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☆ Target warns of dour holiday sales, shares plunge 15%
▼ + stars: | 2022-11-16 | by ( Uday Sampath Kumar | ) www.reuters.com time to read: +2 min

Shares of the big-box retailer fell more than 15% in premarket trading after it also said that its third-quarter profit had halved. In contrast, Walmart, which dedicates most of its shelf space to groceries and other daily essentials, raised its full-year sales and profit forecast on Tuesday. However, the top U.S. retailer warned that its customers could slow spending, especially in general merchandise categories, in the holiday quarter. FedEx (FDX.N) and Amazon (AMZN.O) have also warned of a slump in holiday season demand in recent weeks, while overall U.S. holiday sales are expected to rise at a slower pace this year, according to an industry trade group. On an adjusted basis, Target's profit was $1.54 per share for the quarter ended Oct. 29, missing analysts' expectations of $2.13.

☆ Walmart expects smaller drop in annual profit, announces $20 bln share buyback
▼ + stars: | 2022-11-15 | by ( ) www.reuters.com time to read: +2 min

The company also raised its full-year net sales expectations and announced a new $20 billion share buyback plan, pushing its shares up 5% in premarket trading. Walmart said it expects fiscal 2023 net sales to increase 5.5%, compared to its previous forecast of a 4.5% increase. Walmart enters the holiday quarter with inventories valued at nearly $65 billion, up from about $60 billion three months ago. However, Walmart forecast holiday quarter U.S. same-store sales, excluding fuel, to increase about 3%, below estimates of a 3.4% increase. Fourth-quarter adjusted earnings per share are expected to decline 3% to 5%, compared to analysts' estimates of a 4.5% fall.

Amid persistent inflation, investors have been nervously eyeing how consumer spending pans out during the crucial holiday season, when retailers make more than a third of their annual profits. The world's largest retailer by sales forecast holiday quarter U.S. same-store sales, excluding fuel, to increase about 3%, below estimates of a 3.4% increase. The company's comments follow those of FedEx and Amazon, which have also warned of muted holiday season demand in recent weeks. Home improvement chain Home Depot (HD.N) on Tuesday left its annual forecasts unchanged, adding to holiday season concerns amid a slowing housing market. read moreFor the full-year, Walmart forecast net sales to rise 5.5%, above its previous forecast of a 4.5% increase.

Nov 14 (Reuters) - Walmart (WMT.N) and Target (TGT.N) results this week are likely to show that major retailers are heading for a turbulent holiday season as rampant inflation has made everything from toothpaste to Christmas sweaters more expensive for shoppers. "We have our expectations set really low, it's a difficult environment," said Bill Smead, chief investment officer of Smead Capital Management, which owns Target shares worth more than $200 million. Smead said recent warnings around demand from FedEx and Amazon did not bode well for retailers this season. The economic slowdown has led to expectations of a more muted holiday shopping season with everyone from Amazon to Walmart kick-starting holiday deals early to clear excess merchandise. However, Walmart and Target's scale and ability to undercut smaller retailers on price may still help them fare better than others as they attract more cost-conscious consumers looking to do their Christmas shopping on a budget, analysts said.

☆ Sports-Teams may look beyond crypto after FTX collapse, say industry experts
▼ + stars: | 2022-11-14 | by ( Shrivathsa Sridhar | ) www.reuters.com time to read: +3 min

Nov 14 (Reuters) - Sports teams and businesses may shy away from long-term deals with crypto firms to minimise their risks after troubled crypto exchange FTX filed for U.S. bankruptcy protection last week, industry experts told Reuters on Monday. "I think crypto will be at the bottom of prospect lists for quite some time. Until that industry stabilises and has better oversight and controls -- if it happens -- then maybe it might be a viable partner." "As it relates to increasing sponsorship revenue, teams/leagues are always looking for new opportunities, but what's happening with FTX is a wake-up call." Singapore-based crypto exchange Crypto.com said on Monday it had moved about $1 billion to FTX over the course of a year, but most of it was recovered and exposure at the time of FTX's collapse was less than $10 million.

