Target to invest more than planned to enter Canada
New York City — Target Corp. plans to spend more than it had forecast this year on its entry into the Canadian market as it nails down more of the best retail locations sooner than expected.
The retailer said it will be able to “clarify” within weeks the number and locations of the first 100 to 150 stores it will open in Canada.
“We expect to close on higher value lease transactions sooner than expected,” Target CFO Doug Scovanner told analysts on a conference call Wednesday.
In January, Target announced it had bought the rights to 220 Zeller’s leaseholds in Canada for $1.82 billion.
Target said it now expects its Canadian start-up costs could run as high as $40 million to $50 million, or 16 cents to 20 cents per share this year, up from its previous forecast of 10 cents a share, Scovanner said.
“Both expected profits once we open in Canada and expected burden per share prior to opening is larger than we thought likely 90 days ago,” he said.
The company recorded $11 million in the quarter in direct start-up expenses as it began building a Canadian team to study the market and develop technology and supply chain solutions, according to The Toronto Star.
Limited Brands Q1 net income up 47%
Columbus, Ohio — Limited Brands reported Wednesday that strong sales boosted its first-quarter profit to $165.2 million, up 47% over its prior-year profit of $112.5 million. The company warned that rising costs will hurt its margins this year.
The parent of Bath and Body Works, Victoria’s Secret and La Senza previously reported a revenue increase of 15% to $2.22 billion. Same-store sales rose 15%.
Aeropostale profit plummets in Q1
New York City – Aeropostale reported Thursday that net income for the first quarter decreased 64% to $16.4 million, compared to $45.4 million last year.
Revenue rose 1% to $469.2 million, from $463.6 million. Same-store sales decreased 7%.
The company opened nine Aeropostale and seven P.S. from Aeropostale stores, and closed one Aeropostale store during the quarter.