Raphael Stevens

Workhorse Group expects to deliver just 250 vehicles in 2022.
The deliveries will be a mix of Workhorse’s outgoing C-1000 commercial vans, and the first examples of a new van to be built on chassis supplied by GreenPower Motor.
Workhorse reported a net loss of $156.1 million in the fourth quarter. 

Workhorse C-Series
Courtesy: Workhorse

Struggling electric vehicle start-up Workhorse Group expects to build roughly 250 vehicles in 2022 after completing a product-roadmap overhaul, the company said Tuesday.  
Workhorse has struggled for several years to get market traction for its electric commercial vans. The company’s C-1000, designed for so-called “last mile” delivery service and launched in 2020, was recalled last year after CEO Rick Dauch ordered a redesign. 

The company now plans to discontinue the model after using up its existing parts inventories. 
Workhorse reported a net loss of $156.1 million for the fourth quarter of 2021. That was a sharp decline from the $280.5 million net profit it reported a year prior, when it recorded a $322 million gain on its stake in another EV startup, Lordstown Motors.
Workhorse sold its stake in Lordstown during the third quarter.
Since joining Workhorse in July of last year, Dauch has hired a new senior leadership team, opened a new technical center in Michigan and revamped the company’s product plan. 
But it may be a while before investors see tangible results from those efforts. 

The new product plan hinges on two new electric commercial vehicle platforms, the first of which won’t begin production until the third quarter of 2023, the company said on Tuesday.
In the meantime, Workhorse will build another new electric commercial van based on chassis supplied by a Canadian rival, GreenPower Motor. 
Under a deal announced on Tuesday morning, GreenPower will supply 1,500 EV chassis to Workhorse over 21 months beginning in July. Workhorse will build its new vans on those chassis, with the first of the new vans expected to ship by the end of September. 
“Our outlook for 2022 reflects our planned progressive ramp in manufacturing, which is backloaded, as we are not expecting to produce any vehicles in the first half of the year,” Chief Financial Officer Bob Ginnan said on Tuesday.
Those new vans, plus the last of the C-1000s, should generate at least $25 million in revenue in 2022, Ginnan said. 
Workhorse had about $201.6 million in cash on hand as of Dec. 31, 2021. 

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Netflix’s suite of Marvel-branded television shows will arrive on Disney+ in the U.S. March 16.
The shows, released between 2015 and 2019, were made before Disney decided to create its own slate of Marvel titles connected to its cinematic universe.
Netflix’s license of the content has ended and rights have now reverted back to Disney.
With the release of these shows, Disney+ will make an update to the platform’s existing parental controls.

Krysten Ritter, Finn Jones, Charlie Cox and Mike Colter star in Netflix’s “The Defenders.”

Netflix’s suite of Marvel-branded television shows will arrive on Disney+ in the U.S. March 16.
Last month, eagle-eyed viewers spied a message on Netflix, which informed subscribers that “Daredevil,” “Jessica Jones,” “Luke Cage,” “Iron Fist,” “The Punisher” and “The Defenders” would only be available until March 1.

The shows, released between 2015 and 2019, were made before Disney decided to create its own slate of Marvel titles connected to its cinematic universe. Netflix’s license of the content has ended and rights have now reverted back to Disney.
As part of the contract with Netflix, Disney was unable to use characters from these Marvel shows within its cinematic universe. However, that statute of limitations recently lifted and Disney brought back actor Charlie Cox as Matt Murdock, aka Daredevil, in the Sony co-production “Spider-Man: No Way Home,” as well as Vincent D’Onofrio to reprise his role as Wilson Fisk, aka Kingpin, in the Disney+ series “Hawkeye.”
Disney will also be adding “Marvel’s Agents of S.H.I.E.L.D.” to the service. That series appeared on Disney’s ABC network.
The company said Tuesday that with the release of these seven shows on Disney+ will come an update to the platform’s existing parental controls. These shows have more violence and sexual content than other Marvel programs and movies Disney has created, and may not be suitable for younger kids.
These titles will also be made available on Disney+ in Canada, the U.K., Ireland, Australia and New Zealand on March 16. “Marvel’s Agents of S.H.I.E.L.D.” is already available in these markets. Disney said other markets will have access to these titles later this year.

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Life Changes

Health issues and remarriage might prompt you to update your will, but be aware of other life changes that require a review of your estate plan, say experts.
Frequent triggers also include changes in health of executors and guardians; changes in laws, which may impact tax and legal strategies; and changes in state residence, which can also impact planning.
If your bank is your executor and it’s been sold, make sure you trust the new owners’ judgment.

