The Venator Group "will close or sell eight noncore
businesses" operating nearly 500 stores, according to
Rebecca Quick of the WALL STREET JOURNAL, who writes that
the company is "continuing to shrink itself to focus mainly
on its athletic-apparel business." Quick reports that after
the sale, its remaining businesses "will consist mainly of"
Foot Locker and Champs Sports chains. Wall Street "cheered
the news" yesterday, "pushing" Venator up $1.125, or 13%, to
$10 in NYSE trading yesterday (WALL STREET JOURNAL, 8/17).
Meanwhile, Venator CEO Roger Farah is "stepping down
immediately," but will "stay on" as Chair. President & COO
Dale Hilpert will "succeed" Farah as CEO (N.Y. TIMES, 8/17).
WHAT THE MOVE MEANS: USA TODAY's Lorrie Grant notes
that the 500 stores "account for" $240M in sales. Brown
Bros. Harriman retail analyst Donald Trott: "This has been a
long-term, well-articulated strategy to narrow the focus.
They made it clear the focus would be on the predominant
footwear and apparel sector" (USA TODAY, 8/17). In N.Y.,
Evelyn Nussenbaum reports that Venator will take a $48M
charge to pay for its sale or shut down of eight of its 10
non-sports businesses (N.Y. POST, 8/17). CNN's Susan
Lisovicz: "Some analysts also question the timing of
Venator's announcement and say it may be an attempt to
massage quarterly earnings" ("Moneyline," CNN, 8/16).