Hole (GPS) Q3 2021 earnings miss, cuts forecast

A Gap store in New York, August 2, 2020.

Scott Mlyn | CNBC

Gap Inc. Shares fell Tuesday after the company slashed its full-year outlook, falling short of fiscal third quarter results as Covid-related factory closings resulted in significant product delays in the quarter.

The stock lost about 16% on the news in extended trade recently, after rising about 16% year-to-date.

“We started the third quarter with increasing momentum, but acute headwinds in the supply chain hampered our ability to fully meet strong customer demand,” said Chief Executive Sonia Syngal in a press release.

Gap said it had invested in air freight to alleviate some of the challenges of port congestion over the holidays. However, this also means additional expenses that will affect profits in the short term.

For the three-month period ended October 30, Gap has performed compared to analyst expectations using refinitive data:

  • Earnings per share: 27 cents adjusted vs. 50 cents expected
  • Revenue: $ 3.94 billion versus $ 4.44 billion expected

Gap said it had risen to a net loss of $ 152 million, or 40 cents per share, on net income of $ 95 million, or 25 cents per share, the previous year.

Without an item, she earned 27 cents per share, according to Refinitiv, less than the 50 cents analysts were looking for.

Revenue decreased slightly from $ 3.99 billion a year ago to $ 3.94 billion. That fell short of expectations of $ 4.44 billion.

Supply chain problems will persist

CFO Katrina O’Connell said the backlog in US ports worsened significantly in the second half of this year, causing up to three consecutive weeks of unforeseen delays in Gap’s fall products.

While some of the disruptions are temporary, the challenges are likely to continue until early next year, she said.

Gap’s inventory levels decreased 1% year over year at the end of the third quarter and were unchanged from 2019. Gap expects inventory levels to grow in high single digits in the fourth quarter compared to last year.

“The situation in the supply chain remains volatile,” said O’Connell. “Newly opened Vietnam factories are on vacation.”

Lost revenue hurt Old Navy the most

Other clothing retailers including Victoria’s secret and Abercrombie & Fitchwho rely on Asia for production also said factory closures in Vietnam and clogged ports have resulted in their shelves not being as full as they would have liked in recent weeks.

Gap now expects full-year revenue growth of around 20%, which is less than the previous forecast of around 30%. Analysts surveyed by Refinitiv had expected an increase of 28.4% compared to the previous year.

Gap’s adjusted full year earnings expectations have been lowered to a range of $ 1.25 to $ 1.40 per share, from a previous range of $ 2.10 to $ 2.25 per share. Analysts had expected Gap to make $ 2.20 per share, Refinitiv said.

The company said its revised outlook includes about $ 550 million to $ 650 million in lost revenue due to supply chain restrictions and about $ 450 million in air freight costs for the year.

Old Navy has been disproportionately affected by supply chain delays, especially in the women’s range, Gap said. As a result, sales in the same stores decreased 9% year-over-year, but remained up 6% compared to 2019.

This is especially bad news for the company considering Old Navy has been a major growth engine for Gap over the past few quarters. It has made significant investments in Old Navy, including Revision of the plus-size clothing range. So slowing down at Old Navy is putting a bigger strain on the whole business.

For the Gap brand of the same name, sales in the same store increased by 7% compared to the previous year and by 3% compared to 2019. According to Syngal, the ongoing store closings have helped the brand experience healthier growth. Gap is also focusing on trimming back goods in the stores to keep the locations “brighter and brighter,” she said.

At Banana Republic, which is more focused on selling women’s workwear, sales in the same store increased 28% year over year and decreased 10% on a two-year basis.

Sales in the same store at Athleta, Gap’s rival Lululemon and Nike for women, increased by 2% compared to the previous year and increased by 41% compared to 2019.

A bright spot in Gap’s report was the apparel maker’s ability to increase its product prices. Gross margins were 42.1% for the third quarter, Gap’s highest rate for that period in 10 years. The company said the discount rate in the third quarter was also its lowest in five years.

The company is counting on that too a connection with rapper Kanye West’s Yeezy line will increase sales and attract new customers. On a phone call, Syngal said a Yeezy hoodie made the most sales in a day, online from a single item in Gap’s history.

Find Gap’s full earnings release here.

Pfizer says its Covid tablet with HIV drug cuts the chance of hospitalization or dying by 89%

Pfizer said Friday that its easy-to-use Covid-19 pill, used in combination with a widely used HIV drug, increased the risk of hospitalization or death in high-risk adults exposed to the virus by 89% lowers.

It’s now the second antiviral pill behind it Merck‘s to demonstrate strong efficacy in treating Covid at the first sign of disease. If approved by regulators, it would likely mark a turning point in the ongoing global battle against the pandemic.

Pfizer CEO Albert Bourla told CNBC the company plans to submit its data to the Food and Drug Administration before Thanksgiving.

