IndustryEye: People on the Move, Financial Briefs, Acquisitions
People On the Move
MCM Electronics: Phil Minix has been named president of Centerville, Ohio-based B-to-B catalog distributor MCM Electronics. A member of the Catalog Success editorial board, Minix is a 12-year veteran of the catalog/direct business. He most recently served as president of Astral Direct. Prior to that, he worked at Reiman Publications and J. Schmid & Assoc.
Sharper Image: Andrew P. Reich has been named EVP of merchandising. James Sander has been named SVP, general counsel and corporate secretary.
Eddie Bauer: Neil S. Fiske, the head of Limited Brands’ Bath and Body Works, has been appointed president and CEO. Fiske, 45, replaces Eddie Bauer’s interim CEO Howard Gross.
Talbots: Trudy Sullivan has been named CEO of this clothing retailer. Previously, she served as president of Liz Claiborne. She succeeds Arnold Zetcher, who is resigning after two decades at Talbots’ helm.
Financial Briefs
Red Envelope: Despite a 0.4 percent loss for the recently completed fourth fiscal quarter ($21.9 million in net revenue, compared to $22 million in 2006), the retailer posted a 7.1 percent gain for the fiscal year. Net revenues grew to $121.3 million, compared to $113.2 million in 2006.
MSC Industrial Direct: Bolstered by its acquisition of the J&L Industrial Supply catalog last year, MSC Industrial Direct reported a 30.7 percent gain in the third quarter of the 2007 fiscal year. Net sales were $431.1 million, compared with $329.8 million in the third quarter of the 2006 fiscal year. Sales from the J & L acquisition accounted for approximately 74 percent of the overall sales growth in the quarter.
JoS. A. Bank Clothiers: JoS. A. Bank Clothiers reported its total net sales for the fiscal month ended June 2, 2007 (fiscal May 2007) increased 23.4 percent to $45.3 million versus $36.7 million in the fiscal month ended May 27, 2006 (fiscal May 2006). Comparable stores sales gained 13.5 percent in fiscal May 2007, as compared with fiscal May 2006, while direct marketing sales increased 16.3 percent. The company sells its full product line through 388 stores, a nationwide catalog and an e-commerce Web site.
Neiman Marcus: Revenue at Neiman Marcus Direct in the four-week May period increased 0.2 percent. The top-selling merchandise categories in the direct marketing segment included women’s contemporary sportswear and designer apparel, designer shoes, handbags and jewelry. The direct marketing segment conducts both online and print catalog operations under the Neiman Marcus, Horchow and Bergdorf Goodman brand names.
Acquisitions
Performance Bicycle: The largest independent bicycle dealer and direct marketer of bicycles and cycling accessories in the United States, Performance has sold a controlling interest to North Castle Partners, a private equity firm. Performance operates 74 retail stores, two catalogs and two e-commerce sites. The terms of the investment were not disclosed.
Guitar Center: Guitar Center, the largest direct response retailer of musical instruments in the United States through its wholly owned subsidiary, Musician’s Friend, and its catalogs and Web sites, agreed to be acquired by affiliates of Bain Capital Partners LLC, a global private investment firm. The total transaction value, including assumed debt, is approximately $2.1 billion.
Ingram Micro: Technology distributor Ingram Micro has agreed to acquire DBL Distributing, a distributor of consumer electronics accessories and related products for $96 million. DBL Distributing will operate as a wholly owned subsidiary of Ingram Micro, keeping the same brand name, business model and management structure.
