Stay up to date. Save time.
May 24, 2019
Topshop will close all of its 11 locations in the US as the retailer's parent company tries to restructure after filing for bankruptcy. Arcadia Group, the company's parent company, said that the measure was due to the unprecedented conditions it was facing in the retail business, blaming the onslaught of e-commerce giant Amazon for the closure, as well as discount retailers and new brands that have put pressure on the company's earnings. Arcadia didn't disclose when the closures would begin, but it added that the brand would continue to sell clothes online. So far, there have been nearly 5,000 store closures announced this year in the retail industry in the US.
May 24, 2019
Paramount has decided to listen to fans after the first posters and trailer for Sonic the Hedgehog left a sour taste in most people's mouths. Fans of the character stated that the design was far from what they associated with Sonic, prompting the studio and director Jeff Fowler to pledge they would change the design ahead of the release in November this year. However, now Fowler has announced that the released has been pushed back to February 14th, 2020 so the artists and animators can get everything right. It is believed that paramount has invested $90 in the movie, and it's unclear how much money the changes will cost the studio.
May 24, 2019
Ali Emanuel's company Endeavor has filed paperwork with the FCC to go public after years of speculation about the IPO. Endeavor posted revenue of $3.6 billion in 2018 and a net income of $231 million; the company has made significant investments in a wide range of content to expand its presence across the board. The IPO has been rumored since Emanuel merged his company with sports and modeling agency IMG in 2013. Endeavor has also acquired Ultimate Fighting Championship in 2016 and marketing agency 160ver90. The company stated in the filing that going public would help it cater to the needs of its clients and open up new opportunities for its network.
May 24, 2019
Foot Locker shares dropped 16% after the company missed analysts expectations due to the challenges that the shoe industry is facing. The shoe industry is now facing the threat of tariffs that president Trump might impose on Chinese imports; analysts expect the shoe business will take the hardest hit. Foot Locker has also struggled to make sales grow as more brands like Nike have started selling directly to consumers instead of using retailers to distribute its merchandise. Overall, Foot Locker posted earnings of $1.53 per share compared to expectations of $1.60 per share; the company also posted revenue of $2.08 billion compared to $2.11 billion that analysts expected.
May 24, 2019
Sears has been on the brink of collapse for years and has filed for bankruptcy countless times, but the storied retailer plans to stay alive with a new initiative. Sears is opening a series of small-format stores in Louisiana, Alaska, and Kansas, the stores will focus mainly on selling mattresses and home appliances. The company believes that these smaller stores will attract customers that are nostalgic for the classic Sears experience and cater to the customers that need to test a mattress or an appliance before buying it. However, the initiative won't come without challenges, especially considering the threat of import tariffs and the intense online competition from furniture retailers like Wayfair.
May 24, 2019
British travel firm is in a tight spot; shares have plummeted, and analysts have stated that the company might be worthless. However, other European firms have shown interest in acquiring parts of Thomas Cook's business. Shares of the company gained 2% after it was revealed that Triton Partners had made a preliminary and unsolicited offer for the company's Northern Europe operations. According to reports, Triton Partners has submitted a bid for the company's operator in Denmark, Norway, Finland, and Sweden; Thomas Cook stated that it has received several offers for different parts of its business and that it would assess all of them to see which one is more convenient for its shareholders.
May 24, 2019
Southwest Airlines has announced that it won't charge an extra fee to those passengers who feel uneasy about flying on the 737 Max once it gets back to service. Southwest is the largest 737 Max operator in the country with 34 aircraft; the measure underlines the efforts of the airline industry to ease concerns regarding the airplane, which has been grounded since early March after two deadly crashes that killed over 300 people in Indonesia and Ethiopia. United Airlines has announced a similar measure and will rebook passengers who don't want to be on the plane, the company's CEO will also be on the first flight once the aircraft is certified to fly.
