Latest retail results show department stores need more than touch-ups. They need reinvention

A shopper checks on merchandise at the J.C. Penney department store in North Riverside, Illinois. Kamil Krzaczynski | ReutersFor department stores, there may be no time left for subtlety. A slew of retail earnings the past two weeks makes clear that while Americans continue to shop, they increasingly aren’t ringing registers at department stores. Department stores also can’t turn to the retail trick of selling more groceries to bring in shoppers. With these restrictions, department stores have s


A shopper checks on merchandise at the J.C. Penney department store in North Riverside, Illinois. Kamil Krzaczynski | ReutersFor department stores, there may be no time left for subtlety. A slew of retail earnings the past two weeks makes clear that while Americans continue to shop, they increasingly aren’t ringing registers at department stores. Department stores also can’t turn to the retail trick of selling more groceries to bring in shoppers. With these restrictions, department stores have s
Latest retail results show department stores need more than touch-ups. They need reinvention Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-22  Authors: lauren hirsch
Keywords: news, cnbc, companies, reinvention, shoppers, target, kohls, walmart, department, sales, online, retail, store, touchups, results, need, stores, brands, latest


Latest retail results show department stores need more than touch-ups. They need reinvention

A shopper checks on merchandise at the J.C. Penney department store in North Riverside, Illinois. Kamil Krzaczynski | Reuters

For department stores, there may be no time left for subtlety. It is time for reinvention. A slew of retail earnings the past two weeks makes clear that while Americans continue to shop, they increasingly aren’t ringing registers at department stores. J.C. Penney, Kohl’s and Nordstrom all turned in disappointing first-quarter results — despite strong earnings at Walmart and Target. Sales at Kohl’s stores open for at least 12 months fell 3.4%, far steeper than the 0.2% drop analysts were expecting — its first same-store sales miss in two years. Penney’s same-store sales dropped 5.5%, worse than an expected drop of 4.2%. Nordstrom pulled back on promotions to boost profits, and it backfired. Sales dropped and it slashed its profit expectations for the full year. While each department store chain faces its own set of obstacles, all share in common a large store-base that is a burden as shopper foot traffic falls. These brands have declining clout amid the rise of online brands like apparel retailers Reformation and Untuckit. All have made varying degrees of touch-ups and improvements over the past few years, but none have evolved as completely as retailers like Walmart and Target. Walmart paid $3 billion to buy internet retailer Jet.com, through which its built up a coterie of online brands like Bonobos and ModCloth. It’s adding veterinary clinics to its stores and now runs an online pet pharmacy. The retailer also reshaped its geographic hold, making a multibillion dollar bet in India as it looks to move away from England. It’s made investments in same-day delivery in the U.S., and transformed some of its stores into distribution centers. Target, meantime, has turned from discount store into a chic, one-stop destination. It is remodeling its stores to make the apparel section look like a boutique, its make-up section like Sephora and its grocery sections more modern. But whether it be loyalty to brand, fear of losing shoppers or simply business constraints — U.S. department stores today remain what they were a decade ago.

Location, location, location

Department stores are, in part, restricted by geography. Many, aside from Kohl’s, are still located at the mall, even as traffic there declines. That’s in contrast to retailers like Target and Walmart, which are rarely located at malls. That means it’s harder for department stores to transform their e-commerce business through initiatives like “click and collect,” where shoppers have all the convenience of selecting items online and the instant gratification of picking up their items quickly at the store. This option has been a boost to both Walmart and Target’s businesses, but it is less convenient when shoppers need to go to the mall to fetch their purchases. Target’s e-commerce sales this quarter surged 42%, largely due to its curbside pickup service for online orders.

Product mix

The products department stores sell also impact how the businesses perform. Whereas Macy’s, Kohl’s and Nordstrom find themselves somewhere between discount and ultra high-end, Target and Walmart can cater directly to bargain shoppers, without worrying about hurting the image of the higher-end brands sold in their stores. Department stores also can’t turn to the retail trick of selling more groceries to bring in shoppers. Soda would look awkward next to a rack of clothes. Grocery sales and store-branded products have helped propel Walmart’s growth. Profit from Walmart’s store-label grocery brands helped drive its fiscal first-quarter earnings, which topped analysts’ expectations, executives said earlier this month. With these restrictions, department stores have still tried to evolve, in a tempered way. Macy’s introduced rotating marketplaces for popular brands and mobile checkout. Kohl’s is partnering with Amazon for returns and adding partners like Aldi’s and Planet Fitness to its downsized stores, with the hope it will drive foot traffic. But, for the large part, those changes haven’t addressed the fundamental weaknesses department stores are facing, in the same way Target and Walmart have been able to rebuild their business. Even as Macy’s says it plans to start downsizing some of its larger locations, it still has one of the country’s largest fleet of stores, which act as a drag on its earnings as sales stall. Together with the Bloomingdale’s brand it owns, it has 680 department stores across the U.S. Penney’s, which aborted attempts to sell appliances earlier this year, said it was was focused on improving fundamentals like merchandise assortment, but provided “little guidance as it fully develops its turnaround strategy,” wrote Telsey Advisory Group CEO Dana Telsey Wednesday.

