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Sales of Martha Stewart Products at J.C. Penney Blocked

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By 24/7 Wall St.

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A judge of the New York state appeals court has issued a temporary order that prevents J.C. Penney Co. Inc. (NYSE: JCP) from selling certain home products designed by Martha Stewart Omnimedia Inc. (NYSE: MSO) but sold under J.C. Penney’s “Everyday” brand. J.C. Penney has held the items in its warehouses voluntarily, but based on a ruling from the state Supreme Court last week had planned to get the Everyday-branded items on its shelves by Mother’s Day.

The judge in the case expects to issue a decision tomorrow on the request from Macy’s Inc. (NYSE: M) for a temporary restraining order that would prevent J.C. Penney from selling the disputed items until the court case is decided.

Based on his previous rulings, it seems likely that the judge will deny the temporary restraining order and lift the ban he imposed last night on the sale of the Everyday-branded items. The judge has also chided both parties, telling them that this is a business dispute that should not have been brought to court. From his statements and previous rulings, he is reluctant to restrain J.C. Penney from selling the goods, seeming to prefer to let the Macy’s suit wend its way through the courts and then making J.C. Penney pay up if it turns out that Macy’s suffered injury from the sale of the Martha Stewart items.

J.C. Penney shares are down about 1.8% in the first half-hour of trading this morning, at $14.92 in a 52-week range of $13.55 to $36.89.

Filed under: 24/7 Wall St. Wire, Law, Retail, Services Tagged: JCP, M, MSO

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From: http://www.dailyfinance.com/2013/04/17/sales-of-martha-stewart-products-at-j-c-penney-blocked/

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U.S. Retailers Report March Sales Rose Modestly

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By The Associated Press

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Mike Groll/AP

NEW YORK — U.S. retailers are reporting a key revenue figure rose slightly in March, as shoppers held back on spending because of the cold weather across the nation, particularly the Midwest and East Coast, and continued fears about the economy.

Overall, 14 retailers reported on Thursday that revenue at stores open at least a year — a key indicator of retail health — rose an average of 0.6 percent, according to research firm Retail Metrics. Including drugstores, the number was slightly higher, up 1.5 percent.

“While clearly that’s not a great number by any stretch, it could have been worse,” said Ken Perkins, president of Retail Metrics. “Wintry weather conditions persisted deep into March depressing spring apparel, home and garden, and seasonal merchandise sales.”

He expects April to be stronger, as the weather improves and customers respond to strong fashion trends such as colorful jeans. An earlier Easter, which meant one less selling day in March, will also help April results, he said.

The number of retailers reporting monthly sales figures has been shrinking. Big names like Target Corp. (TGT), Macy’s Inc. (M) and Nordstrom Inc. (JWN) have recently stopped reporting. Walmart Stores Inc. (WMT), the world’s largest retailer, hasn’t reported monthly sales figures in several years.

Revenue in stores open at least one year is a key measure of a retailer’s financial health, because it excludes stores that open or close during the year.

Retailers who do report had a mixed month, with those with more stores on the East Coast, where the weather was cold and wet, faring worse than stores on the West Coast.

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TJX Cos. (TJX), which operates TJX and Home Goods stores, said revenue in stores open at least one year fell 2 percent, while analysts expected a 1 percent drop. The company said that the drop was due to the weather and the Easter shift, and they expect a stronger April.

“Overall business trends improved as the weather became warmer,” said CEO Carol Meyrowitz. “April is off to a good start, our inventories are in great shape, and we are seeing an enormous amount of desirable product in the marketplace.”

L Brands, formerly Limited Brands Inc. (LTD), the parent of Victoria’s Secret and Bath and Body Works, says the revenue figure was flat, above analyst expectations for a drop, according to Thomson Reuters.

Warehouse club operator Costco Wholesale Corp.’s (COST) revenue figure rose 4 percent in March, short of expectations for a 5.2 percent rise.

Department store operator Stein Mart Inc. (SMRT) said revenue at stores open at least a year dropped 2.8 percent in March, falling short of Wall Street predictions. The company said sales were hurt by cold

From: http://www.dailyfinance.com/2013/04/11/march-retail-sales-rise/

Business, Finance, Occupation & Industry

Macy's, J.C. Penney Resume Court Battle Over Martha Stewart

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By The Associated Press

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David Handschuh, The (New York) Daily News/AP Martha Stewart testifies in New York State Supreme Court on March 5. Stewart, 71, is at the center of a bitter legal battle between Macy’s and J.C. Penney that resumed Monday.

