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    Target’s Stock Sinks on Weak Sales Ahead of Holiday Shopping Season

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    The retailer’s downbeat earnings report, which included lower profit and larger inventory, fell far short of Wall Street’s expectations.Target rattled Wall Street on Wednesday with a downbeat earnings report showing a sales decline, lower profit and an unwelcome buildup of unsold inventory. The company also cut its forecast for the full year, a bad omen ahead of the critical holiday shopping season.Target’s stock plunged more than 20 percent in early trading, putting it on track for its biggest daily decline in more than two years.Sales at Target stores fell 1.9 percent last quarter, from the same period last year, offset somewhat by a 10.8 percent rise in online sales. The company said it expected sales to be flat this quarter and cut its forecast for full-year profit, almost entirely reversing an increase announced just three months ago.Jim Lee, Target’s chief financial officer, told analysts on a call that it was “prudent to take this conservative approach” and that the company would take “swift and disciplined action to position ourselves to win during the holidays and in 2025.”Target had recently made improvements that drew shoppers to its stores, but the earnings setback suggests that there is more work to do. Brian Cornell, Target’s chief executive, said in a statement that the retailer was navigating through “a volatile operating environment.”The weaker-than-expected report covered the period of back-to-school shopping and Halloween, which can signal more challenges during the holiday season, a crucial final weeks of the year. Retailers look to those seasonal events as indicators of how shoppers might spend around Thanksgiving and Christmas. We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Walmart Stock Rises on Strong Earnings Ahead of Holiday Shopping Season

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      The bellwether retailer reported higher-than-expected sales in its latest quarter and upgraded its forecast for the rest of the year.Walmart has told its workers that it plans to “win” the holiday season. Ahead of the peak shopping period, the nation’s largest retailer appears well positioned, citing “broad-based strength” across its product range.Walmart said Tuesday that U.S. sales increased 5 percent in the third quarter, to $114.9 billion, easily surpassing analysts’ estimates. Sales at its U.S. e-commerce business jumped 22 percent, aided by pickup and delivery options as well as its expanding online advertising and marketplace business.The number of visits and the amount spent per visit both rose, a promising trend for the retailer. Walmart raised its full-year forecast for sales and profit, higher than the estimates it had already increased three months ago.Doug McMillon, Walmart’s chief executive, said the company had “momentum.” “In the U.S., in-store volumes grew, pickup from store grew faster, and delivery from store grew even faster than that,” he said in a statement on Tuesday. The results were somewhat affected by hurricanes and a strike by East Coast port workers, the company said, slightly raising sales but denting profits.Walmart, which brings in millions of customers each week, is a bellwether of U.S. consumer trends. The period between Thanksgiving and New Year’s Day can make or break a retailer’s year, and companies are unsure about how freely shoppers will spend in the weeks ahead.Analysts have recently cautioned that Walmart’s success does not necessarily mean the rest of the retail industry will see similarly strong sales.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Tapestry and Capri End Plans for ‘Accessible Luxury’ Merger

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      Tapestry, the owner of Coach, said it would abandon its $8.5 billion deal to buy Capri, the parent company of Michael Kors, after the Federal Trade Commission successfully sued to stop the transaction.An attempt to assemble an “accessible luxury” powerhouse in the United States has unraveled.Tapestry, the owner of Coach and Kate Spade, and Capri Holdings, the parent company of Versace and Michael Kors, on Thursday called off their plan to merge, which was first announced last year. The Federal Trade Commission had sued to block the $8.5 billion deal last spring over antitrust concerns, and a federal judge sided with the agency last month.At the center of the F.TC’s case was a worry that consumers would end up paying more for the relatively less expensive handbags and other fashion items sold by Coach, Kate Spade and Michael Kors in what the industry calls the accessible luxury market.While Tapestry and Capri argued that it was not a defined category, the federal judge ruled that accessible luxury handbags appeared to have traits that distinguished them from true luxury brands. The court determined that the category was defined by bags that start with a price of about $100 and “heavily rely on discounting.”Tapestry and Capri said that they had “mutually agreed that terminating the merger agreement was in the best interests of both companies.” The decision to abandon their appeal suggested that the companies were not more optimistic about a judge’s ruling under the Trump administration, and that they did not think putting in the time and money required by a lengthy appeal process would result in a viable pathway to acquisition.“We are now focusing on the future of Capri and our three iconic luxury houses,” John Idol, Capri’s chief executive, said in a statement. Mr. Idol stressed Capri’s strong customer loyalty and store base, with more than 1,200 retail locations worldwide.Joanne Crevoiserat, the chief executive of Tapestry, said in a statement that “we have always had multiple paths to growth, and our decision today clarifies the forward strategy.”“Tapestry remains in a position of strength,” she added.Tapestry also said its board had approved a program in which the company would buy an additional $2 billion of its own shares.The company’s shares rose about 10 percent, and shares of Capri fell 4 percent, in early trading on Thursday. More

