Report: Inditex pays $400 million for Fifth Ave. Zara space
New York City — Spain’s The Inditex Group of Spain will pay $400 million for a flagship Zara retail store at 666 Fifth Avenue in Manhattan.
According to a report by the Wall Street Journal, who cited people familiar with the matter, the transaction is one of the largest retail condominium deals ever. Zara bought out a 32,000-sq.-ft. lease from former occupant NBA store, which had less than three years remaining, according to the report.
The $400 million consists of the purchase price plus the costs associated with the lease buyout. The seller of the retail condo to Inditex is a joint venture of Stanley Chera’s Crown Acquisitions, Carlyle Group and Kushner Cos. The condo is part of a larger, 90,000-sq.-ft. space also occupied by Hollister and a soon-to-open Uniqlo.
Urban Outfitters profit dips in Q4
Philadelphia — Urban Outfitters reported Monday that net income for the quarter ended Jan. 31 dipped slightly to $75 million, compared with $77 million in the year-ago period.
For the full year, profit rose to $273 million from $220 million a year earlier.
Fourth-quarter net sales rose 14% to $668 million. Same-store sales for the quarter increased 4%. By brand, same-store sales rose 1% at Anthropologie, 28% at Free People and 5% for Urban Outfitters.
During the year ended January 31, the company opened a total of 46 new stores including: 21 Urban Outfitters stores, 16 Anthropologie stores and nine Free People stores.
Report: American Eagle looking for new chief executive
New York City — American Eagle Outfitters is looking for a new chief executive, the Wall Street Journal reported.
James O’Donnell, 70, has been CEO since 2003 and is said to be retiring, according to the report. Chairman Jay Schottenstein, a longtime retailer who also chairs the board of discount footwear chain DSW, is heading the board’s search. Schottenstein was CEO of the company from 1992 to 2002.