Fitness financials: Proxy advisors disagree on Forzani board nominees, plus Iconix, Costco

Proxy advisors voiced disagreements on Forzani board nominees, Iconix proposed an equity offering, and Costco's Q3 profit fell 29 percent.
Author:
Updated:
Original:

Proxy advisors disagree on Forzani board nominees

Proxy advisors have been weighing in on the Forzani Group's (TSX: FGL) proxy battle with New York hedge fund Crescendo Partners, which opposes two Forzani nominees for election to the board of directors.

Proxy advisor Glass Lewis & Co. said that shareholders should vote for all eight Forzani nominees, concluding that the dissident "failed to make a compelling case against the company's current board and management."

Shortly after, proxy advisor RiskMetrics Group advised shareholders to vote for six of the eight Forzani nominees and one dissident nominee.

RiskMetrics, despite its recommendation, said it "recognizes the considerable achievements made by the company, the steps taken and the initiatives currently underway." The report had no criticism of Henri Drouin and Donald Gass, the two Forzani nominees that RiskMetrics did not support.

In response, John Forzani, chairman of the Forzani Group, said in a statement, "We respectfully disagree with RiskMetrics' recommendation that shareholders should vote for even one of the dissident nominees. In our view, the dissident does not represent the interests of all shareholders, is less qualified than either Mr. Drouin or Mr. Gass, and if elected could have the unintended consequence of weakening the board's ties to our franchisees in Quebec who deliver approximately one-third of Forzani's retail sales."

Forzani added, "The board changes proposed by the dissident would be disruptive and unnecessary, and may jeopardize the continued swift and effective execution of FGL's strategic plan."

Canada's largest national retailer of sporting goods, Forzani operates sores under various banners, including Fitness Source, Sport Chek, Coast Mountain Sports and Sport Mart.

Iconix proposes equity offering

Iconix Brand Group (Nasdaq: ICON), parent of Danskin Fitness, said it has contacted the SEC with a proposed public offering of its common stock shares for the company and certain stockholders.

Iconix said it's looking at offering 9.2 million shares of the company's common stock and the selling stockholders will offer 800,000 shares. The selling stockholders include Neil Cole, the company's CEO and chairman, and two of the company's directors.

The company also expects to grant to the underwriters an option to purchase up to an additional 1.5 million shares. It intends to use the proceeds for general corporate purposes, which may include the funding of acquisitions. The public offering price has not yet been determined.

The company said it also anticipates filing a preliminary prospectus supplement. Barclays Capital and Lazard Capital Markets are acting as joint bookrunning managers for the offering, with Credit Suisse Securities acting as the co-manager for the offering.



Costco's Q3 profit falls 29 percent


Third-quarter profit for Costco (Nasdaq: COST) dropped 29 percent on softer sales and a litigation charge.

Earnings for the quarter were $209.6 million, or $0.48 per share, versus $295.1 million, or $0.67 per share, a year earlier.

Included in the results was a $34 million, mostly non-cash, pre-tax charge related to a settlement of a class-action lawsuit over its membership renewal policy, it said. Increased employee health care costs also weighed on its quarterly performance, it added.

Revenue dropped 5 percent to $15.81 billion from $16.61 billion.

Same-store sales slipped 7 percent for the quarter, with U.S. same-store sales off 5 percent and international same-store sales down 12 percent. Excluding the impact of lower gas prices and the stronger dollar, same-store sales rose 2 percent.

Given the uncertainty of the economy, Costco management did not issue any earnings guidance.

--Compiled by Wendy Geister

For more information about any public company on this page or its financial reports, as well as to view stock prices updated every 15 minutes, visit the SNEWS® Stock Market Updates. Click on: www.snewsnet.com/cgi-bin/snews/stock_report.html.

Related

Fitness financials: Forzani narrows Q1 loss, plus Iconix

Forzani narrows Q1 loss; shareholders vote on board nominees Canadian sporting goods dealer Forzani Group (TSX: FGL) said it posted a smaller first-quarter loss as it dealt with weak consumer confidence. Its shareholders also voted all of Forzani's board candidates in. For the ...read more

Fitness financials: Voting advisory firms reject Sherborne's bid for control of Nautilus board, plus Forzani Group, Iconix, Collective Brands, Finish Line, Costco, Wal-Mart

Voting advisory firms reject Sherborne's bid for control of Nautilus board, stock up on Dick's partnership Three independent voting advisory services have all issued recommendations to their clients, saying that Sherborne Investors LP's bid for control of Nautilus' (NYSE: NLS) ...read more

Fitness financials: Nautilus letter urges shareholders to vote against Sherborne proxy, plus Gaiam, adidas, Sport Chalet, Puma, Under Armour, Health Fitness, Iconix, Costco, Wal-Mart

Nautilus letter urges shareholders to vote against Sherborne proxy Nautilus (NYSE: NLS) urged its shareholders to vote against a proposal from Sherborne Investors LP and its affiliates to replace a majority of board members with Sherborne nominees. In a letter mailed to ...read more

Fitness financials: Cybex ruled liable in $66 million jury verdict, plus Forzani Group, Costco, Iconix

Cybex ruled liable in $66 million jury verdict A jury has ruled against Cybex Int’l (Nasdaq: CYBI) in a product liability lawsuit that left a New York woman paralyzed, awarding her nearly $66 million after an eight-week jury trial -- an award that could bankrupty if it stands, an ...read more

Outdoor financials: Eddie Bauer reports anticipated warrant issuance, plus Forzani

Eddie Bauer reports anticipated warrant issuance Trying to retain its listing on the Nasdaq, Eddie Bauer Holdings (Nasdaq: EBHI) has executed an amendment to the $225 million Amended and Restated Term Loan Agreement it has with various lenders, Goldman Sachs Credit Partners, as ...read more

Fitness financials: Forzani tells shareholders to ignore hedge fund proxy, plus Hibbett Sports, Sears, Foot Locker

Forzani tells shareholders to ignore hedge fund proxy To head off what it describes as a dissident proxy circular by a disgruntled hedge fund, the Forzani Group (TSX: FGL) is mailing shareholders an alternative proxy and letter explaining why they should ignore the New York hedge ...read more

Fitness financials: Forzani rejects hedge fund's proxy demands, plus Nautilus, Easton-Bell Sports, Nike, Wal-Mart

Forzani rejects hedge fund's proxy demands Forzani Group (FGL.TO) recommended that shareholders oppose plans by Crescendo Partners, a New York-based hedge fund, to nominate its own slate of two directors for election to Forzani's board of directors. The Canadian sporting-goods ...read more

Fitness financials: Iconix lowers 2008 guidance, plus Costco, Wal-Mart

Iconix lowers 2008 guidance Iconix Brand Group (Nasdaq: ICON), parent of Danskin Fitness, reduced its revenue and earnings guidance for 2008, noting the difficult economy. The company now expects earnings per share in a range of $1.15 to $1.20 and revenue between $215 million ...read more

Fitness financials: Champion parent refinances loans to pay off some debt, plus Forzani, Sport Chalet, Costco

Champion parent refinances loans to pay off some debt Hanesbrands (NYSE: HBI), parent of Champion, said it has completed a debt refinancing that allows it more financial flexibility to consider acquisitions. The company used the proceeds of a $500 million notes offering and ...read more