True transformation


Company: cnbc, Activity: cnbc, Date: 2019-05-22  Authors: lauren hirsch
Keywords: news, cnbc, companies, reinvention, shoppers, target, kohls, walmart, department, sales, online, retail, store, touchups, results, need, stores, brands, latest


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Target shares jump 8% as e-commerce gains fuel earnings beat

Target shares jumped nearly 8% in premarket trading on the news. Sales at Target stores open for at least 12 months were up 4.8%, better than expected growth of 4.2%. Target said traffic at stores was up 4.3%, transactions overall were up 4.3% and the average transaction amount was up 0.5%. The company is one of many retailers today trying to take market share from struggling Victoria’s Secret. As of Tuesday’s market close, Target shares are up about 9% for the year, bringing its market cap to a


Target shares jumped nearly 8% in premarket trading on the news. Sales at Target stores open for at least 12 months were up 4.8%, better than expected growth of 4.2%. Target said traffic at stores was up 4.3%, transactions overall were up 4.3% and the average transaction amount was up 0.5%. The company is one of many retailers today trying to take market share from struggling Victoria’s Secret. As of Tuesday’s market close, Target shares are up about 9% for the year, bringing its market cap to a
Target shares jump 8% as e-commerce gains fuel earnings beat Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-22  Authors: lauren thomas courtney reagan, lauren thomas, courtney reagan, sam meredith
Keywords: news, cnbc, companies, sales, 42, vs, traffic, fuel, billion, market, jump, earnings, share, ecommerce, beat, target, gains, stores, shares


Target shares jump 8% as e-commerce gains fuel earnings beat

Target shares soared Wednesday after the discount retailer reported fiscal first-quarter earnings and sales that topped analysts’ expectations, as it brought more people to its stores and convinced them to spend more money there.

Target’s e-commerce sales also surged 42%, as shoppers increasingly turned to its curbside pickup service for online orders, something Amazon can’t offer.

Even with the looming threat of 25% tariffs on apparel and footwear imported from China going into effect, Target maintained its outlook for the full year. The upbeat report contrasts those of department store chains earlier in the week, which largely disappointed investors.

Target shares jumped nearly 8% in premarket trading on the news.

Here’s what the big-box retailer reported compared with what analysts were expecting, based on Refinitiv data:

Earnings per share, adjusted: $1.53 vs. $1.43 expected

Revenues: $17.63 billion vs. $17.52 billion expected

Same-store sales: up 4.8% vs. growth of 4.2% expected

CEO Brian Cornell said Target is “well-positioned to deliver strong financial performance in 2019 and beyond.”

Net income grew to $795 million, or $1.53 per share, compared with $718 million, or $1.33 a share, a year ago. That was 10 cents ahead of analysts’ estimates.

Total revenues were up 5% to $17.63 billion from $16.78 billion last year. That beat estimates for $17.52 billion.

Sales at Target stores open for at least 12 months were up 4.8%, better than expected growth of 4.2%. This marks eight consecutive quarters of same-store sales growth for Target. Target said traffic at stores was up 4.3%, transactions overall were up 4.3% and the average transaction amount was up 0.5%.

Digital sales surged 42%, and purchases that originate online now represent 7.1% of Target’s total transactions, up from 5.2% a year ago.

Target is still calling for same-store sales to be up a low-to-mid-single digit percentage for the year, with a mid-single digit increase in operating income, and adjusted earnings per share falling within a range of $5.75 to $6.05.

Target’s earnings follow those of rival Walmart, which showed pressure on margins easing thanks to greater sales of its in-house apparel and home brands and private-label food options. Target has been hoping to see more of the same in its results.

During the latest quarter, Target said its recently launched intimates and sleepwear brands Auden, Stars Above and Colsie were well received. The company is one of many retailers today trying to take market share from struggling Victoria’s Secret. Target also launched an environmentally friendly cleaning-products brand called Everspring this quarter.

Morgan Stanley earlier this month upgraded shares of Target, calling it a “survivor” in retail. The firm said it believed Target was beyond its “peak margin pain,” as it’s been making investments in its stores, website and supply chain. Those investments had previously eaten into profits.

“Now, there are signs Target’s shipping-related deleverage is narrowing, particularly as it invests in fulfillment options … which promote higher traffic and reduce costs,” Morgan Stanley said ahead of earnings.

Target also generated buzz this month around the launch of its limited-edition line with preppy apparel and accessories brand Vineyard Vines. When items hit stores this past weekend, throngs of shoppers showed up ahead of opening hours. Target has used collaborations like this in the past to drive traffic. The results of that effort will be in next quarter’s results.

As of Tuesday’s market close, Target shares are up about 9% for the year, bringing its market cap to approximately $37.1 billion. Walmart shares are up about 8.5% so far this year.


