By Phil Wahba
(Reuters) – Office Depot Inc said on Wednesday that it would buy smaller rival OfficeMax Inc for $1.17 billion in stock to get more clout with suppliers and better compete against Staples Inc and Amazon.com Inc.
After days of speculation that a deal was close, the news was buried on the fourth page of Office Depot’s earnings press release. Nearly an hour after it came out, there was still no mention on OfficeMax’s website.
NEW YORK (Reuters) – Investors bought everything Avon Products Inc (AVP.N: Quote, Profile, Research, Stock Buzz) Chief Executive Sheri McCoy was selling last week, lifting shares 23 percent on the back of solid results and a confidence the new CEO has a turnaround plan.
That makes the spotlight even brighter on McCoy when she takes center stage on Thursday at an important industry analyst conference and details that turnaround. Among her biggest challenges: fix the company’s technology problems, and help the sales representatives generate more cash.
Feb 14 (Reuters) – Coach Inc on Thursday said
longtime Chief Executive Lew Frankfort will step down in January
2014 and be replaced by the executive who oversaw the upscale
leather-goods maker’s successful expansion in Asia.
Frankfort, who joined the company in 1979 as vice-president
of new business development and built it into one of the biggest
names in high-end handbags and accessories, will stay on with
the company as executive chairman, continuing to work closely
with his successor Victor Luis after he takes the reins next
NEW YORK, Feb 13 (Reuters) – Adidas AG on
Wednesday introduced a running shoe with technical features it
says could eventually make it a leader in an area of sports gear
where it has lagged competitors.
At a splashy event in New York that included an appearance
by four-time Berlin marathon winner Haile Gebrselassie, Adidas
launched a running shoe with cushioning it calls Boost. The
cushioning was developed with BASF SE and Adidas
claims it gives runners a better bounce, lasts longer than the
cushioning used in 95 percent of running shoes and is better
able to withstand extreme weather.
By Phil Wahba
(Reuters) – Avon Products Inc’s (AVP.N: Quote, Profile, Research) business at long last showed signs of life at the end of 2012 as the struggling beauty company reversed sales declines in top markets like Brazil and Russia, attracted more sales representatives and cut costs.
Shares of Avon rose as much as 18.4 percent in Tuesday morning trading, hitting their highest levels since smaller rival Coty Inc in May withdrew an unsolicited bid to buy Avon.
Feb 12 (Reuters) – Avon Products Inc’s business
showed signs of life in the last three months of 2012 as the
struggling beauty company sold more items, attracted more sales
representatives and cut marketing and personnel costs.
Avon grappled earlier in the year with the loss of many of
its “Avon Ladies” sales representatives, unhappy with their
earning potential and the weak support they received from the
company. Meantime, sales stalled in key emerging markets such as
Russia and Brazil, and continued to deteriorate in the United
Feb 7 (Reuters) – Many top U.S. retailers on Thursday
reported strong January sales after offering compelling
merchandise that drew in shoppers facing a hit to their
take-home pay from higher payroll taxes.
Macy’s Inc said sales at stores open at least a year
rose 11.7 percent last month, easily beating forecasts, as the
company benefited from its speed in getting new merchandise into
Feb 7 (Reuters) – Several U.S. retailers reported mixed
January sales results on Thursday, as consumers faced a hit to
their take-home pay from higher payroll taxes, while cold
weather may have helped spur purchases of winter clothes.
Costco Wholesale Corp said January sales at stores
open at least a year, or same-store sales, rose 4 percent,
slightly ahead of Wall Street projections for a 3.9 percent
By Phil Wahba
(Reuters) – J.C. Penney Co Inc (JCP.N: Quote, Profile, Research, Stock Buzz) Chief Executive Ron Johnson still thinks the department store operator will return to growth in 2013 despite severe sales declines in fiscal 2012, he told CNBC in an interview on Wednesday.
Penney, which operates 1,100 department stores, began a turnaround a year ago that called for the elimination of most coupons and sales events, along with a four-year transformation of its 700 largest stores into a collection of 100 shops in each store for brands like Levi’s and PVH Corp’s (PVH.N: Quote, Profile, Research, Stock Buzz) Izod.
By Phil Wahba
(Reuters) – Both Ralph Lauren Corp’s (RL.N: Quote, Profile, Research, Stock Buzz) holiday quarter results on Wednesday and its early sales forecast for next year pointed to renewed momentum for the fashion company after a rough patch in 2012, sending shares to their highest levels since May.
The company cited strong demand in the Americas and an improvement in Europe, its second biggest market, as well as its fast growing e-commerce business. It forecast sales growth would accelerate in the fiscal year starting in April.