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BUSINESS A25
Friday 8 January 2016
Hudson Bay’s online push, snaps up luxury deal site Gilt
A. D’INNOCENZIO Saks Off 5th, will at the same als, a demographic shared very cool brand. This opens ty of flash sites like Gilt fade.
AP Retail Writer time integrate the online with Saks Off 5th. It has up a whole new world for Yet Storch told The Associ-
NEW YORK (AP) — Hudson company into some of its more than 9 million mem- Hudson Bay.” ated Press that he believes
Bay has purchased the physical store locations. Gilt bers and about 50 percent The deal is expected to these types of business-
luxury deal site Gilt Group concept shops will open at of its orders come from mo- close Feb. 1. The addition es can thrive in stores.
Holdings Inc. for $250 mil- Saks Off 5th, Saks Fifth Av- bile devices. of Gilt Group Holdings Inc. Storch said that he is using
lion as traditional retailers enue’s off-price division. Hudson Bay CEO Jerry is expected to contribute as a model Nordstrom’s ac-
follow shoppers, and their And Gilt shoppers will be Storch points to the success $500 million to revenue in quisition in 2011 of the flash
money, online. able to return merchandise at Gilt of personalizing of- fiscal 2016. site HauteLook. Nordstrom’s
The Toronto retailer, which bought online at Gilt at fers for its customers. A deal between Hudson discount division Nordstrom
owns stores under its own Saks Off 5th. “We are a huge believer of Bay Co. and Gilt has been Rack learned from Haute
brand as well as Lord & Tay- Gilt has cultivated a loyal an all-channel retail mod- rumored since December Look’s customers following
lor, Saks Fifth Avenue, and base of affluent millenni- el,” said Storch.” Gilt is a and comes as the populari- that deal.q
Walgreens beats 1Q profit forecasts, narrows 2016 forecast
TOM MURPHY This photo shows a Walgreens retail store in Boston. Walgreens trumped Wall Street’s profit ex- largest pharmacy chain in
AP Business Writer pectation its fiscal first quarter, but the nation’s largest drugstore chain started 2016 cautiously by the United Kingdom. That
Walgreens trumped Wall narrowing its earnings forecast range for the new year. The Deerfield, Illinois, company said Thurs- deal closed at the end of
Street earnings expecta- day, Jan. 7, 2016, that it had raised by 5 cents per share the bottom end of a forecast it laid out in 2014, which alters year-
tion for its fiscal first quar- October. It now expects full-year earnings to range from $4.30 to $4.55 per share. over-year comparisons of
ter, and the nation’s larg- Walgreens financial results
est drugstore chain started (AP Photo/Charles Krupa, File) for its fiscal first quarter.
2016 cautiously by narrow- Walgreens CEO Stefano
ing its forecast for the new In October, Walgreens also competitor, CVS Health tion about the acquisition, Pessina told analysts Thurs-
year. said it will spend $9.41 bil- Corp. a request Walgreens said it day morning that his com-
The Deerfield, Illinois, com- lion to take over rival drug- Walgreens said Thursday expected. pany is interested in mak-
pany said Thursday that it store chain Rite Aid in a it still expects the deal to The Rite Aid deal came less ing more moves, even
hiked the bottom end of a deal that could create a close in the second half of than a year after Walgreens though it is still working on
forecast it laid out in Octo- drugstore chain with more this year. Last month, the bought European health or digesting these deals.
ber by 5 cents per share. It than 12,700 U.S. locations, Federal Trade Commission and beauty retailer Alli- In particular, Walgreens
now expects full-year earn- far more than the nearest asked for more informa- ance Boots, which runs the would like to return to the
ings to range from $4.30 to pharmacy benefits man-
$4.55 per share. agement business, which
Analysts expect, on aver- involves running prescrip-
age, earnings of $4.44 per tion drug coverage for
share for fiscal 2016, ac- big customers like employ-
cording to FactSet. ers and insurers. Pessina
Walgreens earned $1.11 said that could happen
billion in the quarter that through a merger, partner-
ended Nov. 30, with ad- ship or promotional agree-
justed results totaling $1.03 ment.
per share. Walgreens runs more than
Analysts expected, on 13,000 drugstores in 11
average, earnings of 97 countries, including around
cents per share, accord- 8,100 in the United States,
ing to Zacks Investment Re- where it also operates
search. Duane Reade locations.
The company posted rev- Sales from established lo-
enue of $29.03 billion in the cations in the U.S. climbed
period, which missed ana- 5.8 percent compared to
lyst expectations for $29.56 a year ago.
billion. Revenue from established
Apple stock slumps amid renewed iPhone sales worries
BRANDON BAILEY pecting Apple to trim orders the stock. Its shares fell just in October that a growing almost two-thirds of its rev-
AP Technology Writer for its signature smartphone under 2 percent Wednes- number of consumers were enue. The latest iPhone 6S
SAN FRANCISCO (AP) — this winter. Those fears were day and closed at $100.70. switching from rival Android and 6S Plus models, intro-
Apple fans keep buying compounded Wednesday Apple Inc. declined com- phones to iPhones, while duced last fall, have several
iPhones, but Wall Street when the Wall Street Jour- ment Wednesday. But top many current iPhone own- new features, but analysts
keeps worrying the compa- nal said one of Apple’s executives at the Cuper- ers had not yet upgraded say they aren’t dramati-
ny won’t be able to match most important contractors tino, California, company to newer models. Cook cally different from previ-
last year’s blistering sales is sending some workers said last fall they expected has also cautioned against ous 6 and 6 Plus phones
pace. Shares in the world’s home on “early holiday” to sell more iPhones dur- drawing conclusions based that went on sale in late
most valuable company before the Chinese New ing the last three months of on reports from individu- 2014. Experts also say the
have fallen more than Year in February.Even an 2015 than they did a year al contractors, since the global smartphone market
15 percent over the last upbeat report from Apple earlier, when the company company has an extensive isn’t growing as fast as it did
month, amid a drumbeat announcing that its online sold a record 74.5 million. supply and production net- a few years ago, because
of news reports that some App Store set a sales record As evidence for his opti- work. The iPhone is crucial many people already own
Asian parts suppliers are ex- last week failed to boost mism, CEO Tim Cook said for Apple, since it provides one. q