“I think this drug is going to change the way things are happening, that are going to save millions and millions of lives, it has the potential to do that,” Bourla said in an interview with CNBC.Squawk box“He said the company has” the current capacity of 500 million pills, “which in his opinion equates to 50 million treatments.” The very high level of effectiveness comes as a surprise even to us and exceeds our most visionary expectations about it. “

Pfizer’s pill, scientifically known as PF-07321332, belongs to a class of drugs called protease inhibitors and works by blocking an enzyme that the virus needs to multiply in human cells. Protease inhibitors are used to treat other viral pathogens such as HIV and hepatitis C.

The HIV drug helps slow the metabolism or breakdown of the Pfizer pill so that it stays active in the body for longer periods of time at higher concentrations, the company said.

The company said its data on the drug is based on a mid-to late-stage study of 1,219 adults who had at least one underlying disease and one laboratory-confirmed infection within five days. Participants also received a low dose of ritonavir, a drug often used in combination treatments for HIV.

Pfizer said there were six hospitalizations and zero deaths of the 607 study participants who received the pill in combination with the HIV drug within five days of the onset of symptoms. That compares to 41 hospitalizations and 10 deaths for the 612 people who received a placebo.

“These data suggest that our oral antiviral candidate, if approved by regulators, has the potential to save patients’ lives, reduce the severity of COVID-19 infections and achieve up to nine out of ten hospital stays Avoid, “said Albert Bourla, CEO of Pfizer in a statement.

not how Gilead SciencesThe intravenous drug Remdesivir, Pfizer and Merck drugs can be taken orally. While vaccinations remain the best form of protection against the virus, health experts hope pills like these will prevent the progression of the disease in those who become infected and prevent hospitalizations.

Biotherapeutics from Merck and Ridgeback said on October 1st that they developed a drug that, when given on its own, reduces the risk of hospitalization or death in patients with mild or moderate cases of Covid by about 50%.

Merck’s antiviral pill was approved by The UK Medicines Agency on Thursday.

June Raine, chief executive of the UK’s drug and health products regulator, said the Merck pill is the treatment of Covid, a disease that has cost the lives of more than 5 million people worldwide and has put an enormous strain on health systems.

Bourla told CNBC in April that Pfizer’s pill could be available to Americans by the end of this year.

Children to return to high school in fashion because of Cuts For Children

FARGO, ND (KVRR) – Class is just around the corner and what better way to impress your friends and teachers than a haircut?

The Salvation Army has teamed up with Josef’s School of Hair, Skin and Body for 12th year and is offering free haircuts as part of their Cuts For Kids program.

It was a kind of wellness day, where the children could wash their hair, paint their faces and put on temporary tattoos.

Josef’s employees want the children to not only remember pens, paper and folders that children need to go back to school.

“Haircuts are sometimes last, but sometimes also the most important, so that we feel good,” says Josef’s headmistress Alisha Schaeffer.

“We just love working with Josef. Their students are phenomenal, their teachers, their directors. Everyone is great, ”said Kristi Simmons, Fargo Salvation Army volunteer coordinator and outreach.

The Salvation Army plans to team up with Joseph again sometime this fall for free adult haircuts.

Goal cuts grocery costs in rival gross sales occasion

Customers shop in the grocery section of a Target Corp. store in Chicago, Illinois, USA on Saturday, November 16, 2019.

Daniel Acker | Bloomberg | Getty Images

Electronics, toys and groceries?

How aim starts a competing sales event to compete with him Amazon Prime Day, the big box retailer, puts its grocery department in the spotlight. It adds discounts and promotions to entice customers to its cereal, meat, and soda aisles.

Target introduced Deal Days to compete with Prime Day in 2019, but this will be the first time Target has used the event to promote groceries. The discounts extend from Sunday to Tuesday – one day longer than the event of the e-commerce giant.

It’s likely that Target sees the food category differently these days. Food was a major reason Target’s sales skyrocketed and its market share grew during the pandemic. While people settled down at home, dinner ingredients, staples, and snacks drove into the store. Target had a head start in the early months of the health crisis by keeping its doors open as a major retailer by locking it down. As rival stores reopened, Target was still drawing shoppers in with its variety of merchandise, from eggs to workout tops, while people rounded up their trips and filled larger baskets.

Even with people making social plans and eating out again, Target sees its grocery stores as a way to get people to come back. The next few months will test whether Target and other grocers can convince people to keep filling fridges and cooking, even if they plan to hang out with friends for a drink or go out with family for dinner.

Before the pandemic, US consumers spent more each month in restaurants and bars than in grocery stores. This pattern was reversed in March 2020. In the past two months, the habit of spending more on restaurants has returned, according to the US Census Bureau. That leaves grocers competing for a bigger slice of a shrinking cake.

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Amazon Prime Day is all about spending that can keep up with the busiest days of the Christmas shopping season. According to an analysis by Adobe Analytics, based on a survey of 1,000+ consumers, US online spending is expected to beat last year’s all-time record of $ 10.4 billion during the two-day sales event and cyber Monday of last year surpassed US retail site visitors. According to a survey by Adobe, nearly 60% of consumers said they would shop online during Prime Day.

Retailers of all sizes have taken up the shopping vacation and increased sales as shoppers browse and buy more than usual.

Deal Days discounts will be widespread at Target, but there will be a special grocery promotion: $ 10 worth of gift cards will be given out to customers who spend $ 50 or more on food and drink while they are using one of its Use same day services as roadside pickup and home delivery service, Shipt. The company declined to share certain items that are available for sale.