Company: cnbc, Activity: cnbc, Date: 2019-05-22  Authors: lauren thomas courtney reagan, lauren thomas, courtney reagan, sam meredith
Keywords: news, cnbc, companies, sales, 42, vs, traffic, fuel, billion, market, jump, earnings, share, ecommerce, beat, target, gains, stores, shares


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Cramer: Target’s Q1 shows it has a recipe to beat Amazon and win in retail

Target’s nascent delivery service and small-format stores have produced results “nothing short of astounding,” CNBC’s Jim Cramer said. “They’ve figured out to beat all their opponents, from Walmart to Amazon to everyone inside and outside the mall, ” Cramer said. Target was able to boost traffic during a time when many retailers blamed unfavorable weather for weaker sales, Cramer said. Last year Target acquired personal shopping and delivery service Shipt for $550 million. Half of Target’s onlin


Target’s nascent delivery service and small-format stores have produced results “nothing short of astounding,” CNBC’s Jim Cramer said. “They’ve figured out to beat all their opponents, from Walmart to Amazon to everyone inside and outside the mall, ” Cramer said. Target was able to boost traffic during a time when many retailers blamed unfavorable weather for weaker sales, Cramer said. Last year Target acquired personal shopping and delivery service Shipt for $550 million. Half of Target’s onlin
Cramer: Target’s Q1 shows it has a recipe to beat Amazon and win in retail Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-22  Authors: tyler clifford
Keywords: news, cnbc, companies, delivery, targets, target, q1, company, shows, cramer, sales, retail, beat, told, win, recipe, stores, service, amazon


Cramer: Target's Q1 shows it has a recipe to beat Amazon and win in retail

Target’s nascent delivery service and small-format stores have produced results “nothing short of astounding,” CNBC’s Jim Cramer said.

The “Mad Money” host applauded CEO Brian Cornell and Target leadership after the company’s fiscal first-quarter report, released Wednesday morning.

“They’ve figured out to beat all their opponents, from Walmart to Amazon to everyone inside and outside the mall, ” Cramer said.

Same-store sales grew 4.8% and digital sales surged 42% during the three-month period ended May 4. Target was able to boost traffic during a time when many retailers blamed unfavorable weather for weaker sales, Cramer said.

The retail giant’s investments in both same-day distribution and smaller store sizes are showing signs of success.

Last year Target acquired personal shopping and delivery service Shipt for $550 million. Customers can order and receive their items within hours from 1,500 locations across 250 markets, Cramer said. Curbside pickup is also available at 1,250 shops.

Half of Target’s online sales during the quarter were through same-day channels — both Shipt delivery or curbside pickup, the host said. That’s up from 28% during the same period the year prior.

“Shipt is a subscription service that costs $99 a year. You know, it’s a lot like Amazon Prime, but you know what I could argue it’s cheaper and better,” Cramer said. “Target’s gutsy decision to make its stores the centerpiece of the fulfillment system — a lot of people questioned that one — brilliant move.”

Target also began scaling its small-store model in 2018 to reach customers in urban regions and draw young shoppers into its buildings. The big-box chain has plans to open 130 of these brick-and-mortar establishments — usually about 40,000 square feet compared to its traditional 100,000-plus-square-foot stores — by the end of 2019.

The move has made Target “fun” to visit, Cramer said.

“Whenever I go somewhere new, I always hope I’ll run into a Target, especially that small-format one,” he said.

Amazon Go’s cashierless store model is “a terrific novelty, quite intimidating by the way, but I much prefer going into the Targets to see what they have that I might not be looking for.”

On the company’s Wednesday morning earnings call, CEO Cornell told shareholders the company made “bold changes” in past years that “explicitly focused on taking a different path than our competition,” as most retailers downsize their footprints.

He later told analysts that “you’re seeing the emergence of winners who have been investing in their business, that are adapting to this new omni-channel environment.”

Cramer said it’s no surprise that the stock surged 7.78% during the session.

Target estimates fiscal second-quarter comparable sales growth will land in the low- to mid-single digit range. The company is projecting adjusted earnings per share in the range of $1.52 to $1.72. The company projects full-year EPS between $5.75 and $6.05.

Disclosure: Cramer’s charitable trust owns shares of Amazon.


Company: cnbc, Activity: cnbc, Date: 2019-05-22  Authors: tyler clifford
Keywords: news, cnbc, companies, delivery, targets, target, q1, company, shows, cramer, sales, retail, beat, told, win, recipe, stores, service, amazon


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Shares of Victoria’s Secret-owner L Brands spike nearly 11% after beating earnings expectations

A shopper carries a Victoria’s Secret bag while walking on Steinway Street in the Queens, New York. Shares of L Brands, the owner of Victoria’s Secret and Bath & Body Works, rose nearly 11% in aftermarket trading Wednesday after the company reported it beat revenue and earnings expectations, helped by the strength of its Bath & Body Works stores. Same-store sales at Victoria’s Secret continued to fall, with the brand reporting a 5% drop in comparable sales. L Brands said it closed 35 and opened