By ANNE D’INNOCENZIO

NEW YORK — Attorneys for J.C Penney and Macy’s were back in court Monday to fight over the Martha Stewart brand after a monthlong mediation period went nowhere.

But after the hearing, the real action began. J.C. Penney Co. (JCP) said late Monday, that the company’s board of directors has ousted CEO Ron Johnson after only 17 months on the job and rehired Johnson’s predecessor, Mike Ullman, 66, who was CEO of the department store chain for seven years until November 2011.

The case, which centers on Macy’s Inc.’s (M) claim that Penney’s deal to sell Martha Stewart branded-merchandise infringes on its own deal with the domestic diva, was likely just one of the reasons Johnson was shown the door. He also had presided over a price strategy that confused customers and drove them away.

The court-ordered mediation followed nearly three weeks of testimony from witnesses including the domestic diva herself, Penney, Johnson and Macy’s CEO Terry Lundgren.

At issue is whether Macy’s has the exclusive rights to sell some Martha Stewart branded products such as cookware, bedding and bath products. Macy’s sued Martha Stewart Living Omnimedia Inc. (MSO), arguing that the company breached its long-standing contract when it signed a deal with Penney in December 2011 to open Martha Stewart mini-shops, planned for this spring. It also sued Penney, contending that it had no regard for the contract and that Johnson had set out to steal the business that Macy’s had worked hard to develop.

The stakes are high for all three companies involved but particularly for Penney, which is counting on a revamped home area to help it rebound from a disastrous year. The company amassed nearly $1 billion in losses and its revenue dropped about 25 percent as the first year of a transformation plan built around a new pricing strategy failed to resonate with shoppers.

Penney was counting on the overhauled home department as part of its bigger plan to turn Penney stores into mini-malls of sorts. It’s in the midst of rolling out 20 shops in its home area featuring products from such designers as Michael Graves and Jonathan Adler. Martha Stewart mini-shops were expected to anchor the home area.

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But those plans are in limbo. Penney had ordered goods like towels and cookware from Martha Stewart Living and were planning to name the goods JCP Everyday, to sidestep a conflict. But Macy’s is trying to stop the retailer from selling goods covered by Macy’s exclusive category even if they don’t carry the Martha …read more

Source: FULL ARTICLE at DailyFinance

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Safeway's Prepaid Card Issuer Files for IPO

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By 24/7 Wall St.

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The unit of Safeway Inc. (NYSE: SWY) that issues gift cards and other prepaid and reloadable cards this morning filed a Form S-1 with the U.S. Security and Exchange Commission (SEC) to raise up to $200 million in an initial public offering. The unit, which will be called Blackhawk Network Holdings Inc., will trade on the Nasdaq Exchange under the ticker symbol HAWK.

Safeway currently owns about 96% of Blackhawk and “will continue to hold shares of Class B common stock representing a significant majority of the combined voting power” of Blackhawk’s outstanding shares after the offering. The lead underwriters for the offering are Goldman Sachs, BofA/Merrill Lynch, Citigroup and Deutsche Bank Securities.

According to the filing, Blackhawk currently counts among its gift-card customers such high-profile companies as Amazon.com Inc. (NASDAQ: AMZN), Lowe’s Companies Inc. (NYSE: LOW), Macy’s Inc. (NYSE: M), Starbucks Corp. (NASDAQ: SBUX) and Apple Inc.’s (NASDAQ: AAPL) iTunes. The company also serves the three large payment networks: American Express Co. (NYSE: AXP), Visa Inc. (NYSE: V) and Mastercard Inc. (NYSE: MA). Blackhawk also issues reloadable cards for Green Dot Corp. (NYSE: GDOT) among others, including its own PayPower brand.

Blackhawk’s filing indicates that the company will receive none of the net proceeds from the offering. Class A shares will have one vote and Class B shares will have 10 votes on all matters that are put to a shareholder vote.

According to the filing, Blackhawk posted net income of $48.165 million in 2012 on operating revenues of $959.07 million, up from $362 million in revenues and $22.7 million in operating profits in 2001, the year the company was founded.

Filed under: 24/7 Wall St. Wire, Business Services, Financial Stocks, IPOs, Retail Tagged: AAPL, AMZN, AXP, GDOT, LOW, M, MA, SBUX, SWY, V

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Source: FULL ARTICLE at DailyFinance

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Who Wants to Buy J.C. Penney? No One

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By 24/7 Wall St.

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J.C. Penney Co. Inc.’s (NYSE: JCP) board has a problem. If it wants to sell the company, in lieu of kicking out Ron Johnson as CEO, as the Wall Street Journal has reported, it may find that there is no buyer. What retailer wants a company that has lost 20% of its sales in the past year and has 1,100 aging stores? Some observers think that the J.C. Penney real estate holdings have a hidden worth. The drop in the firm’s stock price would indicate otherwise.

