Retail Ventures Reports 4Q Loss
Columbus, Ohio Retail Ventures reported that its loss for the fourth quarter ended Feb. 2 totaled $125.7 million, up from a loss of $35.9 million in last year’s fourth quarter. Last year’s fourth quarter was hit with a $65.2 million charge from a drop in the value of derivatives, vs. a gain of $19.5 million from derivatives in this year’s fourth quarter.
However, Retail Ventures recorded a $116.7 million loss from discontinued operations in the quarter, when it sold an 81% stake in its Value City Department Stores chain.
Fourth-quarter sales fell 2% to $452 million from $458.9 million as the company’s Filene’s Basement chain saw an 8% decline in sales to $119.5 million. The decline was offset by a 1% gain in sales at DSW stores to $332.5 million.
Full-year earnings for Retail Ventures hit $51.4 million vs. a loss of $150.9 million last year. This year’s results include a $150.7 million loss on discontinued operations, offset by a $248.2 million gain from derivatives. Last year’s loss was driven by a $176 million hit from derivatives.
Revenue for the fiscal year grew 9% to $1.87 billion from $1.71 billion as sales at DSW and Filene’s increased. However, same-store sales were up only 0.3%, pulled down by a 0.8% same-store sales decline for DSW.
Sharper Image agrees to sell company
SAN FRANCISCO Sharper Image reported that it has decided to pursue a sale of its business and assets pursuant to the provisions of the bankruptcy code and will solicit indications of interest from potential acquirers.
The company notified interested parties that any sale will be subject to approval of the bankruptcy court having jurisdiction of the company’s chapter 11 case.
The company said it intends to complete the sale process and seek approval of the sale by the bankruptcy court by the end of May 2008.
Robert Conway, ceo, said that “given the present retail climate and specialty nature of the company, as well as the limited financing available to the company, a sale of its business and assets at this time will preserve values and yield the best recovery to the company.”
Supervalu offers incentives for rebate use
MINNEAPOLIS Supervalu is encouraging customers to spend their stimulus or tax refund checks in its stores by offering gift cards in $300 increments with an extra $30 added to each card. The offer is available May 2 through July 31, at all Supervalu stores.
“We recognize that in today’s economy, consumers’ budgets are strained,” said Jeff Noddle, Supervalu chairman and ceo. “At the same time, however, they still want to feed their families fresh and healthy meals, affordably. We’re always looking for ways to help our shoppers stretch their food dollars even further, and this is a program that we hope can help them achieve that.”