A shopper carries a Victoria’s Secret bag while walking on Steinway Street in the Queens, New York. Shares of L Brands, the owner of Victoria’s Secret and Bath & Body Works, rose nearly 11% in aftermarket trading Wednesday after the company reported it beat revenue and earnings expectations, helped by the strength of its Bath & Body Works stores. Same-store sales at Victoria’s Secret continued to fall, with the brand reporting a 5% drop in comparable sales. L Brands said it closed 35 and opened
Shares of Victoria’s Secret-owner L Brands spike nearly 11% after beating earnings expectations Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-22  Authors: ashley turner
Keywords: news, cnbc, companies, shares, body, nearly, share, billion, sales, secretowner, victorias, expectations, beating, secret, analysts, company, spike, brands, brand, earnings


Shares of Victoria's Secret-owner L Brands spike nearly 11% after beating earnings expectations

A shopper carries a Victoria’s Secret bag while walking on Steinway Street in the Queens, New York.

Shares of L Brands, the owner of Victoria’s Secret and Bath & Body Works, rose nearly 11% in aftermarket trading Wednesday after the company reported it beat revenue and earnings expectations, helped by the strength of its Bath & Body Works stores.

The company raised the low-end of its earnings forecast for 2019. It expects earnings to fall between $2.30 and $2.60 a share, up from its previous estimates of $2.20 and $2.60 per share.

Here’s what the company reported compared with what Wall Street expected, based on a survey of analysts by Refinitiv:

Earnings per share: 14 cents vs. break-even expected

Revenue: $2.63 billion vs. $2.56 billion expected

Same-store sales: Flat vs. down 1.3% expected

For the first quarter ended May 4, L Brands said net income fell to $40.3 million, or 14 cents a share, from $47.5 million, or 17 cents a share, a year ago. That was far better than the breakeven results that analysts had predicted on a per-share basis.

L Brands net sales inched up to $2.628 billion from $2.625 billion a year ago. Analysts expected the company to earn $2.56 billion.

Sales at stores open at least 12 months were flat during the quarter, but that was better than the 1.3% decline analysts predicted.

Same-store sales at Victoria’s Secret continued to fall, with the brand reporting a 5% drop in comparable sales. However, same-store sales at Bath & Body Works rose by 13%.

L Brands said it closed 35 and opened one company-owned Victoria’s Secret stores in the first quarter.

The Victoria’s Secret brand, known for its sexy bra styles, has struggled to adapt to changing consumer tastes and has faced criticism for selling less comfortable bras, which it markets on ever-skinnier models. The brand has lost market share to companies like Adore Me, Lively, ThirdLove and American Eagle’s Aerie, which consumers say are more comfortable and inclusive of different body types.

After Victoria’s Secret saw a $500 million drop in annual revenues after pulling its bathing suits off the market in 2016, the brand recently decided to reintroduce swimwear.

L Brands CEO Les Wexner earlier this month also sent an internal memo to employees saying Victoria’s Secret is “rethinking” its annual fashion show because network television is no longer the “right fit.” Viewership of the event has declined. Last year’s show in December earned the worst ratings in its nearly 20-year broadcast history.


Company: cnbc, Activity: cnbc, Date: 2019-05-22  Authors: ashley turner
Keywords: news, cnbc, companies, shares, body, nearly, share, billion, sales, secretowner, victorias, expectations, beating, secret, analysts, company, spike, brands, brand, earnings


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Dressbarn is about to close 650 stores — here’s a map of these locations

Dressbarn’s owner Ascena Retail Group said Monday its closing all of its roughly 650 stores, as it hopes to stabilize its business. But as shopping has shifted online and styles have evolved, Ascena has been grappling with sagging sales and a large debt-load. He was replaced as CEO by Gary Muto, who previously was president and CEO of Ascena Brands. Dressbarn generated $164 million in sales in the second quarter of 2019, down 7% from the same quarter a year prior. Ascena earlier this month compl


Dressbarn’s owner Ascena Retail Group said Monday its closing all of its roughly 650 stores, as it hopes to stabilize its business. But as shopping has shifted online and styles have evolved, Ascena has been grappling with sagging sales and a large debt-load. He was replaced as CEO by Gary Muto, who previously was president and CEO of Ascena Brands. Dressbarn generated $164 million in sales in the second quarter of 2019, down 7% from the same quarter a year prior. Ascena earlier this month compl
Dressbarn is about to close 650 stores — here’s a map of these locations Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-21  Authors: john w schoen, lauren thomas, lauren hirsch
Keywords: news, cnbc, companies, roughly, map, 650, quarter, online, brands, dressbarn, ceo, ascena, stores, million, locations, sales, month, close, portfolio, heres


Dressbarn is about to close 650 stores — here's a map of these locations

Dressbarn’s owner Ascena Retail Group said Monday its closing all of its roughly 650 stores, as it hopes to stabilize its business.

