Gap Inc. Backs Full-Year Forecast
New York City, Gap Inc. on Wednesday affirmed its full-year financial estimate, adding that results were approaching the high end of its forecast.
“We remain comfortable with our earnings per share guidance of $1.12 to $1.17, and we are trending to upper end of that range,” said Gap CFO Byron Pollitt, speaking at an investor conference held by SG Cowan & Co. in New York City.
Gap last Thursday reported that same-store sales fell 9% in December; its 13th same-store sales decrease in the past 14 months. Pollitt attributed the decline to poor customer traffic at Gap’s three divisions.
“Over the past several seasons, our product efforts got off track,” Pollitt said. “Christmas and holiday continued to be difficult. At the same time however, tight inventory management drove merchandise margins slightly above prior year for the month.”
Alberto-Culver to Sell Sally Beauty to Regis
New York City, Alberto-Culver said Tuesday that it signed a $2.6 billion agreement to spin-off the Sally Beauty Co. retail chain and merge it with Regis Corp.
The combined company will include Sally Beauty’s 2,419 namesake stores and 822 BeautySystems Group outlets and Regis’ 10,952 beauty salons. The salons operate under such brand names as Regis, Supercuts, Trade Secret and Vidal Sassoon.
The boards of Alberto-Culver and Regis have voted to approve the transaction, which is still subject to both shareholder and regulatory approval. The deal is expected to be completed in late spring or early summer.
Home Depot Buys Hughes Supply for $3.47B
Atlanta, The Home Depot announced an agreement to acquire the Orlando, Fla.-based construction, repair and maintenance-products distributor Hughes Supply Inc. The deal is valued at $3.47 billion, including the assumption of $285 million in net debt.
The addition of Hughes Supply will double the size of The Home Depot Supply division. Combined annual sales are estimated to be near $12 billion. Hughes, which operates more than 500 stores in 40 states, gathered revenues of $4.4 billion in its last fiscal year.
In a separate deal, Home Depot purchased Chem-Dry, a Logan, Utah-based provider of carpet and upholstery cleaning. Terms of the deal are undisclosed. Home Depot said it has not yet decided if the Chem-Dry locations will carry The Home Depot name.