It might be argued that J.C. Penney is a bargain. Its market share is $3.3 billion. Its annual sales run rate is almost $13 billion. It lost “only” $985 million last year, but the rate of those losses has accelerated.

The most obvious reason that J.C. Penney could be attractive to another large retailer is that many of its 1,100 stores have to be losing money. If those stores are shuttered, losses should abate. But the number of stores is a problem secondary to the merchandising and marketing plans put into effect by CEO Ron Johnson. The failure of those may be hard, if not impossible, to reverse.

No successful retailer will buy J.C. Penney. Better-run companies like Macy’s Inc. (NYSE: M)and Nordstrom Inc. (NYSE: JWN) have settled on optimal store locations and store numbers. None of the investors in these public corporations want to see management take a long shot at J.C. Penney.

The only possible buyer of J.C. Penney is Sears Holdings Corp. (NASDAQ: SHLD), which was built by an ill-advised combination of the Sears and Kmart brands. However, controlling shareholder and CEO Eddie Lampert has continued his commitment to middle-tier national retailing. It would be monumentally difficult to put J.C. Penney together with Sears and Kmart. Likely such a combination would involve the closure of hundreds of stores, as well as logistical nightmares. But Lampert has the guts of a high-stakes gambler. The Sears Holdings experiment has been a failure. Another retail combination is a long shot, but it may be his only way out of a severe dilemma.

Even Lampert may believe J.C. Penney is too much of a risk, though. That leaves the J.C. Penney board without options.

Filed under: 24/7 Wall St. Wire, Mergers and Buy Outs, Retail Tagged: JPC, JWM, M, SHLD

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Source: FULL ARTICLE at DailyFinance

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Martha Stewart Denies Wrongdoing in J.C. Penney Deal

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By The Associated Press

Martha Stewart, founder of Martha Stewart Living Omnimedia Inc., testifies at State Supreme court in New York, U.S., on Tuesday, March 5, 2013. Stewart took the stand in a Manhattan courtroom today as Macy's Inc. continues its fight to persuade a New York state judge to block parts of her company's agreement with J.C. Penney Co. Photographer: David Handschuh/Pool via Bloomberg

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NEW YORK (AP) – Home diva Martha Stewart testified in court on Tuesday that she did nothing wrong when she signed an agreement to open up shops within most of J.C. Penney’s (JCP) stores across the country.

Stewart testified in New York State Supreme Court as part of a legal battle over whether the company that she founded breached its contract to sell some items exclusively at Macy’s (M) when she inked the deal with Penney in December 2011.

Stewart, who founded Martha Stewart Living Omnimedia Inc. (MSO), during three hours of testimony, denied Macy’s allegations that she did anything unethical in brokering the deal with Penney.

She said that she was only looking to expand and offer new opportunities for shoppers. In fact, she said that it was Macy’s that didn’t uphold its end of an agreement for trying to maximize the potential of her business, she said.

“I think Macy’s has been a good partner,” Stewart said. “It just boggles my mind that we’re here sitting in front of you, judge.”

The trial, which is in its third week, has unveiled some of the drama that has taken place behind-the-scenes between Stewart and the CEOs of Macy’s Inc. and J.C. Penney Co.

Macy’s attorneys have portrayed Stewart as someone who turned her back on a good friend, Macy’s CEO Terry Lundgren, to broker a deal with a rival company. During testimony earlier in the trial, Lundgren said that he hung up on Stewart after she told him about the deal she’d reached with Penney, and hasn’t spoken to her since.

“I was quite taken back by his response and when he hung up on me I was quite flabbergasted,” Stewart said on Tuesday.

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Stewart’s testimony comes as the company she founded continues to struggle. Martha Stewart Living just finished its fifth straight year of losses. The company has also had steep sales declines.

Martha Stewart Living has been trying to bolster its merchandising business, which represents 30 percent of the company’s annual revenue, to offset declines in its broadcast and publishing divisions as people continue to shift toward the Web and mobile apps to get their recipes and food tips.

As the housing recovery gains momentum and consumers look to plow money into their home, the biggest opportunities for Martha Stewart Living are in the home category. So, the stakes are high.

During her testimony on Tuesday, Stewart said she always wanted to open big shops at Macy’s, but the retailer never embraced that concept. Instead, she noted the merchandise is just “here and there.”

That’s why she said that a proposal from Penney’s CEO Ron Johnson to create shops filled with all sorts of home merchandise was appealing.

