Venator Grp Puts 4Q, Yr Per-Share Net Within Analysts' Views
NEW YORK (Dow Jones)--Venator Group Inc. (Z) expects to report fourth-quarter and fiscal 1998 earnings within the range
of current analysts' estimate.
A First Call survey of four analysts put the company's fourth-quarter earnings at 23 cents a share and 1998 earnings at $1.58 a
share.
In a press release Tuesday, Venator said it plans to reduce 1999 capital spending to about $175 million from $550 million, in
an effort to increase cash flow by limiting capital expenditure and improving capital productivity.
Venator Group said it also plans to reduce operating expenses by $100 million in part by reducing corporate overhead costs to
1% of sales by 2001.
The retailer said it formed a new unit, eVenator Inc., to focus on Internet commerce and direct marketing.
The Internet unit also will focus its retail divisions on their day-to-day operations.
Jeffrey Branman, a senior vice president and Harry Colcord will serve as eVenator's co-chief executives.
Colcord was chief executive of the company's EastBay direct marketing unit, which will become a unit of eVenator.
Venator said it sees "significant" growth opportunites in the athletic market despite increased competition.
The company said it doesn't expect a recurrence of product oversupply that caused markdowns in 1998, because supplier
inventories in 1999 have stabilized.
Venator, a retailer of diversified products, cited good sales of its exclusive Tuned-Air Nike running shoe, a high-ticket product,
resurging enthusiasm for professional sports and the advent of the 2000 Olympics, as reasons for its improved outlook.
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