Ascena has built up a portfolio of apparel brands over the past decade through acquisitions, including plus-size retailer Lane Bryant and women’s apparel brand Ann Taylor. But as shopping has shifted online and styles have evolved, Ascena has been grappling with sagging sales and a large debt-load.

Same-store sales for the year ended July 2018 were down 2%, according to Factset. The company had $1.33 billion in total debt, in the same period. Shares of the company, which have a market value of $214.4 million, are down 55% year-to-date

Looking to stem the losses, Ascena is turning to pruning its less successful brands.

“We are committed to addressing performance at our under-performing brands, and continue to explore opportunities within our portfolio that can allow us to focus capital and management attention on those brands that we believe can deliver sustained growth and profitability by maintaining a differentiated position in the marketplace,” said former CEO David Jaffe in March.

Jaffe retired as CEO and chairman earlier this month. He was replaced as CEO by Gary Muto, who previously was president and CEO of Ascena Brands.

Dressbarn generated $164 million in sales in the second quarter of 2019, down 7% from the same quarter a year prior. Its sales that quarter represented roughly 10% of Ascena’s overall brands.

Ascena, which did not lay out a timeline for the Dressbarn closures, said in a statement Monday customers can continue to shop online and in-stores, where they can get “even better deals and value.”

Ascena earlier this month completed the sale of its Maurice’s brand to an affiliate of OpCapita for roughly $300 million.


Company: cnbc, Activity: cnbc, Date: 2019-05-21  Authors: john w schoen, lauren thomas, lauren hirsch
Keywords: news, cnbc, companies, roughly, map, 650, quarter, online, brands, dressbarn, ceo, ascena, stores, million, locations, sales, month, close, portfolio, heres


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Two major Apple suppliers take big hits as iPhone sales stumble

Foxconn and Japan Display reported disappointing financial results this week as the effects of slowing iPhone sales ripple through Apple’s supply chain. Japan Display said Wednesday that mobile display sales, which make up 73.3% of its total sales, were down 17.2% year over year. Japan Display blamed its sales decline on customers moving to OLED screens in flagship phones, instead of using traditional LCD screens. Japan Display is asking for 1,000 employees to retire early by the end of the seco


Foxconn and Japan Display reported disappointing financial results this week as the effects of slowing iPhone sales ripple through Apple’s supply chain. Japan Display said Wednesday that mobile display sales, which make up 73.3% of its total sales, were down 17.2% year over year. Japan Display blamed its sales decline on customers moving to OLED screens in flagship phones, instead of using traditional LCD screens. Japan Display is asking for 1,000 employees to retire early by the end of the seco
Two major Apple suppliers take big hits as iPhone sales stumble Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-15  Authors: todd haselton
Keywords: news, cnbc, companies, stumble, suppliers, display, phones, tv, smartphone, iphone, big, major, japan, sales, week, subscription, hits, apple, slowing


Two major Apple suppliers take big hits as iPhone sales stumble

Billionaire Terry Gou, chairman of Foxconn Technology Group, right, listens as Scott Walker, governor of Wisconsin, speaks during an event in the East Room of the White House in Washington, D.C., U.S., on Wednesday, July 26, 2017.

Foxconn and Japan Display reported disappointing financial results this week as the effects of slowing iPhone sales ripple through Apple’s supply chain.

Foxconn sales dipped 17.7% in the first quarter of 2019 to $637.26 million.

Japan Display said Wednesday that mobile display sales, which make up 73.3% of its total sales, were down 17.2% year over year. Japan Display blamed its sales decline on customers moving to OLED screens in flagship phones, instead of using traditional LCD screens. It also pointed to “the slowdown of China’s and the global smartphone market” and the “prolonged life cycle of smartphones.” Japan Display is asking for 1,000 employees to retire early by the end of the second quarter.

The global slowdown in phone sales has been attributed to rising costs in phone prices. With premium phones now costing more than $1,000, customers are holding on to devices longer. Bernstein’s Toni Sacconaghi said in February that iPhone owners are now hanging on to phones for three or four years. Research firm IDC said in February that 2018 was the “worst year ever” for smartphone sales, with shipments falling 4.1%.

Apple iPhones probably won’t be much cheaper in the future, either. Earlier this week, J.P. Morgan said Apple would need to increase the cost of iPhones by 14 percent to offset the next round of tariffs, unless it absorbs the costs itself.

In an effort to offset the slowing sales, Apple has put a bigger focus on its services business with a new premium Apple News+ subscription offering, a new Apple TV Channels platform that rolled out this week that will provide it a larger cut of subscription revenues from services like HBO and Showtime, and an Apple TV+ library of original content that will roll out this fall.


