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Amazon denies supplier purge plan; Bed Bath & Beyond settles with activists

TOP NEWS

* Amazon.com Inc. has denied a report claiming that the company is preparing to let go of "thousands" of smaller suppliers in favor of big brands. Bloomberg News reported that the e-commerce giant is planning to remove smaller sellers from its online marketplace as it aims to slash costs and focus wholesale purchasing on bigger suppliers. However, a spokesperson from the e-commerce giant told S&P Global Market Intelligence in a statement that Bloomberg's story and sources are incorrect. "We review our selling partner relationships on an individual basis as part of our normal course of business and any speculation of a large-scale reduction of vendors is incorrect," the spokesperson added.

* Bed Bath & Beyond Inc. has agreed to form a committee to explore a possible sale or spinoff of its underperforming businesses as it settled a monthslong dispute with a group of activist investors, CNBC reported, citing a person familiar with the situation. The businesses include Buy Buy Baby, Cost Plus World Market, PersonalizationMall and Christmas Tree Shops, CNBC added. The stores reportedly could fetch up to $1.36 billion in total, or $10 per share. Bed Bath & Beyond did not immediately respond to a request for comment from S&P Global Market Intelligence.

TEXTILES, APPAREL AND LUXURY GOODS

* Shares in Canada Goose Holdings Inc. fell more than 31% after warning that it expects "materially larger losses" in adjusted earnings in the first quarter of 2020 due to higher operating costs and investments to support its growth. For the year ended March 31, adjusted diluted EPS came in at C$1.36, an increase of 61.9% year over year from 84 Canadian cents in 2018. The apparel retailer expects to deliver annual revenue growth of at least 20% in fiscal 2020 with adjusted diluted EPS up at least 25%.

* Burlington Stores Inc. reduced its revenue growth outlook for fiscal 2019 to a range of 8.5% to 9.2% and narrowed its adjusted EPS guidance for the year to between $6.93 and $7.01 after reporting first-quarter earnings that were flat year over year. For the quarter ended May 4, the New Jersey-based apparel retailer posted adjusted EPS of $1.26, matching last year's figure and beating the S&P Global Market Intelligence consensus normalized EPS estimate of $1.25. On a GAAP basis, EPS fell 4.2% year over year to $1.15.

* Capri Holdings Ltd. posted double-digit revenue and earnings growth for fiscal 2019, driven by strong sales at its Jimmy Choo brand, which recorded a 28.7% year-over-year increase in revenue to $139 million during the fourth quarter. For the year ended March 31, the apparel retailer reported adjusted diluted EPS of $4.97, above the S&P Global Market Intelligence consensus normalized EPS estimate of $4.95. Revenue increased 12% year over year to $5.23 billion. For fiscal 2020, the company still expects adjusted diluted EPS of $4.95, which includes approximately $0.25 per share dilution from Versace, while it cut its revenue guidance to approximately $6 billion from about $6.1 billion.

* Abercrombie & Fitch Co. posted adjusted non-GAAP net loss per diluted share of 29 cents for first quarter 2019, better than the S&P Global Market Intelligence consensus estimate for a normalized net loss of 43 cents. For the 13 weeks ended May 4, net sales reached $734 million, compared with $730.9 million the year prior. For fiscal 2019, the company still expects net sales to be up between 2% and 4%, while gross profit will be up slightly from the 60.2% rate reported a year ago.

* Luxury goods company Tapestry Inc. appointed Thomas Glaser as COO, effective July 15. Glaser was previously vice president of V.F. Corp.

* PVH Corp. lowered its EPS guidance for full year 2019 due to volatility in foreign exchange rates and challenging economic conditions. The apparel retailer now expects full-year EPS to come in between $10.20 and $10.30, compared with the previous guidance of $10.30 to $10.40 provided in March, but still higher than the $9.60 in 2018. The retailer's diluted EPS for the first quarter ended May 5 was $2.46, up from $2.36 in 2018 and above the S&P Global Market Intelligence consensus normalized EPS estimate of $2.45.

* Watches of Switzerland Ltd. priced its IPO at £2.70 per share, giving the company a market capitalization of £647 million. The Apollo Global Management LLC-backed watchmaker will begin trading on the London Stock Exchange under the ticker WOSG. It expects to raise approximately £155 million from the sale of 57,407,407 newly issued shares during its debut.

E-COMMERCE

* Amazon.com Inc.'s Japan division will begin selling and delivering groceries from Life Corp. supermarkets in select parts of Tokyo by the end of this year, the Nikkei Asian Review reported, without disclosing its source. Life operates about 270 stores across Japan, the Nikkei said. According to the report, customers may order groceries online via the Prime Now delivery service, and Life personnel will fulfill the orders at the store and deliver them to the customer in as short as two hours.

HOUSEHOLD AND PERSONAL PRODUCTS

* Energizer Holdings Inc. agreed to sell its European consumer battery business Varta for $401 million. Varta AG will acquire the business, including all manufacturing and distribution facilities. The deal is part of the European Commission's clearance conditions for Energizer's $2 billion all-cash acquisition of Spectrum Brands Holdings Inc.'s battery and lighting business.

* The Procter & Gamble Co. on May 3 completed the sale of certain assets of its Joy and Cream Suds cleaning business to an undisclosed buyer for $30 million, according to data from S&P Global Market Intelligence.

HYPERMARKETS AND SUPERCENTERS

* Walmart Inc.'s Canadian arm unveiled a new store format called Urban Supercentre, featuring new fast lane checkouts and an app that allows customers to scan their own products as they shop. Walmart Canada Corp. launched the first of the new concept stores at its Toronto-Stockyards location, with plans to launch another one in Thornhill, Ontario, in 2020.

HOUSEHOLD DURABLES AND SPECIALTY RETAIL

* Dick's Sporting Goods Inc. raised its diluted EPS outlook for fiscal 2019 to a range of $3.20 to $3.40, from its previous guidance of $3.15 to 3.35. The company also plans to open seven new stores and relocate three stores in 2019. For the 13 weeks ended May 4, the sports equipment retailer posted non-GAAP diluted EPS of 62 cents, up from 59 cents in the year-ago period and beating the S&P Global Market Intelligence consensus normalized EPS estimate of 58 cents.

* Brazilian retailer Grupo SBF SA raised its bid to acquire Netshoes (Cayman) Ltd. after Magazine Luiza SA, which first offered to buy the online retailer of shoes and athletic wear, lifted its per-share price offer to $3. SBF, which operates sports retailer Centauro, said it is now offering to acquire Netshoes for $3.50 per share in cash, up from its initial bid of $2.80 per share, bringing its estimated total offer price to approximately $108.7 million. In a separate announcement, Netshoes confirmed that it received SBF's revised proposal, saying it will review the offer "to determine the course of action that it believes is in the best interest of the Netshoes' shareholders."

The day ahead

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

In Asia, the Hang Seng lost 0.44% to 27,114.88, while the Nikkei 225 dropped 0.29% to 20,942.53.

In Europe, around midday, the FTSE 100 rose 0.51% to 7,221.79, and the Euronext 100 was up 0.47% to 1,027.79.

On the macro front

The GDP report, the international trade in goods report, the jobless claims report, the corporate profits report, the advance retail inventories report, the advance wholesale inventories report, the pending home sales index, the EIA natural gas report, the EIA petroleum status report, the 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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