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Perry Ellis backs founder's bid over Randa offer; Wynn general counsel to depart

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Perry Ellis backs founder's bid over Randa offer; Wynn general counsel to depart

TOP NEWS

* Perry Ellis International Inc. pushed shareholders to vote for founder George Feldenkreis' offer to take the apparel and accessories retailer private through a $437 million acquisition despite a competing bid from Randa Accessories Leather Goods LLC. Shareholders of the Florida-based company will receive $27.50 per share in cash upon closing under the transaction agreement with Feldenkreis, while Randa proposed to acquire Perry Ellis for an all-cash transaction of $28 per share. However, Perry Ellis said Randa's offer was "highly-conditional, non-binding and insufficient," adding that the accessories firm expects a 3% fee payable in the event shareholders vote down the transaction. Meanwhile, the clothing company also named Jorge Narino, who served as Perry Ellis' interim CFO since November 2017, as its CFO.

* Wynn Resorts Ltd. executive vice president, general counsel and secretary Kim Sinatra will leave the casino operator, effective July 15. The terms of Sinatra's transition and departure have not been finalized.

TEXTILES, APPAREL AND LUXURY GOODS

* India's Reliance Brands Ltd, private equity firm of Reliance Retail Ltd and Reliance Industries Ltd., completed its purchase of a 12.5% stake in apparel company Future 101 Design Pvt. Ltd. for 95 million rupees, with no regulatory approvals required. For the year ended March 31, Future101 reported revenue of approximately 220 million rupees.

MULTILINE RETAIL

* Poundworld Retail Ltd. founder Chris Edwards was "shocked and surprised" that administrators rejected his rescue bid to buy 180 of the retail chain's stores and save about 3,000 jobs, the Irish Independent reported. The U.K. general merchandiser, formerly owned by private equity firm TPG Capital Management LP, reportedly has started its closing down sales amid ongoing discussions with potential bidders. Despite a "substantial and credible offer," Deloitte administrators, in a written confirmation, told Edwards that the bid was "not high enough," the report added.

E-COMMERCE

* Amazon.com Inc. unveiled a range of deals across its exclusive brands 11 days ahead of Prime Day 2018, which is expected to run for 36 hours beginning 3 p.m. ET on July 16. Amazon will offer its Prime members "the lowest prices" across different products from the retailer's own brand. The early deals, which will begin July 9, include up to 40% off on sportswear and women's fashion, up to 50% off on kids and baby apparel, and up to 25% of on products from brands Rivet and Stone & Beam.

* Amazon plans to publish a holiday toy catalog, similar to Toys R Us Inc., in a bid to integrate tools used by traditional retailers in its online business model, Bloomberg News reported, citing people familiar with the matter. The printed catalogs reportedly will be mailed to homes across the U.S. and distributed at Whole Foods Market Inc. stores.

FOOD AND STAPLES RETAILING

* Walgreens Boots Alliance Inc. completed its planned acquisition of a 40% stake in Chinese retail pharmacy chain Sinopharm Holding GuoDa Drugstores Co. Ltd. through a capital increase worth 2.77 billion yuan, after receiving regulatory approvals. Walgreens will account for its minority stake in GuoDa as an equity method investment. Shanghai-based GuoDa, a subsidiary of China National Accord Medicines Corp. Ltd., operates more than 3,800 retail pharmacies in approximately 70 cities across China.

* Seven & i Holdings Co. Ltd. agreed to create a business alliance with Odakyu Electric Railway Co., Ltd. and Odakyu Shoji Co., Ltd. to transform Odakyu shops into 7-Eleven stores. Under the final agreement terms, the companies will convert Odakyu train station stores and its convenience stores into 7-Eleven locations as well as introduce Seven Premium brand products in Odakyu OX outlets. The Japanese retailer also partnered with correspondence education services provider Zoshinkai Holdings Inc. to provide user-friendly and convenient educational services to customers by conducting educational events and allowing submission of answer sheets through 7-Eleven stores, with plans of collaborating on other initiatives.

HYPERMARKETS AND SUPER CENTERS

* PriceSmart Inc. posted earnings for the third quarter of 2018 that met analyst expectations despite an increase in operating expenses driven by the warehouse club operator's purchase of e-commerce company Aeropost. For the quarter ended May 31, PriceSmart reported an EPS of 61 cents, or a net income of $18.7 million meeting the S&P Capital IQ consensus normalized EPS estimate but down from 62 cents in the prior-year period. The company recorded an increase of $8 million in operational cost for the quarter associated with its acquisition of Aeropost. Total revenue increased by 7.1% to $782.2 million from $730.3 million in the year-ago period.

* Wal-Mart de México SAB de CV's consolidated sales in June rose 13.1% year over year to approximately 49.08 billion Mexican pesos from 43.39 billion pesos in the prior-year period. The Mexican unit of Walmart Inc. reported that total sales within the country grew 11.5% year over year to 39.48 billion pesos from 35.40 billion pesos in the year-ago period, and comparable store sales in Mexico jumped 10%. In Central America, Walmex sales increased 20.1% year over year to 9.6 billion pesos from 7.99 billion pesos in June 2017, and comparable store sales rose 4.8% on a constant currency basis.

HOUSEHOLD DURABLES AND SPECIALTY RETAIL

* LG Electronics Inc. posted consolidated sales for the second quarter of 2018 of 15.018 trillion South Korean won, up 3.2% year over year from 14.551 trillion won in 2017, according to the electronics manufacturer's preliminary results. The South Korean company's operating income also increased 16.1% year over year to 771 billion won from 664.1 billion won in the year-ago period.

* Indian household care products manufacturer Godrej Consumer Products Ltd. sold its Snuggy diaper brand to personal and beauty products maker Nobel Hygiene Pvt. Ltd. for an undisclosed amount. According to a report by The Economic Times of India, the move will see Godrej exit the baby care market after it switched its focus in the product categories of household, insecticides, and personal wash and hair care.

INDUSTRY NEWS

* Total in-store sales in the U.K. high street fell 1.7% year over year on a like-for-like basis, compared with a 1.3% increase in the year-ago period, as store footfall declined due to heavy rains, according to a survey by BDO UK LLP. This is the country's fifth successive month of negative in-store growth, the advisory firm added. For the four weeks ended June 24, like-for-like sales for the lifestyle sector were down 0.3% year over year, 2.3% for the fashion category and 2.4% in homewares. Meanwhile, non-store like-for-like sales jumped 10.9%.

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The day ahead

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

In Asia, the Hang Seng increased 0.47% to 28,315.62, and the Nikkei 225 rose 1.12% to 21,788.14.

In Europe, around midday, the FTSE 100 was down 0.21% to 7,587.28, and the Euronext 100 was up 0.14% to 1,051.59.

On the macro front

The employment situation report, the international trade report, the EIA natural gas report, the Treasury STRIPS report and the Baker-Hughes Rig Count report are due out today.

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