Company: cnbc, Activity: cnbc, Date: 2019-05-15  Authors: todd haselton
Keywords: news, cnbc, companies, stumble, suppliers, display, phones, tv, smartphone, iphone, big, major, japan, sales, week, subscription, hits, apple, slowing


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The Atlanta Fed’s GDP forecast is sliding, and expectations for rate cuts are surging

A Federal Reserve projection on economic growth just weakened substantially, and expectations for a rate cut over the next eight months got a lot stronger. The Atlanta Fed’s closely watched GDPNow tracker is pointing to a 1.1% gain for the economy in the second quarter, according to a revision posted Wednesday. Disappointing retail sales in April fueled the latest leg down in the Atlanta Fed outlook. The Commerce Department reported Wednesday that sales declined 0.2% for the month against expect


A Federal Reserve projection on economic growth just weakened substantially, and expectations for a rate cut over the next eight months got a lot stronger. The Atlanta Fed’s closely watched GDPNow tracker is pointing to a 1.1% gain for the economy in the second quarter, according to a revision posted Wednesday. Disappointing retail sales in April fueled the latest leg down in the Atlanta Fed outlook. The Commerce Department reported Wednesday that sales declined 0.2% for the month against expect
The Atlanta Fed’s GDP forecast is sliding, and expectations for rate cuts are surging Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-15  Authors: jeff cox
Keywords: news, cnbc, companies, substantially, retail, feds, cuts, sliding, watched, weakened, sales, gain, gdp, forecast, expectations, rate, surging, atlanta, months, 02


The Atlanta Fed's GDP forecast is sliding, and expectations for rate cuts are surging

A Federal Reserve projection on economic growth just weakened substantially, and expectations for a rate cut over the next eight months got a lot stronger.

The Atlanta Fed’s closely watched GDPNow tracker is pointing to a 1.1% gain for the economy in the second quarter, according to a revision posted Wednesday. That comes on the back of a strong first three months that saw a 3.2% gain and is substantially lower than CNBC’s Rapid Update survey, which puts the GDP tracking estimate at 2%.

Disappointing retail sales in April fueled the latest leg down in the Atlanta Fed outlook. The Commerce Department reported Wednesday that sales declined 0.2% for the month against expectations of a 0.2% gain. Along with the retail letdown, industrial production fell 0.5% against Wall Street estimates of a 0.1% gain.


Company: cnbc, Activity: cnbc, Date: 2019-05-15  Authors: jeff cox
Keywords: news, cnbc, companies, substantially, retail, feds, cuts, sliding, watched, weakened, sales, gain, gdp, forecast, expectations, rate, surging, atlanta, months, 02


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Latest data shows surprise slowing in US, China economies as trade war escalates

“The real message today is that both the economic data from the U.S. and China have disappointed. The latest round of tariffs announced by President Donald Trump and China President Xi Jinping raised the stakes and potential economic hit on both economies. Trump boosted the tariffs on $200 billion in goods to 25% from 10%, while Xi upped the tariffs on $60 billion in goods. Economists had expected a 0.2% gain in the monthly sales data, which is important since it reflects the health of the consu


“The real message today is that both the economic data from the U.S. and China have disappointed. The latest round of tariffs announced by President Donald Trump and China President Xi Jinping raised the stakes and potential economic hit on both economies. Trump boosted the tariffs on $200 billion in goods to 25% from 10%, while Xi upped the tariffs on $60 billion in goods. Economists had expected a 0.2% gain in the monthly sales data, which is important since it reflects the health of the consu
Latest data shows surprise slowing in US, China economies as trade war escalates Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-15  Authors: patti domm
Keywords: news, cnbc, companies, tariffs, manufacturing, surprise, escalates, war, production, hit, china, chinas, economies, data, sales, gain, trade, goods, latest, shows, slowing


Latest data shows surprise slowing in US, China economies as trade war escalates

A worker cuts a steel coil at the Novolipetsk Steel PAO steel mill in Farrell, Pennsylvania, March 9, 2018. Aaron Josefczyk | Reuters

Consumer and industrial activity in both the U.S. and China slowed in April, even before the world’s two biggest economies entered the latest phase of an escalating trade war that could take a bite out of global growth. “The real message today is that both the economic data from the U.S. and China have disappointed. They’re like two boys in the sandbox that are spitting on each other, and it could get a lot worse,” said Marc Chandler, global market strategist at Bannockburn Global Forex. The latest round of tariffs announced by President Donald Trump and China President Xi Jinping raised the stakes and potential economic hit on both economies. Trump boosted the tariffs on $200 billion in goods to 25% from 10%, while Xi upped the tariffs on $60 billion in goods.

