Today - Friday, March 7, 2014
- Telecom Italia's (TI) net loss narrowed to €674M ($927.9M) in 2013 from €1.63B a year earlier, due to a smaller impairment on the goodwill of its domestic operations.
- TI would have made a net profit of €1.5B had it not been for a €2.2B goodwill charge taken in H1.
- Consolidated revenue declined an organic 5.2% to €23.4B.
- EBITDA fell €804M to €9.7B.
- Will offer to repurchase €500M in bonds.
- Net debt drops €1.5B to €26.8B.
- TI will pay a dividend of 0.0275 ($0.038) a piece on savings shares but nothing on ordinary shares.
- Shares are -1.2% in Milan. (PR)
- Disney (DIS) has deepened its relationship with Shanghai Media Group Pictures, with the companies agreeing to collaborate on films that will incorporate Chinese themes. The U.S. company already has a partnership with Shanghai Media digital unit BesTV New Media.
- The expanded co-operation marks the latest attempt by a U.S. studio to increase its presence in a market that is forecast to grow to $148B by 2015 from $120B in 2013.
- It also comes after Disney's Iron Man 3 debuted in China, and included a leading Chinese actress and footage that was filmed in the country.
Thursday, March 6, 2014
- American Apparel (APP) -8.9% AH after providing downside FY 2014 revenue guidance and saying it received a noncompliance notice from NYSE MKT.
- APP sees FY 2014 sales of $634M-$658M, flat to a 4% Y/Y increase but below analyst consensus estimate of $667M, citing the "challenged implementation" of its new distribution center which disrupted the flow of merchandise to stores and wholesale clients.
- Says it received a letter from NYSE MKT stating that the company is not in compliance with continued listing standards.
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- As rumored, Supermarket chain owner Albertsons, controlled by an investor group led by P-E firm Cerberus, is acquiring Safeway (SWY). Investors are unhappy with the specific deal terms. (PR)
- Albertson's will pay $32.50/share in cash, distribute proceeds from the sale of Safeway's real estate subsidiary assets and Casa Ley stake (estimated value of $3.65/share), and distribute Safeway's 37.8M Blackhawk Network (HAWK) shares (current value of $3.95/share).
- The deal is expected to close in Q4, has a $400M termination fee, and comes with a 21-day go-shop period. Albertsons plans to fund the deal with the help of $7.6B in debt financing.
- Guy Constant, Brinker's (EAT) CFO since 2010 and also its business development chief, has resigned. Controller Marie Perry will serve as interim CFO while the restaurant chain owner searches for a successor.
- Brinker's also says Kelli Valade, the COO of its Chili's unit, will now "oversee all operations" for the business.
- EAT -1.1% AH.
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- Shares of Kroger (KR -0.6%) are down slightly from their daily highs after the WSJ reports that Cerberus has struck a deal for Safeway at $40 per share.
- Kroger was thought to be more interested in buying pieces of Safeway rather than bid for the whole company.
- Earlier: Kroger's earnings and guidance impress
- The Society of Motor Manufacturers and Traders reports auto sales in the U.K. rose 3% to 68,376 units in February.
- The U.K. has now strung together 24 straight months of increasing new car sales.
- The top seller for the month in the region was the Ford Fiesta (F) with 4,415 units, while the Ford Focus took 4th place with 2,566 units.
- Abercrombie & Fitch (ANF -1.2%) says it plans to rework its Hollister lifestyle brand to turn it into a fast-fashion concept which can pivot quicker to teenager tastes.
- Same-store sales at Hollister have been falling even faster than A&F-branded stores in recent quarters with teens turning away from pricey jeans and T-shirts.
- The company is looking for a new president for Hollister with some fast-fashion chops.
- Fitbit is trying to get back on track after a recall last month of the Fitbit Force dented the company's reputation.
- The private company isn't releasing any estimates on the cost of the recall and the associated refunds or commenting on any immediate impact on sales.
- The most recent data from NDP showed Fitbit with 67% market share in the wearable fitness tracking market with Nike (NKE +1%) eager to make up ground.