Target Sells Stake in Credit-Card Receivables
Minneapolis Target said it is selling an interest in its credit-card receivables business to JPMorgan Chase for about $3.6 billion. The retailer said the interest represents about 47% of the principal amount of Target’s outstanding receivables.
The deal is expected to close before the end of the month.
Target said the deal will provide it “significant liquidity” without the need to access term debt capital markets again this year and will not affect Target customers.
Target began to review options for its receivables business in September.
Cabela’s posts 1Q sales increase
SIDNEY, Neb. Cabela’s posted total revenue of $535.5 million for its first quarter ended March 29, an increase of 15.9% over last year’s $462.1 million.
Net income for the quarter increased 39.4% to $10 million, or 15 cents per diluted share, compared to $7.1 million, or 11 cents per diluted share, for the like 2007 period.
“We are very pleased with our 70% growth in consolidated operating income for the first quarter of the year, despite ongoing challenges in the consumer environment,” said president and ceo Dennis Highby. ” … We remain focused on improving retail store profitability and are already seeing positive benefits from initiatives we put in place last year. We have improved four-wall contribution and lowered inventory per square foot in our comp stores. At the same time, we remain on track with our store expansion plans and expect to open a new store in Scarborough, Maine, on May 15 and another in Rapid City, S.D., in August.
“We are committed to taking the necessary steps to improve our business across the board and are pleased with the traction we are getting with our initiatives to drive retail profit improvement,” continued Highby. “We remain confident our leadership position in the marketplace will afford us significant growth opportunities well into the future.”
Walgreens posts 7.9% April sales boost
DEERFIELD, Ill. Walgreens today announced April sales of $4.85 billion, an increase of 7.9% over last year’s $4.49 billion. Comparable-store sales rose 1.6% while comparable-store front-end sales decreased 3.1%.
April sales were affected negatively this year due to an earlier Easter that helped boost sales in March. Sales for the two months, combined, increased 9.2% over 2007. Comparable-store sales for March/April rose 3% while comparable-store front-end sales rose 4%.
Front-end sales for the drugstore chain were aided by allergy medicine Zyrtec, which recently switched from prescription only to over-the-counter.
Aril pharmacy sales rose 10.8% and comparable-pharmacy sales rose 4.2%.
Walgreens opened 38 drugstores in April—including four relocations—acquired eight and closed 3. At April 30, the company operated 6,614 locations.