WOOLWORTH CORP. SLICES DIVIDEND BY 48.3 PERCENT
NEW YORK — Woolworth Corp. slashed its quarterly dividend by 48.3 percent to 15 cents a share from 29 cents and is developing a major cost-cutting program to boost earnings.
A spokeswoman declined to provide details.
The dividend cut, which reduces Woolworth’s annual dividend to 60 cents a share from $1.16, will save Woolworth about $73 million a year. The company said this will help it focus on its “most promising” retail formats, citing the Foot Locker, Northern Reflections, Champs Sports, Lady Foot Locker and After Thoughts chains.
In addition, the company said the reduction would bring the dividend in line with historic levels. The spokeswoman noted that the company has increased the dividend steadily since 1984, when the annual dividend stood at 45 cents.
Wall Street was not surprised by the announcement. On Wednesday, shares of Woolworth slipped 3/8 to 15 5/8 on the New York Stock Exchange.