Venator Posts Larger Loss Than Expected
Venator Group Inc., operator of Foot Locker and Champs Sports stores, reported a second-quarter loss of $13 million, or 9 cents a share, compared with profit of $26 million, or 19 cents, as weak sales forced it to mark down prices. The loss was deeper than the 7 cents analysts expected but in line with the revised expectations Venator issued in July, citing weak apparel sales, a glut in the athletic shoe market and repercussions from Asia’s economic crisis. The company, formerly known as Woolworth Corp., said revenue fell 2.3% to $1.47 billion while sales at stores open at least a year fell 6%. Venator also said it was still planning to buy Sports Authority Inc., despite the disappointing earnings and a stock price below the $20.50-per-share “walkaway” price specified in the deal. Sports Authority was not available to comment on the deal. On the NYSE, Venator fell 19 cents to close at $12, and Sports Authority fell 6 cents to close at $9.06.
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* Novell Inc. reported a profit of $26.6 million, or 7 cents a diluted share, beating analyst expectations by a penny, as the maker of networking software cut costs and boosted revenue by selling new Internet-based products. Novell lost $87.7 million, or 25 cents, a year ago, before a charge. Revenue climbed threefold to $272.0 million. The results were announced after the close of trading.
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* Circus Circus Enterprises Inc. said its second-quarter profit edged up to $25.3 million or 27 cents a share, from $25 million or 26 cents, a year ago, as revenues rose 12% to $385 million. The company said operating cash flow rose at its Luxor and Circus Circus casinos in Las Vegas and at its properties in Laughlin, Nev., but fell at its 50%-owned Monte Carlo in Las Vegas.
