Dollar Tree completes acquisition of Canada’s Dollar Giant Store
Chesapeake, Va. — Dollar Tree announced that it has completed its purchase of the assets of Dollar Giant Store Ltd, which is based in Vancouver, B.C. The purchase is Dollar Tree’s first expansion of its retail operations outside of the United States.
Dollar Giant stores offer a wide assortment of quality general merchandise, contemporary seasonal goods and everyday consumables, all priced at $1.25 (CAD) or less. The stores average 9,000 sq. ft. and operate in British Columbia, Ontario, Alberta and Saskatchewan.
Under the terms of the agreement, Dollar Tree acquired 86 Dollar Giant stores including substantially all assets, inventory, leasehold rights and intellectual property for approximately $52 million in cash, plus the assumption of certain liabilities.
Chico’s profit up 27%
Fort Meyers, Fla. — Chico’s FAS said its third-quarter profit rose 27% to $28.8 million from $22.7 million a year ago, driven by higher sales. The results beat analysts projections.
Net sales rose 8.1% to $483 million, from $446.9 million a year ago. Same-store sales rose 3.1%.
Direct-to-consumer sales, which includes online sales and isn’t included in comparable-store sales, increased about 41% to $34.4 million in the quarter.
BJ’s net income up, raises guidance
Natick, Mass. — BJ’s Wholesale Club reported third-quarter earnings Wednesday that beat Wall Street expectations on improved revenue from gas and merchandise rose. The warehouse club operator raised its earnings guidance for the year.
BJ’s net income rose to $23 million for the three months ended Oct. 30, up from $17.4 million a year ago.
Revenue rose 5% to $2.63 billion from $2.51 billion last year, just shy of the $2.64 billion expected by analysts. Same-store sales rose 2.5%, or 1.5% excluding gas sales.
There has been speculation that BJ’s might put itself up for a potential auction or seek other business alternatives since Leonard Green & Partners bought a nearly 10% stake in the company in July and said it was going to look for ways to improve shareholder value. Rumors heated up last week after a report said BJ’s had hired Morgan Stanley as a financial adviser in a potential auction to sell itself off after receiving an offer from Leonard Green.