Spanic | E+ | Getty Images

There are some obvious triggers that might prompt you to update your will, such as changes in health or marital status. There are, however, also some not-so-obvious ones to be aware of, according to financial planners and attorneys.
“Your will should be updated when your personal circumstances change, which could happen at any time,” said certified financial planner Philip Herzberg, lead financial advisor with Team Hewins in Miami. “Your will is like your house: If properly maintained, [it] will last a very long time.

“Similarly, if properly updated, your will can also have a greater longevity,” he added.
Some frequent triggers, Herzberg said, include changes in health, including that of executors and guardians; changes in laws, which may impact tax and legal strategies; and changes in state residence, which can also impact planning.

More from Life Changes:

Here’s a look at other stories offering a financial angle on important lifetime milestones.

“Every state has different laws regarding the administration of a will,” he said. ”For instance, states vary regarding the required residence of an executor, inheritance tax laws and whether a child can be disinherited by omission.”
Clients should review their wills and powers of attorney every five years, said CFP Michael D. Whitty, an estate planning attorney with Freeborn in Chicago. He said documents should also be reviewed when these events occur:
A substantial change in economic status, including whether or not the estate tax will apply.

A change of parental status, typically the birth of the first child, as most wills have language that will automatically include any children born or adopted after the date of the instrument. The birth of additional children doesn’t automatically require updating the document, with the possible exception of updating guardians.

When you should upgrade from a will to a trust?

When you have some significant assets (more than $500,000) in your own name.
If you have special needs beneficiaries.
If you have properties in multiple jurisdictions (multiple states or even counties).
If you have beneficiaries you want to control distributions to (e.g., distribute at ages 25/30/35).
If you have kids from a previous relationship you want taken care of.
If you may want asset protection (special trust needed).
If you are a big dog (over $22M if married), to save taxes

Source: Leon LaBrecque, Sequoia Financial Group

Changes in designations of fiduciaries (executor of the will, successor trustee of a revocable trust, attorney-in-fact, health-care agent, guardian of minor children). Over time, your original choices for fiduciary roles will eventually no longer be the best choice. Parents age, retire and become unable to handle the roles; siblings and close friends have changes in their own lives such as moving, marriage, starting families of their own, divorce and so forth.
Changes in a family member’s situation, such as if a child develops special needs and will need appropriate planning

Overlooked triggers

“An overlooked trigger to updating your will is all the consolidation in the banking industry,” said Herzberg. “If you named a bank as the executor of your estate and your bank has been bought or sold recently, you may now have a new executor.
“Be sure you know who that person or institution is – and that you trust its judgment.”
It’s important to revisit your beneficiaries after marriage or divorce, said CFP Nadine Marie Burns, president of A New Path Financial in Ann Arbor, Michigan.

“States differ as to how marriage is handled for life insurance and other beneficiary treatment,” she said. “Many times the beneficiary will actually trump a will.”
Burns recalled that the divorced and remarried father of one of her clients passed away. He had not updated any of his beneficiaries when he re-married but state law superseded, and all of his life insurance and home were granted to his new wife.
“Nothing went to his daughter,” she said. “He had listed his ex-wife as a beneficiary on the life insurance … and listed no contingent beneficiary.” More

Kohl’s on Tuesday reported fiscal fourth-quarter sales that came in below analysts’ estimates for the key holiday quarter.
The retailer notably issued an upbeat outlook for fiscal 2022, calling for net sales to rise 2% to 3%.
Despite lingering supply chain headwinds and other pressures from inflation and labor costs, CEO Michelle Gass said Kohl’s achieved an operating margin of 8.6% two years ahead of schedule.

The Kohl’s logo is displayed on the exterior of a Kohl’s store on January 24, 2022 in San Rafael, California.
Justin Sullivan | Getty Images

Kohl’s on Tuesday reported fiscal fourth-quarter sales that came in below analysts’ estimates for the key holiday quarter, but investors lifted shares as the company issued upbeat revenue outlook for 2022 despite ongoing supply chain obstacles that roiled retailers and shrunk inventories.
Kohl’s per-share earnings also beat estimates, thanks to the company’s strategy to sell more goods at full price points. Despite lingering supply chain headwinds and other pressures from inflation and labor costs, CEO Michelle Gass said Kohl’s achieved an operating margin of 8.6% — two years ahead of schedule.

