Brown Shoe names Diane Sullivan CEO
St. Louis— Brown Shoe Co., which operates Famous Footwear Stores, said Thursday it has named Diane M. Sullivan president and CEO.
The company announced in January that it had promoted Sullivan, its president and COO. She steps into the role Thursday following a four-month transition period from chairman and CEO Ronald A. Fromm.
Fromm remains Brown Shoe’s chairman of the board.
Fred’s net income increases 16%
MEMPHIS, Tenn. — Fred’s net income increased 16% to $9.5 million, or 24 cents per diluted share, compared with net income of $8.2 million, or 21 cents per diluted share in the year-earlier period.
The retailer said that total sales rose 3% to $484.4 million from $471.6 million for the same period last year. For comps, Fred’s reported a 1% rise on top of a 2.2% increase for the first quarter last year.
Fred’s gross profit for first quarter 2011 increased 1% to $137.9 million from $136.9 million in the prior-year period.
During the first quarter, Fred’s opened one new store and four pharmacy express locations and closed seven underperforming stores and one pharmacy express location as part of its 2011 operating plan. Additionally, one franchise also was closed during the quarter. The company also remodeled and refreshed 56 stores with its new Core 5 elements in the quarter, bringing the total stores upgraded to 264 during 2010 and 2011.
Looking ahead, Fred’s expects its earnings per share to increase between 8% and 23% for the second quarter to a range of 14 cents to 16 cents.
Target reveals initial locations in Canada
MINNEAPOLIS — Target has unveiled the first wave of the Zellers sites it will be taking over in Canada, representing 105 locations in all 10 Canadian provinces. The vast majority of the sites will become Target stores after securing the necessary construction approval for extensive renovation. The stores will open beginning in 2013.
The majority (45) of the locations are in Ontario, with 19 in Quebec. The other Canadian locations include 15 in British Columbia, 13 in Alberta, five Manitoba, two each in Saskatchewan, Nova Scotia and Newfoundland and Labrador, and one each in New Brunswick and Prince Edward Island.
Each selected site is subleased to Zellers and will continue to operate as a Zellers store for some time. Six to nine months prior to opening as Target stores, the majority of stores will be closed for significant remodeling. On average, about $10 million will be invested in remodeling each location
“We look forward to completing our selection process during the next several months, moving us one step closer to delivering the Target brand shopping experience to our Canadian guests." said Tony Fisher, president, Target Canada.
Target also announced that it Canadian headquarters will be located in Mississauga, Ontario. The company will occupy about 180,000 sq. ft. in a building that was built to LEED (Leadership in Energy & Environmental Design) Gold standards and is owned by Healthcare of Ontario Pension Plan. After some remodeling, the majority of Target’s Canadian corporate team will begin occupying the space in early 2012.