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David Jones Limited (DJS) this morning said its CEO Mark McInnes had resigned from his position with immediate effect for behaving "in a manner unbecoming of the high standard expected of a chief executive officer". Mr McInnes confirmed he behaved inappropriately towards a female member of staff at two recent company functions.

”As a chief executive officer and as a person I have a responsibility to many, and today I formally acknowledge that I have committed serious errors of judgment and have inexcusably let down the female staff member,” Mr McInnes said in a statement.

”I apologise to everyone I have let down.”

David Jones said Mr McInnes would receive statutory entitlements of $445,421 and a payout of $1.5 million, however would not receive incentive payments.

The retailer said that Paul Zahra would step in as CEO immediately.

”Prior to being appointed CEO Paul was the Group General Manager of Stores & Operations,” the company said. 

At the close Thursday, David Jones shares were trading at $4.51.

Billabong International Limited (BBG) announced that the Supreme Court of Queensland has determined the surfwear retailer validly terminated its Indonesian license agreement in 2005. The company said the validity of the license termination had been challenged by the former licensee, CV Bali Balance, in a range of proceedings in Indonesia.

Billabong added that the license was subject to Queensland law.

The company said it plans to use the Supreme Court findings as part of its defence in ongoing legal actions.

In addition to the civil claim, CVBB undertook a number of other actions in Indonesia, which Billabong said in a statement on 9 March 2010, were designed to influence the settlement negotiations between the parties.

Billabong said today’s ruling reinforces its view that on the legal advice it has received, its own internal investigations in Indonesia and in Australia and given the testimony of its staff that there is absolutely no basis whatsoever for the civil claim.

In March Billabong said in its view, the civil claim was simply tactical litigation in Indonesia to attempt to influence the settlement discussions which are ongoing between Billabong and CVBB.

As at 1427 AEST, Billabong shares were down 1c to $9.40.

Fisher & Paykel Appliances Holdings Limited (FPA) posted a net loss of NZ$83.3 million for the year ended 31 March 201, a 12.5% improvement on the previous year. The company said the result reflects a second half recovery for the Appliances’ business, notwithstanding a continuation of difficult trading conditions in the US.

“The improvement on the first half result was driven by financial benefits arising from the Global Manufacturing Strategy and market share gains in Australia,” Fisher & Paykel Appliances said.

The company said total impairments and fair valuation adjustments for the full financial year amounted to NZ$102.3 million before tax.

FPA reported normalised group profit after tax of NZ$18 million, which was down on the prior year result of NZ$33.8 million, but within previously announced market guidance of $16 million to $23 million.

The company said total group revenue was NZ$1.16 billion, while group EBIT was NZ$58.3 million.

Managing director and CEO, Stuart Broadhurst, said it had been a difficult year for the company.

“The challenges and distractions associated with shifting manufacturing locations are now firmly behind the company,” Mr Broadhurst said.

”Going forward the company is committed to building upon recent gains, executing growth opportunities and developing products for the future.”

FPA expects demand condition to remain fragile and competitor activity to remain intense during FY11.

”The Company is well positioned to benefit from revenue growth opportunities including expanding US distribution into Sears and Lowe’s, distributing Haier products in New Zealand and Australia and the launch of Fisher & Paykel brand in China,” the company said.

”The benefits of a lower manufacturing cost base are likely to be partially offset by competitor activity, rising commodity prices, increasing sea freight charges and lease costs.”

FPA said labour costs would also increase in FY11 following the removal of the 5% salary reduction for salaried employees effective 1 April 2010.

The company said the Finance business is expected to remain resilient despite soft retail conditions in New Zealand, although any increase in interest rates would place pressure on FY11 earnings.

FPA decided against issuing profit guidance for FY11, however added that an update on trading and market conditions would be provided at the Annual Shareholders Meeting in August 2010.

As at 1050 AEST, Fisher & Paykel Appliances' shares were unchanged at 45c.

Fisher & Paykel Appliances Holdings Limited (FPA) posted a net loss of NZ$83.3 million for the year ended 31 March 201, a 12.5% improvement on the previous year. The company said the result reflects a second half recovery for the Appliances’ business, notwithstanding a continuation of difficult trading conditions in the US.

