TOP NEWS
* Alibaba Group Holding Ltd. reported net income in its fiscal third quarter ended Dec. 31, 2017, jumped 35% year over year to $3.70 billion, powered by the strength of the Chinese consumer. Diluted EPS increased 33% to $1.41. Sales leaped 56% year over year to $12.76 billion. The operator of China's Tmall and Taobao websites raised its forecast for revenue growth for the fiscal year ending March 31, 2018, to 55% to 56% from the top end of prior guidance of 53%. Separately, Alibaba said it agreed to acquire a 33% equity interest in Ant Small and Micro Financial Services Group, or Ant Financial.
* Anglo-Dutch consumer products giant Unilever Plc reported that net profit for the year ended Dec. 31, 2017, increased 16.8% at current exchange rates to €6.05 billion from €5.18 billion in 2016, beating the S&P Capital IQ consensus estimate of €5.83 billion. CEO Paul Polman also said the London-based company expects underlying sales to grow in the range between 3% to 5% and profit margins to improve in 2018 from Unilever's recent disposal of its spreads business and integration of its foods & refreshment businesses.
TEXTILES, APPAREL AND LUXURY GOODS
* Swedish fast-fashion giant H&M Hennes & Mauritz AB will launch a new off-price marketplace Afound, which will offer a combination of in-house branded products and those from other companies, debuting in Sweden in 2018. The new concept, which will sell discounted fashion and lifestyle items, as well as some unique, limited products from certain brands, will open its first physical Afound store in Stockholm and roll out an e-commerce site for Sweden.
MULTILINE RETAIL
* Department store operator Marks and Spencer Group plc will shut down six stores by April-end and is considering shuttering eight others as part of the British company's transformation plan. Employees working in the stores at Birkenhead, Bournemouth, Durham, Fforestfach, Putney and Redditch will be redeployed at nearby stores, while stores at Andover, Basildon, Bridlington, Denton (Outlet), Falmouth, Fareham, Keighley and Stockport are proposed for closure.
* Sears Holdings Corp. laid off 220 employees in its home state of Illinois as part of its restructuring plan, which aims to realize $1.25 billion in annualized cost savings, CNBC reported, citing a spokesman for the department store operator. The retailer, which, in January, announced that 103 of its Kmart and Sears stores will close in 2018, reportedly will offer severance pay and transition assistance to affected employees.
E-COMMERCE
* Chinese tech giant Tencent Holdings Ltd., e-tailer JD.com Inc. and online apparel company Vipshop Holdings Ltd are planning to jointly invest 10 billion yuan in menswear maker Heilan Home Co. Ltd., Reuters reported, citing sources familiar with the matter. The group, led by Tencent, aims to pay 5 billion yuan for a stake of less than 10% in Heilan and use the other 5 billion yuan to establish an industrial investment fund for deals compatible with Heilan's business.
* Online marketplace retailer JD.com Inc. signed a deal with the U.K.'s Department of International Trade to sell £2 billion worth of U.K. goods to Chinese consumers on its e-commerce platform in the next two to three years. Also under the agreement, which coincided with British Prime Minister Theresa May's visit to China, JD will launch campaigns for seasonal products and has scheduled a 24-hour sales event for British products to take place in April.
* EBay Inc. reported adjusted EPS of 59 cents for its fourth quarter ended Dec. 31, 2017, in line with the S&P Capital IQ normalized EPS estimate, and revenue of $2.6 billion, up 9% year over year. The e-commerce marketplace operator also said it expects revenue for the full year ending Dec. 31, 2018, to grow to between $10.9 billion and $11.1 billion, with GAAP earnings per diluted share from continuing operations in the range of $1.65 to $1.75. EBay also unveiled its plans for intermediate payments on its marketplace and directly manage transactions to simplify the experience for buyers and sellers through its recent agreement with Dutch payment-processing company Adyen B.V.
* Alibaba Group Holding Ltd. launched a new channel on its online portal Taobao dedicated to elderly users and their families, a move by the Chinese online retailer to make its platform "a shared place" for customers. Alibaba also said it is looking to hire two influential "Senior Experience Officers" to help improve "Taobao for retirees," adding that the channel is its first in 2018 that refines services specific to a consumer group.
HOUSEHOLD AND PERSONAL PRODUCTS
* Consumer products company Unilever Plc signed an agreement to acquire Romania-based ice cream brand Betty Ice for an undisclosed sum, subject to regulatory approval by Romanian competition authorities.
FOOD AND STAPLES RETAILING
* Mondelez International Inc. posted adjusted net earnings of $862 million for the three months ended Dec. 31, 2017, 17.2% above the $726 million the food manufacturer reported for the same quarter in 2016, excluding the impact of foreign currencies. For its 2018 fiscal year, the Deerfield, Ill.-based company, which makes Oreo cookies and Cadbury chocolate, said it expects organic net revenue to increase between 1% and 2% and its adjusted operating income margin to increase about 17%.
HOUSEHOLD DURABLES AND SPECIALTY RETAIL
* Lowe's Cos. Inc. will pay a one-time bonus of up to $1,000 to more than 260,000 employees due to the U.S. tax reform, following the move of rival The Home Depot Inc., CNBC reported, citing an internal company memo. The home improvement retailer reportedly also will expand the benefits package of its full-time workers to include paid maternity leave for 10 weeks, paid parental leave for two weeks, $5,000 adoption assistance and faster eligibility for health benefits. Lowe's reportedly declined to comment on how the bonuses will be divided based on tenure.
* The Johannesburg Stock Exchange said that Steinhoff Investment Holdings Ltd, a wholly owned subsidiary of South African retailer Steinhoff International Holdings NV, faces suspension from trading unless it files its annual report on or before Feb. 28. The company, which holds Steinhoff's South African assets, including its majority stake in Steinhoff Africa Retail Ltd, failed to comply with listing requirements to submit its annual report within four months after its fiscal year ended on Sept. 30, 2017.