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      How Elections Affect Our Shopping

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      We explore why consumers tend to get skittish about major purchases ahead of a general election. In the weeks leading up to a general election, consumers tend to get skittish about major purchases like houses, cars, weddings and investments. After the election, regardless of the outcome, they open up their wallets and shop again.It’s the election shopping slump.As the presidential election draws near, my colleague Jordyn Holman and I wanted to see if the trend was holding true this year as well. In a new article that published this morning, we find that it is.Wedding planners told us that newly engaged couples were too distracted to book events for next year. Financial advisers said their clients were keeping their assets in cash. Car dealers said shoppers were staying on the sidelines.In today’s newsletter, I’ll explain what drives this behavior, and why it’s not unique to this election cycle.The pivot pointThere are a lot of reasons Americans are reluctant to buy homes right now. Inflation drove mortgage interest rates to a 20-year high, and a lack of housing stock kept prices from falling, exacerbating an affordability crisis. But even in years when the housing market was more amenable, buyers got nervous before they went to the polls.Jonathan Miller, a real estate appraiser, looked back at two decades of home sales in Los Angeles, Manhattan and Miami and saw a pattern: Sales dipped in the second half of even years and bounced back in odd years. “Election Day is the pivot point,” he said. “It’s like the foot is taken off the brake after the election.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      CVS Ousts Karen Lynch as C.E.O. and Shares Fall

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      Shares of the health care conglomerate dropped after the sudden departure of Karen Lynch and a downbeat update on the state of the company’s finances.CVS Health abruptly ousted its chief executive, Karen S. Lynch, on Friday as the pharmacy and health care conglomerate struggled with sluggish growth and faced pressure from investors.The company appointed David Joyner, the head of CVS Caremark, its successful unit overseeing prescription drug benefits, as the new chief. The management change was accompanied by a dour financial update, with the company scrapping its previous forecasts because of “elevated medical cost pressures.” Shares of CVS fell sharply in early trading.The company’s earnings have disappointed investors in recent quarters, in part because of rising costs at Aetna, the company’s insurance arm. Activist investors have pushed the company for changes, prompting CVS to explore breaking itself up, potentially by separating its pharmacy business from its insurance unit.CVS employs about 300,000 people. Its sprawling portfolio includes the branded pharmacy chain, with more than 9,000 retail locations; Aetna, which it acquired in 2018, which has nearly 40 million policyholders and other customers; Caremark, the country’s largest pharmacy benefit manager, hired by employers and governments to oversee prescription drug benefits; and Oak Street Health, which runs more than 200 primary care centers for Medicare recipients.Ms. Lynch took over as the group’s chief executive in February 2021, after running Aetna. “I don’t want people to think about CVS Health as just that drugstore,” she told The New York Times in 2022. “I want them to think about it being a health care company.”Roger Farah, the chairman of CVS Health, said in a statement on Friday that “the board believes this is the right time to make a change.” He added that Mr. Joyner’s “deep understanding of our integrated business” would help steer the company through its challenges.During his tenure at Caremark, which he rejoined in 2023 after a few years away from the company, Mr. Joyner faced increased scrutiny of pharmacy benefit managers. He appeared at a Congressional hearing this summer, facing questions from lawmakers about the role of pharmacy benefit managers in rising drug costs for millions of Americans.This month, CVS said it would cut almost 3,000 jobs, mostly corporate employees. Its rival chains are also under pressure to cut costs: This week, Walgreens said it would close about 1,200 stores over the next three years.Shares of CVS, which dropped 7 percent on Friday, have fallen more than 25 percent this year. More

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      Louis Vuitton Owner LVMH Sees Stock Drop on Weak China Sales

