, in a letter to the U.S. Justice Department dated June 14, said the settlement would create “a significant danger that Amazon will again regain a monopoly share in the sale of e-books.”

By Phil Wahba

(Reuters) – Michael Kors Holdings Ltd (KORS.N: Quote, Profile, Research, Stock Buzz) reported a stronger-than- expected fourth-quarter profit, fueled by growth in its own chain of stores and at department stores, and the designer clothing and apparel company gave a sales and profit forecast that handily beat Wall Street forecasts.

The company, which has benefited from a consumer appetite for “affordable” luxury and its founder’s prominence as a judge on the long-running TV fashion show “Project Runway,” said on Tuesday sales could rise as much as 45.5 percent this year.

By Phil Wahba

(Reuters) – McDonald’s Corp (MCD.N: Quote, Profile, Research, Stock Buzz) reported a lower-than-expected rise in same-store sales in all of its key regions in May and warned austerity measures in Europe and global economic volatility were taking a toll on results, pushing its shares lower on Friday.

Foreign currency rates are also expected to trim earnings this quarter, the world’s biggest hamburger chain said.

June 7 (Reuters) – Barnes & Noble Inc has objected
to the U.S. government’s proposed settlement of its price-fixing
lawsuit against top publishers, saying it would harm book
sellers and “millions and millions” of book buyers.

The top U.S. bookstore chain, which has been battling with
Amazon.com Inc in the growing e-books market, said in a
complaint filed with the U.S. Justice Department on Thursday
that the settlement would lead to “higher overall average e-book
and hardback prices and less choice, both in how to obtain books
and in what books are available.”

By Phil Wahba

(Reuters) – Barnes & Noble Inc (BKS.N: Quote, Profile, Research, Stock Buzz) has objected to the U.S. government’s proposed settlement of its price-fixing lawsuit against top publishers and Apple Inc (AAPL.O: Quote, Profile, Research, Stock Buzz), saying it would harm book sellers and “millions and millions” of book buyers.

The top U.S. bookstore chain, which has been battling with Amazon.com Inc (AMZN.O: Quote, Profile, Research, Stock Buzz) in the growing e-books market, said in a letter sent to the U.S. Department of Justice on Thursday that the settlement would lead to “higher overall average e-book and hardback prices and less choice, both in how to obtain books and in what books are available.”