TOP NEWS
* Swedish clothing company H & M Hennes & Mauritz AB reported EPS of 2.33 Swedish kronor in the third quarter ended Aug. 31, compared with EPS of 1.87 kronor reported in the year-earlier period. The market expected the company to report EPS of 2.27 kronor, according to a mean consensus of analyst estimates compiled by S&P Global Market Intelligence. In early trading on the Swedish stock exchange, H&M's shares rose 6.62% to 196.65 kronor.
* Hong Kong retail sales in August dropped 23% year over year to HK$29.4 billion, compared with an 11.4% decrease in July, as retail volume fell 25.3%, according to the government's census and statistics department. A government spokesman attributed the "sharp deterioration" to the ongoing protests in Hong Kong, which disrupted inbound tourism and purchasing activities.
TEXTILES, APPAREL AND LUXURY GOODS
* Burberry Group PLC named Jerome Le Bleis as its chief supply chain officer, effective Jan. 1, 2020. Le Bleis is executive vice president of group operations at Lacoste SA.
* LVMH Moët Hennessy - Louis Vuitton SE-owned fragrance and cosmetics brand Guerlain will have Parfums Christian Dior executive Véronique Courtois as its new CEO, effective Nov. 1, Women's Wear Daily reported, citing Parfums Christian Dior CEO Claude Martinez in an internal note. Courtois will succeed Laurent Boillot, who is expected to replace Bernard Peillon as CEO of Maison Hennessy.
* Adidas AG is concerned "the American consumer has less money to spend" due to the trade war between the U.S. and China, CEO Kasper Rorsted told CNBC. Rorsted reportedly is also worried about the effect of the devaluation of the Chinese currency since 25% of Adidas's business is based in China.
* Ted Baker PLC shares in London plunged 35% after the U.K. fashion and apparel company reported fiscal first-half profit below expectations and warned that if a slow start to its second half persisted, its full-year earnings would be impacted. Ted Baker said adjusted EPS in the six-month period swung to a loss of 4.5 pence from a profit of 43.8 pence a year ago, and it slashed its dividend to 7.8 pence from 17.9 pence.
* Onward Holdings Co. Ltd. will close about 600 of its 3,000 physical stores worldwide as the Japanese clothing retailer shifts its focus to e-commerce, the Nikkei Asian Review reported. As a result of the closures, Onward reportedly anticipates a net loss of about ¥30 billion for the fiscal year ending February 2020, versus its current profit outlook of ¥5.5 billion.
MULTILINE RETAIL
* Paradise Developments, a shareholder of department store operator Hudson's Bay Co., called the take-private offer led by Chairman Richard Baker "inadequate." The move comes after Canadian private equity firm Catalyst Capital Group raised its stake in Hudson's Bay to 16% in order to block the offer, which is priced at C$9.45 per share.
* Bangkok-based conglomerate The Central Group has filed for an IPO of Central Retail Corp. Ltd. on the Stock Exchange of Thailand. Central Group is planning to float up to 2,231,714,300 shares, or a 33.2% stake, in its retail arm. Central Group has yet to release the pricing of the offering.
E-COMMERCE
* Airbnb Inc. plans to hire Goldman Sachs Group Inc. and Morgan Stanley as joint lead advisers for its public flotation in 2020, Reuters reported, citing sources familiar with the matter. The home-share startup is looking to go public around the middle of 2020, according to Reuters. Airbnb, Goldman Sachs and Morgan Stanley did not immediately respond to S&P Global Market Intelligence's request for comment.
HOUSEHOLD AND PERSONAL PRODUCTS
* The Clorox Co. lowered its diluted EPS outlook to between $6.05 and $6.25 from its previous guidance of $6.30 to $6.50. The consumer products manufacturer also expects fiscal 2020 sales to range between a decline by low single-digits and growth of 1%. The update comes after the company announced its Ignite strategy, which aims to increase net sales by 2% to 4% in the long term.
FOOD AND STAPLES RETAILING
* The Kroger Co. is considering laying off workers as the U.S. grocer seeks to improve delivery and store technologies to attract customers, Reuters reported, citing a company spokesperson. Several store operating divisions are reviewing middle management roles and team structures as part of ongoing talent management, a Kroger spokesperson reportedly said.
* Walgreens Boots Alliance Inc. teamed up with on-demand logistics company Postmates Inc. to expand its delivery service to customers in New York City. Under the partnership, customers can place their Walgreens orders through the Postmates mobile app or website.
HYPERMARKETS AND SUPERCENTERS
* Walmart Inc. suspended the sale of all over-the-counter ranitidine products, including Zantac, Equate and Member's Mark brands, at all its physical and online stores after the U.S. Food and Drug Administration said it is evaluating the stomach medicine because it may contain a potentially cancer-causing impurity.
* Grocer Coles Group Ltd. opened Australia's first "grocerant," which is a food hall in a supermarket, in Melbourne, The Australian Financial Review reported, citing CEO Steven Cain. Cain reportedly aims to generate an additional A$1 billion in sales over the next five years through the new store format.
* German real estate investor Redos Real Estate GmbH has notified antitrust bodies about its plan to buy Metro AG's loss-making Real hypermarket chain, Reuters reported, citing people close to the matter. Metro declined to comment, while Redos did not immediately respond to a request for comment, the news agency said. The German hypermarket operator was in exclusive talks with a Redos-led group for the sale of Real in May.
HOUSEHOLD DURABLES AND SPECIALTY RETAIL
* Dick's Sporting Goods Inc. will open five new Dick's Sporting Goods outlets and two Golf Galaxy stores in October, creating a total of 400 jobs and increasing the company's presence in 47 states.
* Bed Bath & Beyond Inc.'s second-quarter adjusted EPS came in at 34 cents, down from 38 cents in the year-ago period but above the S&P Global Market Intelligence consensus normalized EPS estimate of 29 cents. The company plans to close 40 Bed Bath & Beyond sites and 20 other concept outlets in fiscal 2019 in order to optimize its store fleet, interim CEO Mary Winston told analysts during an earnings call.
* GoPro Inc. lowered its half-year adjusted EPS outlook to a range of 33 cents to 39 cents, from its prior guidance of 37 cents to 49 cents. For fiscal 2019, the company expects revenue to range between $1.22 billion and $1.25 billion, and adjusted EPS to come in at 30 cents to 35 cents. Shipments of the newly launched Hero8 Black camera will shift from the third quarter to the fourth quarter due to a late-stage production delay, affecting the company's revenue, CEO Nicholas Woodman said during a call with analysts.
LEISURE PRODUCTS AND FACILITIES
* Six Flags Entertainment Corp. has offered to merge with Cedar Fair LP in a potential cash-and-stock deal that could create a $7.6 billion theme park company, Reuters reported, citing people familiar with the matter. Six Flags declined to comment, while Cedar Fair did not immediately respond to a request for comment, Reuters said.
WTO says US can impose tariffs on $7.5B imports from EU in aircraft subsidy spat
The day ahead
Early morning futures indicators pointed to a higher opening for the U.S. market.
In Asia, the Hang Seng jumped 0.26% to 26,110.31, while the Nikkei 225 dropped 2.01% to 21,341.74.
In Europe, around midday, the FTSE 100 dropped 0.56% to 7,082.38, and the Euronext 100 was up 0.31% to 1,056.09.
On the macro front
The challenger job-cut report, the jobless claims report, PMI services index, the factory orders report, ISM non-manufacturing index, the EIA natural gas report, 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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