Mirror Daily

Wednesday, July 15, 2020
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Kohl’s Hiring Workers for Holiday Season amid Labor Shortage

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Kohl's store in France(Mirror Daily, United States) – On Wednesday, Kohl’s unveiled that it is looking to hire seasonal workers for the holiday season while a major labor shortage is affecting the retail sector.

Retailers that fail to offer enticing wages and benefits will likely suffer the most.

Kohl’s has gone on the hunt for new workers at over 300 stores in the United States. The department store has around 1,100 locations in the country.xc 5

We are hiring seasonal associates earlier than ever to ensure our teams are fully staffed, trained and ready to support peak shopping seasons,

a spokesperson for the company’s human resources department said.

Kohl’s move is well-timed as the retail industry has a major labor issue. Jobless rates in the U.S. sank to a 17-year low, and workers are more likely to leave a retailer if work conditions are not right.

Recruiters confirmed that they have problems in finding new workers, but the most problematic are entry-level and seasonal workers. Employees are reportedly pickier as they want flexible hours, more training, and higher wages. More and more Americans are less likely to apply for an entry-level retail position.

Workers Less Interested in Retail Positions

In the retail sector, the average hourly wage of an entry-level employee stood at $11.21 last year, according to the Bureau of Labor Statistics. Retail companies that offer less appealing perks will have the hardest time with finding candidates.

Fast-food chains are currently facing the worst labor shortage. Dunkin’ Donuts confirmed that finding and retaining employee is one of the biggest challenges affecting the industry. Dunkin’ Donuts franchisees have reportedly complained about being able to operate with only 60% of the workforce they need.

Kohl’s is trying to lure in seasonal workers with 15% discounts for all store ware and promises that they could be hired on a full-time position.
Image Source: Flickr

Apple Trims Q1 Sales Forecast Amid iPhone X Lackluster Demand

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iPhone X in a showroom

The demand for the new iPhone X was reportedly weaker than expected this holiday season.

(Mirror Daily, United States) – Apple had to adjust its first-quarter prediction for iPhone X sales amid weak demand during this holiday season.

 

Analysts confirmed that their predictions were beaten as well because of lackluster demand for the latest iPhone model.

 

According to some analysts, shipments this shopping season are 10 million less than estimated. The total iPhone X shipments are expected at 35 million during this period. The weak demand is mainly due to the high price of the latest model ($999) which could bite deep into Q1 sales as well.

 

JL Warren Capital LLC predicts Q1 sales to fall to 25 million handsets. Apple suppliers confirmed that orders have been significantly reduced. The New York-based firm believes that the two reasons the iPhone X is so unpopular are its price and lack of innovation.

 

“Bad news here is that highly publicized and promoted X did not boost the global demand for iPhone X,” JL Warren Capital LLC recently told its clients.

 

iPhone X Sales Not As Strong As Estimated

 

Apple has placed a heavy bet on the iPhone X, which marks the tenth anniversary of the flagship phone. However, competitors like Samsung and Huawei are catching up on Apple especially in emerging markets like India and China.

 

Taiwan which hosts one of Apple’s major iPhone suppliers confirmed that the Q1 sales forecast had to be reduced from 50 million units to 30 million. The newspaper that broke the news cited unnamed sources familiar with the supply chain issues.

 

What’s more, one primary manufacturing plant for the iPhone in the Zhengzhou province, in China, no longer accepts new workers. Other Apple suppliers in China including Largan Precision Co., Shenzhen Desay Battery Technology, and Lens Technology Co. saw the price of their stock fall on Monday.

 

Lens’ shares bounced back the next day, but Largan’s continued to fall.

Image Source: Wikimedia

Softbank Eyeing 30% Discount on Uber’s Stock

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Soft Bank sign on a dimly lit street (Mirror Daily, United States) – Softbank along with two investment firms are negotiating to purchase a sizable stake in the U.S. taxi-app firm Uber at a 30% discount. Uber is currently worth $69 billion.

If Uber agrees on the deal, its valuation will drop to $48 billion. Softbank along with General Atlantic and Dragoneer Investment Group is pushing for the $6 billion deal.

Uber’s freshly-minted chief executive Dara Khosrowshahi had promised investors to make the deal with the Japanese telecom giant a top priority. Khosrowshahi is confident the purchase would consolidate his company’s position by gaining a powerful ally.

This year, Uber has been embroiled in multiple scandals and the troubles are not over yet. The company’s founder Travis Kalanick had to step down amid a scandal about the firm’s work culture, while the U.S. Congress wants some explanations from the company for covering up a hack that affected more than 57 million people worldwide.

Softbank Eyeing a Large Stake in Uber

If the deal is sealed, Softbank and its allies plan to buy more than 14% of Uber stock from other investors. The investment will make the Japanese company one of the ride-hailing firm’s largest investors. Softbank announced a separate $1 billion investment in Uber.

After the deal, Softbank and its allies will secure two board seats. The news was first reported by Bloomberg, which cited unnamed sources familiar with the negotiations. Existing investors hailed the news because they will be able to sell the equity and see some gains despite Uber postponing the initial public offering.

