Signet Group Plans to Trade on NYSE
London Signet Group PLC, the parent company of Kay Jewelers, said Thursday that its board is proposing to move its primary listing to the New York Stock Exchange from the London Stock Exchange, according to the Associated Press.
In a connected move, the company would also relocate its London-based headquarters to Bermuda. Signet said the transitions would be in the best interest of its shareholders.
The company believes the listing change would align the company more closely with its U.S. operations, a division that encompasses 70% of the company’s sales, according to the report. To coincide with the exchange move, the company will don the name Signet Jewelers Ltd., and implement a 20-for-1 stock split to allow it to trade more closely with peers.
“The proposal will align the place of primary listing with the group’s business activities, which are predominantly based in the U.S., and where the board expects the majority of its future growth to take place,” chairman Sir Malcolm Williamson said in a statement.
The company also plans to apply for a secondary listing on the London Stock Exchange when it begins trading on the NYSE.
The proposal is subject to shareholder approval.
Walgreens to reduce drug store growth
DEERFIELD, Ill. Walgreens reported that it plans to reduce its organic drug store growth from about a 9% increase for the current fiscal 2008 year to about 6% in fiscal 2010 and to about 5% annual increases beginning in fiscal 2011.
Previously, the company had planned a long-term store growth rate of 8 %. New store openings that are already in the pipeline are expected to result in approximately 8% organic store growth in fiscal 2009.
According to Walgreens, its planned future expansion rates are the equivalent of opening about 495 net new organic stores in fiscal 2009, 425 in fiscal 2010 and 365 in fiscal 2011. These new growth targets resulted from the company’s regular review of its growth and capital expenditure plans.
“This move allows us to improve both return on invested capital and overall shareholder value,” said Walgreens chairman and ceo Jeffrey Rein. “At the same time, it gives us the flexibility to invest in our core strategies.”
Tuesday Morning 4Q sales drop 10.4%
DALLAS Tuesday Morning reported net sales for the fourth quarter ended June 30 were $196.5 million compared to $219.4 million for the quarter ended June 30, 2007, a decrease of 10.4%.
Comparable-store sales for the quarter ended June 30 decreased by 12.7% comprised of an 11% decrease in traffic and a 1.8% decrease in average ticket.
Based on the fourth quarter sales results, the company currently expects diluted earnings per share for the fourth quarter to be in the range of (5 cents) to (8 cents) compared to 5 cents for the same period last year.