[1/4] A signage is seen in the offices of Tapestry, Inc., in Manhattan, New York, U.S., November 19, 2021. Accessible luxury brands such as Michael Kors and Ralph Lauren are likely to feel a bigger pinch than higher-priced brands, as their young core customer base looks for deals at the lower end of the fashion spectrum. Ralph Lauren said its holiday quarter revenue would be hit by slowing demand in North America and Europe, where soaring energy costs are also pinching consumer wallets. Tapestry and Ralph Lauren also warned a stronger dollar would hit their earnings. Ralph Lauren shares, which have lost almost a quarter of their value this year, rose about 5% in premarket trading after the company beat second-quarter sales and profit expectations.

☆ Michael Kors-owner Capri cuts holiday forecasts on slow China recovery
▼ + stars: | 2022-11-09 | by ( ) www.reuters.com time to read: +1 min

Nov 9 (Reuters) - Michael Kors-owner Capri Holdings Ltd (CPRI.N) on Wednesday lowered its sales and profit forecasts for the holiday period, blaming a slow demand recovery in China due to persistent COVID-19 curbs and uncertainty about the global economy. Luxury goods companies have managed to pass on higher costs to affluent shoppers, but China remains a sore spot as Beijing's "dynamic zero-COVID" policy hampers the return of consumers to high-fashion stores. COVID disruptions in China have also weighed heavily on Kering's (PRTP.PA) Gucci, Canada Goose Holdings (GOOS.TO) and L'Oreal (OREP.PA). Capri, which also owns Versace and Jimmy Choo, cut its holiday-quarter sales forecast to $1.53 billion, from $1.65 billion, and lowered its profit forecast to $2.20 per share from $2.45 per share. It forecast fiscal 2023 revenue of $5.70 billion, compared with its prior estimate of about $5.85 billion.

☆ Kohl's CEO Gass to leave for top job at Levi Strauss
▼ + stars: | 2022-11-08 | by ( Uday Sampath Kumar | ) www.reuters.com time to read: +2 min

Nov 8 (Reuters) - Kohl's Corp (KSS.N) Chief Executive Michelle Gass will step down and take the helm at Levi Strauss & Co (LEVI.N) amid renewed calls from activist investors for management and board reshuffles at the struggling department store chain. Gass came under renewed pressure from hedge funds Macellum Advisors and Ancora Holdings after Kohl's decided in July to remain independent after exploring a sale. The former Starbucks (SBUX.O) executive, who became Kohl's CEO in 2018, will leave in December to become president at Levi's early next year before taking over from long-time boss Chip Bergh within 18 months. At Levi's, Gass faces the challenge of helping the denim maker navigate out of an inflationary environment that has caused a slump in discretionary spending and hit earnings. Kohl's said Tom Kingsbury, a director nominated by Macellum and Ancora last year, will serve as interim CEO from Dec. 2.

☆ Levi's names Kohl's Michelle Gass as chief executive
▼ + stars: | 2022-11-08 | by ( ) www.reuters.com time to read: 1 min

Nov 8 (Reuters) - Levi Strauss & Co (LEVI.N) on Tuesday named current Kohl's Corp (KSS.N) Chief Executive Officer Michelle Gass as its next CEO, replacing Chip Bergh. Gass will leave Kohl's in December to become president of Levi's and will report to Bergh before taking over as chief executive within the next 18 months. Kohl's said Tom Kingsbury, a director on the department store chain's board and former Burlington Stores Inc (BURL.N) chief executive, will serve as interim CEO from Dec. 2. Kohl's shares rose 11% in premarket trading, after it also forecast better-than-expected third-quarter earnings. Reporting by Uday Sampath in Bengaluru; Editing by Shounak DasguptaOur Standards: The Thomson Reuters Trust Principles.

