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    Petco swings to a profit and boosts forecast, citing customer growth, but shares fall

    In this articleWOOFShoppers wait in a line outside a Petco pet store in Hollywood, California, on April 23, 2020 during the novel coronavirus pandemic.Robyn Beck | AFP | Getty ImagesPetco Health and Wellness Company reported Thursday first-quarter earnings that outpaced Wall Street’s estimates as a surge in pet adoptions continues to help the retailer recruit new customers. Despite the better-than-expected performance, and an increased earnings forecast, Petco shares fell nearly 3% in premarket trading. “We’re attracting new customers and gaining market share in a growing category,” said Ron Coughlin, chairman and chief executive, in a press release. Here’s what the company reported for the fiscal first quarter ended May 1, according to Refinitiv consensus estimates:Earnings per share: 17 cents adjusted vs. 9 cents expectedRevenue: $1.4 billion vs. $1.27 billion expectedIn the quarter, Petco reported net income of $7.56 million, or 3 cents per share, compared with a loss of $31.2 million, or 15 cents a share, a year ago.Excluding items, the company earned 17 cents per share. Analysts polled by Refinitiv had expected earnings of 9 cents per share.Total revenue grew by 27% to $1.41 billion from $1.11 billion a year ago, also outpacing estimates of $1.27 billion.Petco’s same-store sales rose 28% from a year ago.Petco said it gained 1.2 million net new customers during the quarter, which is a multiyear high.”The category acceleration combined with a strengthening of our customer base give us confidence to raise our full year guidance,” Coughlin said.The retailer expects revenue this year to be between $5.48 billion and $5.58 billion, up from a prior forecast of $5.25 billion to $5.35 billion.Its outlook for earnings was lifted to a range of 73 cents to 76 cents per share, from a previous forecast of 63 cents to 66 cents per share.Correction: Petco beat Wall Street’s earnings expectations. More

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    JPMorgan Chase launches new healthcare business after winding down Amazon-Berkshire venture

    Jamie Dimon, CEO, JP Morgan Chase, speaking at the Business Roundtable CEO Innovation Summit, December 6, 2018.Janhvi Bhojwani | CNBCJPMorgan Chase is going it alone.After the healthcare joint venture formed by Amazon, Berkshire Hathaway and the biggest U.S. bank by assets was disbanded earlier this year, the companies each vowed to continue to push forward in their attempts to lower costs and improve outcomes for their employees.Now, JPMorgan is launching Morgan Health to improve the quality of medical care for the bank’s 165,000 U.S. employees and their families, the firm said Thursday in a statement. The business is led by Dan Mendelson, a healthcare consultant who served in the Clinton administration, and will be based in Washington D.C.The new unit will also have $250 million to make venture investments in companies with “promising healthcare solutions,” the firm said.”We have the best healthcare in the world in terms of doctors, hospitals, pharmaceutical and medical device companies, but we certainly do not have the best outcomes,” CEO Jamie Dimon said in the statement. “There are ways we can make significant improvements and we intend to take a disciplined approach to solving some of these issues in a meaningful way.”The American healthcare system has proven to be a difficult nut to crack: It’s a complicated network of entrenched players including insurers, drug makers, physicians and middlemen that cost the country $3.8 trillion in 2019, according to the Centers for Medicare and Medicaid Services. In its three-year run, Haven, the joint venture that folded in January, had little to show in terms of concrete results.JPMorgan is betting that it will have better success on its own, in part by focusing on local providers and partnering directly with provider groups, insurers and other organizations.The bank, which spends $1.3 billion annually on healthcare for its employees, will seek to improve the way primary care is delivered and enhance the ability of patients to navigate their own care, Mendelson said Wednesday in a phone interview. It will also focus on preventative care in maternal health, cardiovascular disease and diabetes, he said.CVS HealthThe new business struck a more collaborative tone than its predecessor; in its release the bank included a statement from the CEO of CVS Health, one of the healthcare companies whose stock was punished when Haven first made headlines in 2018.”Everything we do, we expect to be doing in partnership with other organizations,” Mendelson said. “We’re not looking to build tools and technologies from scratch, but rather to deploy the best in healthcare to work for us.”Like its predecessor, Morgan Health isn’t being run to generate a profit, according to Peter Scher, the bank’s vice chairman who has ultimate oversight of the effort.That makes it somewhat unique as a business within JPMorgan, a powerhouse in both retail and Wall Street banking activities. Instead of being included in one of JPMorgan’s four main revenue-generating divisions, Morgan Health’s results will be reported under the bank’s corporate reporting line.While the bank will initially focus on employees and their dependents, it aspires to be a model for other employers to emulate and will seek to improve access to healthcare in the communities the bank serves, Scher said.”The work that we did with Haven reinforced both the opportunities and challenges and we think it was an important step,” Scher said. “If we can capture the innovation happening right now and scale it in a way that benefits our employees and their families, that will be an enormous boost for JPMorgan, and ultimately could be an enormous boost for the country.”  Become a smarter investor with CNBC Pro. Get stock picks, analyst calls, exclusive interviews and access to CNBC TV. Sign up to start a free trial today. More