Photo Credit: David Handschuh/Pool via Bloomberg<p style="clear: both;padding: 8px 0 0 0;height: 2px;font-size: 1px;border: …read more
Source: FULL ARTICLE at DailyFinance

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Costco Dodges Economic Bullet

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By 24/7 Wall St.

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Costco Wholesale Corp.’s (NASDAQ: COST) annual sales run above $100 billion, more than twice J.C. Penney Co Inc.’s (NYSE: JCP) and Macy’s Inc.’s (NYSE: M) combined, and nearly 40% of those of mega-retailer Target Corp. (NYSE: TGT). Yet, its sales have not been dented by the current downturn or slowdown in sales at most of the nation’s largest retailers. Costco reported net sales of $9.35 billion for the month of January, the five weeks ended February 3, 2013, an increase of 7% from $8.74 billion during the similar period last year.

Costco may not have the perfect model for retail success, but it is close.

At the heart of Costco’s lack of vulnerability is its membership model — a kind of club exclusivity for the middle class. Its annual membership fees range from $55 to $110 a year. That is not much of a buy-in to shop its massive warehouses, whether the shopper is an individual or a company. Even Tiffany & Co. (NYSE: TIF) and other high-end retailers do not have a price of admission. Whether membership gives access to special value or not, it appears to create that illusion.

There also may be a belief among those who invest in Costco memberships that size matters. The average Costco location covers 143,000 square feet, much larger than the average Wal-Mart Stores Inc. (NYSE: WMT) location, which measures only 102,00 square feet. Does a Costco store contain more products at low price because of its size. Probably not, but the size may create that impression.

The last and most important thing Costco offers is customers is a satisfaction safety net, which covers almost any level of problems buyers have with products or memberships. All a member has to do is claim that a product or a membership does not measure up and Costco promises a refund — at 100% of the purchase price.

Costco has effectively made a promise to its shoppers — pay to be a member and that membership will be worth more than its weight in gold — even if gold is so expensive now to be beyond most people’s reach.

Filed under: 24/7 Wall St. Wire, Retail Tagged: COST, JCP, M, TIF, WMT

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Source: FULL ARTICLE at DailyFinance

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JC Penney schemed to steal Stewart's fans from Macy's: lawyer

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(Reuters) – A lawyer for Macy’s Inc told a judge on Wednesday that rival J.C. Penney Co Inc schemed to steal Martha Stewart‘s fans with products similar to those Macy’s offers under the home goods doyenne’s brand. J.C. Penney looked for loopholes in Macy’s contract with Martha Stewart Living Omnimedia and tried to push Macy’s to walk away from the contract, Macy’s lawyer said at the start of the trial over whether Stewart’s contract with Macy’s stops her from partnering with Penney. “We’re here to protect our rights. Rights that we paid for. Rights that we worked on. … …read more
Source: FULL ARTICLE at Yahoo Business

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Cloud Software Company Files for IPO

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By 24/7 Wall St.

Cloud computing

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Marin Software, maker of cloud-based digital advertising management platform, has filed a Form S-1 with the U.S. Securities and Exchange Commission (SEC) launching the company’s quest for an initial public offering (IPO). For the purposes of the filing, Marin Software indicated that it seeks raise $75 million from the offering. Underwriters include Goldman Sachs & Co., Deutsche Bank Securities, UBS Investment Bank, Stifel, and Wells Fargo Securities.

The company counts Macy’s Inc. (NYSE: M), Apollo Group Inc. (NASDAQ: APOL), Expedia Inc. (NASDAQ: EXPE), and Symantec Corp. (NASDAQ: SYMC) among its customers, and says it has business relationships with Baidu Inc. (NASDAQ: BIDU), Bing from Microsoft Corp. (NASDAQ: MSFT), Google Inc. (NASDAQ: GOOG), Facebook Inc. (NASDAQ: FB), and Yahoo! Inc. (NASDAQ: YHOO). Marin identified competitors Google’s DoubleClick advertising platform, Adobe Systems Inc. (NASDAQ: ADBE), and other privately held firms.

Marin expects about 23.27 million shares to be outstanding following the IPO, a total which does not include about 4.9 million additional shares issued or issuable, not does the total include shares reserved for future issuance under an equity compensation plan.

The company currently claims about 400 employees and will trade on the NYSE under the ticker symbol MRIN.

Filed under: 24/7 Wall St. Wire, Internet, IPOs, Software Tagged: ADBE, APOL, BIDU, EXPE, FB, GOOG, M, MSFT, SYMC, YHOO

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Source: FULL ARTICLE at DailyFinance