☆ Levi's names Kohl's Michelle Gass as next chief executive
▼ + stars: | 2022-11-08 | by ( ) www.reuters.com time to read: +2 min

Nov 8 (Reuters) - Levi Strauss & Co (LEVI.N) on Tuesday named current Kohl's Corp (KSS.N) Chief Executive Officer Michelle Gass as the next CEO of the denim maker, succeeding long-time head Chip Bergh. Gass' departure from the struggling department store chain comes as activist investor groups push for management and board reshuffles, including a change of CEO. Gass will leave Kohl's in December to become president of Levi's early next year, and will take over as chief executive within the next 18 months. Kohl's said Tom Kingsbury, a director who was nominated by Macellum and Ancora last year, will serve as interim CEO from Dec. 2. Kohl's forecast third-quarter earnings of 82 cents per share, compared with analysts' estimates of 64 cents, according to Refintiv IBES data.

☆ Candy maker Hershey raises sales outlook ahead of holiday season
▼ + stars: | 2022-11-04 | by ( ) www.reuters.com time to read: +2 min

Nov 4 (Reuters) - Hershey Co raised its full-year net sales and profit forecasts on Friday, signaling strong Halloween candy demand that it expects to continue into the holiday season despite higher selling prices. Hershey said its overall average selling prices increased by 7.7% in the third quarter while volumes rose 4.1%. The Reese's Peanut Butter Cup maker's revenue rose 15.6% to $2.73 billion in the quarter ended Oct. 2. The company said it now expects full-year 2022 net sales to grow between 14% and 15%, compared to the previous forecast of 12% to 14% growth. It forecast a 14% to 15% rise in its 2022 adjusted profit per share, above the prior forecast of a 12% to 14% increase.

☆ Adidas ends Ye deal over hate speech, costing rapper his billionaire status
▼ + stars: | 2022-10-27 | by ( Uday Sampath Kumar | ) www.reuters.com time to read: +4 min

Adidas put the tie-up, which has produced several hot-selling Yeezy branded sneakers, under review this month. "Adidas does not tolerate antisemitism and any other sort of hate speech," the German company said on Tuesday. Forbes magazine said the end of the deal meant Ye's net worth shrank to $400 million. The magazine had valued his share of the Adidas partnership at $1.5 billion. On Tuesday, Gap, which had ended its partnership with Ye in September, said it was taking immediate steps to remove Yeezy Gap products from its stores and that it had shut down YeezyGap.com.

☆ McDonald's beats sales estimates on boost from pricier menu
▼ + stars: | 2022-10-27 | by ( ) www.reuters.com time to read: +2 min

Oct 27 (Reuters) - McDonald's Corp (MCD.N) beat quarterly comparable sales estimates on Thursday, helped by higher menu prices and an increase in restaurant traffic from inflation-weary customers looking for value meals. Chipotle Mexican Grill Inc (CMG.N) on Tuesday also beat quarterly sales and profit estimates as it passed on higher prices to customers. Comparable sales for McDonald's in the United States, the company's biggest market, rose 6.1% in the reported quarter helped by higher prices. Analysts have noted that an easing in gas prices also boosted third-quarter restaurant sales in the United States in general after a slowdown in June. That still beat estimates of $5.69 billion.

[1/3] The logo for Google LLC is seen at the Google Store Chelsea in Manhattan, New York City, New York, U.S., November 17, 2021. A strong dollar has hurt the overseas profits of large firms, while soaring inflation has prompted interest rate hikes and companies to raise product prices, even as consumers have been forced to cut spending. Google's results bode ill for Facebook parent Meta Platforms (META.O), which is especially reliant on advertising and reports results on Wednesday. Last week, its smaller rival Snap Inc (SNAP.N) forecast no revenue growth for the holiday quarter, setting off warning bells in the social media industry. Shares in Spotify (SPOT.N), which also warned on slow advertising growth, slid 4%.