May 24, 2019
Amazon has reached a market capitalization of $1 trillion, but analysts believe that the company could go beyond that point within the next two years. Analysts at Piper Jaffray have stated that shares of the e-commerce giant could reach $3000, giving the company a market value of nearly $1.5 trillion without needing to make significant changes to its business model. Analysts noted that shares could reach that value even considering that the company's growth will slow down, adding that all of Amazon's business makes it seem like the retail side is trading relatively cheap and could go even higher. Amazon shares have gained 20% this year and 86% in the past two years.
May 24, 2019
Boeing shares rose as much as 3% on Friday, closing two weeks of wins for the company as the airline industry gets eager to see the 737 Max back in the sky. The plane has been grounded since a deadly crash in March that raised a lot of questions about the company's software, but the Federal Aviation Administration has stated that the planes will be flying again by late June. Boeing shares have dropped nearly 15% since the deadly crash, erasing about $40 billion of the company's market value, but analysts believe that the public's perception has changed as it seems that the plane will back in service sooner rather than later.
May 24, 2019
Chen Wen, a Chinese diplomat in London, has warned the UK government that the country could see a substantial response from Chinese companies if Huawei is banned from deploying 5G technology in the UK. Chen added that Chinese officials have already seen signs that the UK might follow in the footsteps of the U.S. and ban Huawei due to security concerns, something that the diplomat considers would send a message to other Chinese firms that the UK is not extending a welcoming arm for foreign investment. The UK has said it is still reviewing its policy regarding 5G telecom, but it may allow Huawei to provide non-core components instead of excluding the firm altogether.
May 23, 2019
An increasing number of fast-food chains have included plant-based meat substitutes to their menus, but McDonald's is in no hurry to follow their footsteps. McDonald's took the occasion of its annual shareholder meeting to state that it wouldn't disclose any plans it has for meat substitutes, adding that the company is evaluating the move and observing how the trend goes for its rivals. Chief Marketing Officer Silvia Lagnado stated that the company needs to assess if the demand for the product is enough to include a vegan alternative to the menu because the model carries complex considerations that the company can't ignore.
May 23, 2019
Papa John's founder John Schnatter said earlier this year that he was getting help from financial advisors to sell part of his stake in the company. Since the announcement, Schnatter has sold 3.8 million shares, leaving him with 6.1 million shares that represent roughly a 19% stake in the company, down from 31% that he previously owned. Schnatter has been selling his shares as part of an agreement with the company after he was ousted as chairman ten months ago over allegations that he used a racial slur during a conference call; Schnatter filed several lawsuits against the company but agreed to dismiss them as part of a deal with Papa John's.
May 23, 2019
The European Cockpit Association, which represents over 38,000 pilots in Europe, has stated that European regulators should conduct an independent review of the 737 Max regardless of what the Federal Aviation Administration decides in the US. The organization said that taking the FAA's word on the plane won't be enough; the statement comes as FAA officials are set to meet international regulators in Texas this week. As the FAA and other regulators are ready to bring the plane back to service, airlines wonder how to restore confidence from flight attendants and pilots. The European Union Aviation Safety Agency has stated that it will have an independent review of the aircraft.
May 23, 2019
Brazil-based cosmetics brand Natura has announced the acquisition of its biggest rival, Avon Products, through a share swap, creating the world's fourth-biggest beauty company. Natura will hold a 76% stake in the new company, while the remaining stake will be in control of Avon shareholders. The acquisition underlines Natura's push for growth after it bought its way into the high-end market by acquiring Aesop in 2013 and The Body Shop in 2017. Nearly a quarter of Avon sales come from Brazil, but the company had been struggling in the country due to aggressive competition from Natura and a weaker economy. This acquisition gives Natura a boost to grow its door-to-door business.
May 23, 2019
Honda Motor has issued a recall for 137,000 new SUVs due to reports of three injuries related to the airbag suddenly deploying without a collision. The automaker has stated that recall involves the 2019 CR-V; the company will replace the wire harnesses in the steering wheel and strengthen restraint system cable reels after half a dozen unexpected airbag deployments that happened without a crash; there are no reports that the airbags have caused a serious accident. The issue isn't related to a long series of recalls that Honda has issued over the last decade to replace 21 million defective Takata airbag inflators.
Copyright © 2019 | contactus@newzdigest.co