Report: Five Below eying IPO
Philadelphia — A Wednesday report by Reuters said that discounter Five Below is said to be considering an initial public offering.
The report, citing unnamed sources, said that the Advent International- and LLR Partners-owned chain has hired underwriters and is in discussions with bankers.
Five Below is in a growth mode and could potentially command a market valuation of over $1 billion.
Securities fraud lawsuit against Best Buy dismissed
Minneapolis — Best Buy Co. said Wednesday that the U.S. District Court has dismissed putative securities fraud class actions against the retailer and three of its officers.
With regard to the class action lawsuit filed last year, the court on Tuesday dismissed all counts for lack of substantiation.
"We have maintained since the beginning of this case that the allegations are wholly without merit. We are pleased that the court’s decision has vindicated Best Buy and its officers of the unfounded accusations in the plaintiffs` complaint," said Keith Nelsen, executive VP and general counsel for Best Buy.
A San Diego law firm filed the suit in March 2011, claiming that Best Buy made false and misleading statements about its financial position, causing investors to lose money when the company’s stock plummeted.
The court denied a plaintiffs’ request to file a further amended complaint.
Fred’s Q4 profit rises 14%
Memphis, Tenn. — Fred’s reported Wednesday that net income for the fourth quarter jumped 14%, boosted by more robust sales and a favorable tax adjustment.
Profit for the quarter ended Jan. 28 rose to $9.8 million, from $8.6 million in the year-ago period.
Revenue rose 2.5% to $497.6 million, missing Wall Street’s expected $498.4 million in sales.
Same-store sales were flat.
For the full year 2011, Fred’s earned $33.4 million, up from $29.6 million in 2010. Revenue edged up to $1.88 billion from $1.84 billion.