Rite Aid Reports Wider 2Q Loss
Harrisburg, Pa., Rite Aid Corp. said Thursday that its second-quarter loss widened and said it expects to lose more than it previously forecast for the year.
Rite Aid said its loss attributable to common shareholders was $78.2 million for the three months ending Sept. 1, vs. a loss of $8.2 million a year ago.
Revenues for the quarter jumped almost 54% to $6.6 billion, up from $4.29 billion a year ago, the company said. Comp-store sales rose 1.1%, the company said.
The company said it expects to lose between $78 million and $161 million for the year, compared to its earlier prediction of a loss of $47 million to $129 million.
Rite Aid acquired 1,854 Brooks and Eckerd stores in June. In the quarter, Rite Aid opened 11 new stores, acquired one other store, relocated eight stores and closed or sold 56 stores, including 23 it divested in the Brooks and Eckerd acquisition.
Timberland to close specialty shops
NEW YORK, (Reuters) Bootmaker Timberland said it would close most of its specialty retail shops after the company said they expect their third-quarter earnings to be extremely low.
Most of the store closings will occur early next year, Timberland said, adding that it hopes to raise annual operating profits by $6 million, while lowering annual sales by about $40 million. The company said the closings are part of a transition to smaller, footwear-focused stores in the United States.
“We have decided to begin the closure of most of our specialty retail stores in the United States, as well as stores in Asia and Europe,” ceo Jeffrey Swartz said in a statement.
Sales of Timberland’s trademark work boots, a long-time fashion staple of urban consumers, have been declining recently with footwear trends moving toward sneakers.
The Stratham, N.H.-based company also said it expects third-quarter operating margins to dip 6 percentage points, a drop Timberland partly blamed on a voluntary recall of its Direct Attach Steel Toe Series footwear.
Timberland’s shares have fallen nearly 40% from their 52-week high of $33.45 on November 14. The stock closed Tuesday at $20.22 a share.
Sears Canada to sell head office
TORONTO Sears Canada is making a move by selling its head office and surrounding property in Toronto, according to reports.
The 1,400-plus employees will be relocated to the top four floors of the Sears flagship store at the Toronto Eaton Centre.
Company spokesperson Vincent Power said that the store had been underperforming as consumers have stayed away from the upper floors. He believes that the store will be more productive on four floors rather than eight. The move comes shortly after the retailer sold off its corporate jet earlier this year.
A price for the head office sale has not been disclosed, although analysts estimate that it could be worth in the range of $93.8 million USD.