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      Weak sales in China at LVMH, the owner of Dior, Tiffany and more, sent a shudder through the luxury sector.Shares in LVMH dropped on Wednesday after the luxury goods giant warned about an “uncertain economic and geopolitical environment” and its latest earnings disappointed analysts.The conglomerate — which owns Dior, Tiffany, Fendi and more — is a bellwether for the industry. Its financial results, released on Tuesday after European markets closed, has sent a shudder through the luxury sector, particularly in response to slowing sales in the hugely important Chinese market.LVMH, which is run by the French billionaire Bernard Arnault, said that sales for last quarter fell 3 percent from the same period the previous year. The company also reported a decline in sales in its fashion and leather goods unit, which makes up about half of the conglomerate’s revenue, for the first time since early in the coronavirus pandemic.Shares of other fashion and lifestyle brands also declined, including Hermès and Kering, the owner of Gucci.Investors are jittery about the Chinese economy. Beijing introduced a package of measures last month that spurred a major rally in Chinese stocks, but details remain vague about the extent of the measures to bolster weak consumer spending, stabilize the real estate market and strengthen banks.China recently announced retaliatory penalties on European brandy — LVMH owns Moët Hennessy — in response to higher tariffs imposed by the European Union on Chinese-made electric vehicles.“Consumer confidence in mainland China today is back in line with the all-time low reached during Covid,” Jean-Jacques Guiony, LVMH’s chief financial officer, told analysts on Tuesday.Some industry observers are betting that LVMH will cope. “We are not sure this quarter particularly changes the LVMH story,” analysts at Bernstein wrote in a note. Even without a lot of detail, the stimulus signals in China are encouraging and demand will return, the analysts said.China’s housing minister is set to hold a news conference on Thursday and is expected to outline more measures to bolster growth.Danielle Kaye More

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      Walgreens Says It Will Close 1,200 Stores

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      The pharmacy giant said it would close the stores over the next three years and plans to “redeploy” the majority of the workers at the closed stores.Walgreens plans to close about 1,200 stores over the next three years, its parent company said on Tuesday, in an effort by the struggling pharmacy giant to cut costs and change focus.The chain, which is owned by Walgreens Boots Alliance, announced the closures in its latest quarterly earnings report, released on Tuesday.The closures will allow Walgreens to “respond more dynamically to shifts in consumer behavior and buying preferences,” Tim Wentworth, the chief executive of Walgreens Boots Alliance, told investors during an earnings call on Tuesday.There are more than 8,000 Walgreens stores in the United States, Mr. Wentworth said, and about 6,000 of those stores were profitable.“While the decision to close the store is never an easy one, we feel confident in our ability to continue to serve our customers,” Mr. Wentworth said, “and we intend to follow our historic practice to redeploy the majority of the work force in those stores that we closed.”About 500 of the closures will take place in the current fiscal year, which runs through September 2025, but the company did not say where they would occur.The company reported an operating loss of nearly $1 billion in the three months through August, roughly twice as much as the loss in the same period last year. Its stock price jumped more than 10 percent in early trading on Tuesday, as the results were slightly better than analysts had expected.Walgreens said in June that it would most likely close a significant amount of stores as part of a plan to turn around its business in the United States. At the time, Walgreens said spending by lower-income consumers in particular was lagging, driven by high inflation and depleted savings. The closures announced on Tuesday include 300 stores that had previously been approved to shut under that plan.Mr. Wentworth said that the company was also making changes to how it stocks its stores, by being “more selective” with the brands it carries, as well as expanding its own brands. This, he said, would enable the company to be “a destination for categories for which we believe we are uniquely positioned to lead, like health and wellness and, specifically, women’s health.” More

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      Spirit Halloween Will Experiment With Spirit Christmas

