Fitness financials: Town Sports moves forward with IPO, plus adidas/Reebok, Costco, Wal-Mart

Fitness financials: Town Sports is moving forward with its IPO following unsatisfactory bids from several private-equity firms. adidas cleared an anti-trust hurdle, clearing the way for its acquisition of Reebok.In its Q4 earnings report, Costco said profits rose nearly 20 percent for the quarter.Wal-Mart's September net sales for stores rose 9.7 percent.
Author:
Updated:
Original:

Town Sports moves forward with IPO
Town Sports International is reportedly moving ahead with its IPO following unsatisfactory bids from a number of private-equity firms, including Leonard Green & Partners, Bain Capital, MidOcean Partners and Spectrum Equity Investors. The bids were eventually rejected because the company's owners, led by private-equity firm Bruckmann, Rosser, Sherrill & Co., sought a higher price. In June, Town Sports filed to raise $172.5 million in an IPO underwritten by Goldman Sachs, Credit Suisse First Boston and Deutsche Bank. At the same time, the company started to seek a private buyer for its 140 health clubs, two-thirds of which are in New York City under the New York Sports club banner. Town Sports has applied to list its shares on the Nasdaq under the symbol "CLUB."

adidas jumps anti-trust hurdle in bid for Reebok, upgraded by broker
adidas-Salomon AG (ADS.DE) is one step closer to owning Reebok International (NYSE: RBK). The waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 has expired, and as a result, no further anti-trust regulatory review will be necessary in the United States.

On Aug. 3, the board of directors of adidas and Reebok unanimously approved the definitive agreement under which adidas would acquire all of the outstanding shares of Reebok for $59 per share in cash. The transaction value is approximately Euro 3.1 billion (USD $3.8 billion) including the assumption of Reebok's net cash position.

The companies believe that the transaction will close in the first half of 2006.

The news lifted adidas shares almost 2 percent to 147.02 euros (USD $178.13) on the XETRA Exchange, making it the top gainer in the DAX benchmark index.

On Oct. 6, Goldman Sachs upgraded adidas to "outperform" from "in line," saying it believes the acquisition of Reebok will add to earnings per share by 20 percent to 27 percent in 2007. It said that if cost synergies prove greater than the 125 million euros (USD $151.4 million) outlined by management, EPS accretion could reach 50 percent.

Since the deal was announced, Goldman noted that adidas shares have decreased about 9 percent, suggesting investors have concerns about the transaction and the fundamentals of the two companies in light of the strong order growth reported by Nike last month. Goldman acknowledged that Reebok has problems but said the concerns are overdone and that it views the deal as positive for adidas shareholders financially.

(Conversion of Euros into U.S. dollars is for information only, is not necessarily relative to earnings, and is based on the currency rate as of Oct. 6.)

Costco reports Q4 earnings
Costco Wholesale (Nasdaq: COST) said higher sales of discount items combined with a favorable tax rate helped push its profit up nearly 20 percent in its fourth quarter. Costco earned $354.7 million, or $0.73 per share, up from $296.8 million, or $0.62 per share, a year ago. A tax benefit and a lower tax rate -- 28.9 percent versus 37 percent -- boosted earnings for the latest quarter by $0.07 a share. Excluding those items, net income would have been $320.2 million, or $0.66 per share.

Wal-Mart net sales up 9.7 percent

September net sales for Wal-Mart Stores (NYSE: WMT) were up 9.7 percent to $28.2 billion, from $25.7 billion last year. The Wal-Mart Stores division had an 8.4 percent increase -- $18.6 billion versus $17.1 billion last year. Total same-store sales were up 3.8 percent, while the Wal-Mart division was up 2.6 percent. The retailer estimates that October sales in the United States will be in the 2 percent to 4 percent range.

For more information about these companies or their financial reports, as well as to view stock prices updated every 15 minutes, visit the SNEWS(r) Stock Market Updates. Click on: www.snewsnet.com/cgi-bin/snews/stock_report.html 

Related

Fitness financials: Nautilus stock drops 6 percent on analyst downgrade, plus Everlast, Crocs, Town Sports Int'l, adidas/Reebok, Foot Locker, Finish Line, Amer, Costco, Wal-Mart

Nautilus stock drops 6 percent on analyst downgradeAfter being downgraded from "buy" to "neutral" by Merriman Curhan Ford on March 3, shares of Nautilus (NYSE: NLS) fell $0.96, or 6 percent, to $15.14 in midday trading on the New York Stock Exchange, closing the day at $15.12. ...read more

Fitness financials: Town Sports drops IPO price, plus Bally, Cybex, Everlast, Costco, Finish Line, Wal-Mart

Town Sports drops IPO price, starts tradingAfter cutting the price of its initial public offering, Town Sports International Holdings (Nasdaq: CLUB) was a slow mover on the Nasdaq Stock Exchange on June 2. Town Sports, the third-largest U.S. fitness club operator, cut its planned ...read more

Fitness financials: Town Sports plans IPO, plus Saucony/Stride Rite, Sport Chalet, Brunswick, Nautilus/Pearl Izumi, Fitness First, Costco, Wal-Mart

Town Sports plans IPOTown Sports International Holdings Inc., which operates 140 fitness clubs throughout the United States and Switzerland, said it's planning to initiate an initial public offering (IPO). The company, which operates New York Sports Clubs, Washington Sports Clubs ...read more

Fitness financials: Nautilus' Q4 net income down whopping 80 percent, plus Brunswick, Icon, Hibbett, adidas/Reebok, Sara Lee, Amer, Costco, Wal-Mart

Nautilus' Q4 net income down whopping 80 percentAfter delaying its conference call two days, Nautilus (NYSE: NLS) released fourth-quarter results marred by an 80 percent plunge in net income, pulled down by the company's failure to launch six new products during the holiday ...read more

Fitness financials: Gaiam Q3 posts wider net loss, plus adidas, Costco, Wal-Mart

Gaiam Q3 posts wider net loss, sales drop Gaiam's (Nasdaq: GAIA) third-quarter revenue dipped 14.3 percent and its net loss widened. Also, it was among the biggest percentage losers in Nov. 7 trading. For the quarter ended Sept. 30, revenue was $60.3 million, down from $70.3 ...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: Nautilus shares rise on analyst upgrade, plus Town Sports, Costco, Wal-Mart

Nautilus shares rise on analyst upgradeShares of Nautilus (NYSE: NLS) increased Jan. 8 after an analyst upgraded the stock, saying the company is less likely to miss sales estimates for the fourth quarter. Analyst Eric Wold of Merriman Curhan Ford upgraded Nautilus stock to ...read more

Fitness financials: Bally debt holders OK waiver, plus Cybex, Gaiam, adidas/Reebok, Crocs, Nautilus, Wal-Mart, Costco

Bally debt holders OK waiverBally Total Fitness (NYSE: BFT) said it has received approval from a majority of holders of its senior notes to waive financial reporting covenant defaults until July 10 after the company failed to file its 2005 financials on time. Majority approval ...read more

Fitness financials: Forzani reports record Q4 earnings, plus Sport Chalet, Wal-Mart, Costco

Forzani reports record Q4 earnings Forzani Group (TSX: FGL), Canada's largest sporting goods retailer, said fourth-quarter profit rose 36 percent, helped by an additional week of sales, lower taxes and a cold winter. Its retail banners include Sport Chek, Sports Experts and Coast ...read more