TOP NEWS
* Costco Wholesale Corp.'s net income for the 12 weeks ended Feb. 18 beat analyst expectations as the retailer's same-store sales continued to grow. The Issaquah, Wash.-based company said net income attributable to Costco for the fiscal second quarter was $701 million, beating both the mean consensus estimate of $657.86 million compiled by S&P Capital IQ and the $515 million in the year-ago period. The retailer's net sales totaled $32.28 billion, higher than the $29.13 billion it reported in 2017, while diluted EPS for the quarter was $1.59, beating the mean consensus estimate of $1.51 compiled by S&P Capital IQ.
* J. M. Smucker Co. is considering a sale of its baking brands, including Pillsbury Doughboy, Bloomberg News reported, citing people familiar with the development. The retailer is assessing options for the unit, which includes the Robin Hood flour and cereal brand, as well as Martha White baking mixes. Smucker is likely to make $700 million from the deal.
TEXTILES, APPAREL AND LUXURY GOODS
* Abercrombie & Fitch Co. said it will close up to 60 stores in the U.S. in fiscal 2018 once its lease ends, with plans to open about 11 full-price stores in the U.S. The company reported adjusted diluted EPS of $1.38 for the 14-week fourth quarter ended Feb. 3, compared with 75 cents during the 13-week quarter ended Jan. 28, 2017.
* U.K.-based fashion retailer New Look said it would seek creditor approval for a restructuring that would result in closing 10% of its stores in the country and cutting up to nearly 1,000 jobs.The proposal also includes a reduction in rental costs and revised lease terms across 393 stores, the company said. The plan was devised under the terms of a so-called company voluntary arrangement, which is similar to a Chapter 11 filing in the U.S.
* German sportswear giant Adidas AG shut down its nonperforming stores and moved its key lines, including Originals, Football and Premium Running, out of India in an effort to streamline its operations in the country, The Economic Times of India reported, citing sources familiar with the development.
E-COMMERCE
* Amazon.com Inc. held talks with manufacturers to stock and sell products ranging from consumer electronics to perfumes in Brazil, Reuters reported, citing two participants of the meeting. According to the report, the company serves as a marketplace for third-party sellers in the country.
* Amazon said it is expanding its discounted Prime membership program to $5.99 per month for eligible Medicaid recipients. Customers with a valid electronic benefit transfer card called Medicaid, which gives food benefits to qualified recipients, are eligible for the service, renewable every year for up to four years, according to a company blog post.
FOOD AND STAPLES RETAILING
*Beverage giant Coca-Cola Co. is set to offer its first alcoholic drink with plans to launch a low-alcohol canned drink in Japan in 2018. The soft drink manufacturer is expected to offer Chu-Hi alcopop, which is made from a distilled beverage called shochu, sparkling water and flavoring, exclusively in the Japanese market.
*Walgreens Boots Alliance Inc. appointed James Kehoe as executive vice president and global CFO of the retail pharmacy, effective June 1. Kehoe, who previously served as a director and CFO of Takeda Pharmaceutical Co. Ltd., will succeed George Fairweather. Fairweather will become senior adviser for business development and finance to CEO Stefano Pessina on the same day.
HYPERMARKETS AND SUPER CENTERS
* U.S. supermarket giant Walmart Inc. could be staring at a cut-price sale of its Brazilian operations after its potential bidders estimated that the unit owes about $3 billion in back taxes to various state governments, Reuters reported, citing three people with knowledge of the matter. The states are filing a lawsuit against Walmart and at least two of its CEOs in the country over the unpaid taxes, Reuters said, citing regional court documents.
HOUSEHOLD DURABLES AND SPECIALTY RETAIL
* Gun-maker American Outdoor Brands Corp. told its shareholder BlackRock Inc. that it sees no risk in continuing to manufacture civilian firearms following the shooting in Parkland, Fla. The company said it supports a stronger implementation of existing laws and changing the FBI National Instant Criminal Background Check System to make it more comprehensive, but it does not support taking "politically motivated action."
*Rent-A-Center Inc. said it is "actively engaged" with parties that have proposed bids to acquire the company and that it will cut about 250 positions at its corporate office in Plano, Texas, as part of its strategic plan to drive $65 million to $85 million of annualized cost savings opportunities.The company noted that its board continues to review strategic and financial alternatives and expects to make a determination during the second quarter about pursuing a sale.
INDUSTRY NEWS
* The European Commission added peanut butter and cranberries to the list of U.S. exports it might target in retaliation of new tariffs on steel and aluminum imports. The formal EU list of targeted American products has not yet been made public and is subject to approval by the EU's 28 member countries.
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