Week ahead in retail: Dollarama shines

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The week ahead will offer some interesting earnings reports.

A Bodes Well For A Fourth Quarter: Dollarama reported fiscal fourth quarter revenue and net income that were above Wall Street’s expectations as well as its guidance for the coming fiscal year. The good news sent its shares up 9% in trading on Thursday. The shares have performed well this year as of late, up more than 15%.

The Numbers: Dollarama earned 87 cents per share in its fiscal fourth quarter that ended April 30. That was higher than the 75 cents forecast by analysts surveyed by Zacks Investment Research. Revenue was $783.5 million, well above the $761.5 million that was expected. Dollarama said it expects fiscal 2018 earnings to be between $4.12 and $4.30 per share, up from its earlier forecast for a range of $4.06 to $4.28.

New Penny Lane Sells: Kinross Gold Corp. is teaming up with a privately-held parent company of a retailer of retail food in three Canadian cities to open more than 800 stores that sell mostly food. The Toronto-based company makes the formal announcement on Monday that it’s acquired about a third of the STK Winnipeg region for an undisclosed amount.

Perry, Woodley, Jeff: Former U.S. Secretary of State Condoleezza Rice, model and fitness guru Heidi Klum and Oprah Winfrey are part of the cast for season two of the hit ABC reality TV series “Dancing with the Stars.”

The Numbers: Rice will be paired with pro Mark Ballas, Klum with dancer Artem Chigvintsev, Winfrey with new pro Alan Bersten and Woodley with partner Brandon Armstrong. The new season premieres on Monday, September 24 at 8 p.m. ET on ABC.

With its recent deal, Kinross said it will acquire management rights for STK, a multiple concept chain that mainly sells freshly prepared quick-food choices in gas stations, convenience stores and similar outlets.

Gloria’s Appointment: Jamie Dimon, chairman and CEO of JPMorgan Chase, will be named chairman of the Federal Reserve Board, the bank said on Friday. He succeeds Janet Yellen.

The Numbers: Dimon was elected to the position last year. He had previously served as a Fed governor from 2002 to 2008.

Any Numbers?

Sears Holdings’ share price plunged nearly 20% on Friday after reports surfaced that a debt-restructuring proposal is being considered at the retailer.

Under a proposed plan, the company may borrow up to $4.4 billion against future unsecured financial instruments.

The Details: Sears Holdings said last month that it would consider “strategic alternatives,” which could include further efforts to implement a capital structure restructuring, including a proposal to raise funds by selling additional assets, leasing back stores and completing joint ventures. The company didn’t elaborate, but sources said the company’s real estate and asset portfolio are being eyed.

Contact: Dave Sullivan, senior columnist, chief retail strategist, Idea Logical Company; [email protected]

Ed O’Keefe, Senior Washington Correspondent, CNNMoney; [email protected]

Meghan Moravcik Lieder, Correspondent, CNN; [email protected]

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