Target Will Not Pursue Pershing Square Spin-Off
Minneapolis Target Corp. said Friday it will not implement a major shareholder’s proposal to create a real estate investment trust, describing the value it would create as “highly speculative.” Investor William Ackman, who runs hedge fund Pershing Square, has proposed separating the land Target owns underneath its stores and distribution centers.
The retailer said Friday that after evaluating the proposal, it will not pursue the deal given the costs, risks and loss of financial flexibility. It said its concerns are heightened given the current economic environment.
“Target does not share Pershing Square’s perspective that execution of this proposed transaction will generate measurable shareholder value over time and believes the risks, particularly in light of the serious challenges facing our retail and credit-card segments in 2008 and 2009, are significant,” said Gregg Steinhafel, president and CEO of Target Corp., in a statement. “Both our Board and executive team remain firmly committed to generating value for our shareholders and expect to achieve this objective over the next three to five years through our continued, thoughtful focus on our current strategy and core business operations.”
Barnes & Noble posts 3Q loss, lowers outlook
NEW YORK Barnes & Noble reported sales for the third quarter of $1.1 billion, a 4.4% decrease compared to the prior year. Barnes & Noble store sales decreased 4.4% to $971 million, with comparable-store sales decreasing 7.4% for the quarter.
The third quarter net loss was $18.4 million or 34 cents per share.
“A significant drop off in customer traffic and consumer spending impacted our business in the third quarter,” said Steve Riggio, ceo of Barnes & Noble. “In a challenging environment with a comparable-store sales decline of 4.6% this year, the company has aggressively managed expenses to operate profitably. Furthermore, the company is taking measures to reduce expenses for the balance of this year and next.”
For the fourth quarter, the company expects comparable-store sales at Barnes & Noble stores to decline 6% to 9%. Fourth quarter earnings per share is expected to be in a range of $1.40 to $1.70. For the full year, the company now expects comparable-store sales at Barnes & Noble stores to decline 5% to 6%. Full year earnings per share is expected to be in a range of $1.30 to $1.60, compared to previous guidance of $1.70 to $1.90.
Dollar General pushes back Thanksgiving sales
GOODLETTSVILLE, Tenn. Dollar General announced that it will offer holiday deals a full weak ahead of the traditional Thanksgiving holiday shopping weekend.
Starting the Sunday before Thanksgiving, customers will find special savings on items such as DVD players, holiday decorations and gaming systems.
Promotions will continue during the Thanksgiving weekend with deals on cell phones, jeans and MP3 players.