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      Known for its pop-up stores — and its army of seasonal workers — Spirit Halloween will try its hand at a longer run and a bigger holiday.For many fall enthusiasts, the season’s start is marked by the arrival of autumn leaves and apple picking. For others, it is marked by the emergence of the Borg-like retail empire that is Spirit Halloween, a Halloween goods purveyor that opens more than 1,500 locations across North America, only to shutter them in the days after Halloween.The script has remained constant: Spirit Halloween outlets appear in strip malls, and just about any abandoned storefront, selling vast inventories of costumes, wigs, vampire fangs, fake blood, devil pitchforks and ghoulish animatronics. Year after year, its stores create a dependable seasonal economy for thousands of workers before disappearing as quickly as they materialized.But this week, Spirit, which was founded in 1983, announced that it intends to test the waters of the Christmas season, too, with the introduction of a new retail concept, “Spirit Christmas.” Ten test locations will open across the Northeast, starting on Oct. 18 with a store in Mays Landing, N.J., which will be followed in November with outlets in locations like Albany, Poughkeepsie and Erie.At these locations, Spirit’s Grim Reaper-like mascot will be replaced with a winking Santa, and its stock will be replaced with gingerbread houses, wrapping paper, ugly sweaters, elf hats, reindeer ears and stocking stuffers. Locations will also offer family photo ops with resident bearded Santas.“Spirit Christmas is a new concept for us, and we’re hopeful it will resonate with our customers,” Kym Sarkos, Spirit’s executive vice president, said in a statement. Her statement added that customers will be able to wander through a “life-sized gingerbread village, where you can mail your letter to Santa at the North Pole and find out whether you’ve been naughty or nice.”The storefronts change, but the Spirit Halloween signage remains the same.Patrick T. Fallon/Agence France-Presse — Getty ImagesIn recent years, as Spirit Halloween’s seasonal retail empire has grown, the ephemerality of its business structure has made it the subject of endless parody. In the recent season premiere of “Saturday Night Live,” the sketch show aired a prerecorded spot that poked fun at Spirit Halloween’s impending, yet ultimately temporary, emergence.In the skit, an employee played by Heidi Gardner walks through the aisles of a busy Spirit store while she tells viewers about the company’s seasonal aid to depressed local economies around the nation.“Since 1983, Spirit Halloween has been helping our struggling communities by setting up shop in every vacant building in the country for six weeks,” she says. “And then bouncing.”After the skit aired, Spirit shot back at “Saturday Night Live” in a post on X.“We are great at raising things back from the dead @nbcsnl,” Spirit’s social team wrote alongside a photo of a Spirit costume package titled “Irrelevant 50-year-old TV show.” The package’s description noted that the outfit came with “Dated references,” “Unknown cast members” and “Shrinking ratings.”The joke landed well online, and now the company will find out if its customers are interested in having Spirit stick around through the holiday season. More

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      David Liederman, Who Found Sweet Success With David’s Cookies, Dies at 75

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      His innovative version of the chocolate chip cookie, studded with irregular pieces of dark Swiss chocolate, led to a chain of more than 100 stores worldwide.David Liederman, whose confections redefined the chocolate chip cookie and whose chain, David’s Cookies, eventually grew to more than 100 stores nationwide, died on Thursday in Mount Kisco, N.Y., near his home in Katonah. He was 75.His wife, Susan Liederman, said the cause of his death, at a hospital, was a heart attack. He was also being treated for myelofibrosis, a type of blood cancer.Mr. Liederman’s innovative version of the chocolate chip cookie will keep his name alive.The cookie’s unique feature was that it was not made with standard Toll House chocolate chips but was studded with irregular pieces of dark Swiss Lindt chocolate. He chopped the chocolate by hand, the way Ruth Graves Wakefield did when she created the Toll House cookie in 1938 in Whitman, Mass., before Nestlé took over and began manufacturing its little chocolate drops. Mr. Liederman called his cookies chocolate chunk, a term that has become widely understood and used in the world of baking and confections.But long before his revisionist cookie came on the scene, creating his reputation and cranking up his income, his career in food, as a chef, was starting to simmer like a good pot-au-feu.He was 19, still an undergraduate, when he went to France. Intrigued by Michelin three-star restaurants, of which there were but a handful at the time, he decided to eat at Troisgros in Roanne, near Lyon, because it seemed to be the cheapest. The meal set him back $19 (the equivalent of about $172 today); the food was an epiphany.He persuaded the Troisgros brothers to let him hang out in the restaurant’s kitchen and work for the next few summers, despite his lack of culinary training. While he was studying for a degree at Brooklyn Law School and clerking for Judge Maxine Duberstein of the New York State Supreme Court, he began taking classes at night in the culinary program at New York Technical College (now the New York City College of Technology) in Downtown Brooklyn.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More