The company promised to become public in 2019.

Negotiations are expected to kick off Tuesday and last more than 20 business days even though some Uber shareholders agreed to renounce their shares. Uber declined to comment on the deal.
Image Source: Flickr

Third Quarter Earnings of CIMB Group Reported at RM890.27m

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The CIMB Group Holdings Bhd, a consumer bank of Malaysia posted RM890.27mil earnings for the quarter ending September 30, a 16.1% drop from its previous year’s RM1.061bil earnings as a result of its CIMB Niaga higher loan damages.

This morning, the banking firm, announced its revenue, which jumped 1.2% to RM3.528bil. Company earnings for every share were at 10.72 sen, lower than the previous 13.91 sen.

Third Quarter Earnings of CIMB Group Reported at RM890.27m CIMB’s operating income for its third quarter improved by 1.3% to RM3.529 billion due to the net interest income increase of 4.8%, which was partially compensated by the non-interest revenue decline of 6.4% as a result of lower free-based revenue and softer markets and treasury from Niaga.

Similar quarter’s net profits were 16.2% lesser at RM890mil, primarily due to CIMB Niaga’s higher loan deficiencies. During the past 9 months ending September 30, company revenue dropped 17% to RM2.906bil. The latest result was attributed to the company’s first 9-month net profit last year, amounting to RM3.502bil that included the CIMB Aviva sale of RM365mil gain and the restructuring charges.

Without exceptional gains, CIMB’s BAU (Business as Usual) 9MFY14 net profit dropped 7.4% year-per-year. The firm’s annual 9MFY14 clear return on average equity or ROE was at 11.6 percent along with a superior equity base after the January new share placement.

Tengku Datuk Zafrul Tengku Aziz, acting CEO, said the current has really been challenging as the company’s BAU profitability was relatively affected by the Indonesian unstable operating conditions due to weakened Rupiah, bringing 36.4 percent on-year decrease in Niaga’s PBT (Profit Before Tax) contributions.

Amount of New Acquisition of Ares Management Is Kept Secret

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Ares Management has made a declaration that one of its subsidiaries has closed a deal to buy Energy Investors Funds but it didn’t disclose the amount of its newest acquisition.

The leading global alternative asset manager may have become quiet about the financial aspects of the acquirement but there’s just one thing that is very vital–that energy will stay important for the public. Also, Ares Management recognizes that businesses will fall off if there isn’t sufficient supply of energy.

Amount of New Acquisition of Ares Management Is Kept SecretAlso, while the company doesn’t talk that much about the amount involved in its acquisition of Energy Investors Funds, Ares Management was able to make the people involved known to the public like Latham & Watkins LLP that took care of the technicalities of the deal and Proskauer Rose LPP that led the legal matters.

Taking over a different company is not a first for Ares Management as it has already added a number of famed names under its bucket since it went public a few months ago. Most of the names added under Ares Management are by the way real estate and financial services companies.

Ares Management believes that the deal that it just finalized with Energy Investors Funds would be the key to its growth. As long as the company makes the right decisions moving forward, there would be more to its $4 billion assets.

This acquisition, just like the past mergers and other investments that the company has made are proofs that marketing decisions are all the time liquid. There isn’t any other sure way of getting a business going but to make developments on it.

J.C. Penney Overall Sales Plummets During This Year’s Third Quarter

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J.C. Penney (JCP) has reported last Wednesday that their overall sales significantly decreased during the year’s third quarter. This is mainly due to the current shopping momentum that also significantly dwindled down right after the recent back to school overall sales.

J.C. Penney (JCP) reported an overall loss of about 62 cents for every share, amounting to 188 million U.S. dollars, compared to last year’s quarter that recorded a loss amounting to 1.94 U.S. dollars for every share, which is equivalent to 489 million U.S. dollars, during the previous year’s quarter. Zacks latest Investment Research stated that the reported performance levels were able to beat previous estimates of analyst that forecasted a total loss amounting to 83 cents for every share.

Overall net sales declined to 2.76 billion U.S. dollars from the previous year’s 2.78 billion U.S. dollar third quarter. Overall sales at company stores that open for at least 1 year recorded flat performances.

J.C. Penney Overall Sales Plummets During This Year’s Third QuarterJ.C. Penney (JCP) overall stock increased by almost 8% last Wednesday, but overall post-market earnings levels that were reported shares dropped down to 6% during after trading hours. J.C. Penney (JCP) overall shares have decreased by a total of 15% that started early 2014.

Maglan Capital hedge fund’s president, David Tawil, stated that looking at the current report of J.C. Penney (JCP), especially if one views it in a somewhat survival perspective, one can say that the overall results can be considered ok. He added, though, that if one considers to look at it as a turnaround perspective, it is not that good.

Alibaba and Tencent Increase Stakes in China’s Huayi Brothers

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Tencent, a social media company, and an investment firm under Alibaba creator Jack Ma combine 2.8B yuan as an investment, raising their Huayi Brothers Media Corp stakes, while Chinese technology giants push entertainment.