[1/3] The logo for Google LLC is seen at the Google Store Chelsea in Manhattan, New York City, New York, U.S., November 17, 2021. Google's results bode ill for Facebook parent Meta Platforms (META.O), which is especially reliant on advertising and reports results on Wednesday. Microsoft fell 2% and chipmaker Texas Instruments , which forecast quarterly revenue and profit below estimates, was down 5%. Shares in Spotify (SPOT.N), which also warned on slow advertising growth, slid 4%. "During the quarter we experienced expected weakness in personal electronics and expanding weakness across industrial," said TI boss Rich Templeton.

Shares of the California-based toymaker fell about 4% in extended trade, after it also missed quarterly sales estimates for the first time since March 2020. Earlier this month, Hasbro Inc (HAS.O) tempered its full-year revenue outlook and warned that demand was starting to slip ahead of the festive season. Mattel, meanwhile, expects demand to accelerate during the crucial holiday shopping season, but said it would conduct more promotions to remain competitive. Kreiz said in an earnings call Mattel has not seen any "meaningful impact" on consumer demand for its toys from the price increases it has undertaken. Reporting by Uday Sampath and Ananya Mariam Rajesh in Bengaluru; Editing by Devika SyamnathOur Standards: The Thomson Reuters Trust Principles.

Shares of the California-based toymaker fell about 4% in extended trade, after it also missed quarterly sales estimates for the first time since March 2020. Earlier this month, Hasbro Inc (HAS.O) tempered its full-year revenue outlook and warned that demand was starting to slip ahead of the festive season. Mattel, meanwhile, expects demand to accelerate during the crucial holiday shopping season, but said it would conduct more promotions to remain competitive. However, excluding items, the company earned 82 cents per share, beating estimates of 74 cents. Reporting by Uday Sampath and Ananya Mariam Rajesh in Bengaluru; Editing by Devika SyamnathOur Standards: The Thomson Reuters Trust Principles.

Shares of Coca-Cola rose 2.3% after the soda giant also beat third-quarter revenue and profit estimates. On an adjusted basis, Coca-Cola earned 69 cents per share on net revenue of $11.1 billion. Analysts had expected earnings of 64 cents per share on revenue of $10.52 billion, according to IBES data from Refinitiv. The company forecast organic revenue to rise 14% to 15% in 2022, compared to prior expectation of 12% to 13% increase. It raised its full-year adjusted earnings per share growth forecast to 6% to 7%, from 5% to 6%.

☆ Coca-Cola raises revenue, profit forecasts on boost from higher prices
▼ + stars: | 2022-10-25 | by ( ) www.reuters.com time to read: +1 min

Oct 25 (Reuters) - Coca-Cola Co (KO.N) raised its annual revenue and profit forecasts on Tuesday, banking on demand to remain steady for its sugary sodas amid multiple price increases taken to blunt the impact of surging costs. PepsiCo raised its annual forecasts earlier this month after topping quarterly revenue estimates. Coca-Cola said net revenue rose 10% to $11.1 billion in the third quarter ended Sept. 30. Analysts on average had expected revenue of $10.52 billion, according to Refinitiv IBES data. Coca-Cola forecast full-year adjusted earnings per share to rise 6% to 7%, compared to prior expectation of 5% to 6% growth.

☆ Adidas ends Kanye West partnership over antisemitism, hate speech
▼ + stars: | 2022-10-25 | by ( ) www.reuters.com time to read: +3 min

"Adidas does not tolerate antisemitism and any other sort of hate speech," the German company said. Register now for FREE unlimited access to Reuters.com RegisterA lawyer representing Kanye West did not respond to a request for comment. Adidas put the partnership under review earlier in October "after repeated efforts to privately resolve the situation." Ye has courted controversy in recent months by publicly ending major corporate tie-ups and due to outbursts on social media against other celebrities. His Twitter and Instagram accounts were restricted, with the social media platforms removing some of his online posts that users condemned as antisemitic.

