TOP NEWS
* Toymaker Hasbro Inc. swung to a net loss for the fourth quarter ended Dec. 31, 2017, of $5.3 million, or 4 cents a share, from a profit of $192.7 million, or $1.52 a share, a year earlier, missing S&P Capital IQ consensus estimates for net income of $222.86 million, or $1.77 a share. The maker of Play-Doh and My Little Pony said it was taking a net charge for 2017 related to U.S. tax reforms of $296.5 million, or $2.33 a share. However, fourth-quarter net revenue also fell to $1.60 billion from $1.63 billion, missing expectations of $1.72 billion, as demand slowed in November and December 2017.
* Activist investment firm Blackwells Capital LLC said it will approach SuperValu Inc.'s shareholders after the Minnesota-based food retailer rejected Blackwells' recommendations to improve profitability, which includes a proposed spinoff of SuperValu's retail business. Blackwells, which owns a 4.35% stake in SuperValu, said the company also turned down its proposal to explore a sale of SuperValu's wholesale operations, which remains an "attractive acquisition target," as well as the nomination of three Blackwells members to the company's board. SuperValu said in a statement to The Wall Street Journal that it has already "taken a number of critical steps to transform."
TEXTILES, APPAREL AND LUXURY GOODS
* Tapestry Inc., the American luxury goods company, plans to bolster the presence in China of its Kate Spade & Co. and Stuart Weitzman brands through new store openings and e-commerce initiatives, executives said in an interview with S&P Global Market Intelligence. Through the deals, Tapestry is taking control of about 50 Kate Spade stores and 20 Stuart Weitzman stores, with plans to give the handbag and footwear labels a retail footprint in China similar to that of its Coach brand. Tapestry lifted its EPS guidance for the fiscal year ending in June to between $2.52 and $2.60, thanks in part to recent tax reform legislation in the U.S.
* George Feldenkreis, founder and largest shareholder of apparel retailer Perry Ellis International Inc., made a bid to acquire the company for about $430 million, The Wall Street Journal reported, citing people familiar with the matter. The sources told the Journal that Feldenkreis has grown frustrated with the board's short-term focus and unwillingness to invest in the business, believing that taking the company private will make improving Perry Ellis' marketing, e-commerce and international businesses easier.
* Australian apparel retailer Premier Investments Ltd., the largest shareholder in Myer Holdings Ltd., will call an extraordinary general meeting of Myer's shareholders "to reconstitute the incumbent, failed board" following the department store operator's disappointing sales and profit. Premier, which alleges that it was misled by the board into acquiring a 10.77% stake in Myer, has already identified two director candidates to represent it on the company's new board and one candidate to be an independent director.
* U.K. high-street fashion retailer New Look is exploring restructuring options, including closing underperforming outlets and renegotiating rents, despite having identified £25 million in cost savings, The Guardian reported, citing Chairman Alistair McGeorge. The company, which has about 60 stores out of 594 in the country at risk of closure, said it is not looking to restructure its loans even with £1.2 billion in debt, the newspaper added.
* Stefan Larsson, the former CEO of Ralph Lauren Corp., is the "lead candidate" to replace Lululemon Athletica Inc.'s former CEO Laurent Potdevin, MarketWatch reported, citing a note by Canaccord Genuity analysts led by Camilo Lyon. Larsson, credited with turning around Gap Inc.'s Old Navy brand when he was at its helm, will end his one-year noncompete clause with Ralph Lauren on May 1, the report noted.
MULTILINE RETAIL
* Department store operator Marks and Spencer Group plc enlisted data analytics firm Starcount to help study the shopping behavior of the London-based company's customer base. Starcount will analyze the company's more than 6 million Sparks Card members to personalize its loyalty program, allowing M&S to become a "digital-first" retailer as part of its five-year turnaround program.
E-COMMERCE
* Chinese e-commerce giant JD.com Inc. aims to expand its footprint across Europe within "a few years" to start challenging Amazon.com Inc. there as early as 2019, the Financial Times reported, citing remarks by company CEO Richard Liu. Liu told the newspaper that JD's platform and delivery services would debut in France, where it is investing at least €1 billion over two years to develop a logistics network, before venturing into the U.K. and Germany. JD, through its subsidiary Beijing JD Century Trading Co. Ltd, also announced that it entered into an agreement with home decoration service and product provider SSLJ.com Ltd. to expand in their respective markets, enhance operational efficiency, reduce costs and implement market expansion strategies.
* Japanese internet service provider Rakuten Inc. will combine its consumer-to-consumer marketplace apps Rakuma and FRIL into a single entity, merging the platforms' capabilities of detecting illegal items to offer a richer lineup of products and improved safety. Rakuten said all users will be moved to FRIL's platform when the combined portal launches Feb. 26, and Rakuma users will be asked to migrate their accounts, along with their historical ratings data, to FRIL.
FOOD AND STAPLES RETAILING
* A British law firm said it has taken the first step in an equal pay claim against Tesco Plc and estimated that the move could cost the U.K. supermarket chain £4 billion to compensate workers. In a statement posted on the website of Leigh Day, lawyers argued that workers at Tesco's distribution centers, who are predominantly male, were paid "considerably more" than workers in stores, who are predominantly female. In a statement emailed to S&P Global Market Intelligence, a Tesco spokesperson said the company was "unable to comment on a claim that we have not received."
HOUSEHOLD DURABLES AND SPECIALTY RETAIL
* Warren Evans fell into administration after Duff & Phelps Corp. was "ultimately unsuccessful" in finding a new investment partner for the U.K. furniture retailer, leaving 287 jobs and 14 company showrooms at risk of redundancy, The Telegraph reported. The joint administrators from the restructuring firm reportedly said trading conditions in the industry are "exceptionally challenging" in 2018 on rising costs and decreased consumer spending.
* Steinhoff International Holdings NV, the South African retailer engulfed in an accounting scandal, has begun seeking waivers from investors holding more than €2.6 billion of its debt, all issued by Steinhoff subsidiary Steinhoff Finance Holding GmbH. The Stellenbosch-based company, which operates Sleepy's in the U.S., said the waivers relate to its failure to deliver certificates of compliance due to accounting irregularities.