“The improvement on the first half result was driven by financial benefits arising from the Global Manufacturing Strategy and market share gains in Australia,” Fisher & Paykel Appliances said.

The company said total impairments and fair valuation adjustments for the full financial year amounted to NZ$102.3 million before tax.

FPA reported normalised group profit after tax of NZ$18 million, which was down on the prior year result of NZ$33.8 million, but within previously announced market guidance of $16 million to $23 million.

The company said total group revenue was NZ$1.16 billion, while group EBIT was NZ$58.3 million.

Managing director and CEO, Stuart Broadhurst, said it had been a difficult year for the company.

“The challenges and distractions associated with shifting manufacturing locations are now firmly behind the company,” Mr Broadhurst said.

”Going forward the company is committed to building upon recent gains, executing growth opportunities and developing products for the future.”

FPA expects demand condition to remain fragile and competitor activity to remain intense during FY11.

”The Company is well positioned to benefit from revenue growth opportunities including expanding US distribution into Sears and Lowe’s, distributing Haier products in New Zealand and Australia and the launch of Fisher & Paykel brand in China,” the company said.

”The benefits of a lower manufacturing cost base are likely to be partially offset by competitor activity, rising commodity prices, increasing sea freight charges and lease costs.”

FPA said labour costs would also increase in FY11 following the removal of the 5% salary reduction for salaried employees effective 1 April 2010.

The company said the Finance business is expected to remain resilient despite soft retail conditions in New Zealand, although any increase in interest rates would place pressure on FY11 earnings.

FPA decided against issuing profit guidance for FY11, however added that an update on trading and market conditions would be provided at the Annual Shareholders Meeting in August 2010.

As at 1050 AEST, Fisher & Paykel Appliances' shares were unchanged at 45c.

Tabcorp Holdings Limited (TAH) responded to an ASX price query saying it is aware of an article which featured in the on-line version of The Australian Financial Review’s “Street Talk” yesterday under the heading “Private equity, Crown stalking Tabcorp?”. The gambling and entertainment company’s shares climbed from a daily low of $6.34 on Tuesday morning to as high as $6.76 in the afternoon on a day the broader indices were down 3%.

The article speculated that private equity firm TPG Inc. had teamed up with Crown and that a takeover bid was looming.

Tabcorp said, today, that it is not aware of any such proposal.

As at 1019 AEST, Tabcorp shares were down 6c to $6.57.

GUD Holdings Limited (GUD) this morning said it has made a bid for shelving and racking company Dexion Limited (DEX). GUD said it would pay, off-market, 80c per share, a full 100% above Dexion’s closing price yesterday of 40c per share, valuing the company at around $109 million.

GUD, who have been given four weeks to conduct due diligence, said it expects the acquisition, if it proceeds, to be earnings per share accretive in its first full year of ownership.

GUD chairman, Clive Hall, said the rationale for the proposed offer is clear and compelling, and provides benefits for both sets of shareholders.

”The acquisition will result in a significant growth platform for GUD, adding an international dimension to the company as well as providing access to growth sectors in distribution and third-party logistics,” Mr Hall said.

”With our financial resources and access to capital, we expect to support and accelerate these opportunities.”

GUD and Dexion shares are both halted at $8.53 and 40c respectively.

Clive Peeters Limited (CPR) was placed in voluntary administration this afternoon after the company’s shares had been placed in trading halt earlier in the day as it held talks with financiers. The electrical appliances retailer said it has appointed Colin Nicol, Keith Crawford and Matthew Caddy of McGrathNicol as its voluntary administrators.

In a statement released by McGrathNicol, it said "the administrators are conducting an urgent appraisal of the company’s affairs to investigate the circumstances leading to their appointment and to determine whether the underlying business can be preserved such that all relevant options including a Deed of Company Arrangement and/or a sale of business can be fully explored".

Mr Nicol said they are mindful that many stakeholders would be affected by the appointment of voluntary administrators, including employees, suppliers and other creditors, customers, lessors and shareholders.

“It is hoped that the business can be stabilised and can continue to trade in one form or another beyond this administration,” Mr Nicol said.

McGrathNicol said a first meeting of the creditors of Clive Peeters must be convened no later than Friday, 28 May 2010.

On May 4 Clive Peeters said, in its trading update, that it expected to post a loss of about $4.5 million for the March quarter, compared to a $600,000 loss a year earlier.

