TOP NEWS
* Walmart Inc. will raise the restriction on gun purchases to 21 years of age as it conducts a review of its firearms sales policy, which includes making background checks and removal of items resembling assault-style rifles. The move follows a same-day announcement by specialty retailer Dick's Sporting Goods Inc. banning the sale of assault-style rifles, which are also called modern sporting rifles, in all of its 35 Field & Stream stores.
* U.K. luxury goods company Burberry Group PLC said it had appointed Riccardo Tisci, the former design chief at Givenchy, as its new chief creative officer. At Burberry, Tisci will be reunited with Marco Gobbetti, the former CEO of Givenchy who joined the London-based fashion house in July 2017.
TEXTILES, APPAREL AND LUXURY GOODS
* European regulators approved the proposed merger between Essilor International SA, a maker of ophthalmic lenses, and Luxottica Group SpA, a maker of eyewear and owner of brands such as Ray-Ban and Oakley. Other competition watchdogs still need to give the deal the go-ahead, but the companies expect to close the transaction in the first half of 2018.
* TJX Cos. Inc. anticipates that wage increases will have a negative impact of about 2% on fiscal 2019 EPS growth, similar to the impact it saw in fiscal 2018, CFO Scott Goldenberg said during a conference call with analysts. The Framingham, Mass.-based off-price retailer reported that adjusted EPS for the fiscal fourth quarter ended Jan. 31 totaled $1.19, below the S&P Capital IQ consensus mean estimate for normalized EPS of $1.27. TJX also announced plans to repatriate $1 billion in cash from its Canadian division in fiscal 2019.
* L Brands Inc., which owns lingerie label Victoria's Secret and personal goods maker Bath & Body Works, plans to invest about $100 million in employee wages and benefits. The fashion retailer disclosed that it expects EPS for fiscal 2018 to come in between $2.95 and $3.25, which includes EPS in the range of 15 cents to 20 cents for the first quarter, reflecting the benefit of the recent U.S. tax reform.
E-COMMERCE
* Online fashion platform Zalando SE said it expected to outpace the European market in 2018 by growing revenue 20% to 25%, adding about €1 billion at the midpoint of that range. It plans to enter two new markets during the year, it added. Berlin-based Zalando reported net income in the fourth quarter ended Dec. 31, 2017, edged up to €60.1 million from €60 million a year earlier as sales increased 22.2% year over year to €1.33 billion from €1.09 billion.
FOOD AND STAPLES RETAILING
* Shareholders of U.K. food wholesaler Booker Group PLC endorsed a £4 billion sale of the company to supermarket operator Tesco Plc, ignoring pleas from some investors and shareholder advisory groups that had advocated holding out for a better deal. According to preliminary tallies in two votes on the transaction, Booker said in a statement posted on its website that shareholders representing about 83% of the votes cast in each ballot had approved the sale of the company. Tesco shareholders had endorsed the deal in a separate vote earlier on Feb. 28.
HYPERMARKETS AND SUPERCENTERS
* Grocery store operator Carrefour SA said its dividend for the 2017 fiscal year would be 34% lower than in 2016 as the company reported higher distribution costs in some of its markets and greater competition in others. The Paris company said it will pay a dividend of 46 cents per share, down from the 70 cents that it paid for 2016.
HOUSEHOLD DURABLES AND SPECIALTY RETAIL
* Steinhoff International Holdings NV said in a statement that the group's accounting irregularities related largely to its central European business, where Steinhoff operates furniture and household goods brands Poco and Lipo, and apparel and accessories chain Pepco. The embattled South African retailer, whose independent investigation suggested that it may have overstated earnings, also disclosed that retail revenue for the quarter excluding Poco fell 5% year over year to €4.86 billion from €5.10 billion a year earlier. In a separate announcement March 1, the Stellenbosch-based company said Steinhoff Investment Holdings Ltd., a subsidiary, was suspended from trading in the Johannesburg Stock Exchange after failing to submit its annual report by Feb. 28.
* Minnesota-based Best Buy Co. Inc. is slated to close 250 of its small-format mobile phone stores by the end of May in a move aimed at improving profitability, the Minneapolis Star Tribune reported, citing an internal company memo. According to the newspaper, CEO Hubert Joly said in the memo that Best Buy will work to transfer as many employees as possible to nearby big-box stores or other positions as well as offer severance pay to affected workers.
* Maplin Electronics Ltd., which operates 217 stores in the U.K. and Ireland and employs 2,335 staff, went into administration, but its search for a buyer will continue. The retailer of electronic goods had failed to find a buyer in recent weeks, according to a statement posted on the website of PwC, which named Zelf Hussain, Toby Underwood and Ian Green joint administrators.
* More customers came to Lowe's Cos. Inc.'s stores during the company's fiscal fourth quarter, but it is still struggling to get visitors to make purchases and it is struggling to compete with rival Home Depot Inc. Richard Maltsbarger, COO at the Mooresville, N.C.-based home improvement retailer, said during a call to discuss results. Separately, Lowe's announced that it will exclusively sell The Sherwin-Williams Co.'s paint brands at its stores, and the specialty chemical producer will become an exclusive coatings supplier to Lowe's outlets as part of an expanded sales partnership.
* Carpetright Plc's shares plunged 24.2% after the U.K. retailer of floor coverings said it expected to report a pretax loss for the fiscal year ending April 28 as like-for-like sales declined amid difficult trading conditions. The company said it was engaged in discussions with its lenders to ensure that it continues to comply with its bank facilities.
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