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    Kohl's shares tumble despite the retailer's strong sales beat and hiked outlook

    In this articleKSSVehicles sit parked in front of a Kohl’s department store in Ashland, Ky.Luke Sharrett | Bloomberg | Getty ImagesKohl’s shares tumbled Thursday, despite the company reporting fiscal-first quarter profit and sales that exceeded expectations and hiking its full-year forecast.The stock was down around 7% in premarket trading.It followed a similar trend with Walmart and Lowe’s, both of which reported strong earnings results earlier in the week and then their stocks lose momentum throughout the day. Some investors are cautious about how long the fervent demand coming out of the pandemic will last, especially as stimulus checks are spent.Macy’s stock similarly spiked on upbeat results released Tuesday and signs of shoppers returning to stores to splurge on dresses and luggage, but closed the day down.Kohl’s results are not as strong when compared with those before the pandemic, according to GlobalData Retail Managing Director Neil Saunders, noting that sales are down about 10% from 2019 levels.”Good growth was always inevitable given the terrible results of last year,” Saunders said about Kohl’s lapping a period when its stores were forced shut during the Covid health crisis. “While the company is on a steep recovery trajectory, it has not fully dug itself out of the hole that the pandemic created.”Here’s how Kohl’s did for the quarter ended May 1, compared with what analysts were anticipating, based on a Refinitiv survey:Earnings per share: $1.05 adjusted vs. 4 cents expectedRevenue: $3.89 billion vs. $3.48 billion expectedKohl’s net income climbed to $14 million, or 9 cents per share, from a loss of $541 million, or $3.52 per share, a year earlier. Excluding one-time adjustments, the company earned $1.05 per share, outpacing expectations for 4 cents, based on a Refinitiv survey.Revenue soared nearly 70% to $3.89 billion from $2.43 billion a year earlier. That beat expectations for $3.48 billion.The company said its store sales more than doubled during the quarter, while digital sales rose 14% year over year. It didn’t break out same-store sales figures.Kohl’s Chief Executive Michelle Gass said momentum built throughout the quarter, especially in stores, where the retailer has been investing in new private brands and refreshing displays in activewear, women’s apparel and beauty.Kohl’s expects full-year adjusted earnings per share to be between $3.80 and $4.20, up from a prior range of $2.45 to $2.95.Net sales are estimated to rise in the mid-to-high teens percentage range, compared with a previous expectation of a mid-teens percentage jump.Analysts had been looking for adjusted earnings of $3.15 per share, with sales rising 19.3% for the year, according to Refinitiv.Telsey Advisory Group research analyst Dana Telsey estimates that the sales outlook provided from Kohl’s would equate to a range of about $17.14 billion to $17.89 billion. That would still be below the $18.89 billion in revenue that the company booked in 2019.Later this fall, Kohl’s is preparing to bring the beauty retailer Sephora into about 200 of its stores, growing to 850 locations by 2023. The company hopes the initiative will help it to drive traffic and reach a younger customer.It also said it is preparing to launch another group of private-label brands, following the recent debut of its new active line FLX. Kohl’s is on track to grow its active business to represent 30% of total sales in the next few years.As of market close Wednesday, Kohl’s shares have risen more than 48% year to date. Kohl’s has a market cap of $9.5 billion, which is notably more than Macy’s and Nordstrom.Find the earnings press release from Kohl’s here. More

