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Judge approves divestment for CVS-Aetna deal; Couche-Tard Q1 EPS beats estimates

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Judge approves divestment for CVS-Aetna deal; Couche-Tard Q1 EPS beats estimates

TOP NEWS

* A federal judge approved an agreement between CVS Health Corp., including Aetna Inc., and the U.S. Department of Justice, ending months of scrutiny for the $70 billion deal under a little-used part of antitrust law. Judge Richard Leon, who sits on the U.S. District Court for the District of Columbia, ruled that the agreement, under which CVS agreed to divest part of its Medicare Part D business, was in the public interest.

* Alimentation Couche-Tard Inc. reported fiscal first quarter 2020 earnings that topped analyst expectations despite falling fuel sales across all of the markets where the company operates. For the 12 weeks ended July 21, the Laval, Quebec-based convenience store operator saw adjusted diluted net EPS rise 11.5% to 97 U.S. cents from 87 cents a year ago. The figure beat the S&P Global Market Intelligence consensus estimate for normalized EPS of 95 cents.

TEXTILES, APPAREL AND LUXURY GOODS

* American Eagle Outfitters Inc.'s second quarter adjusted EPS came in at 39 cents, up from 34 cents in the year-ago period and above the S&P Global Market Intelligence consensus normalized EPS estimate of 32 cents. Net revenue rose 8% year over year to $1.04 billion from $965 million.

* Arcadia Group Ltd. interim chairman Jamie Drummond-Smith resigned from the company after it completed its restructuring, the Financial Times reported, citing CEO Ian Grabiner. Drummond-Smith's exit comes in the heels of COO David Shepherd's departure from the Topshop brand owner. A company spokesman reportedly said Arcadia has started its search for a new chairman.

* Puma SE will launch its first smartwatch, priced at $275, in November as part of its partnership with Fossil Group Inc., CNBC reported, citing a company announcement during the IFA consumer tech show in Berlin.

* Folli-Follie Commercial Manufacturing and Technical SA confirmed that it has appointed Deloitte and Savigny Partners to evaluate sales options for the jeweler, Retail Gazette reported, citing a company statement. "Links of London remains in the process of a turnaround plan that the company continues to support," Folli-Follie reportedly also said.

MULTILINE RETAIL

* Debenhams PLC's marketing, beauty and digital managing director, Richard Cristofoli, has left the company, Drapers reported. Its operations and food managing director, Mark Ashman, and its transformation and people director, Sally Hyndman, reportedly have also exited the business. The departures come after Stefaan Vansteenkiste was named CEO.

* Signa Holding GmbH Chairman René Benko is raising cash via a €500 million share sale and a €300 million bond offering to finance his purchase of German department store chain Galeria Kaufhof GmbH from Hudson's Bay Co., Bloomberg News reported, citing a document. Benko reportedly met with investors in London, Paris and Frankfurt after he secured regulatory approval to acquire the 50% stake in Kaufhof he did not already own.

E-COMMERCE

* Boohoo Group PLC's shares jumped more than 17% in London mid-morning trading on Sept. 5 after the company raised its sales growth guidance for the year. The British online retailer said it now expects sales for the full year to grow between 33% and 38%, compared with its previous forecast of growth between 25% and 30%.

HOUSEHOLD AND PERSONAL PRODUCTS

* L'Oréal SA named Stéphane Rinderknech as president and CEO of its U.S. arm and executive vice president of its North American business, effective Oct. 1. Rinderknech, who was previously CEO of L'Oréal China, succeeds Frédéric Rozé in the role.

* L'Oréal invested an undisclosed amount in Fireside Fund II, an investment fund managed by Fireside Ventures, through its venture capital fund Business Opportunities for L'Oréal Development. The company aims to support startups that specialize in Indian consumer brands with the investment.

FOOD AND STAPLES RETAILING

* Vesa Equity Investment SÀRL, owned by Daniel Křetínský and Patrik Tkáč, took a 4.63% stake in Casino Guichard-Perrachon SA. Křetínský and Tkáč also hold 17.52% of Metro AG with an option to increase it to 29.9% or up to 32.71%. CEO Jean-Charles Naouri said he will propose that Casino Group appoint a Vesa Equity Investment representative to its board at the next general meeting.

HOUSEHOLD DURABLES AND SPECIALTY RETAIL

* The Michaels Cos. Inc. stock surged more than 27% after the arts and crafts retailer raised its adjusted diluted EPS guidance for fiscal 2019 to a range of $2.31 to $2.42, from its prior forecast of $2.29 to $2.41, and posted second quarter earnings that beat expectations. For the 13 weeks to Aug. 3, adjusted diluted EPS rose 26.7% to 19 cents from 15 cents a year ago, above the S&P Global Market Intelligence consensus normalized EPS estimate of 14 cents, while net sales declined to $1.03 billion from $1.05 billion.

* S&P Global Ratings upgraded its long-term issuer credit rating on Sony Corp. to A- and affirmed its short-term rating of A-2, with a stable outlook. The agency expects the Japanese company's earnings and profitability to remain strong given its effort to add high value to its electronic products and to secure recurring services revenue.

* Funko Inc., best known for its licensed vinyl figurines and bobbleheads, appointed Viacom Media Networks COO Sarah Levy to its board of directors, effective Sept. 3.

* Consumer electronics retailer Dixons Carphone PLC maintained its full year guidance despite reporting that group revenue for first quarter 2019-2020 was flat in both reported and constant-currency terms. The flat sales are the result of a 12% year-over-year drop in revenue in its mobile business unit in the U.K. and Ireland.

CASINOS AND GAMING

* William Hill PLC's Philip Bowcock will step down from his role as CEO and director of the company, effective Sept. 30. Former Chief Digital Officer Ulrik Bengtsson was named CEO designate and director, effective immediately, and will assume full CEO responsibilities after Bowcock retires from his position.

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The day ahead

Early morning futures indicators pointed to a higher opening for the U.S. market.

In Asia, the Hang Seng fell 0.03% to 26,515.53, and the Nikkei 225 rose 2.12% to 21,085.94.

In Europe, around midday, the FTSE 100 dropped 0.65% to 7,263.46, and the Euronext 100 was up 0.67% to 1,080.80.

On the macro front

The motor vehicle sales report, ADP employment report, jobless claims report, the productivity and costs report, PMI services index, factory orders report, ISM non-manufacturing index, EIA petroleum status report, Fed balance sheet, and the money supply report are due out today.

Click here to read about today's financial markets, setting out the factors driving stocks, bonds and currencies around the world ahead of the New York open.

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