KeyCorp names executive
KeyCorp has named Donald R. Kimble as its new chief financial officer.
The parent of KeyBank, which is based in Cleveland, announced earlier this month that Jeffrey Weeden planned to retire from the role.
Kimble previously served as CFO at Huntington Bancshares Inc. As CFO for KeyCorp, Kimble will be responsible for the company’s financial and operational strategy, metrics tied to that strategy and the ongoing development and monitoring of control systems designed to preserve assets and report accurate financial results.
Kimble will report to KeyCorp Chairman and CEO Beth Mooney. His appointment is effective June 3.
Retailer profits up
Dollar Tree, the Chesapeake, Va.-based retailer, reported earnings of $133.5 million, or 59 cents per share, for the period ended May 4, up from $116.1 million, or 50 cents per share, a year ago.
Analysts surveyed by FactSet expected lower earnings of 57 cents per share.
Dollar Tree says revenue increased 8 percent to $1.87 billion, matching analyst expectations. The top-performing categories during the quarter included stationary, candy, party supplies and health care products, in addition to its Valentine’s Day and Easter holiday offerings. The company’s gross margin — the amount of each dollar in revenue it keeps — increased to 35.2 percent from 35 percent a year earlier.
Revenue at stores open at least one year rose 2 percent. That comparison is a key gauge of a retailer’s health because it excludes stores that recently opened or closed.
The company opened 94 stores, closed two, and expanded or relocated 16 during the quarter. It operates more than 4,760 stores in the U.S. and Canada.
Dollar Tree said it expects profit of 52 cents to 57 cents per share on revenue between $1.81 billion and $1.86 billion in the second quarter. Analysts expect 57 cents per share on revenue of $1.86 billion.
The company also raised its full-year earnings forecast to a range of $2.61 to $2.77 per share. Analysts expect $2.78 per share.
Sears posts loss
Sears Holdings Corp. reported a steeper-than-expected loss for its first quarter as the beleaguered retailer struggles to turn itself around. The operator of Sears and Kmart stores also says it is considering putting its service-agreement business up for sale to raise cash. The Hoffman Estates, Ill.-based company says it lost $279 million, or $2.63 per share for the period. That compares with a profit of $189 million, or $1.78 per share, a year earlier. Not including one-time items, the company said it lost $1.29 per share, worse than the 60 cents per share analysts expected. Revenue fell 9 percent to $8.45 billion, above the $8.37 billion Wall Street expected.
Mortgage rates rise
Average rates on fixed mortgage rose for the third straight week, hitting their highest levels since mid-March. Still, mortgage rates remained close to historic lows, a trend that should help sustain the housing recovery. Mortgage buyer Freddie Mac said Thursday that the average rate for the 30-year loan increased to 3.59 percent this week. That’s up from 3.51 percent last week and above the rate of 3.31 percent reached in November, the lowest on records dating to 1971. The average on the 15-year loan jumped to 2.77 percent. That’s up from 2.69 percent last week. The record low of 2.56 percent was hit on May 2.
New home sales up
Sales of new U.S. homes climbed in April to the second-highest level in almost five years as lower borrowing costs and job gains drew more buyers into the market. Purchases rose 2.3 percent to an annualized pace of 454,000 homes from 444,000 in March that was faster than first estimated, the Commerce Department said.
Compiled from staff and wire reports