by David Bodamer February 1st, 2008
The program will include closing 117 underperforming stores over the 2008-2010 period; downsizing the company’s headquarters staff by approximately 13%; and a “broad-based productivity initiative, including the strategic procurement of non-merchandise goods and services, to improve efficiencies and effectiveness across the organization and store base.”
“Following a very thorough review of our entire business and cost structure, we are taking actions to enhance our overall effectiveness and improve our profitability,” said president and ceo Kay Krill, “and we believe that doing so will increase our operating margin by more than 200 basis points over the next three years.”
For 2008, said Krill, the company will open fewer Ann Taylor and Loft stores and delay the test of its new concept until 2009.
The company plans to close 64 of the 117 targeted stores during fiscal 2008. By division, it is planning to close 25 Ann Taylor stores in fiscal 2008, with an additional 14 stores slated for closure in fiscal 2009-2010; and 39 Loft stores are expected to be closed in fiscal 2008, with 39 additional stores slated for closure in fiscal 2009-2010. The company said it also expects to continue to close other stores over the 2009-2010 period as part of its normal business process.
In 2008, the company plans to open four Ann Taylor stores, 15 Loft stores and 20-25 Ann Taylor Factory stores. In addition, it is proceeding with its rollout of Loft Outlet, planning to open 10 of those stores in fiscal 2008.
Link.
Related Topics: News, Retail, Trends |
by David Bodamer February 1st, 2008
Simon Property Group was the first regional mall REIT to report fourth quarter results. (It’s having its conference call at 11:00 and you can listen in via Webcast here).
The firm’s results are very strong. Funds from operations for the fourth quarter were $1.76 on a per diluted share basis, up 12.7 percent and $5.90 per diluted share for the full year, up 10.1 percent.
And here are some other interesting stats from its portfolio.
| Metric |
As of Dec. 31, 2007 |
As of Dec. 31, 2006 |
Change |
| Mall Occupancy |
93.5% |
93.2% |
+30 basis points |
| Premium Outlets Occupancy |
99.7% |
99.4% |
+30 basis points |
| Community/Lifestyle Centers Occupancy |
94.1% |
93.2% |
+90 basis points |
| Mall Sales per Sq. Ft. |
$491 |
$476 |
+3.2% |
| Premium Outlets Sales |
$504 |
$471 |
+7.0% |
| Mall Rent per Sq. Ft. |
$37.09 |
$35.38 |
+4.8% |
| Premium Outlet Centers |
$25.67 |
$24.23 |
+5.9% |
| Community/Lifestyle Centers |
$12.43 |
$11.82 |
+5.2% |
For 2008, the company is providing guidance of full year FFO of $6.25 to $6.45 per share. It is projecting occupancies will be down slightly to where they are now, but is projecting it will be able to raise rents. Its projected releasing spreads are 15% to 25% on its mall portfolio, 25% to 35% on its Premium Outlet Centers and 5% to 15% on its Community and Lifestyle Centers.
Related Topics: Finance, News, REITs, Retail Real Estate |
by David Bodamer February 1st, 2008
Lord & Taylor, the venerable New York City retailer, is in talks aimed at acquiring Fortunoff, a Long Island institution that has been struggling in the last few years, a source close to the matter said yesterday.
The talks had been ongoing for some time, but broke off about two weeks ago and have since resumed, the source said.
“Lord & Taylor got up and left the table two weeks ago,” the source said. “But they’ve come back to the table, maybe thinking they’re going to get a better price” for Fortunoff, which is considering filing for Chapter 11 bankruptcy protection, according to a report this week in Home Furnishings News.
Link.
Related Topics: News, Retail |
