DJM Realty to head PacSun demo disposition
MELVILLE, N.Y. Pacific Sunwear of California as selected DJM Realty as the exclusively manager of its national disposition of all 173 demo store leases.
As of Jan. 2, Pacific Sunwear operated 841 PacSun stores, 120 PacSun Outlet stores, 154 demo stores and 6 One Thousand steps stores for a total of 1,212 in 50 states and Puerto Rico. 19 of the stores being marketed by DJM Realty had been previously unresolved lease terminations.
Pacific Sunwear said it decided to close the remaining 154 demo stores following a review of strategic alternatives. “We strongly believe that the best course for enhancing shareholder value is to focus our attention and resources on the PacSun business. We have retained industry leader DJM Realty to dispose of the remaining stores and trust that through our partnership we will accomplish maximum real estate returns,” said Sally Frame Kasaks, chairman and ceo of Pacific Sunwear.
According to Peter Lynch, principal of DJM Realty the properties range from 1,800 to 4,100 square feet and operate in 34 states.
GameStop holiday strong, raises 4Q outlook
GRAPEVINE, Texas GameStop announced today that it is raising its fourth quarter 2007 comparable-store sales and earning guidance following a strong holiday period.
The company reported that it is raising its fourth quarter 2007 comparable-store guidance from a range of 7% to 9%, to a range of 15.5% to 16.5%. Full year comparable-store sales are now expected to be in a range of 23.5% to 24.5%. The company expects fourth quarter diluted earnings per share guidance to be in a range of $1.09 to $1.10. Full year earnings per diluted share guidance is now forecast to be in a range of $1.75 to $1.76, which is 13 cents per share higher than guidance issued on Nov. 20.
For the nine-week holiday period ending Jan. 5, the GameStop reported total sales of $2.3 billion, a 34.7% increase from the prior year holiday period of $1.7 billion. Comparable-store sales for the holiday period increased 20%.
Richard Fontaine, chairman and ceo, commented, “Driven by robust domestic and international sales, GameStop achieved the most successful holiday season results ever. Video game software sales grew by 45%, while the next generation installed base is now triple last year’s base and a very positive leading indicator for future sales growth.”
Wal-Mart exceeds Dec. comps guidance
BENTONVILLE, Ark. Wal-Mart citied strength in its pharmacy, grocery and electronics businesses as key drivers of a 2.6% increase in December same store sales.
That figure was at the upper end of the company’s guidance of a 1% to 3% increase and exceeded analysts’ estimates of 1.8% increase.
Total sales for the Wal-Mart’s U.S. stores division increased 5.6% to $29.7 billion during the five-week December reporting period ended January 4.
“Wal-Mart’s food performance was very strong, which helped drive traffic to other areas of the stores,” said Eduardo Castro-Wright, president and ceo of Wal-Mart Stores U.S. “Our price leadership position was clear very early in the holiday season and customers responded throughout the period to our pricing and merchandise offerings which were support by well-integrated advertising and in-store communication.”
Faster, friendlier checkouts and an overall improvement to the in-store experience also contributed to the results, according to Castro-Wright.
“Within the food category, products related to entertaining and holiday baking performed well. Electronics was strong across the board. In apparel, sales were strong in seasonal and licensed items,” Castro-Wright said.
The company said it Sam’s Club division continued to perform well as it posted a 1.3% same store sales increase. Total sales increased 4.3% to $4.9 billion. The international division saw the largest increase as sales advanced 18.2% to nearly $12 billion.
Wal-Mart maintained it previously states guidance of fourth quarter earnings per share between 99 cents and $1.03.