For fiscal 2022, Koh’s is calling for net sales to rise 2% to 3%. Analysts had been looking for year-over-year growth of 2.2%, according to Refinitiv.
“In 2022 will build on our momentum,” Gass said in a statement. She noted that the company plans to lean into its recent partnership with makeup retailer Sephora, in which it plans to open Sephora shop-in-shops at hundreds of Kohl’s stores.
The report comes as Kohl’s faces amplified pressure from activists to consider a sale, while one group is looking to take control of the retailer’s board. Last month, Kohl’s rejected the takeover offers on the table, which it said undervalued the business.
Here’s how Kohl’s did in its fourth quarter compared with what Wall Street was anticipating, according to a survey of analysts by Refinitiv:

Earnings per share: $2.20 adjusted vs. $2.12 expected
Revenue: $6.22 billion vs. $6.54 billion expected

Kohl’s net income for the three-month period ended Jan. 29 fell to $299 million, or $2.20 a share, compared with $343 million, or $2.20 per share, a year earlier. Earnings beat analysts’ estimates of $2.12 a share, according to Refinitiv.

Net sales grew to $6.22 billion from $5.88 billion a year earlier. That was light of estimates for $6.54 billion.
Kohl’s cited particular strength in its active wear business, which it said grew more than 40% in 2021. The retailer sells goods from top brands including Nike and Under Armour, alongside its own private labels for items such as leggings, sports bras and hoodies.
Activewear has been a growing category within the broader apparel space, fueled by more consumers looking for comfort during the pandemic and investing in their workout routines.
For fiscal 2022, on top of its sales targets, Kohl’s sees earnings per share in the range of $7.00 to $7.50, excluding items, compared with analysts’ expectations of $6.55 a share.
Kohl’s also announced on Tuesday it plans to double its annual dividend and buy back at least $1 billion of its stock this year.
The company is set to hold an investor meeting on Monday, where it will offer more guidance around its longer-term financial targets.
As of Monday’s market close, Kohl’s shares are up about 12% year to date, bringing the company’s market cap to $7.7 billion.
This story is developing. Please check back for updates.
Find the full earnings press release from Kohl’s here.

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Oil pumping jacks, also known as “nodding donkeys”, in an oilfield near Neftekamsk, in the Republic of Bashkortostan, Russia, on Thursday, Nov. 19, 2020.
Andrewy Rudakov | Bloomberg | Getty Images

Oil prices surged Tuesday, with U.S. crude hitting its highest level since July 2014 as Russia bears down on Ukraine’s capital.
Prices first topped the $100 mark last Thursday when Russia invaded Ukraine, prompting fears of supply disruptions from key exporter Russia, in what is already a very tight market.

West Texas Intermediate crude futures, the U.S. oil benchmark, jumped 5.7% to trade at $101.17 per barrel.
International benchmark Brent crude advanced 6.3% to trade at $104.16 per barrel. The contract rose to $105.79 last week, the highest since 2014.
On Monday Canada said it was banning Russian oil imports, but so far it’s the only nation to target Russia’s energy complex directly. The financial sanctions imposed by the U.S. and Western allies could carve out room for energy payments to continue.
But the ripple effects are already showing. “Key European financiers to commodity trade houses have already begun curbing financing for commodities trades, and Chinese banks are also pulling back,” JPMorgan said Tuesday in a note to clients. “Current oil price differentials are reflecting a clear unwillingness to take Russian crude,” the firm added.
Ahead of Russia invading Ukraine the global oil market was already tight. Demand has bounced back, while supply has remained constrained. OPEC and its oil-producing allies, which includes Russia, will meet this week to discuss output for April.

The International Energy Agency meantime is holding an “extraordinary” meeting Tuesday to discuss “the impact of Russia’s invasion of Ukraine on oil supply and how IEA members can play a role in stabilising energy markets,” IEA’s executive director Fatih Birol said Monday in a tweet.
Morgan Stanley raised its near-term oil price forecasts on Tuesday, saying the events in Ukraine have introduced a “risk premium in oil prices that is likely to remain in coming months.”
“Against a backdrop of market tightness, even small disruptions can have large price impacts,” the firm added.
Morgan Stanley now sees Brent averaging $110 in the second quarter, up from a prior forecast of $100. Under the firm’s bull case, prices will jump to $125 per barrel.
Goldman Sachs said Sunday that demand destruction is the only “significant remaining balancing mechanism.”
Americans are feeling the impacts of higher oil prices at the pump. The national average for a gallon of gas stood at $3.619 on Tuesday, according to data from AAA, up 24 cents from a month ago.