At least two of Target’s competitors will also dangle grocery stores: Walmart and Amazon. Walmart is also adding groceries to Deals for Days, its annual sale, for the first time, according to a company spokesperson. It will lower the prices of foods like ribs, watermelon, ice cream, and coffee.

Amazon plans to sell some groceries for $ 1 and its Cursive wine brand is on sale. Whole Foods will discount seasonal products like lemonade and Caprese pizza, a company spokesman said.

If buyers benefit, these offers could help companies hold their own against tough year-on-year comparisons. All three have big growth numbers that will be hard to match or beat – especially in the grocery department, where consumers were stocking items during the pandemic.

Target sales in the last fiscal year grew by more than $ 15 billion – more than the combined sales growth of the last 11 years. The company said it gained approximately $ 9 billion of market share during the year, according to the company’s own and external research.

The company’s shares are up nearly 31% so far this year, reaching a market value of nearly $ 114.05 billion.

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Comparable sales for Target, which tracks sales in stores that are open for at least 13 months and online, rose 19.3% over the past fiscal year – a faster rate than any other major food company. KrogerLike-for-like sales for Walmart increased 14.1% and Walmart increased 8.6%. Retailers’ fiscal years and definitions of comparable sales vary slightly.

By combining food and digital services, Target has also found that it can drive customer loyalty.

At a conference call on the fourth quarter results on March 2nd, Target CFO Michael Fiddelke said customers tended to visit their stores more frequently, increase their food and beverage spend by an average of 20-30%, and get more sales in other categories after getting fresh or frozen Groceries bought by pickup or roadside store had to pick up the first time.

A sign advertising Shipt, the same day grocery delivery service owned by Target, will be displayed on a freezer display in a Target Corp store on Saturday, November 16, 2019. exhibited in Chicago, Illinois, USA.

Daniel Acker | Bloomberg | Getty Images

The company also announced that groceries and beverages accounted for 20% of its total sales for the year, making the category the second largest sales driver after beauty and household items at 26%. The company started during the pandemic a private label of snacks and desserts and a collection of gourmets Pasta, coffee and more.

So far, Target has been able to keep growth going. In the first quarter, Food and beverages grew in the low to mid single digits despite hard comparisons with the same period last year when consumers stocked up on supplies and sought shelter.

Target will use food as a differentiator and “defense mechanism” on Amazon Prime Day, Krishnakumar Davey, president of strategic analysis at research firm IRI. Over the past year, it has helped Target promote bigger shopping carts and attract new customers, he explained.

Target has deepened its market penetration with lower-income customers and older buyers, according to market research from IRI.

It has also done more business than the competition in the past few months. As of the beginning of June, the number of destination trips increased by 16.1% compared to the same period in the previous year. All other colleagues except Cost co, are in the low single digits, according to the IRI, which collects consumer data from a representative sample of over 100,000 households.

Compared to Amazon, Target also has a much larger footprint in the food space. Amazon owns more than 500 Whole Foods stores and has about a dozen Amazon Fresh stores, its expanding grocery chain. Target has around 1,900 stores.

Eating out may return, but home food consumption is still above pre-pandemic levels due to other factors such as remote working, Davey said. Also, he said, a sale of groceries might be more popular than other types of offerings.

“Everyone needs something – more than an iPad or whatever,” he said. “It’s a high frequency object.”

Reporting on Amazon Prime Day 2021

Read more about Amazon and others scheduled for this year’s sales events:

Sir Michael Caine ‘cuts down’ on alcohol for grandchildren | Leisure Information

Sir Michael Caine “cut down” drinking for his grandchildren.

The 88-year-old actor, who has daughters Natasha and Dominique with his wife Shakira, admitted that 12-year-old Taylor and 11-year-old twins Miles and Allegra “breathed new life” into him so he tries to lead a healthier lifestyle to be there for them longer.

He said: “I cut the drink and got a new outlook on life.

“I thought I wasn’t going to have grandchildren and all of a sudden I have three. They are my fountain of youth and they breathed a whole new life into me with no worries or problems. I’m completely obsessed and so is my wife.”

The ‘Alfie’ star has found that as a grandfather he has surpassed everything else in his life, including his previous “highs” when he was knighted and won two Academy Awards.

He added, “I’ve had some high points in my life – I’ve won two Academy Awards and was knighted. I used to think you couldn’t get better, but you can because then I am.” have my grandchildren, which is better than anything.

“The wonderful thing about grandchildren is something someone once said: They fill a hole in your heart that you didn’t know was empty. And I think that’s absolutely true.”

Despite his professional success, Michael is “proud” of his parenting.

Speaking to Candis magazine about fatherhood, he said, “One of the things I am most proud of in my life is that I am a great father.

“And I know I am a great father because if you ask my daughters they will tell you too. The best I have ever heard about father of daughters is that a great father is a man who Spends time with his daughters Well, I also spend the money because I have some – to tell the truth, I tend to spoil them. But time is the most important thing. I love spending time with them, and they seem to like spending time with me. “