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Seven & i H1'20 earnings rise 9.2%; Fast Retailing FY'19 profit misses Street

TOP NEWS

* Seven & i Holdings Co. Ltd. reported its results for the fiscal first half of 2020 and announced a number of structural changes for its Seven-Eleven Japan Co., Ito-Yokado Co. Ltd., and Sogo & Seibu Co. Ltd. units. For the six months ended Aug. 31, the food retailer said attributable net income jumped 9.2% to ¥110.65 billion, or ¥125.04 per share, from ¥101.36 billion, or ¥114.50 per share, in the year-ago period. For fiscal 2020, Seven & i maintained its outlook that net income attributable to owners of the parent will increase by 3.4% to ¥210 billion, while it lowered its revenue guidance to ¥6.688 trillion from its previous outlook of ¥6.741 trillion.

* Japanese fast-fashion giant Fast Retailing Co. Ltd. posted profit and revenue for fiscal full year 2019 that missed its guidance and analysts' estimates after a weaker second-half performance. For the fiscal year ended Aug. 31, profit attributable to owners of the parent came in at ¥162.58 billion, up 5% from ¥154.81 billion in the year-ago period. This missed Fast Retailing's target of ¥165.0 billion and analysts' mean consensus net income estimate of ¥166.17 billion, compiled by S&P Global Market Intelligence.

TEXTILES, APPAREL AND LUXURY GOODS

* Esprit Holdings Ltd. said CFO and executive director Tang Wing Yung will resign, effective Oct. 21, and will be succeeded by Johannes Georg Schmidt-Schultes. Schmidt-Schultes was CFO of building products company BMI Group Holdings UK Ltd.

* French luxury-goods maker LVMH Moët Hennessy - Louis Vuitton SE posted 17% year-over-year growth in revenue for the third quarter of 2019. Revenue increased to €13.32 billion from €11.38 billion reported in the third quarter of 2018.

* Shares of Topsports International Holdings Ltd. rose as much as 11.8% on its first day of trading in Hong Kong despite the trade war between the U.S. and China. The Chinese sportswear retailer raised $1.01 billion in its IPO after pricing its shares at HK$8.50 each.

* Folli-Follie Commercial Manufacturing and Technical SA-owned jeweler Links of London Ltd. fell into administration after facing "difficult trading conditions," putting 350 jobs at risk, BBC News reported, citing administrator Deloitte. The company will keep its 28 stand-alone stores and seven concessions in the U.K. and Ireland open, but its website has been suspended.

MULTILINE RETAIL

* Dollar Tree Inc. plans to hire more than 25,000 workers for permanent full-time and part-time positions during its annual nationwide hiring event across all locations Oct. 16.

* Macy's Inc. partnered with television personality Becca Tilley on an apparel line called Becca Tilley x bar III, which was created in collaboration with Reunited Clothing's creative team.

* Department store operator Debenhams PLC, which is undergoing restructuring, confirmed that it raised a new £50 million facility from existing lenders, in addition to the original £200 million facility announced in March.

E-COMMERCE

* China's Alibaba Group Holding Ltd. closed the transaction that will enable the company to form an e-commerce joint venture in Russia. The joint venture involves Alibaba's AliExpress Russia business unit as well as internet company Mail.ru Group Ltd., mobile operator MegaFon, and the Russian Direct Investment Fund.

* Apparel retailer N Brown Group PLC's half-year adjusted EPS rose 6% to 8.87 pence from 8.37 pence in the year-ago period. Revenue slid 5.4% year over year to £432.9 million from £457.8 million as the 2.9% growth in the company's financial services segment failed to offset the 9.3% revenue decline in its product segment. N Brown maintained its interim dividend at 2.83 pence.

HOUSEHOLD AND PERSONAL PRODUCTS

* Sephora, owned by LVMH Moët Hennessy - Louis Vuitton SE, made six major executive changes in its U.S. unit, all effective Oct. 14, Women's Wear Daily reported. The makeup chain reportedly named Satish Malhotra as chief retail and operating officer, Amy Eschliman as senior vice president of client engagement and Allegra Stanley as vice president and general manager of loyalty. The company also appointed Bridget Dolan as senior vice president of new ventures, Kim Stromberg as vice president and general manager for e-commerce, and Jeff Schryver as vice president of business analytics and insights.

HYPERMARKETS AND SUPERCENTERS

* Costco Wholesale Corp. posted a 5.6% year-over-year increase in net sales for September. Net sales for the five-week period ended Oct. 6 came in at $14.41 billion, compared to $13.64 billion in September 2018.

* Carrefour SA's Brazilian unit agreed to hand over its 17 supermarkets in the metropolitan area of Belo Horizonte to family-owned chain Super Nosso for an undisclosed amount, Reuters reported, citing a securities filing. The stores reportedly will be managed under the Super Nosso banner within a year but Carrefour Brasil will continue to take in revenue from sales.

HOUSEHOLD DURABLES AND SPECIALTY RETAIL

* Bed Bath & Beyond Inc. hired industry veteran Mark Tritton as president, CEO and as a member of its board, effective Nov. 4. Tritton most recently served as executive vice president and chief merchandising officer at general merchandise retailer Target Corp. In a same-day filing, Target disclosed Tritton's departure and named Michael Fiddelke CFO and executive vice president, effective Nov. 1.

* Dunelm Group PLC said total group revenue for the first quarter ended Sept. 28 grew 5.8% year over year to £262.6 million, with a 6.4% increase in total like-for-like sales. The British home furnishing retailer plans to launch its new digital platform before Christmas, "but will retain flexibility within our transition plans."

HOTELS, RESORTS AND CRUISE LINES

* Unizo Holdings Co. Ltd. rejected buyout offers from private equity firm Blackstone Group and "an investment fund acknowledged in Japan," which proposed to acquire the hotel chain for ¥4,500 to ¥5,000 per share, compared with its Oct. 10 closing share price of ¥4,540.

INDUSTRY NEWS

* Retail imports at U.S. container ports are expected to increase in November ahead of expanded China tariffs, the National Retail Federation said. The industry group expects November imports to hit 1.97 million 20-foot equivalent units, or TEU. A TEU is a 20-foot-long cargo container or its equivalent.

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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 jumped 0.10% to 25,707.93, while the Nikkei 225 jumped 0.45% to 21,551.98.

In Europe, around midday, the FTSE 100 increased 0.04% to 7,169.18, and the Euronext 100 dropped 0.06% to 1,065.92.

On the macro front

The consumer price index, the jobless claims report, the EIA natural gas report, the Treasury budget, the Fed balance sheet and the money supply 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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