Siddharth's Feed
Jul 24, 2014

Wal-Mart replaces head of struggling U.S. business

By Siddharth Cavale

(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.

Jul 15, 2014

Reynolds American to buy Lorillard for $25 billion

By Siddharth Cavale

(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.

Jun 12, 2014

Wal-Mart counting on Latam success to drive US online strategy

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.

Jun 6, 2014

Wal-Mart appoints Walton family member as vice chairman

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.

May 29, 2014

Michael Kors in vogue on Wall Street, but valuation risk grows

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.

May 22, 2014

Best Buy profit beats estimates, shows signs of turnaround

May 22 (Reuters) – Best Buy Co Inc reported a
better-than-expected quarterly profit, showing signs that Chief
Executive Hubert Joly’s turnaround efforts were progressing and
sending the company’s shares up as much as 8.5 percent in
morning trading.

Since joining in the fall of 2012, Joly has removed layers
of management, eliminated hundreds of jobs, closed unprofitable
stores and boosted Best Buy’s cash reserves in efforts to stem
sales declines.

May 21, 2014

Target shows signs of turnaround but discounting mutes outlook

May 21 (Reuters) – Target Corp reported a 16 percent
drop in first-quarter profit but showed some signs of progress
in its efforts to rebuild customer confidence in the wake of a
massive theft of payment card data and a botched expansion into
Canada.

Target, which has fired both its chief executive and the
head of its Canadian operation as it tries to regain its
footing, reported a 0.3 percent drop in U.S. same-store sales on
Wednesday. Analysts had expected a fall of 1.1 percent.

May 21, 2014

Target shows signs of turnaround as sales fall less than expected

By Siddharth Cavale

(Reuters) – Target Corp reported a 16 percent drop in first-quarter profit but showed signs of progress in its efforts to rebuild customer confidence in the wake of a massive theft of payment card data and a botched expansion into Canada.

Target, which has fired both its chief executive and the head of its Canadian operation as it tries to regain its footing, reported a 0.3 percent drop in U.S. same-store sales.

May 20, 2014

Staples forecasts fall in sales, shares drop

By Siddharth Cavale

(Reuters) – Staples Inc (SPLS.O: Quote, Profile, Research, Stock Buzz) forecast a fall in sales in the current quarter as customers shift to e-retailers, mass merchants and drugstores to buy their office supplies.

Shares of the largest U.S. office supply retailer fell as much as 11 percent on Tuesday morning, after the company reported its fifth straight fall in quarterly sales.

May 15, 2014

J.C. Penney’s back-to-the-future strategy pays off as sales rise

By Siddharth Cavale

(Reuters) – J.C. Penney Co Inc (JCP.N: Quote, Profile, Research) reported a rise in comparable store sales for the second consecutive quarter, helped by demand for household goods and men’s and women’s clothing, sending the company’s shares up more than 25 percent in after-hours trading.

Penney is undergoing a transformation as it tries to stanch losses and win back shoppers after a failed attempt to go up-market resulted in a 25 percent drop in sales in 2012.