Prada renews early at SL Green’s 724 Fifth Avenue
New York — Prada has renewed the lease for its New York City flagship store at 724 Fifth Avenue, according to SL Green Realty Corp. and Jeff Sutton, a partnership that owns the building.
The early lease renewal — the existing lease will not expire until 2017 — will keep one of the world’s iconic fashion and accessory houses at the prime Manhattan location through 2028. Prada occupies 15,540 sq. ft. on four levels, plus another 5,200 sq. ft. of office space on the fifth floor of the building.
The SL Green/Sutton venture acquired the building in early 2012, as part of a strategy to invest in the city’s important retail locations. SL Green and Sutton also control interests in the retail condominium of 717 Fifth Avenue, 720 Fifth Avenue, 609 Fifth Avenue and the entire retail portion of 650 Fifth Avenue.
Changes for Dollar General’s board
Dollar General has announced that Raj Agrawal and Adrian Jones have resigned their spots in the company’s board of directors, effective Dec. 5. Agrawal, a member of KKR & Co., and Jones, a managing director at Goldman, Sachs & Co., have served as directors of Dollar General since 2007.
The entity controlled by KKR and Goldman Sachs, which purchased the company in 2007, now owns less than 2% of the company’s outstanding common stock. Based on this reduced level of ownership, KKR and Goldman Sachs have determined to reduce or eliminate, as applicable, their representation on the company’s board. Mike Calbert, a member of KKR, will continue to serve as the lead director.
“Raj and Adrian have made substantial contributions to the success of Dollar General. Their judgment and financial acumen have benefited both Dollar General employees and shareholders, and I appreciate their support over the years. On behalf of the entire board of directors, I thank them for their service to Dollar General,” said Rick Dreiling, chairman and CEO.
Holidays not looking so happy for Kohl’s
Kohl’s issued a grim fourth quarter sales forecast after third quarter same store sales fell 1.6% and profits fell short of expectations.
The operator of 1,158 stores nationwide announced new merchandising initiatives involving Juicy Couture and Izod, but those programs won’t hit stores until the fall of 2014. In the meantime, Kohl’s said total sales for the third quarter ended November 2, declined 1% to $4.4 billion while profits declined even more sharply with net income falling 18% to $177 million and earnings per share declining 11% to 81 cents, below the 86 cents analysts had forecast.
“As we enter the Holiday season, we believe we are well-positioned from a merchandise content and inventory perspective to gain market share,” said Kevin Mansell, Kohl’s chairman, president and CEO. “We have increased our marketing spending and improved its impact and reach in order to drive higher traffic to our stores and on-line. Our customer will find the perfect gift for everyone on her shopping list at Kohl’s and will be excited by the value she receives in both our only-at-Kohl’s and national brands."
Kohl’s optimism regarding the effectiveness of its marketing programs is not reflected in its fourth quarter sales and earnings forecast. The company said it expects total sales to decline between 2% and 4% and same store sales to be flat to down 2%. As a result, the company forecast fourth quarter profits in the range of $1.59 to $1.74, with analysts’ consensus estimate at $1.69. The retailer lowered its full year profit forecast to a range of $4.08 to $4.23 per share from a prior forecast of $4.15 to $4.35 per share.
And in a move that suggests the company is weary of quarterly scrutiny from investors announced plans to provide only annual financial guidance beginning in 2014.