Venator Beats Estimates, Sales Up 14 Percent
By Matt Paolucci

Venator Group Inc.(Z), formerly Woolworth's, said fiscal first-quarter results topped estimates as sales at its Foot Locker and Northern Group apparel stores exceeded expectations.

The retailer posted net income of $15 million, or 11 cents a diluted share for the quarter ended April 29, compared with a loss of $3 million, or two cents a share a year earlier. First Call/Thomson Financial estimates were for 12 cents a share.

However, adjusted earnings were $23 million, or 16 cents a share, in the quarter ended April 29, compared with $1 million, or 1 cent a share, a year ago.

The adjusted results don't include any restructuring charges or gains the company registered due to store closings or disposal of certain businesses. Over the past few years, the company has many of its stores and sold many of its non-core divisions as it has shifted its focus primarily to sporting goods.

The retailer logged in with sales of $1.07 billion, up from last year's $947 million.

Revenues from stores open at least a year, an industry gauge of performance, rose 13.6 percent from a year ago.

"Sales from all Athletic and Northern Group retail formats exceeded our plan," said Dale W. Hilpert, Venator chairman and CEO. "Our more-focused company continued to provide trend- right products to our mall-based customers."

Venator said sales from Footlocker.com and its direct-to- customer business rose 16.7 percent to $57 million, which included $8 million in Internet-only sales.

Back in January, the retailer said it would close 358 of its stores and lay off 3,700 employees, leaving the company with 4,200 stores and a work force of about 50,000.

Since 1995, Venator has sold a massive chunk of its holdings, from its five-and-dime stores to its Kinney shoe stores and even its well-known headquarters building in Manhattan. Core holdings consist mainly of the Foot Locker and Champs Sports athletic-apparel chains.

Some of Venator's recent divestitures include the sale of a chain of stores specializing in music boxes and a string of Burger King franchises.

Venator shares traded at $11.4375 on the New York Stock Exchange Thursday morning, up about six cents. Over the past year, the company's stock price has fluctuated between a low of $5 and a high of $13.

Wall Street seems pretty upbeat in its opinion of Venator. Of the nine analysts who follow shares of Z, seven rate the stock either a Strong Buy or Buy. Earnings estimates for fiscal 2001, ending January, are for 68 cents and 91 cents for fiscal 2002. In 2000, the company earned 12 cents per share.