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Target on Tuesday said it expects growth to continue, even after the pandemic turbocharged its sales and helped the retailer win new customers.
The company forecast revenue growth in the low to mid single-digits and projected adjusted earnings per share to rise by high single-digits for the year ahead.
The big-box retailer will hold an investor day in New York City on Tuesday.

Target shares surged Tuesday after the retailer reported 9% sales growth in the fourth quarter, despite supply chain pressures, and said it’s poised to keep that momentum going.
The discounter said it expects sales to rise, even as shoppers see prices of food, fuel and other goods creep higher. It forecast revenue growth in the low to mid single-digits and projected adjusted earnings per share to rise by high single-digits. Those are above analysts’ expectations, according to Refinitiv. 

Shares are up more than 11% in premarket trading.
The big-box retailer will hold its first in-person investor day in New York City since the start of the pandemic, a two-year span that has turbocharged Target’s stock price and revenue. Shares of the company have soared 84% since mid-March 2020, when Covid-19 was declared a pandemic. Its annual revenue has reached $106 billion, up nearly 36% over the past two years.

Investors will listen for how Target will compete for consumers’ money and time, as people juggle more spending priorities in a reopening world and feel the sting of inflation.
In a Tuesday interview on CNBC’s “Squawk Box,” CEO Brian Cornell said the average Target store has added $15 million in sales over the last couple of years. Along with selling goods, those stores double as fulfillment centers where almost all of the company’s online orders are packed and shipped or prepared for a customer to pick up in the parking lot.
“We’re getting more efficient, more productive — and that’s flowing through to the bottom line,” he said.

Here’s what Target reported for the fiscal fourth quarter ended Jan. 29, compared with Refinitiv consensus estimates:

Earnings per share: $3.19 adjusted vs. $2.86, expected
Revenue: $31 billion vs. $31.39 billion expected

Net income rose about 12% to $1.54 billion, or $3.21 per share, from $1.38 billion, or $2.73 per share, a year earlier. Excluding items, the retailer earned $3.19 per share, higher than the $2.86 per share expected by analysts surveyed by Refinitiv.
Total revenue increased to $31 billion from the same period a year ago, slightly below analysts’ expectations of $31.39 billion.
Target faces challenging comparisons due to the pandemic. In the holiday quarter, for instance, it went up against a year-ago period when Americans had extra dollars from stimulus checks to spend on holiday gifts and some Americans chose to consolidate shopping trips to reduce risk.
Comparable sales, a key retail metric that tracks sales online and at stores open at least a year, increased 8.9% in the fourth quarter. That’s lower than the 10.5% gain that analysts expected, according to StreetAccount.
Customers made more trips to Target’s stores and website in the fourth quarter compared with a year ago, the company said. Combined traffic online and in stores increased by 8.1%, but the average transaction amount rose less than 1% compared with a year earlier.
Target’s online services – which include Drive Up, its curbside pickup option; Order Pickup, its in-store retrieval of online purchases; and Shipt, its home delivery service – have also been a big opportunity for the retailer. Sales through those same-day services grew by 45% in the fiscal year. That’s after 235% growth in 2020.
Those options gained a following as safe, contactless ways to shop. Now, the company is adding more perks that may appeal as people juggle fuller social calendars again. Starting in the fall, customers can make returns or pick up a Starbucks coffee without leaving the car at select stores.
The company said it can keep profits high, despite pressures across its business.
In the fourth quarter, Target said it had higher supply chain costs from a larger workforce and higher pay at its distribution centers and paid more for freight and merchandise. As the company geared up for the start of the holiday quarter, Target had more than $2 billion higher inventory than the previous year to make sure it had plenty to put on store shelves.
Labor costs are rising, too. Target said Monday it will spend $300 million more in the year ahead on wages and health care benefits. It’s hiking pay as retailers compete for employees in a tight market. It said starting wages will range from $15 to $25 for hourly employees, based on role and local market. About 20% more employees will qualify for medical benefits as it drops the minimum average hours a week from 30 hours to 25 hours, the company said. 
The company has worked toward a higher minimum wage over the past five years, as lawmakers in some cities and states pushed to require more pay. Starting in July, hourly workers began to make at least $15 an hour. 
In fiscal 2023 and beyond, Target said it anticipates annual revenue growth in the mid single-digits and adjusted earnings per share in the high single-digits. It said it plans to spend $4 billion to $5 billion on capital expenditures each year.

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