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Staples Inc. (Nasdaq: SPLS) Store Closings Part of an Ugly Trend
The news that Staples Inc. (Nasdaq: SPLS) plans to close 225 stores illustrates a grim trend in retail that will accelerate over the next couple of years.
The store closings are expected to save Staples $500 million by the end of 2015 and represent 12% of the office supply chain's 1,846 North American stores.
"Our customers are using less office supplies, they're shopping less often in our stores and more online, and their focus on value has made the marketplace even more competitive," Staples Chief Executive Officer Ronald Sargent said.
The announcement on store closings came amid a disappointing Q4 earnings report. The company's earnings per share of $0.33 were well below expectations of $0.39. Revenue slipped 11% to $5.87 billion, which also missed expectations.
The Energy Potential in Ukraine's Troubles
[LONDON] As you read this, Marina and I will be in London for the annual energy consultations at Windsor Castle.
Now, if it seems like I'm spending far too much time traveling these days, you're right. But the truth is our trip to England is just the beginning… more is yet to come.
You see, most of the major new developments are no longer taking place in North America. The global energy sector is intensifying, and its importance has never been more striking than it is right now.
The American unconventional oil and gas revolution has gone global. In fact, that is the prime topic of our discussions at Windsor.what this crisis will do to the global energy markets...
Icahn on eBay (Nasdaq: EBAY): "They Just Don’t Get it"
In what has become a wicked war of words between the corporate raider and the online auction and shopping site, Icahn continued to press eBay to spin off its electronic payment arm PayPal, maintaining the unit is worth more as a standalone.
The billionaire investor also wants the San Jose, Calif.-company to overhaul its corporate board. Icahn, who holds a 2.2% stake in eBay, continued to reproach the company for a "complete disregard of accountability" and took further jabs at board members.
U.S. Stock Market Today Nails In Another Rally
Stock market today, Feb. 7: Today (Friday), U.S. stocks closed in positive territory for a second consecutive session after the January jobs report revealed a declining unemployment rate.
The Dow Jones Industrial Average closed up 1.06%, or 165.55 points at 15,794.08 points; the S&P 500 closed up 1.33%%, or 23.6 points at 1,797.02, and the Nasdaq Composite Index closed up 1.68%, or 68.7 points at 4,125.86.To continue reading, please click here...
Michael Kors Holdings Ltd (NYSE: KORS) Stock Up 18% With This Winning Retail Formula
This morning (Tuesday), Michael Kors Holdings Ltd (NYSE: KORS) announced a 59% increase in revenue for its fiscal 2014 Q3 report ending Dec. 28, 2013, compared to Q3 2013, marking the 31st consecutive quarter of growth for the global luxury brand.
Kors' quarterly earnings per share (EPS) climbed 73.4% to $1.11 per share, shattering the consensus estimates of $0.86. Wholesale net sales increased 68.2% to $461.4 million and licensing revenue increased 59.0% to $47.4 million.To continue reading, please click here...
What Q3 Earnings Season Shows Us About Today's Stock Market
If you want more evidence that the U.S. stock market is disconnected from the actual economy, you only need to look at its performance during the third-quarter earnings season.
Since earnings season began in early October, the Standard & Poor's 500 Index, Dow Jones Industrial Average, and NASDAQ Composite Index have climbed 5.7%, 5.2%, and 6.1%, respectively. The S&P has recently closed with consecutive record highs for four trading sessions and ended above the previous close on 13 of the last 17 trading sessions.
But the actual earnings results don't support this trend.Here's what's going on - and what you should do about it...
10 Numbers You Need to Know Today as Shutdown 2013 Continues
810,000 federal workers, give or take a few, were furloughed this week as Shutdown 2013 began. Those employees had to report to work to "prepare" for a shutdown, in many cases simply reporting, signing a form acknowledging the furlough, and leaving again. The "average" American lives 16 miles from wherever they work, driving 32 miles round trip in a car that averages 24.6 miles per gallon. This trip uses 1.3 gallons of gas, at an average price of $3.39 per gallon, which comes out to $4.41 per trip. Going on national averages for fuel economy, commuting distance, and gasoline, these 810,000 furloughed federal employees collectively shelled out at least $3,572,100 on gas for a short, short workday.To continue reading click here...
The Ten Strange Numbers That Are Running Everything Right Now
9% of working-age people on Earth were unemployed, at least as of 2012. This number represents underemployment and unemployment in non-industrialized countries, as well. Things are tough all over, it seems, and not just in the United States. </pTo continue reading, please click here...
Today's FOMC Meeting Cheat Sheet
Today's FOMC meeting will kick off a two-day discussion of economic policy – and will leave unprepared investors confused…
Both the FOMC policy statement and its economic and market projections will be released on Wednesday at 2 p.m. EDT and will be followed by U.S. Federal Reserve Chairman Ben Bernanke's press conference at 2:30 p.m.
[Editor's Note: Stay tuned to Money Morning for a Wednesday FOMC Meeting roundup.]
The question hot on everyone's tongue is what the FOMC will decide to do about the $85 billion in monthly bond buying – will the inevitable quantitative easing (QE) taper finally begin?
Vivendi-Activision Blizzard Corporate Breakup Games Value for Investors
Last week, I wrote about how companies – and investors – can benefit from corporate breakups. I've never claimed to be clairvoyant, but in this case my timing was incidentally prophetic.
On Friday, a fantastic example of corporate breakup-for-value occurred when French conglomerate Vivendi SA (EPA:VIV) announced that it had sold its videogame giant Activision Blizzard (NASDAQ:ATVI) in an $8.17 billion deal.
Vivendi began as a simple water utility company back in the 1800s, but bloomed into one of the most diversified companies of all time. This multinational mass media and telecommunications company has owned everything from Chivas Regal whisky to African and Brazilian phone networks.