TOP NEWS
* Nike Inc. shares were up 5.16% on Sept. 24 after the company reported double-digit growth in its first quarter earnings driven by revenue growth across its global business and gross margin expansion. The retailer said diluted EPS for the first quarter ended Aug. 31 rose 28% to 86 cents, exceeding the mean consensus estimate for GAAP EPS of 71 cents, according to data compiled by S&P Global Market Intelligence.
* Target Corp. had a temporary outage on the afternoon of Sept. 24, more than two months after it experienced a similar incident, that affected purchases from its stores, website and mobile app, CNBC reported. "Within an hour, our technology teams identified and began to remedy the issue to limit the impact on our guests," a company spokesman reportedly said, adding that the glitch was not "a security-related issue."
TEXTILES, APPAREL AND LUXURY GOODS
* The Gap Inc. named Mary Beth Laughton as president and CEO of its Athleta brand, effective late October. Laughton was previously executive vice president of omni-retail at LVMH Moët Hennessy - Louis Vuitton SE-owned Sephora U.S.
* Italy's tax agency is expanding its investigation into Gucci's tax payments from 2011 to 2017, focusing on executive pay, Bloomberg News reported, citing documents and people familiar with the matter. In May, Gucci parent Kering SA paid €1.25 billion to the Italian Revenue Agency to settle a tax dispute that stemmed from the failure of Luxury Goods International, Kering's Swiss subsidiary, to pay taxes in Italy for business in the country during the six-year period.
* Apparel retailer Brooks Brothers Inc. launched an official flagship store on JD.com and will unveil its upcoming fall/winter 2019 menswear collection on the site.
* Forever 21 Inc. will close its 14 outlets in Japan and shut down its online store, marking the company's exit from the country, the Nikkei Asian Review reported, citing the apparel retailer's local unit. The move comes after reports that the struggling fashion chain is in talks to sell a stake to two of its largest landlords as part of its restructuring.
* JD.com Inc. launched a new supply chain program that will source products from physical locations, in a bid to bring online purchases to customers in as little as 30 minutes. Items will come from multiple types of offline channels, such as supermarkets, convenience stores, retail outlets and the Dada-JD Daojia delivery company, instead of passing through warehouses, distribution centers and delivery stations.
* Boohoo Group PLC's adjusted diluted EPS for half year fiscal 2020 came in at 2.91 pence, up 46% from 1.99 pence in the year-ago period, while revenue increased 43% year over year to £564.9 million. The company expects revenue growth for the full year to range between 33% and 38%.
* Amazon.com Inc. acquired logistics management startup and licensed customs broker INLT. According to Reuters, Amazon said it bought the company to help its sellers easily import goods into the U.S. Financial terms of the deal were reportedly not disclosed.
* Amazon is piloting a virtual primary care clinic called Amazon Care for its employees in Seattle, offering services like in-app consultations with a healthcare professional, delivery for medications, and in-person services for testing or treatment.
* Advertising company WHP Global entered into a 30-year partnership with digital fashion group 7GEGE to launch the Anne Klein brand in China in the fall of 2019.
FOOD AND STAPLES RETAILING
* J Sainsbury PLC reported that total retail sales, excluding fuel, rose 0.1% for the second quarter of fiscal 2019-2020, compared to a growth of 1.7% in the year-ago period. Like-for-like sales declined 0.2%, excluding fuel, versus a 1% increase in the same quarter the previous year. The grocer also announced that it will close 10 to 15 supermarkets, 60 to 70 Argos outlets and 30 to 40 convenience stores, a move that it expects will generate a net operating profit benefit of about £20 million annually.
HYPERMARKETS AND SUPERCENTERS
* Walmart Inc. is expanding its education benefit program, dubbed Live Better U, to include health-related degrees in an effort to build a workforce for its growing health care business. The retailer's associates in the U.S. can now apply for bachelor's degrees and diplomas in health-related fields under a subsidy program where employees can earn their degrees by paying $1 a day.
HOUSEHOLD DURABLES AND SPECIALTY RETAIL
* Mattress retailer Allswell rolled out a bedding, bed basics and bath collection made from sustainably sourced materials, marking the company's entry into the bath and spa segment.
* Card Factory PLC said adjusted basic EPS for half year 2020 fell 14.1% to 5.5 pence from 6.4 pence in the year-ago period. Revenue climbed 5.5% year over year to £195.6 million, with like-for-like sales growth of 1.5%, as strong online performance offset negative high-street footfall in stores. The company expanded its partnership with Aldi Einkauf GmbH & Co. oHG to supply half of the German retailer's U.K. stores, starting in November, after a successful pilot at more than 130 Aldi locations.
HOTELS, RESORTS AND CRUISE LINES
* Germany is offering a €380 million bridge loan for German airline Condor Flugdienst GmbH after its British parent, Thomas Cook Group PLC, collapsed into liquidation earlier this week, Reuters reported, citing Germany's economy minister Peter Altmaier. Condor, which remains profitable and is a separate legal entity from Thomas Cook, said it would operate as usual and that it would seek a bridging loan from the German government, the report said.
* Samhi Hotels Ltd., which owns the most number of Marriott International Inc. and InterContinental Hotels Group PLC-operated hotels in India, has filed for an IPO to raise up to 11 billion Indian rupees, Reuters reported, citing a company prospectus. Samhi Hotels reportedly plans to use part of the IPO proceeds to reduce debt, and it may also raise up to 4 billion rupees in a rights issue to existing shareholders or through a private placement.
LEISURE PRODUCTS AND FACILITIES
* American Outdoor Brands Corp. failed to secure shareholder approval to raise the pay of its named executive officers during the company's annual meeting. Shareholders, however, approved the ratification of Deloitte & Touche LLP's appointment as its auditor but also turned down a proposal that called for the gunmaker to adopt a human rights policy.
* Vail Resorts Inc. completed its acquisition of Peak Resorts Inc. for $11 per share, adding 17 U.S. ski areas to its properties. The leisure services provider plans to invest approximately $15 million over the next two years in enhancing the guest experience at the 17 locations. Shares of Peak Resorts were delisted from the Nasdaq Global Select Market on Sept. 24.
* Hornby PLC reported that sales and margins for the period between April 1 and Aug. 31 "have been higher than the previous year." The toymaker said it is aware of potential supply disruption at the ports on the holidays, especially if Brexit happens, and has made the necessary preparations.
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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 declined 1.28% to 25,945.35, and the Nikkei 225 was down 0.36% to 22,020.15.
In Europe, around midday, the FTSE 100 fell 0.86% to 7,227.91, and the Euronext 100 slid 1.32% to 1,074.14.
On the macro front
The new home sales report, the State Street Investor Confidence Index, the U.S. Energy Information Administration Petroleum Status Report and the U.S. survey of business uncertainty 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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