| 1 | | For Q1 2023, Gap reported a net loss of $18M, or $0.05 per share, compared to a net loss of $162M in the prior year. In addition, their gross margins rose 5.6 percentage points to 37.1% while their revenue fell 6% to $3.28B. More: - The biggest Gap brand, Old Navy, saw a 1% fall in net and comparable sales.
- Sales of the Gap brand fell by 13% year over year, while Banana Republic's sales fell by 10%.
- Athleta's comparable sales dropped by 13%, while net sales dropped by 11%.
- Gap intends to open 25 to 30 Old Navy and Athleta locations in the upcoming fiscal year while closing 50 to 55 Gap and Banana Republic locations.
- In after-hours trading, shares increased by more than 15% due to the boost in gross margins.
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| 2 | | 
What happened: Nvidia reported strong sales of $11B, boosting its market capitalization to over $1T. This exceeded Wall Street estimates by 50%, leading to share price increases for many chip suppliers. The AI chip market competitors, including AMD and Micron, also experienced stock price increases. The Nvidia stock price was up by 24%. Why it matters: The strong demand for AI chips and Nvidia's sales projections show how important AI is becoming to a wide range of sectors. Due to its competitive technological edge, the company leads the AI market and has significantly invested in data center technology. This might have a significant effect on the semiconductor industry and the advancement of AI. The market valuation it gained on Thursday, $183.8B, was the third-highest ever for a U.S. firm. Where to see the impact: The tech industry will be significantly affected by Nvidia's performance in the AI chip market in 2023, as seen by the more than doubling of their stock price and the increases in stock prices of other chip and equipment manufacturers. Their success will likely impact the market for AI chips, data center technologies, and investments from significant tech companies. | | | |
| 3 | | Beginning in 2024, Ford customers will have access to 12,000 of Tesla's Superchargers in the U.S. and Canada using an adapter, and in 2025, new Ford EVs will use Tesla's charging port natively. Ford intends to offer dependable charging capabilities via Tesla's Supercharger network. More: - Tesla's Supercharger network has over 17,700 fast chargers at 1,650 stations across the U.S.
- The collaboration shows Tesla's effectiveness in persuading other EV makers to use its charging system.
- Closer to the program's 2024 start, pricing information for Ford customers accessing Tesla's network will be available.
- The White House's intention to create a national network of EV chargers was in line with Tesla's decision to allow other vehicles access to its Supercharger network.
Zoom Out: - Ford came in a distant second place to Tesla last year, which controls roughly 60% of the U.S. market for electric vehicles.
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| 4 | | While topping revenue expectations with sales of $7.32B, Dollar Tree's adjusted earnings per share (EPS) of $1.47 fell short of predictions at $1.52. Nevertheless, the business exceeded revenue projections and experienced positive same-store sales growth of 4.8%. More: - From a previous range of $6.30 to $6.80 per share, Dollar Tree reduced its profit forecast for the entire year to $5.73 to $6.13 per share.
- The worsening outlook was blamed for increased shrink and a switch in the product mix to consumables with lower margins.
- The business kept its $30B to $30.5B full-year sales projection.
- Due to the transition to higher prices and increased focus on necessities with lower margins, gross margins decreased to 30.5% YoY.
- At $136.66 per share, the stock closed approximately 12% lower.
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| 5 | | United Airlines will add 35 flights to Denver International Airport, its busiest hub, with new nonstop routes to Greensboro, North Carolina; Dayton, Ohio; Lexington, Kentucky; and San Juan, Puerto Rico. The market share leaders at the airport in 2022 were United Airlines (46%), Southwest Airlines (31%), Frontier Airlines (10%), Delta Air Lines (5%), and American Airlines (4%). More: - Denver International Airport saw a sharp increase in passenger traffic throughout the pandemic, and it handled over 69 million people in 2022, making it the third busiest airport in the world.
- In 2022, San Francisco, a second United hub, saw 42.3 million passengers, down from 57.5 million in 2019.
- At Denver International Airport, United intends to reopen one of the two renovated clubs and a brand-new lounge.
- The airline seeks to serve high-spending passengers and modify its network to reflect altered travel trends brought on by the pandemic.
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| 6 | | For a 41% interest in ITA Airways, the Italian firm that will replace Alitalia, Lufthansa has committed to invest $348M. The Italian Ministry of Economic Development also contributed $268M, allowing ITA to benefit from group synergies with Lufthansa's other airlines, including Eurowings, Swiss, Brussels Airlines, Austrian Airlines, and the leading German flag carrier. More: - The agreement calls for ITA to hire 1,200 more workers this year, bringing its workforce to 5,500.
- A future majority interest acquisition by Lufthansa is possible, contingent on a negotiated price.
- Following a previous bid defeated by private equity firm Certares, the arrangement represents Lufthansa's second effort to acquire the Italian carrier.
- By establishing a hub in Rome, Lufthansa will be able to access the transatlantic market, streamline flight itineraries, boost yields, and increase capacity.
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| 7 | | Quick Hits: - Access Seed's DS-01 24-strain probiotic + prebiotic for digestive, gut, immune, and skin health. Use code INSIDE40 for 40% off your first month.*
- After eight years, Verizon's Chief Marketing Officer Diego Scotti is stepping down, and Chief Strategy Officer and Executive Vice President Rima Qureshi will take over the marketing team interim.
- Viterra is in talks to merge with U.S. company Bunge Ltd, potentially restructuring the market for global grain trading.
- Approximately 1,000 of First Republic's 7,000 employees have been notified that they will not be receiving an offer to move to JPMorgan following its takeover of the California-based bank earlier this month.
- The counsel for Pratt & Whitney informed a Delaware court Thursday that the company had no engines for India's Go First airline, with no entitlement over them.
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 | 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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