Economists see about a 0.4 to 0.5% hit on China’s GDP and about a 0.1% hit to the U.S. from the higher tariffs. Strategas Research estimates the higher tariffs would cut into U.S. growth by 0.1% for every two months the raised tariffs are in place, or 0.5% a year. Trump also threatened 25% tariffs on another $325 billion in Chinese goods, which economists say could hit Chinese sales and send prices higher for U.S. consumers. The impact of those tariffs would be even greater on GDP. China’s retail sales rose 7.2% in April, the slowest pace in 16 years and less than March’s 8.7% and forecasts of 8.6%. China’s April industrial production rose 5.4%, less than the 6.5% expected or the 8.5% gain in March. “This is the first bit of cleaner data we’re getting, and it paints a much less rosy picture of the economy than a lot of people thought was happening,” said Gareth Leather of Capital Economics. Leather said seasonal factors could have masked weakness in March data, which showed some improvement and had appeared to be signs of green shoots and recovery. “This really quashes those hopes for the time being.” U.S. retail sales slid 0.2% in April, down from the surprise jump of 1.7% gain in March. Car sales fell 1.1% last month, while sales at electronics and appliance stores lost 1.3%. Economists had expected a 0.2% gain in the monthly sales data, which is important since it reflects the health of the consumer, about 70% of the U.S. economy. U.S. industrial production, reflecting total production at factories, utilities and mines, fell 0.5% after a 0.2% gain in March. Manufacturing output dropped 0.5%, led by a 2.6% decline in motor vehicles and parts, the third decrease in four months and the latest manufacturing report to show softness.

Tariff impact

“Autos had a weird swing, as a result of excess inventories,” said Michelle Meyer, chief U.S. economist at Bank of America Merrill Lynch. “I’ll be paying pretty close attention to manufacturing data, the survey datas, the confidence measures. It’s going to be very important to watch how the economy is going to fare around the escalation. Manufacturing has weakened already.” She said that manufacturing has been falling off since peaking last summer. She said the trade wars have had an impact on the manufacturing sector, with about 59% of companies in the ISM semi-annual survey saying that the tariffs have led to an increase in the price of goods produced. Meyer described the weaker April retail sales data as “noise,” but said it bears watching if the tariffs go into place on the $325 billion in goods since they would directly affect many consumer products. Manufacturers have been reporting impacts from tariffs, with 59% saying production costs went up as a result. Markets responded to the news from both countries by ramping up expectations for central bank and other policy easing. U.S. fed funds futures signaled expectations for more than one quarter-point rate cut this year, while China’s stock markets rallied on expectations of more fiscal and monetary stimulus. “Both economies softened before the tariff truce ended, but what’s interesting is still we’re not talking about recessionary levels. If China grows less than 6%, that’s a big deal,” said Chandler. He said U.S. growth currently looks to be averaging 2.4% in the first half.


Company: cnbc, Activity: cnbc, Date: 2019-05-15  Authors: patti domm
Keywords: news, cnbc, companies, tariffs, manufacturing, surprise, escalates, war, production, hit, china, chinas, economies, data, sales, gain, trade, goods, latest, shows, slowing


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Sugary drink sales in Philadelphia fall 38% after city adopted soda tax, study finds

A sweetened beverage tax sign is posted by sweetened beverages at a supermarket in the Port Richmond neighborhood of Philadelphia, Wednesday, July 18, 2018. Sugary drink sales dropped 38% in Philadelphia after the city started taxing soda and other sweet beverages in 2017, according to a study published Tuesday in the Journal of the American Medical Association. Supporters argue soda taxes can discourage people from indulging in sugary drinks, possibly helping curb obesity, diabetes and other di


A sweetened beverage tax sign is posted by sweetened beverages at a supermarket in the Port Richmond neighborhood of Philadelphia, Wednesday, July 18, 2018. Sugary drink sales dropped 38% in Philadelphia after the city started taxing soda and other sweet beverages in 2017, according to a study published Tuesday in the Journal of the American Medical Association. Supporters argue soda taxes can discourage people from indulging in sugary drinks, possibly helping curb obesity, diabetes and other di
Sugary drink sales in Philadelphia fall 38% after city adopted soda tax, study finds Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-14  Authors: angelica lavito
Keywords: news, cnbc, companies, sweetened, finds, soda, university, study, sales, tax, drink, fall, beverage, drinks, sugary, philadelphia, city


Sugary drink sales in Philadelphia fall 38% after city adopted soda tax, study finds

A sweetened beverage tax sign is posted by sweetened beverages at a supermarket in the Port Richmond neighborhood of Philadelphia, Wednesday, July 18, 2018.

Sugary drink sales dropped 38% in Philadelphia after the city started taxing soda and other sweet beverages in 2017, according to a study published Tuesday in the Journal of the American Medical Association.

Philadelphia levied a tax of 1.5 cents per ounce on sweetened drinks beginning Jan. 1, 2017, following Berkeley, California, as the second city in the country to implement the levy.

Supporters argue soda taxes can discourage people from indulging in sugary drinks, possibly helping curb obesity, diabetes and other diet-related conditions. Critics say governments should not dictate what people drink, and raising the price in one city will simply cause people to shop elsewhere. Beverage sales inside Philadelphia’s city limits dropped by 51% but were partially offset by an increase in sales just outside the city, resulting in a net decrease in soda sales of 38% in the area, researchers at the University of Pennsylvania found.

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To measure how Philadelphia’s tax affected sales of sugary drinks, researchers analyzed scanner data from market research firm IRI during the year before the tax took effect and the year after. They analyzed sales in Philadelphia, neighboring communities and Baltimore, which served as a control group. They did not study people’s actual consumption habits or health outcomes.