Four local chapters of the United Food and Commercial Workers (UFCW) International told Reuters they are assessing their options for lobbying and coordinated action against the deal, including potential strikes. Bryan Doherty, a spokesperson for the UFCW International, told Reuters it plans to request more information from the retailers about possible store closures and layoffs. On Monday afternoon, representatives of UFCW International met with nearly 100 local UFCW chapters on Zoom to discuss the merger and their collective response to it. Workers told Reuters that Kroger has not yet held conversations with the union to discuss the merger. Albertsons reached out to the union, offering to "keep lines of communication open," Mark Federici, president of UFCW local 400, told Reuters.

☆ Altria sells U.S. IQOS rights to Philip Morris for $2.7 bln
▼ + stars: | 2022-10-20 | by ( ) www.reuters.com time to read: +2 min

Philip Morris is looking to overturn the ban. Philip Morris, which reports quarterly results later on Thursday, aims to resume supply of IQOS products in the United States by the first half of 2023. Altria still holds the rights to sell IQOS in the United States until May 2024, after which it transitions to Philip Morris. "We are ready to invest behind IQOS to bring it to market at scale across the U.S.," Philip Morris Chief Executive Officer Jacek Olczak said. Altria said it has already received $1 billion from Philip Morris and will receive the remainder by July 2023.

☆ Procter & Gamble cuts sales forecast on hit from stronger dollar
▼ + stars: | 2022-10-19 | by ( ) www.reuters.com time to read: +1 min

Oct 19 (Reuters) - Consumer goods giant Procter & Gamble Co (PG.N) cut its full-year sales forecast on Wednesday, blaming a hit from of a stronger U.S. dollar. A strengthening greenback typically eats into the earnings of companies such as P&G that have sprawling global operations and convert foreign currencies into dollars. Register now for FREE unlimited access to Reuters.com RegisterThe company said it expects fiscal 2023 sales to fall 1% to 3%, compared with its previous forecast of flat to 2% growth. The company maintained its organic sales forecast of a 3% to 5% increase. Register now for FREE unlimited access to Reuters.com RegisterReporting by Uday Sampath in Bengaluru; Editing by Maju Samuel and Anil D'SilvaOur Standards: The Thomson Reuters Trust Principles.

☆ Engine No. 1 held talks with Coca-Cola on new recycling initiatives - source
▼ + stars: | 2022-10-18 | by ( Shashwat Awasthi | Byron Kaye | ) www.reuters.com time to read: +1 min

1 has held talks with Coca-Cola Co (KO.N) about steps the soda giant could take to ramp up recycling of its cans and bottles, a source familiar with the matter told Reuters on Tuesday. 1 partner responsible for getting three seats at Exxon, brought the Coca-Cola idea to Engine No. 1 from Jana Partners where he had been researching it, another source told Reuters. 1 has suggested a partnership between Coca-Cola and garbage collection and recycling company Republic Services Inc (RSG.N), in which Engine No. Coca-Cola and Republic did not respond to Reuters requests for comment.

Oct 18 (Reuters) - Daniel Loeb's Third Point has built a significant position in toothpaste maker Colgate-Palmolive Co (CL.N) and sees value in a potential spinoff of its Hill's Pet Nutrition business and other brands, the activist investor said in a letter seen by Reuters. The investor letter did not disclose the size of Third Point's stake, but cited several reasons for investing in the consumer goods company, including its pricing power in inflationary conditions and the strength in its pet food business. Loeb called the pet segment one of the most "exciting" pockets in the consumer space and said the business could be worth roughly $20 billion if it were a standalone company. Register now for FREE unlimited access to Reuters.com Register"There is meaningful hidden value in the company's Hill's Pet Nutrition business, which we believe would command a premium multiple if separated from Colgate's consumer assets," the letter said. Sales in Colgate's pet nutrition business have outpaced overall company revenue over the last few years as consumers pay more attention to the needs of their cats and dogs.

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