Page 25 - ARUBA TODAY

BUSINESS Thursday 30 November 2017
A25

Chipotle, looking Tiffany:
for a turnaround,
shopping for CEO Profits sparkle as China’s demand for luxury rises

NEW YORK (AP) — Chipotle NEW YORK (AP) — Tiffany where sales surged 15 per- ment. The company said pany said e-commerce
is looking for a new CEO & Co., which has strug- cent to $283 million. This that a downturn in spend- sales increased at a slightly
to help turn the restaurant gled with online competi- was mainly due to strong ing by foreign tourists was faster pace than overall
chain around, after a long tion and lost its luster with demand in China. Sales part of the reason for the sales growth.
struggle to recover from a younger shoppers, re- were up 5 percent in Eu- soft sales. The New York-based com-
series of food safety scares. ported a quarterly profit rope to $110 million. Sales at stores open at least pany has stepped up its
The company said Wednesday that beat Wall But other places didn’t a year, a key gauge of a marketing, using celebri-
Wednesday that founder Street’s expectations as fare as well. In Japan, sales retailer’s health, dipped 1 ties like Janelle Monae and
Steve Ells, who became shoppers in China snapped dropped 8 percent to $139 percent. Zoe Kravitz in advertising.
sole CEO less than a year up its luxury goods. million. While Tiffany man- Under new Chief Executive It’s also focusing more on
ago, will step down from The high-end jewelry com- aged to squeeze out a 1 Alessandro Bogliolo, Tiffany design, and adding more
that position as soon as it pany’s strength in its third percent sales increase in has been trying to lure mil- lower-price pieces such as
finds a replacement. Ells quarter mostly came from the Americas, that was lennials who are shopping $95 bone china cups that
will then become execu- the Asia-Pacific region, considered a disappoint- elsewhere online. The com- look like paper cups.q
tive chairman.
to win back customers to Steep tech drop pulls US indexes mostly lower
Chipotle has been trying

its restaurants since 2015,
when its sales plunged af- said. “People are say-
ter an E. coli outbreak. It ing, ‘I’ve made so much
has made some progress money, let me take a little
after giving away millions money off the table.’” Am-
of burritos and launching azon dropped $32.33, or
a loyalty program. How- 2.7 percent, to $1,161.27.
ever, concerns rose again Facebook fell $7.29, or 4
this summer when one of its percent, to $175.13. Alpha-
restaurants in Virginia was bet slid $25.91, or 2.4 per-
temporarily closed after cent, to $1,037.38. Shares
diners fell ill. in several chipmakers also
The company started sell- slumped. Micron Technolo-
ing queso nationwide with gy lost $4.19, or 8.7 percent,
the hopes that it would to $43.74, while Applied
revive sales. But the warm Materials shed $4.42, or 7.7
cheesy dip didn’t do much percent, to $52.91. Lam Re-
to boost results in the last search declined $18.50, or
quarter. The burrito chain 8.7 percent, to $194.64. The
said last month that it will market got another batch
continue to develop new of encouraging economic
menu items, including fro- news Wednesday.
zen margaritas and salads; The Commerce Depart-
retrain workers to better ment estimated that the
serve customers; and slow Trader Tommy Kalikas works on the floor of the New York Stock Exchange. A steep slide in big U.S. economy grew at an
the number of new stores it technology companies pulled the major U.S. stock indexes mostly lower Wednesday. annual pace of 3.3 percent
opens next year to better (AP Photo/Richard Drew) from July through Septem-
focus on already opened By ALEX VEIGA charge higher interest rates The Russell 2000 index of ber. That would be the fast-
restaurants. AP Business Writer on loans. smaller-company stocks est rate in three years.
“While we are continuing A steep slide in big technol- The Dow Jones industrial picked up 5.86 points, or The new estimate helped
to make progress, it is clear ogy companies pulled the average closed modestly 0.4 percent, to 1,542.30. Ris- lift bond yields. The yield on
that we need to move fast- major U.S. stock indexes higher, notching a record ing stocks slightly outpaced the 10-year Treasury rose to
er to make improvements,” mostly lower Wednesday, high for the second straight declining ones on the New 2.38 percent from 2.34 per-
Ells said in a statement offsetting strength in banks day, while the Standard & York Stock Exchange. cent late Tuesday. Mean-
Wednesday. Chipotle said and health care and eras- Poor’s 500 index dipped Signs of a tech sell-off were while, the National Asso-
that the CEO search com- ing some of the gains the less than 1 point. visible early on Wednesday, ciation of Realtors said that
mittee, which includes Ells, market made a day earlier. “The market is flat, but in- as the Nasdaq opened its pending home sales in-
is looking for someone with The tech-heavy Nasdaq side the market, lots of lower. dex surged 3.5 percent last
turnaround expertise who composite, which is the change,” said Bob Doll, Amazon, Facebook, month. On Monday, the
can help build customer best-performing index this chief equity strategist at Google parent Alphabet Commerce Department
trust and improve sales. year, had its biggest single- Nuveen Asset Manage- and other big technology said sales of new homes
Ells founded Chipotle as day drop since August as ment. “People are rotating companies gave up some jumped in October to their
a single restaurant in Den- investors cashed in some away from what’s worked of their recent gains as fastest pace in a decade.
ver in 1993. He had previ- of their winnings and bid so well and buying some of the sector posted its big- “We’ve had some pretty
ously shared the top job up shares in health care the laggards.” gest loss in more than five decent economic news,”
as a co-CEO. “Under his companies and retailers, The S&P 500 index fell 0.97 months. Even so, the sec- said CFRA Investment Strat-
leadership, the chain has among others. points, or 0.04 percent, to tor remains the biggest riser egist Lindsey Bell. Banks
stumbled from one crisis to Bond yields rose following 2,626.07. The Dow gained this year, with a gain of 35.7 and other financial stocks
the next and has failed to a strong report on third- 103.97 points, or 0.4 per- percent. posted solid gains for the
reignite the growth that it quarter economic growth cent, to 23,940.68. The “If you look at any kind of second day in a row, get-
once enjoyed,” said Neil in the U.S. That helped Nasdaq lost 87.97 points, chart you can see how ting a boost from rising
Saunders, a retail analyst banks because they can or 1.3 percent, to 6,824.39. extended tech was,” Doll bond yields.q
at GlobalData.q