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BUSINESS Wednesday 9 august 2017
US job openings surged during June to record high

By CHRISTOPHER RUGABER number of people quitting picked up yet. to 231,000. Friday’s figures employment,” when nearly
AP Economics Writer their jobs also dropped. Job openings in construc- represent a net total of everyone who wants a job
WASHINGTON (AP) — U.S. The data suggest that em- tion and manufacturing jobs added minus jobs lost, has one and the unem-
employers posted a record ployers have plenty of jobs rose sharply. They also in- while Tuesday’s report in- ployment rate mostly re-
number of open jobs in to fill but are struggling to creased in financial ser- cludes overall hiring data. flects the temporary churn
June, a sign that the solid find the qualified workers vices, health care, and in Tuesday’s data come from of job losses and gains.
hiring of recent months will they need. Typically, em- state and local govern- the Job Openings and If so, that has implications
likely continue. ployers would offer higher ment. The number of open Labor Turnover survey, or for the Federal Reserve:
Job openings jumped 8 pay to entice more appli- jobs in retail fell. JOLTS. They are more de- Businesses would be forced
percent to 6.2 million, the cants, accelerating wage The report comes after tailed and provide a fuller to lift pay and potentially
highest on records dating growth. But the govern- the government said Fri- view of the job market than raise their prices to cover
back to 2000, the Labor De- ment’s jobs report for July, day that employers added the monthly jobs figures. the cost of higher salaries
partment said Tuesday. Hir- released Friday, showed 209,000 jobs in July and re- The JOLTS suggests that the if the economy is at full
ing fell, however, and the that pay gains haven’t vised its June figure higher economy is at or near “full employment.q

CVS tops 2Q forecasts, but established store sales slip

By TOM MURPHY tail locations, counting the
AP Health Writer pharmacy and clinic busi-
CVS Health beat second- nesses of retail giant Target
quarter expectations and Corp.
narrowed its 2017 forecast That total is second only
despite a continued sales to Walgreens. CVS Health
slump from established also processes more than
drugstores that it is working a billion prescriptions annu-
to fix. ally as a pharmacy benefits
The nation’s second-largest manager, or PBM.
drugstore chain said Tues- PBMs run prescription drug
day that sales from stores plans for employers, insur-
open at least a year slid ers and other customers.
nearly 3 percent, a rise in They process mail-order
generic drug prescriptions prescriptions and handle
hurt the top line of its phar- bills for prescriptions filled at
macies and it had fewer retail pharmacies.
customer visits. Revenue from the com-
Revenue from stores open pany’s PBM side jumped
at least a year is consid- nearly 10 percent to $32.3
ered a key indicator of a billion in the quarter that
drugstore chain’s financial This photo shows a CVS pharmacy sign at a store in Hialeah, Fla. CVS Health reported earnings, ended June 30, helped by
health because it elimi- Tuesday, Aug. 8, 2017. new business.
nates the impact of stores (AP Photo/Alan Diaz) Overall, CVS Health’s sec-
that have recently opened expanding healthy food to improve the company’s ing 2017 a rebuilding year. ond-quarter earnings of
or closed. CVS Health and options and beauty prod- retail performance. “While we’re pleased to $1.1 billion rose 19 percent
its competitors have been ucts in its stores and cutting “The blunt truth is that, out- report results within our ex- compared to last year’s
struggling to draw custom- back on promotions that side of health care needs, pectations, we won’t be quarter, when the com-
ers into their stores for a bring in business but can many consumers see CVS satisfied until the total en- pany booked a $542 million
few quarters now, as they hurt profitability. as a place to buy essentials terprise returns to healthy loss on the early retirement
compete for attention with GlobalData Retail analyst when nowhere else is con- levels of earnings growth,” of some debt.
many other retail options, Hakon Helgesen called venient,” Helgesen said in a CEO Larry Merlo said dur- Adjusted results came in at
including a burgeoning on- the store makeovers “long note reviewing the second ing a conference call with $1.33 per share, with reve-
line market. overdue” and said the quarter. analysts to discuss results. nue climbing 4 percent to
The company has started push has to be expansive Company leaders are call- CVS Health runs 9,700 re- $45.68 billion.q

Michael Kors 1Q results top Street even as sales weaken

LONDON (AP) — While sales cents better than industry expected. For the second
at Michael Kors softened analysts had projected, ac- quarter, the company pre-
during the first quarter, cording to a poll by Zacks dicts earnings in a range
the luxury handbag and Investment Research. A of 80 cents to 84 cents per
clothing company hand- year earlier, the company share on revenue between
ily topped Wall Street ex- earned $147.1 million, or 83 approximately $1.04 billion
pectations, and a strong cents per share. Revenue and $1.06 billion. Analysts
outlook for the quarter and fell to $952.4 million from polled by FactSet predict
fiscal year 2018 sent shares $987.9 million, hampered fiscal 2018 earnings of $3.54
soaring nearly 20 percent. by sales in the U.S. and Eu- per share on revenue of
For the three months end- rope. Sales in Asia soared $4.19 billion and second-
ed July 1, Kors earned 60 percent. It was also far quarter earnings of 78
$125.5 million, or 80 cents better than the $917.9 mil- cents per share on revenue
per share, which was 18 lion that Wall Street had of $1.01 billion.q