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| 1 | | Earnings per share for Target's first quarter came in at $2.05, exceeding expectations of $1.76, and revenue came in at $25.32B, slightly exceeding expectations of $25.29B. The company maintained its full-year outlook of a low-single-digit decline to an increase despite comparable sales remaining steady. More: - While the clothes and home categories showed sales reductions, the food/beverage and beauty categories saw sales growth.
- Comparable retail sales increased by 0.7%, whereas similar digital sales fell by 3.4% from the same time last year.
- Due to lower freight costs and fewer markdowns, Target's gross margin percentage increased to 26.3%.
- With a focus on ordering more food and high-frequency items to match shifting consumer spending habits, inventory decreased by 16% YoY.
- Target shares rose over 2% after the announcement.
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What happened: After falling for the previous two months, retail sales in the U.S. increased by 0.4% in April. Consumers raised their spending on cars, dining out, and online shopping while decreasing spending on gas and large-ticket items like furniture and appliances. Why it matters: The rise in retail sales shows that consumers remain resilient despite inflation and rising interest rates. Consumer spending is a significant contributor to economic prosperity, and this encouraging news suggests that this trend will continue. Spending habits have changed from commodities to services as people recuperate from the pandemic and crave social interaction. Where to see the impact: Businesses like Home Depot and Tapestry are noticing changes in sales, while grocers like Kroger are seeing a combination of price-sensitive and splurging customers, which benefits industries like autos, restaurants, and online shops. Pent-up demand, meanwhile, is causing a resurgence in purchases at auto dealerships. | | | |
| A message from our sponsor, SPIFF. |  | | The future of commission management is here. Maybe you’re dealing with a mountain of spreadsheets, trying to keep up with a growing sales team and struggling to maintain your sanity in the process. Or, maybe you purchased a tool that promised efficiency, but instead, you've found yourself battling a complicated system that's caused more headaches than solutions. Between the untenable tangle of spreadsheets and overly complicated legacy platforms, Spiff has found a middle ground that bridges the last major mental gaps preventing spreadsheet-centric users from adopting commission automation at scale. Spiff Designer is the revolutionary new backend model builder that combines the familiarity of a spreadsheet with the power of automation for the ultimate commission management solution. Say goodbye to the manual tedium and hello to the future of commission management with Spiff. Take a self-guided tour! | |
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| 3 | | Due to asset writedowns and other variables, UBS' $35B profit from the acquisition of Credit Suisse is less than some forecasts. The depreciated goodwill will aid in offsetting losses and merger integration expenses. More: - In addition to devaluing Credit Suisse's assets by $13B, UBS will set aside $4B for legal and regulatory concerns.
- Due to the complexity of the merger, it could take up to four years to complete.
- By scrapping a Credit Suisse staff bonus program tied to AT1 bonds, UBS saved almost $400M.
- UBS forecasts a $2B loss on capitalized software assets but a $1B gain on Credit Suisse's worldwide real estate portfolio.
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| 4 | | The Professional Pickleball Association (PPA) and Amazon Prime have agreed to a multiyear streaming agreement for four live PPA Tour tournaments yearly, starting with the Atlanta Open and continuing through the 2023-2024 PPA Tour World Championship Series. Top-ranked players such as Ben Johns, Anna Leigh Walters, and Anna Bright will be featured. More: - According to the PPA CEO, Connor Pardoe, the arrangement was deemed "monumental" for the league and a step up for professional players.
- The Association of Pickleball Professionals states that an estimated 36 million people played pickleball between August 2021 and August 2022 since the sport is expanding quickly.
- According to the Sports Fitness Industry Association Topline Participation Report, the sport has increased in popularity over the last three years by more than 158%.
- The PPA Tour's competitions are broadcast live on several channels, including ABC, Fox, CBS, YouTube, the Tennis Channel, FanDuel, and ESPN.
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| 5 | | Kraft Heinz is introducing the Heinz Remix, a customizable sauce dispenser with over 200 possible condiment combinations to give customers more options for spiciness and sweetness. The company plans to pilot the restaurant dispenser by the end of 2023. More: - With its North American foodservice division reporting a more than 25% revenue increase in the first quarter, Kraft Heinz has been concentrating on its away-from-home segment to drive sales.
- Heinz Remix, similar in concept to the Coca-Cola Freestyle machine, was developed with Microsoft and IoT developers.
- Kraft Heinz will utilize information from the sauce dispenser to decide which new supermarket goods to introduce.
- The company has already produced sauces, including "mayochup," "kranch," and "buffaranch," which were created by combining its well-known flavors.
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| 6 | | In Q1 2023, Tencent's revenues increased by 11% to $21B, while its net profit improved by 10% to $3.7B. The WeChat app's Channels video stream contributed to a 17% increase in Tencent's advertising sales. More: - WeChat Pay transactions increased income for Tencent's fintech division by 14%.
- Despite a 96% fall in game time from minors due to limitations, domestic gaming business sales increased for the first time in a year, driven mainly by virtual armor and game upgrade deals.
- The Chinese multinational technology invests in generative AI to reduce costs in industries like video game creation.
- On March 31, the value of Tencent's holdings in publicly listed companies and unlisted investees totaled $115B.
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Term of the Day Venture debt: Venture debt is a form of non-dilutive debt financing used by startups, especially early-stage, to supplement their equity fundraising. Question of the Week How do you approach networking, and what advice can you give others looking to build their professional connections? Join the conversation |
INSIDE BUSINESS LEADERBOARD (7 DAYS) |
 | Freelance Writer | | Shriram is pursuing Master’s in Business with Marketing at Warwick Business School. He worked as a Senior Consultant in Tech and Political Consultancies before his Masters. He is passionate about Tech, Marketing, Strategy, Anthropology and Politics. He is also the Postgraduate Ambassador for Warwick Business School. | | This newsletter was edited by Aaron Crutchfield | |
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