Pantry 4Q Profit Slides on Gas Results
Sanford, N.C., Convenience store operator The Pantry Inc. said Thursday its fourth-quarter profit tumbled 79%, weighed down by lower profits from gasoline sales.
Net income for the period ended Sept. 27 slumped to $5.6 million compared with $26.7 million in the prior year.
Quarterly revenue gained 20% to $2.02 billion from $1.69 billion in the previous year on regional acquisitions. Gasoline gross profits slipped to $58.9 million from $82.5 million.
For the year, earnings fell 70% to $26.7 million from $89.2 million a year ago. Full-year sales grew 16% to $6.91 billion from $5.96 billion.
Kellwood rejects (second) buyout bid
St. LOUIS (AP) Apparel maker Kellwood has rejected a $543.9 million buyout offer from Sun Capital Securities Group on Tuesday.
This is the second time in one month Kellwood has rejected the investment firm’s proposal.
Sun Capital, which owns a 9.9% stake in Kellwood, first made its bid of $21 a share in September. Kellwood’s board rejected it in October, saying the offer undervalued the company and was not in the best interest of shareholders.
On Monday, Sun Capital reaffirmed its same proposal and said it was prepared to take the offer straight to shareholders.
Kellwood, however, is standing by its previous decision.
“The Kellwood board strongly believes in the company’s ability to successfully execute its strategic plan and provide greater value to its shareholders than Sun Capital’s proposal,” Kellwood said in a written statement.
Kellwood shares rose $1.85, or 11.2 %, to close at $18.36 Tuesday. But that is still about 19 percent below the price Sun Capital is offering. Kellwood has traded in a 52-week range of $14.21 to $34.84.
Earlier this month, Kellwood announced plans to sell its Smart Shirts business and related real estate assets in separate deals generating a combined $161 million. Proceeds will be used to repurchase shares and reduce debt.
Kellwood is one of the nation’s largest apparel makers with branded and private-label products. The brands it owns include Sag Harbor and Phat Farm, while it produces clothing under licensing agreements for brands that include Calvin Klein and Claiborne.
Tesco opens in Vegas, next stop Phoenix
LAS VEGAS Tesco followed up its U.S. debut last week with a second round of openings on Nov. 14 in Las Vegas. Tesco opened five Fresh & Easy Neighborhood Markets in the Las Vegas area, adding to the six it rolled out in Southern California on Nov. 8.
Tesco has also scheduled its first openings in the Phoenix market for Dec. 5 with four stores slated to open that day. The chain also plans to enter San Diego in late November or early December. Tesco chief marketing officer Simon Uwins said the retailer hopes to have 50 Fresh & Easy stores open in California, Nevada and Arizona by February 2008.