China, Travel Retail Weigh on Shiseido Earnings
Sales rose 4 percent on a reported basis, as consumer pullback from Japanese brands and inventory adjustments dragged down overall earnings.
The move will avert a liquidation that would have put the department store chain out of business and jeopardised tens of thousands of jobs.
The process will give the mall operator a chance to continue functioning while reorganising its finances and business.
The American retailer reported sales of $1.39 billion in the period ended August 1, down from $2.51 billion a year earlier.
The group argues a liquidation would generate more than $8.4 billion, enough to pay off all creditors with some left over for shareholders.
ADVERTISEMENT
The retailer, which recently filed for Chapter 11 bankruptcy, expects net sales of $7.5 billion with its smaller fleet of 604 stores.
The U.S. department store chain said it reached an agreement with existing lenders for $900 million of financing to aid operations while it navigates bankruptcy proceedings in federal court.
The department-store chain is said to be exploring ways to ease its debt burden and give breathing room for the CEO, who has been under pressure to turn the company around.
Despite a 9 percent fall in same-store sales in the latest quarter, the department store chain's chief executive foresees a sales turnaround.
ADVERTISEMENT
The retailer is making a high-stakes attempt to get its finances in order before its debt of about $4 billion comes due, according to sources familiar with the matter.
The retail companies warn the US President's tariff proposal could have negative impacts on their sales.
As one of the oldest names in American retail, J.C. Penney has in recent years struggled to compete with fast-fashion brands and online shopping.
The retailer surged 25 percent as it revealed plans to close 15 more locations and announced a trio of new executives.
Sales rose 4 percent on a reported basis, as consumer pullback from Japanese brands and inventory adjustments dragged down overall earnings.
The lingerie maker said Thursday that its preliminary sales and adjusted profit for the quarter ended May 4 were at the high end or above its prior projections.
The American apparel chain has returned to the Manhattan retail neighbourhood for the first time since 2017.
Revenues totalled 227 million euros ($244.5 million), below analyst expectations of 237 million euros according a LSEG consensus.
Researchers have expressed concerned that AI-generated content could be used as misinformation in an attempt to interfere with US elections this autumn.
Sticky inflation has forced shoppers in various categories to trade down to more affordable products.
The company’s net sales came in at $1.48 billion in the quarter ended March 30, compared to analysts’ average estimate of $1.50 billion, according to LSEG data.
The company’s main growth driver was its continued store openings, with eight new locations during the quarter and a total of 40 anticipated for 2024.