“When we think about what it’s really going to take to reduce chronic disease in this country, including diabetes, obesity and overweight, we need massive interventions and the evidence is really strong this is one that works,” said Dr. Kristine Madsen, faculty director of the Berkeley Food Institute at the University of California Berkeley, who was not involved with the study but wrote an accompanying editorial.

Researchers tracked sales in 291 chain drugstores, grocery stores and mass merchandise stores. The results do not include independent stores. The researchers analyzed sales in those retailers for a separate study, which is under review and has not yet been published.

Bloomberg Philanthropies, backed by billionaire former New York Mayor Michael Bloomberg, funded the study. Bloomberg unsuccessfully tried to impose a partial ban on soft drinks while mayor and has personally has poured millions into lobbying for soda taxes.

Christina Roberto, assistant professor of Medical Ethics & Health Policy in the Perelman School of Medicine at the University of Pennsylvania and lead author, said the scientists are “independent” and the organization had “no role” in the study.

“It is such a big and obvious effect, it’s hard to spin this,” said Roberto. “The data are so clear and obvious.”

William Dermody, spokesman for the American Beverage Association, said in a statement: “It is clear from this study and others that beverage taxes hurt working families, small local businesses and their employees.”

“Many Philadelphians avoid the tax by shopping for beverages outside the city,” he said, pointing to a study published late last year showing sales decreases in a soda tax city were offset by people buying sugary drinks outside the city.


Company: cnbc, Activity: cnbc, Date: 2019-05-14  Authors: angelica lavito
Keywords: news, cnbc, companies, sweetened, finds, soda, university, study, sales, tax, drink, fall, beverage, drinks, sugary, philadelphia, city


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Phononic 2019 Disruptor 50

Phononic is a semiconductor manufacturer that has developed new solid-state cooling and refrigeration technology that displaces compressors, heat sinks and fans — ancient, energy-inefficient technology that’s been around for more than 100 years. Phononic replaced the compressor with solid-state technology and nontoxic refrigerants to give medical facilities smarter, more precise refrigeration with 40% more storage space. Read More: FULL LIST 2019 DISRUPTOR 50Last year that technology really took


Phononic is a semiconductor manufacturer that has developed new solid-state cooling and refrigeration technology that displaces compressors, heat sinks and fans — ancient, energy-inefficient technology that’s been around for more than 100 years. Phononic replaced the compressor with solid-state technology and nontoxic refrigerants to give medical facilities smarter, more precise refrigeration with 40% more storage space. Read More: FULL LIST 2019 DISRUPTOR 50Last year that technology really took
Phononic 2019 Disruptor 50 Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-14  Authors: cnbccom staff, george kavallines, source, indigo agriculture, prakash singh, afp, getty images, michael nagle, bloomberg, chesnot
Keywords: news, cnbc, companies, disruptor, pepsi, refrigerators, 2019, bottling, company, solidstate, 50, sales, refrigeration, stores, technology, phononic


Phononic 2019 Disruptor 50

Phononic is a semiconductor manufacturer that has developed new solid-state cooling and refrigeration technology that displaces compressors, heat sinks and fans — ancient, energy-inefficient technology that’s been around for more than 100 years. The Durham, N.C.-based company, launched in 2009, started by selling medical refrigerators used in labs and hospitals. Phononic replaced the compressor with solid-state technology and nontoxic refrigerants to give medical facilities smarter, more precise refrigeration with 40% more storage space.

Read More: FULL LIST 2019 DISRUPTOR 50

Last year that technology really took off when the company partnered with Thermo Fisher Scientific as the exclusive supplier for its life sciences and health-care solid-state refrigeration and freezer products. Phononic founder and CEO, Tony Atti, the former director of boutique private-equity firm MHI Energy Partners, claims his company’s units are nearly silent and use about 25% less energy than a traditional refrigerator.

That’s attractive to food and beverage companies like Pepsi Bottling, one of Pepsi’s biggest distributors. Last year the bottling company installed Phononic refrigerators at the end of aisles and near registers in some North Carolina supermarkets and convenience stores and compared sales at stores where the beverages were in large refrigerators near the back of the store. The Phononic refrigerators had better sales, and now Pepsi Bottling is using them throughout the country.

So far Phononic, with 140 employees, has raised close to $160 million from Oak Investment Partners, Venrock Associates and Tsing Capital, among others. Eventually, the company wants to get into commercial and residential cooling so that it can alleviate some of the load on local power grids. It’s testing that in Singapore right now in partnership with Temasek-EcoSperity.


Company: cnbc, Activity: cnbc, Date: 2019-05-14  Authors: cnbccom staff, george kavallines, source, indigo agriculture, prakash singh, afp, getty images, michael nagle, bloomberg, chesnot
Keywords: news, cnbc, companies, disruptor, pepsi, refrigerators, 2019, bottling, company, solidstate, 50, sales, refrigeration, stores, technology, phononic


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