Gander Mountain Company Reports 4Q and Fiscal Year Results
Minneapolis, Gander Mountain Co. today reported that net income for the fourth-quarter fiscal 2004 was $17.6 million, or a 42% increase over the $12.4 million reported for the same period in 2003. Sales increased 30.3% to $237.2 million, while comp-store sales decreased 5.4% in the fourth quarter. Net income for the year ended Jan. 29, 2005, was $0.8 million, compared to $0.7 in fiscal 2003. Sales for fiscal 2004 increased 31.2% to $642.1 million, vs. $489.4 million in 2003. Comp-store sales decreased 2.5% for the fiscal year. Gander Mountain said it has adjusted its method of lease accounting and will restate its historical financial statements.
“We certainly are not satisfied with our bottom-line results in 2004. However, we remain confident in our ability to grow this business profitably in 2005 and beyond,” said president and CEO Mark Baker in a statement. “We continue to be excited about Gander Mountain’s customer-focused culture that is fostered by our more than 5,000 great associates every day.”
Investors Bid $5 Billion for Toys ‘R’ Us
Paramus, N.J., Aprivate-investment group led by Cerberus Capital Management LP has offered to buy Toys “R” Us Inc. for about $5 billion, according to today’s Wall Street Journal. Reportedly, the bid was placed last month, but garnered a cool response from Toys “R” Us.
In addition to Cerberus, the investment group includes Goldman Sachs Group Inc. and Kimco Realty Corp. Other suitors for the toy retailer reportedly include Kohlberg Kravis Roberts & Co.; a partnership between Apollo Advisors LP and Permira Advisors Ltd.; and an alliance between Bain Capital LLC and Vornado Realty Trust.
Staples to Sell Office Supplies in Ahold Stores
Framingham, Mass., Staples and Ahold USA forged an alliance under which the office-products retailer will sell its goods in Staples-branded aisles at Ahold supermarkets.
Staples will make its debut at Ahold’s 550 Stop & Shop and Giant-Landover supermarkets in July, in time for the back-to-school selling season. The aisles will stock between 500 and 1,200 school and office supplies, a good chunk of the 7,500 items Staples stores typically carry.
The arrangement mirrors a deal under which Albertsons sells some toys in its stores through a collaboration with Toys “R” Us. Albertsons also has a similar arrangement in some markets with Staples rival Office Depot.