”While full trading results for April 2010 are not yet available, April sales have further deteriorated with the result that the April 2010 operating loss after tax is likely to have increased compared to previous months,” the company said at the time.

Clive Peeters said the receding effect of the Government stimulus packages and interest rate increases implemented up to that time, with the possibility of more to follow, had begun to affect consumer spending.

Managing director, Greg Smith, said the combination of very subdued sales and margin pressures would materially impact the trading outlook of the company over H2 2010.

Clive Peeters shares have been suspended from official quotation.

David Jones Limited (DJS) reported sales of $417.4 million for the three months to 24 April 2010, up 1.4% on a like-for-like and total sales basis from the previous corresponding period. The company said it expects the next quarter to be challenging as government stimulus fades, however reaffirmed guidance of post-tax profit to grow between 5% and 10% over the second half of the year.

Looking even further ahead, CEO Mark McInnes also offered a cautious outlook for FY11.

“We also reaffirm our FY11 guidance of 5% – 10% growth off our FY10 base and reiterate our comments at the time of our 1H10 results, that to achieve the top end of this guidance the retail recovery will have to be in full swing, something Access Economics does not forecast until 2012,” Mr McInnes said.

Commenting on the current results, Mr McInnes said that trading in 3Q10 had been challenging, although in line with forecasts.

”We have not seen anything in the market that we did not expect, other than the unseasonably warm weather,” Mr McInnes said.

“Our core KPIs are in good shape. Our Inventory has been tightly managed, our cost efficiency programs are all on track to deliver the savings we had planned, our gross profit is well managed and our Financial Services business is performing well,” Mr McInnes said.

At the close Tuesday, David Jones shares were trading at $4.27.

Myer Holdings Limited (MYR) reported sales for the third quarter to 24 April 2010 of $671 million, which was in line with the previous corresponding period. The retailer said it anticipates trading in the fourth quarter would be challenging and reaffirmed full year guidance for sales growth of 1% to 2%, and EBIT growth of 10.7%.

Myer said on a like-for-like basis, sales for the third quarter grew by 0.3%, while total sales rose 1.4% to $2.47 billion for the nine months to 24 April.

Like-for-like sales for the nine-month period were up 0.9% compared to the previous corresponding period.

The company said home, childrenswear and menswear performed strongly during the third quarter and womenswear continues to perform well across the country.

CEO, Bernie Brookes, said it was a pleasing result after the company cycled the Federal Government’s stimulus payments and saw the impact of further interest rate rises on consumer discretionary spending.

“In anticipation of facing tough trading conditions in the third quarter, we pulled a number of levers to drive traffic and sales, including successfully utilising our MYER one loyalty program to engage our customers with relevant promotional offers,” Mr Brookes said.

”In addition, Project Blue Sky, a collaborative campaign between Myer, our suppliers and our media partners, was a huge success, with participating suppliers recording sales in excess of 10% above non-participating suppliers.”

Mr Brookes also said the company’s store expansion program remains on track, with new stores opening, refurbishments and the re-opening of Myer Melbourne.

At the close of trade Friday, Myer shares were trading at $3.11.

JB Hi-Fi Limited (JBH) reaffirmed its FY10 guidance of sales of around $2.8 billion and NPAT of between $117 million and $120 million. In a presentation today, the retailer said sales for March and April were behind internal expectations after government stimulus package supported sales last year more than it anticipated.
 
The company said it remains cautious that recent interest rate rises are impacting consumer spending, however added that this could be somewhat offset by the positive impacts of higher economic growth and lower unemployment.

JB Hi-Fi said comparative store sales in 3rd quarter were positive, while fourth quarter sales should benefit from the release of the Avatar, the launch of 3D TV and the football World Cup build up.
"Expect FY11 to be good year for sales and earnings growth as we open new stores and our recently opened stores mature,” the company said.

JB Hi-Fi said the CEO transition as gone extremely smoothly with Terry Smart now fully engaged in all areas of the business.

The company said outgoing CEO, Richard Uechtritz would retire as managing director effective the end of this month. Mr Uechtritz will consult to the company until the end of CY13.

As at 1441 AEST, JB Hi-Fi shares were up 45c to $19.22.