(Reuters) – Target Corp cut its full-year earnings forecast as it offers more discounts to attract cash-strapped customers and win over shoppers unnerved by a massive holiday-season data breach.
The third-largest U.S. retailer, however, said sales and traffic have improved in the past few weeks as the back-to-school season begins.
By Siddharth Cavale and Sruthi Ramakrishnan
(Reuters) – Weak results from the likes of Wal-Mart Stores Inc (WMT.N: Quote, Profile, Research, Stock Buzz) and Macy’s Inc (M.N: Quote, Profile, Research, Stock Buzz) are the latest sign less affluent U.S. consumers are still pinching their pennies and the trend appears to be hurting upmarket retailers as well.
A number of large U.S. retailers who cater to low and middle income consumers reported disappointing quarterly comparable sales this week, pointing to a cutback in spending and a shift in preferences to stores nearer to home.
Aug 14 (Reuters) – Wal-Mart Stores Inc cut its
full-year profit forecast, citing higher employee healthcare
costs and increased investment in its online business, and the
company said heavy discounting was likely to continue into the
holiday shopping season.
As expected, the world’s largest retailer also reported flat
U.S. same-store sales, excluding fuel, for the second quarter -
the sixth quarter of declining or no growth.
(Reuters) – Target Corp (TGT.N: Quote, Profile, Research, Stock Buzz) cut its second-quarter profit estimate as it resorts to price cuts to attract cash-strapped consumers and win back customers unnerved by a huge holiday-season data breach.
The warning on Tuesday showed that new Chief Executive Brian Cornell, who takes over the third-largest U.S. retailer next week, has his work cut out for him.
(Reuters) – Beleaguered retailer Target Corp (TGT.N: Quote, Profile, Research) named former PepsiCo and Wal-Mart executive Brian Cornell as CEO and chairman as it tries to regain customer confidence following a devastating data breach last year that hit earnings.
Cornell, the first outsider to lead Target, has his work cut out. The company’s comparable store sales have declined in three of the last five quarters, while store visits have fallen for six straight quarters.
(Reuters) – Wal-Mart Stores Inc (WMT.N: Quote, Profile, Research, Stock Buzz) replaced its U.S. head Bill Simon with Asia chief Greg Foran as it seeks to restore the fortunes of its largest business after a year of sluggish sales.
A 35-year retail veteran who started out as a teenage part-timer stocking supermarket shelves, Foran is being moved to the United States just two months after becoming the head of Wal-Mart’s Asia business.
(Reuters) – Reynolds American Inc (RAI.N: Quote, Profile, Research, Stock Buzz) will buy Lorillard Inc (LO.N: Quote, Profile, Research, Stock Buzz) for $25 billion, merging two of the world’s biggest cigarette makers in a deal that includes the sale of the top-selling U.S. e-cigarette to Britain’s Imperial Tobacco Group (IMT.L: Quote, Profile, Research, Stock Buzz).
The deal, which gives Reynolds control of Newport menthol cigarettes, strengthens the combined company’s hand in competing for a shrinking pool of smokers and sets up a three-way battle with Marlboro-maker Altria Group Inc (MO.N: Quote, Profile, Research, Stock Buzz) for the e-cigarette market.
June 12 (Reuters) – Fernando Madeira comes to his new job as
head of online business for Wal-Mart Stores Inc with a
reputation as an e-commerce whiz, having engineered a surge in
the retailer’s online sales in Latin America.
In his enlarged role, the Brazilian company veteran will
face a more formidable challenge – taking on Amazon.com Inc
in the far-more developed U.S. online marketplace,
where the world’s biggest retailer is yet to make its mark.
By Siddharth Cavale and Sruthi Ramakrishnan
(Reuters) – Wal-Mart Stores Inc appointed Gregory Penner as vice chairman, showing again that the world’s largest retailer is looking at younger executives to revive its fortunes.
The appointment of 44-year-old Penner puts him in a position to succeed Chairman Rob Walton, his 69-year-old father-in-law.
By Siddharth Cavale and Devika Krishna Kumar
(Reuters) – Dazzled for two-and-a-half years, Wall Street finally blinked when Michael Kors Holdings Ltd warned that its margins might suffer from the cost of opening stores in Europe.
A pullback in the stock on Wednesday lasted only a few hours, investor confidence quickly restored by a revenue forecast that reinforced Michael Kors as the pre-eminent brand in affordable luxury.