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☆ Retailers’ Holiday Discounts Are Steeper This Year, CFOs Say
▼ + stars: | 2022-11-23 | by ( Kristin Broughton | ) www.wsj.com time to read: +5 min

Some chief financial officers in the retail sector say markdowns are necessary to start the new year without the drag of excess stock on their shelves. Other CFOs say their companies view the promotional environment as an opportunity to attract more customers. Below is a roundup of retail CFOs’ remarks on this topic during recent earnings calls. All the surveys that we’ve seen would indicate that the value is going to be an important driver for the customer. Historically, we’ve managed a collection of four basic inventory levers: cancellations, [return-to-vendors], push outs and vendor allowances, or VAs.

☆ Nimble retailers Costco, TJX to benefit from improving supply chains, Cowen says
▼ + stars: | 2022-11-22 | by ( Paulina Likos | ) www.cnbc.com time to read: +6 min

At the same time, the bank called TJX its "top pick within off-price retail for supply chain margin recovery." The retail industry has been weighed down by a global supply chain crisis in the wake of the Covid-19 pandemic. But with the Federal Reserve aggressively raising interest rates to suppress demand and rein in inflation, supply chain bottlenecks are now beginning to ease. Cowen's take Costco's supply chain this year has been interrupted by port delays, shortages of raw materials and labor costs. On TJX, we agree that supply chain volatility creates opportunities for the off-price retailer, as its business model targets name brands struggling with excess supply.

☆ Here are Thursday's biggest analyst calls: Apple, Robinhood, Netflix, Target, TJX, McDonald's & more
▼ + stars: | 2022-11-17 | by ( Michael Bloom | ) www.cnbc.com time to read: +6 min

Here are Thursday's biggest calls on Wall Street: Credit Suisse reiterates Apple as outperform Credit Suisse said its survey checks show iPhone Pro and Pro Max delivery delays. Deutsche Bank downgrades Target to hold from buy Deutsche downgraded Target after its earnings report on Wednesday and said it has "lower confidence." Piper Sandler upgrades Target to overweight from neutral Piper said Target is still "compelling" despite its latest quarterly report. " Bank of America reiterates Nvidia as buy Bank of America called Nvidia's third-quarter earnings results on Wednesday an "inflection" quarter. Bank of America reiterates Cisco as buy Bank of America said it's standing by Cisco after its earnings report on Wednesday.

☆ Walmart is crushing Target by luring wealthier shoppers and dominating groceries
▼ + stars: | 2022-11-16 | by ( Avery Hartmans | ) www.businessinsider.com time to read: +5 min

Meanwhile, Walmart sales were up over 8% in the quarter and the retailer raised its full-year outlook. Walmart said its success was driven by two factors: its robust grocery business, and an influx of higher-income shoppers in its aisles. That trend began earlier this year as rising inflation nudged wealthier shoppers away from their usual grocery stores and toward Walmart locations across the country. And as upper middle-class shoppers trade down to Walmart's grocery aisles, they may get curious about the rest of Walmart's offerings, Wall Street analysts predict. Walmart is winning the grocery warsBut it's not just wealthier shoppers that are driving Walmart's dominance over Target — it's groceries, too.

☆ Inflation has airline ticket prices skyrocketing, but the TSA just slashed the price of its PreCheck program, which lets flyers cut the airport security line
▼ + stars: | 2022-11-07 | by ( Samantha Delouya | ) www.businessinsider.com time to read: +2 min

The service lets members skip long airport security lines for 5 years. The move is a rare example of a price cut in 2022. The service allows qualifying travelers to skip busy security screening lines at the airport for the next 5 years. "For individuals and families with plans to fly this holiday season, now is the time to enroll or renew in TSA PreCheck," TSA Administrator David Pekoske said in a statement announcing PreCheck's price cut. Not everyone qualifies to cut security lines, though.

☆ BNP Paribas profit tops forecast despite higher costs, debt markdown
▼ + stars: | 2022-11-03 | by ( ) www.reuters.com time to read: +3 min

PARIS, Nov 3 (Reuters) - BNP Paribas (BNPP.PA), the euro zone's biggest lender, posted a higher than expected net profit in the third quarter, with trading revenues helping offset rising costs and markdowns on some leverage financing deals. Net income in the three months to end September rose by 10.3% from a year earlier to 2.76 billion euros ($2.73 billion), compared with an average of 2.36 billion euros expected in a Refinitiv poll of analysts. Revenues were up 8% at 12.3 billion euros. Rising interest rates and market turbulence have forced big lenders to hold debt on their books for longer than they would have liked, and incur losses on some financing packages. However French lenders traditionally take longer than their continental peers to reap the benefits of rising interest rates.

