Syms Plans to Stay Public
Secaucus, N.J. Syms Corp.’s chief executive announced at Thursday’s annual meeting that the company will remain a public company, according to Reuters.
Chief Executive Marcy Syms, who along with her father owns the majority of the company’s shares, told investors at the meeting that the retailer is not a real estate development company, but defended its decision to own part of its retail space. She followed up the comment by confirming the company has no plans to take Syms private.
“The answer is absolutely not,” she said, according to papers filed with the Securities and Exchange Commission.
Syms, whose motto is “An educated consumer is our best customer,” has been criticized by several hedge funds that the company has failed to disclose all of its real estate holdings.
One of the activist hedge funds it has been battling with is Esopus Creek Advisors, which owns nearly 4% of the retailer.
Minority investors have prodded Syms to do more with its real estate holdings to boost shareholder value.
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.