rost is kicking ....b...
read 'em adn weep!!!
News Alert from San Fransisco Business Times via Quote.com
Topic: Ross Stores Inc
Quote.com News Item #2298134
Headline: Heartened retailers see more good news in store
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February's retail results delivered mostly good news for Bay Area
retailers, with only a couple of surprises and no major crises on
the horizon.
Three locally based retailers beat the national average of 2.3
percent growth in sales for stores open a year or more, and all but
one beat it for overall company sales.
Just as the company has been receiving some attention as a potential
turnaround play, Union City-based Natural Wonders suffered a
setback, reporting a 7 percent decline in same-store sales after
seeing some progress in recent months. Because the company has been
closing stores during the last year, its total sales were merely
dinged, falling 4.2 percent.
In a statement that does not portend an immediate fix, company
President Kathleen Chatfield blamed much of the decline on a
particularly bad reception to its spring merchandise line.
The Gap surprised some with a flat month, coming in dead even with
last year's same-store sales. But the San Francisco-based apparel
juggernaut still picked up a healthy 13 percent gain in total sales.
Sharper Image was happy to see a gain, but produced only 2 percent
same-store growth and 11 percent overall. At the same time, the San
Francisco-based company an-nounced it will shut down its 1-year-old
Spa division experiment, as the first step in newly recruited Barry
Gilbert's efforts to boost the company's operations as vice chairman
and COO.
Men's Wearhouse of Fremont produced a 3 percent gain in comparable
store sales, which was respectable, particularly in light of
stepped-up efforts to expand sales beyond stores open more than a
year. Companywide sales were up 27.3 percent, aided by the addition
of 17 lower-priced C&R Clothier stores it just added. The company
announced that segment will balloon again in coming months with the
addition of 43 Kuppenheimer stores in the Midwest.
Gymboree Corp. produced a 5 percent same-store sales jump to support
26 percent growth overall. That reversed a dismal last few months at
a time when the Burlingame company hopes to turn things around since
jettisoning CEO Nancy Pedot last month.
Off-price retailer Ross Stores continued its tear, posting
comparable store sales of a whopping 14 percent. With full-price
competitors holding firm to a commitment not to discount heavily,
Newark-based Ross continues to reap rewards from value-conscious
customers.
Expansion pushed total Ross sales up 21 percent for the month.
Suit tries to catch Levi with its pants down
Levi Strauss & Co.'s recently announced plans to sell its
Brittania jeans line is causing some legal problems for the apparel
giant, with a Brittania's licensee suing the company for $37 million.
New York-based Nantucket Industries has licensed the brand name from
the Seattle-based Levi subsidiary since 1988 to sell a men's
underwear line, and renewed the license in January - just three
weeks before Levi announced its plan to sell Brittania. Nan-tucket
is asking for $37 million, based on $3.7 million in existing
inventory, projected lost revenues based on its history with
Brittania and an exit value for the license.
Nantucket sold $14.6 million worth of the underwear last year.
The dispute has an interesting twist in that it was only last year
that Levi began allowing the licensee to use the tag "Brittania from
Levi Strauss," and Nantucket claims that the new license contains
provisions recognizing the added cachet of the Levi tag on the brand.
"They had a meeting in December in Seattle in which licensees asked
directly about the future of the brand, and every message was that
it had full support," said Jody Davis, attorney for Nantucket. "The
new agreement forbids Nantucket from selling competing brands."
Because of its permission to use the Levi name with the Brittania
license, Nantucket said it dumped a 15-year licensing deal to
produce Brut underwear to devote its full attention to the Brittania
line.
Nantucket took on a new $3.5 million financing deal last summer,
which it claims was based on the new use of the Levi name. It is
alleging breach of contract, negligent misrepresentation and unfair
competition by Levi in deciding to dump the Brittania line.
Central Garden adds to its East Coast turf
Lafayette's Central Garden & Pet Co. continued its single-minded
quest for a nationwide distribution network for lawn and garden
products, purchasing an equity stake in Commerce, a Baltimore-based
distributor serving New England and the Mid-Atlantic states.
Central Garden had already established a relationship with Commerce
which is the second-largest garden supply distributor after itself
but the equity investment of undisclosed size will solidify its
position with the $110 million regional distributor and give Central
Garden a stronger position on the East Coast. The company owns
distribution facilities in every part of the nation except the
Northeast. Treasurer Greg Reams said this deal brings it one step
closer to acquiring Commerce.
"We are making a one-third equity investment," said Reams, "and
getting an option to acquire the balance within five years." |
