Adidas Stands by Forecast
Frankfurt, Germany, German sporting-goods firm Adidas-Salomon reiterated its 2005 profit and sales forecasts and mid-term goals. Adidas, which is buying U.S. rival Reebok to further compete with bigger rival Nike, said it maintains its expectation of a 20% growth in this year’s net income.
Goody’s Family Clothing Announces Buyout
Knoxville, Tenn., Goody’s Family Clothing has reached a definitive agreement to be acquired by an affiliate of private-investment firm Sun Capital Partners Inc. in a deal worth nearly $273 million. Chairman and CEO Robert M. Goodfriend and his family, who together own 42% of Goody’s shares, previously agreed to the Sun Capital terms. Goodfriend, son of the company’s founder, will leave the chain.
Goody’s operates 368 moderately-priced clothing stores in 20 states in the South and Midwest.
Strong 4Q for Dress Barn
Suffern, N.Y., The Dress Barn Inc. posted fiscal fourth-quarter net income of $33.6 million, or $1.08 a share, compared with $13.8 million, or 45 cents a share, in the year-ago period. Net sales for the 13-week period, ended July 30, 2005, increased 48% to $307.1 million compared to the prior year’s level of $208 million. The increase was driven by the inclusion of results from Maurices, which the chain acquired in January 2005, and a same-store sales increase of 6% for the quarter.
Net sales for 52-week period ended July 30 increased 33% to $1 billion compared to $754.9 million reported for the year-ago period. Same-store sales rose 5% for the fiscal year.