Everything is on the table: from pitching adjustable rate mortgages to offering free pilates lessons and more. For example, in a 2-1 buydown scenario, the buyer's interest rate will be 2% below the contract rate during the first year. The adjustable rate mortgage makes a comebackThe use of adjustable rate mortgages (ARM) has also soared to a 14-year high, according to the Mortgage Bankers Association. With these types of loans, the interest rate shifts periodically depending on where benchmark mortgage rates stand. He said he expects to see mortgage rates fall in as soon as six months.

☆ ASOS warns on outlook as consumers feel inflation pain
▼ + stars: | 2022-10-19 | by ( ) www.reuters.com time to read: +2 min

ASOS and rival Boohoo (BOOH.L) were early pandemic winners as locked-down consumers shopped online but they have struggled as people returned to stores. The group said it needed to address problems with its supply chain, refresh its culture and the offer made to customers. The group said the move to "right-size" its stock portfolio in the first half would result in a non-cash write-off of 100- 130 million pounds. Capital expenditure is expected to be 175-200 million pounds, down from the previously guided 200-250 million pounds. ($1 = 0.8851 pounds)Register now for FREE unlimited access to Reuters.com RegisterReporting by James Davey; editing by Sarah YoungOur Standards: The Thomson Reuters Trust Principles.

☆ Jefferies upgrades Target and says shares could rally more than 20%
▼ + stars: | 2022-10-18 | by ( Alex Harring | ) www.cnbc.com time to read: +2 min

The costs squeezing nearly every retailer are starting to resolve for Target as the chain discovers areas to grow, even during an economically challenging period, Jefferies said. Analyst Corey Tarlowe upgraded the stock to buy from hold with an increased price target of $185 from $170. One of the biggest challenges Tarlowe noted for the company is inventory, but he said the company is starting to move forward. There's upside ahead, he said, as freight costs continue to come down and e-commerce becomes more efficient. The company will also benefit from expanding partnerships with brands such as Ulta and Disney that drive sales growth.

☆ Morgan Stanley's decline on Q3 results is too severe and may lead to a buying opportunity
▼ + stars: | 2022-10-14 | by ( Zev Fima | ) www.cnbc.com time to read: +8 min

Club holding Morgan Stanley (MS) reported weaker-than-expected results for its third-quarter before the opening bell Thursday. Segment results Institutional Securities net revenue of $5.82 billion for Q3 missed expectations of nearly $6 billion. Wealth Management net revenue of $6.12 billion for Q3 came up a bit short versus expectations of $6.15 billion. Investment Management net revenue of $1.17 billion for Q3 missed the $1.34 billion consensus. The logo of Morgan Stanley is seen in New York Shannon Stapleton | Reuters

Amazon’s second Prime Day-like sale this year is now on — for the first time in Prime Day history. Prime Early Access Sale: The best deals on products at their lowest price everBelow, we’re sharing the best products — based on our previous coverage and reporting — that are at their lowest price ever during the Early Access Prime Sale. 4.7-star average rating from 522,925 reviews on AmazonAmazon's smart plug is designed to be compact so it won't block a second wall outlet, the brand says. It has a 5,000mAh battery that, according to the brand, should last for more than a day on a single charge. 4.4-star average rating from 618 reviews on AmazonUnlike razors that only trim hair at the skin’s surface, epilators remove hair from the roots.

☆ Holiday bargains will dent retail profits. How investors can avoid taking a beating
▼ + stars: | 2022-10-12 | by ( Samantha Subin | ) www.cnbc.com time to read: +11 min

Stifel's research found that consumers plan to spend 9% more this holiday season over 2021. Roughly three-quarters of respondents to a PwC holiday poll indicated they plan to spend the same or more this holiday season. Rather than marking down inventory, companies should hold on to it for the next year if their balance sheets can withstand it, said Siegel. Across the board, many flagship retail stores heavily focused on apparel and footwear like Kohl's and Macy's may struggle to lure customers intent on saving money on discretionary purchases. He points to names heavily focused on electronics and home goods purchased by consumers during the pandemic as one of the weaker areas this holiday season.

☆ What really surprised Wall Street about Walmart's earnings warning
▼ + stars: | 2022-07-26 | by ( Bob Pisani | ) www.cnbc.com time to read: +3 min

The key takeaway for investors was to refocus attention on inflation, and that it's not just the direction of inflation — it's the magnitude. More broadly, this will also lead to Wall Street momentarily refocusing its attention. While concerns about the magnitude of a slowing economy have occupied Wall Street's attention for weeks, inflation is still the number one issue. I noted last week that the phrase "mild recession" had become a meme as a way to price in a recession without making it sound too bad. Even JPMorgan's Marko Kolanovic jumped on the "mild recession" bandwagon, telling investors Monday that "a mild recession appears already priced in."

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