Andy Puzder, chief executive of Carl’s Jr and Hardee’s parent CKE Restaurants, is not a man to mince words and on Thursday he shared his views on “socialist type” state governments in California and Oregon. 
     
Many of the company’s Carl’s Jr restaurants are located in the Golden State, and Puzder has plans to lessen that exposure over time. 

“As such, we’re targeting a large percentage of our growth in Texas. It is deemed to be more business friendly,” Puzder told analysts on a conference call. 
     
“Oregon has a higher minimum wage and a similar regulatory structure as California and also has a similar socialist type government at the state level so business there actually can be as bad or worse than California,” he said. 
     
“Texas is doing really well,” he added.

(Photo\Reuters)

Got an old suit gathering dust in the back of your closet? Men’s Wearhouse wants to give it to someone who could make better use of it.

The retailer is holding a national suit drive at 580 of its U.S. locations, collecting donations of used suits, sport coats, slacks, dress shirts, ties and belts. The clothing will be distributed to more than 120 local and regional non-profit organizations in cities across the country and given to men in need who are re-entering the workforce.

“The proper attire can truly make a difference in an individual’s life,” said Jerri Rosen, founder of Working Wardrobes in Fountain Valley, California, in a statement released by Men’s Wearhouse. “With these donations, men will have the opportunity to walk into an interview with confidence - an essential step toward economic stability.”

Other companies that have participated in clothing drives include Dress Barn, Robert Half International and Hilton Hotels. Perhaps other retailers will follow suit?

(Photo/Reuters)

Check out the loss of more retail jobs. 

Another 27,000 retail jobs disappeared in May, according to the U.S. government’s monthly employment report. That makes 152,000 retail jobs eliminated since the beginning of the year.
 
Overall, nonfarm payrolls fell by 49,000. But even more worrisome for the economy and for retailers could be the jump in the unemployment rate to 5.5 percent. That half-point jump was the largest such move in 22 years and brought the unemployment rate to its highest level in 3-1/2 years.
 
Retailer’s May sales reports yesterday were mostly better than expected, causing some analysts to think they could signal the beginning of a consumer turnaround.
 
But others said it just showed a blip in spending that was caused by the tax rebate checks consumers have begun to receive. 
 
Economic concerns could still linger after all that stimulus money is gone, they say, and things could get worse if consumers, already hit by $4-a-gallon gasoline, soaring food prices and falling home values really start to worry about their jobs.

Wonder how a half-point jump in the unemployment number plays into that?
 
Meanwhile, to take your mind of the jobs report, there’s always the company pep rally that masquerades as the Wal-Mart annual meeting. The world’s-largest retailer flies in employees from all around the world to help pack the basketball arena at the University of Arkansas, where stars entertain the crowd (this year’s acts include Miley Cyrus), everybody does the Wal-Mart cheer, and, oh yeah, shareholders get to ask questions.
 
Also in the basket:
 
New Wal-Mart director may herald changing of the guard (Wall Street Journal, subscription required)
 
Target grows makeup artist brands, adds testers (WWD)

 (Photos: Reuters)

Sears Holdings Corp reported a quarterly loss this morning. But the thing that left analysts like Credit Suisse’s Gary Balter scratching their heads was the company’s expectations for higher earnings before interest, taxes, depreciation and amortization (EBITDA) for the full year.

“We are struggling with what we are missing in the context of Q1 being down over $385 million in EBITDA and other comments in the release that talk about the expected difficult sales and gross margin environment,” Balter said in his research note.

Sears said sales fell about 6 percent to $11.1 billion in the quarter. Total U.S. same-store sales were down 8.6 percent as the appliance, lawn, garden and apparel segments languished.

Balter described the second half of the past year for Sears as an “unmitigated disaster” with very high inventories, and expenses that pointed to sales levels that were not reached.

Noting that Sears was already a lean company, Balter said that its latest EBITDA plans implied expense declines of  over 14 percent — which to him, doesn’t seem a viable option unless, he said,  ”the company is planning for even lower service levels and liquidating the company.”

For the quarter, Sears said selling and administrative costs rose 6 percent. The Illinois-based retailer, which has reorganized into five types of business units, and has boosted spending in some areas.

The other alternative to achieve higher EBITDA, Balter said, could include gains on asset sales which he didn’t think would solve Sears’ longer-term issues.

And Sears didn’t seem to be helping him understand any of this  — Balter said in his note that ”there is no one at the company to contact.”

Can someone at Sears, please…?

(Photo: Reuters)

American small business owners are a resolute lot, pushing ahead with plans to grow their operations despite losing a large chunk of sales to soaring energy costs, an American Express OPEN survey showed on Friday.

Ironically, most are also day-dreamers who look on the bright side , the survey added.

Although only 45 percent of U.S. small business owners are optimistic, — a sharp drop from 2004 – more than 70 percent plan to grow their businesses over the next six months, the survey said. Half of them are willing to take on added financial risk to get it done.

It’s not surprising then that the survey showed nearly 9 of 10 small business owners describe themselves as “seeing the glass half-full.” And despite the growing economic uncertainty throughout the nation, the survey said 75 percent of small business owners would still recommend a friend or family member become an entrepreneur.

Nevertheless, some small business owners see the glass half-empty.

Retail business owners have the most negative outlook, with nearly half expecting the economic environment to hurt their prospects, the survey said. One in five small businesses in states located in the northern midwest think they’re in jeopardy of going under.

And 56 percent of small businesses are having cash flow problems, according to the survey.

AnnTaylor reported a quarterly loss on Friday as the struggling clothing retailer, facing lagging sales and falling store traffic, took a charge to restructure its operations. But not to worry — the CEO is aware of the problems facing the retailer and is “all over it.”

On a conference call with analysts, CEO Kay Krill reassured Wall Street analysts multiple times that the retailer was taking the proper steps to get business back on track.

Worried that AnnTaylor hasn’t realized its clients taste have evolved? Not to worry:

“Our clients’ product preferences have definitely evolved and we did not keep pace with her wants. She wants more modern and fashionable product that the is versatile and current, and we are all over that,” Krill said.

Anxious that AnnTaylor will make clothes at its namesake stores too trendy in an effort to drive sales?

“I don’t want any of you to think that we’re going off the deep end here. There is definitely a sand box that we’re playing in, we’re just going to go up more towards the edge of that sand box, so we’re all over it,” she said.

Skeptical that AnnTaylor can improve business at both its Ann Taylor and LOFT stores at the same time? Well, you can rest easy:

“It is absolutely my number one priority for 2008 and I’m all over it,” she said.

(Logo: Anntaylor.com Web site)