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CVS Q4'17 EPS jumps to $1.92; Coty posts Q2'18 EPS above estimate

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CVS Q4'17 EPS jumps to $1.92; Coty posts Q2'18 EPS above estimate

TOP NEWS

* CVS Health Corp. on Feb. 8 reported adjusted diluted EPS in the fourth quarter ended Dec. 31, 2017, jumped to $1.92 from $1.71 a year earlier, beating expectations for normalized EPS of $1.88, according to a mean consensus of analysts' estimates compiled by S&P Capital IQ. Net income soared 92.6% to $3.3 billion, primarily due to tax changes. The pharmacy health services company said it would increase investments in 2018, prompting it to reduce its guidance for adjusted consolidated operating profit growth for the year to a range from negative 1.5% to 1.5% from a prior forecast of 1% to 4%.

* Beauty products company Coty Inc. reported adjusted EPS of 32 cents for the fiscal second quarter ended Dec. 31, 2017, above the S&P Capital IQ normalized EPS consensus estimate of 23 cents. Adjusted net income totaled $237.2 million, 6% higher than $223.3 million in the year-ago period.

TEXTILES, APPAREL AND LUXURY GOODS

* Luxury goods group Hermès International Société en commandite par actions, best known for its silk scarves and handbags, reported that fourth-quarter sales at actual exchange rates dipped 0.4% year over year as currency fluctuations reduced revenue by €100 million. The French fashion house reported that sales in the three months ended Dec. 31, 2017, slipped to €1.50 billion from €1.51 billion in the same period of 2016 due to the year-end strengthening of the euro. The performance fell short of the S&P Capital IQ sales consensus estimate of €1.51 billion.

* Michael Kors Holdings Ltd. further raised its total revenue forecast for fiscal year 2018 ending March 31 to about $4.66 billion, higher than the $4.59 billion it had previously projected Nov. 6, 2017, on a better-than-expected fiscal third-quarter performance. The London-based fashion retailer also boosted its diluted EPS outlook range to $4.40 to $4.45, compared with the previous guidance range of $3.85 to $3.95 per share.

* Gap Inc. will close the New York City headquarters of its apparel brand Banana Republic, moving 112 corporate jobs to Gap's San Francisco headquarters, the New York Post reported, citing a government filing by the U.S. clothing retailer. The move reportedly comes as part of the company's plan to save $500 million in the next three years by restructuring its operations, including shutting down about 200 struggling Gap and Banana Republic stores.

MULTILINE RETAIL

* Hudson's Bay Co.'s board unanimously rejected a €3 billion offer it received from SIGNA Holding GmbH to acquire Galeria Kaufhof GmbH, Hudson's Bay's German department store chain. David Leith, lead independent director of the company's board of directors, said the offer "significantly undervalues" Hudson's Bay's German business, adding that SIGNA's funding was "not supported by sufficient certainty." SIGNA's unsolicited offer fueled conflict between Hudson's Bay and activist investor Land & Buildings Investment Management LLC, which has been urging the department store operator to sell off its real estate and consider the sale of Galeria Kaufhof.

E-COMMERCE

* Amazon.com Inc. launched a free, two-hour delivery service for food and select alcohol products, as well as everyday staples, from its grocery chain Whole Foods Market Inc. through Prime Now. The U.S. e-commerce company said delivery will initially be available to Prime users in Austin, Cincinnati, Dallas and Virginia Beach, but it plans to expand the service across the country in 2018.

* Chinese online retailer JD.com Inc. opened an office in Melbourne to serve as regional headquarters for Australia and New Zealand, providing brands and retailers in both countries with access to JD's base of Chinese consumers. The company said it chose to locate the office in the Australian state of Victoria because it has the country's only 24-hour shipping port and also offers access to a range of local suppliers.

HOUSEHOLD AND PERSONAL PRODUCTS

* Procter & Gamble Co. will move operations from its dish soap plant in Kansas and personal products factory in Iowa to a newly built facility in Tabler Station, W.Va., putting 780 jobs at risk, The Wall Street Journal reported. The household products manufacturer reportedly told staff that its Kansas plant will close by 2020-end, while its Iowa factory will be downsized to 100 employees when P&G opens its new facility in 2020.

FOOD AND STAPLES RETAILING

* Hain Celestial Group Inc. is considering selling its Hain Pure Protein Corp. business, which operates Empire Kosher Poultry and Plainville Farms, a move that sources told CNBC could eventually lead to the sale of the company. The report said Hain long has been an acquisition target by food companies including Nestlé SA but that potential buyers of its protein unit also could include Tyson Foods Inc., Cargill Inc. and WH Group Ltd.'s Smithfield Foods Ltd.

HYPERMARKETS AND SUPERCENTERS

* Walmart Inc. is offering to buy a "large stake" in Flipkart India Pvt. Ltd., a transaction in which the big-box retailer could spend between $5 billion and $10 billion, The Times of India reported, citing people familiar with the matter. If the Indian online retailer accepts the offer, Flipkart, which has been in talks with Walmart for 18 months, reportedly will be valued at about $20 billion, or roughly twice its valuation in 2017.

* Costco Wholesale Corp. reported that sales for the five-week period ended Feb. 4 rose 8.4% to $12.24 billion from $11.29 billion in the same period in 2017, while total comparable sales in January were up 6% year over year. The Washington-based retailer said the five-week retail month had one less shopping day compared to 2017, which had a negative impact on total and comparable sales of about 3%.

HOUSEHOLD DURABLES AND SPECIALTY RETAIL

* South Korean consumer electronics company LG Electronics Inc. is set to hike its washing machine prices by about 4% to 8% following President Donald Trump's decision to impose a tariff on certain large residential washer imports, Reuters reported. Industry sources told the news agency that LG is in discussions with several retailers including The Home Depot Inc., Lowe's Cos. Inc., Best Buy Co. Inc. and Sears Holdings Corp. regarding the price increase but did not specify when it would come into effect.

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