Huayi, producer and distributor of television programs, movies, and music stated that it will issue a 145 million worth of shares so as to raise a sum of 3.6B yuan or 588 million dollars in the Shanghai stock exchange. The company has plans for using cash for some other projects a new movie, including the repayment of bank loans.

Ma’s investment company will purchase 61.76M shares. China’s biggest gaming and social network company, Tencent will subscribe 51.55M shares.

Alibaba and Tencent Increase Stakes in China’s Huayi BrothersBoth entities will each own about 8.08% stake in Huayi, higher by 4.03% for Ma and 4.86% for Tencent. Thus, they will become the second-largest Huayi shareholders after company senior executives.

Huayi stated that the mobile internet business is growing fast, while the relationship between internet companies and media firms is similarly increasing. The relationship with Tencent and Alibaba will strengthen the progress in those areas, respectively.

Strategic agreements with Tencent and Ma have also been signed by Huayi, hoping it will use links of some of the largest internet companies in China so as to build its presence within the electronic commerce, movie industry, and online entertainment, including its presence abroad as Huayi has planned on investing between 120 and 150 million dollars in Studio 8, which is a film industry founded by Jeff Robinov, former president of Warner Brothers.

Abercrombie and Fitch Sales Declining Despite of Innovative Changes

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Abercrombie & Fitch is one of the most authentic retailers of American clothing since the 1890’s until today. But it seems like the sales report has been declining due to some changes in the customer’s demands. And also because of some innovative brand ambassadors that were now out in the market.

Abercrombie and Fitch Sales Declining Despite of Innovative ChangesThe company is now focusing on developing brand new styles that would win the hearts of the teens and loyal customers of branded clothing. The fact that consumers were not focusing on the brand and logo anymore, seems to be a warning for Abercrombie and Fitch. Some brand new fashion ambassadors like Zara and Forever 21 which sells more innovative styles at affordable prices, sets a new trend.

Abercrombie and Fitch is now expanding the line of products they offer, not just clothes, but also offering bags and accessories to win back their loyal customers.

Also, aside from these changing demands of consumers, the visibility of these branded clothes was decreasing because of shorter mall hours. If there will be shorter hours, less people would see the changes and strategies offered by the company.

All were hoping to have Abercrombie and Fitch still be part of the emerging market. Honestly, ANN and GAP were also experiencing the same thing.

Visteon Corporation’s Overall Revenue Increased to 33 Percent

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Visteon Corporation, an auto parts manufacturer reported a 33% increase in quarterly overall revenue, which was helped by the company’s purchase of Johnson Controls Incorporated’s electronics business.

Overall revenue for Visteon’s electronics business, that manufactures vehicle displays and audio systems, doubled up to $760M during the year’s third quarter that ended last September 30.

Visteon Corporation's Overall Revenue Increased to 33 PercentVisteon Corporation completed the automotive electronics acquisition of business of Johnson Controls last July.

Timothy Leuliette, Chief Executive of Visteon, stated that the company is expecting record incremental wins because of the company’s new business wins and also re-wins amounting to $2.4B up to $2.8B for 2014.

Visteon clients like BMW, Daimler AG, Ford Motor Corporation, and also General Motors Corporation are clients that also significantly gained from the 3% increase worldwide vehicle overall production during the 3 months that would end by September.

Similar auto parts manufacturers like Lear Corp and also Magna International Incorporated also reported better quarterly profit because of the overall increase in production of vehicles.

The company’s overall revenue when it comes to its climate control business that basically makes cooling and heating systems for various vehicles, increased to a total of $1.21B from last year’s $1.13B.

Visteon Corporation’s overall revenue increased to $1.97B from previous statistics of $1.48B.

Toll Brothers Posts Increased Quarterly Revenue as Home Sale Rises

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The largest US-based luxury homebuilder, the Toll Brothers Inc., posted a 29% increase in its quarterly revenue, selling more homes with higher prices, while the housing demands rockets.

Toll’s shares jumped 1.5% to 32.69 dollars in the premarket trading, saying its orders increased both in dollars and units, a first-time within 4 quarters.

Toll Brothers Posts Increased Quarterly Revenue as Home Sale RisesCompany CEO Douglas Yearley stated the corporation is pleased with its strong finish towards the fiscal year, and having optimism towards the coming year as improvement in housing demands during the fourth quarter is seen.

During the year’s first 8 months, the housing industry began to struggle due to continuous increase in home prices as well as interest rates. But, the latest data from the Commerce Department indicate the recovery of the housing market, with a 6.3% increase in new home yearly pace in September compared to the 14.4% drop in August.

The company said it was able to finish more homes with a 22% rise to 1,807 during the quarter, and the average selling price increased 6.3% to 747,000 dollars the previous year.

Also, new contracts were made with a 10% increase to 1,282 houses, while the contract value rose 16% to 970.2 million dollars.

Toll’s overall revenue jumped to 1.35 billion dollars from 1.04 billion. Company shares closed at 32.22 dollars on Friday in the NYSE. Up until its closure on Friday, the stock rose about 1% within the past year.

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