TOP NEWS
* Bed Bath & Beyond Inc.'s shares jumped more than 14% on Aug. 29 on reports that it hired Goldman Sachs to evaluate potential offers for its business. A private equity firm expressed interest in buying the entire company, while its PersonalizationMall unit received bids ranging between $250 million and $300 million, CBS News reported, citing The Deal magazine. A former executive of the struggling retailer also reportedly offered $250 million for its Cost Plus World Market division. Bed Bath & Beyond reportedly declined to comment on the matter.
* The value of retail sales in Hong Kong fell 11.4% year over year in July to HK$34.4 billion compared with a 6.7% decrease in June, showing for the first time the full impact of the extradition bill protests on the retail sector. The luxury sector was most severely hit with a 24.4% drop in sales of jewelry, watches, clocks and valuable gifts.
TEXTILES, APPAREL AND LUXURY GOODS
* H & M Hennes & Mauritz AB's The Laboratory and its COS fashion brand partnered with The Renewal Workshop to launch an apparel line made from restored pieces. The collection will be rolled out Sept. 4 at three COS stores in Berlin, Stockholm and Utrecht in the Netherlands.
* Abercrombie & Fitch Co. said it now expects net sales for fiscal 2019 to be flat or up 2% compared with last year, compared with its prior forecast for sales to be up between 2% and 4%. The company's second-quarter adjusted loss per share came in at 48 cents, versus an adjusted EPS of 6 cents in the year-ago period and better than the S&P Global Market Intelligence consensus normalized loss estimate of 52 cents per share. Net sales declined 0.2% year over year but increased by 1% at constant currency, to $841.1 million.
* V.F. Corp. will no longer purchase Brazilian leather for its products amid surrounding fires in the Amazon rainforest, Reuters reported, citing a company statement. The maker of Vans, Dickies and JanSport products reportedly said it will resume the purchase of Brazilian leather only when it has "the confidence and assurance" that the materials do not harm Brazil's environment.
* U.K. footwear retailer Shoe Zone PLC warned that challenging trading conditions meant its full-year performance would be below expectations and said it would write down the value of its 17 freehold properties by £3.1 million to £5.3 million. CEO Nick Davis resigned and will be succeeded by Executive Chairman Anthony Smith. Shoe Zone shares plunged 33.5% in midmorning trade.
* Fast Retailing Co. Ltd. opened one Uniqlo store and one GU shop at a Lotte Mall in Seoul's Suji district despite the political tensions between Japan and South Korea, the Nikkei Asian Review reported. Uniqlo recently closed one store in South Korea as the boycott of Japanese goods in the country went on. Fast Retailing also apologized to locals for an executive's "poorly expressed" remark regarding the boycotts.
MULTILINE RETAIL
* Dollar Tree Inc. revised its diluted EPS outlook for fiscal 2019 to range between $4.90 and $5.11, up from prior guidance of between $4.77 and $5.07, and narrowed its net sales guidance to a range of $23.57 billion to $23.79 billion. The Chesapeake, Va.-based company reported diluted EPS of 76 cents for the quarter ending Aug. 3, slightly above the S&P Global Market Intelligence mean consensus estimate for GAAP EPS of 75 cents.
E-COMMERCE
* Moody's affirmed its A1 issuer rating and A1 senior unsecured rating on Alibaba Group Holding Ltd., with a stable outlook, due to its "leading market position in China, and its solid track record of cash flow generation and maintenance of a strong financial profile."
* Amazon.com Inc. will provide helpline phone numbers in the coming weeks to customers who search its platform about suicide, Reuters reported, citing a company statement. The move comes after Amazon's site suggested suicide kits and nooses to users who search for the word "suicide" on the platform. The helpline information reportedly will be added to detail pages of certain products.
* Alibaba Group Holding Ltd.-backed BabyTree Group announced its investments in artificial intelligence robot startup Zoetic, online parenting content provider Parent Lab and English education platform Littlelights. BabyTree aims to expand its global footprint by investing in cutting-edge technologies in the maternity and child sector.
HOUSEHOLD DURABLES AND SPECIALTY RETAIL
* Ulta Beauty Inc.'s shares fell 20% on Aug. 29 after reporting second quarter earnings that missed analysts' expectations and lowering its guidance for fiscal 2019. The Illinois-based retailer now expects diluted EPS of fiscal 2019 to be between $11.86 and $12.06 compared to its previous forecast of $12.83 to $13.03. Diluted EPS for the second quarter ended Aug. 3 rose 12.2% to $2.76 from $2.46 in the year-earlier quarter.
* LG Electronics Inc. plans to launch its artificial intelligence-powered customer service solution, Proactive Customer Care, in Europe. The personalized support service initially will be integrated into the company's front-load washing machines and bottom-freezer refrigerators in France, Germany, Italy, Spain and the U.K. in 2019, then rolled out in other European markets and North America in 2020.
* Whirlpool Corp. is recalling a total of 29,228 glass cooktops under its Whirlpool, KitchenAid and JennAir brands as the affected appliances pose fire risks.
HOTELS, RESORTS AND CRUISE LINES
* Timeshare operator Hilton Grand Vacations Inc. will explore strategic options, including a possible sale, Reuters reported, citing anonymous sources. Hilton Grand Vacations did not immediately respond to S&P Global Market Intelligence's request for comment.
* The Superior Court of Quebec approved Air Canada's proposed acquisition of Transat A.T. Inc. for C$18 per share, or a total price of C$720 million. The deal, subject to certain closing conditions and regulatory approvals, is expected to close in the second quarter of 2020.
INDUSTRY NEWS
* German retail sales fell more than expected in July on a monthly basis, provisional data from the Federal Statistical Office showed. Real retail trade dropped by 2.2% month over month in July after calendar and seasonal adjustments, having climbed a downwardly revised 3% in June, data showed.
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The day ahead
Early morning futures indicators pointed to a higher opening for the U.S. market.
In Asia, the Hang Seng inched up 0.08% to 25,724.73, and the Nikkei 225 rose 1.19% to 20,704.37.
In Europe, around midday, the FTSE 100 was up 0.65% to 7,231.22, and the Euronext 100 was up 0.97% to 1,067.18.
On the macro front
The personal income and outlays report, the Chicago PMI, the consumer sentiment report, the farm prices report and the Baker-Hughes Rig Count report 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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