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    EU slaps Nomura, UBS and UniCredit with $453 million fine over 'trading cartel'

    In this article8604.T-JPUBSG-CHUCG-ITBACKN-FRRLIA-ESLSSTFrankfurt, GermanyLeoPatrizi | E+ | Getty ImagesLONDON — The European Commission, the EU’s executive arm, has found seven investment banks guilty of breaching its antitrust rules during the 2008 global financial crisis, with three of the banks receiving fines.The seven institutions participated in a “bonds trading cartel” in the primary and secondary market for European government debt between 2007 and 2011, the commission said a statement Thursday. Traders used chatrooms to exchange commercially sensitive information, discussing their bidding strategies in the run up to debt auctions, the commission added.”Our decision against Bank of America, Natixis, Nomura, RBS, UBS, UniCredit and WestLB sends a clear message that the Commission will not tolerate any kind of collusive behavior,” Margrethe Vestager, the head of competition policy in the EU, said in a statement.Nomura, UBS and UniCredit are now due to pay a combined fine of 371 million euros ($453 million).A spokesperson for Nomura said the decision was related to behavior from two former employees at the bank, for an approximate 10-month time period in 2011.”Nomura will consider all options, including an appeal. Since the time of the relevant conduct, Nomura has introduced increased measures to ensure that we conduct our business with the highest levels of integrity at all times,” the spokesperson said via email.UBS and UniCredit were not immediately available for comment when contacted by CNBC on Thursday.NatWest, previously known as RBS, was not fined because it reported the wrongdoings to the commission.Bank of America and Natixis do not have to pay a fine because their infringements have passed the time limit for sanctions and Portigon, formerly WestLB, didn’t receive a fine as it failed to report a net turnover in the last financial year.”It is unacceptable, that in the middle of the financial crisis, when many financial institutions had to be rescued by public funding these investment banks colluded in this market at the expense of EU Member States,” Vestager also said Tbankshursday. More

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    Europe's answer to Robinhood just raised fresh funds at a $5.3 billion valuation

    The Trade Republic app.Trade RepublicLONDON — German stock-trading app Trade Republic said Thursday it raised $900 million in a huge funding round that values the start-up at $5.3 billion.The round, a Series C, was led by American venture capital firm Sequoia, with additional backing from new investors TCV and Thrive Capital. Existing shareholders include Accel, Founders Fund and Creandum increased their holdings.Trade Republic is essentially Europe’s answer to Robinhood. The app lets users trade in stocks and exchange-traded funds without paying a commission. Trade Republic makes money from a flat 1 euro  ($1.22) fee it charges per trade.Trade Republic recently added a cryptocurrency feature, launched just as the prices of bitcoin and other digital coins were rallying wildly. More recently, crypto markets have suffered a sharp downturn.Like Robinhood, Trade Republic has benefited from rising interest from retail investors in the stock market. Earlier this year, usage of online trading platforms spiked amid volatile trading in GameStop and other stocks promoted on the Reddit board WallStreetBets.Trade Republic says Europeans are flocking to financial markets as they struggle to make a decent return on their savings due to ultra-low interest rates. The company now has more than 6 billion euros in assets under management.”Fifty percent of Trade Republic’s customers, over 500k people, have never invested in capital markets before in their life,” Thomas Pischke, co-founder of Trade Republic, said in a statement. “We empower people to start with wealth creation, who have been neglected by big banks for too long, with high fees and opaque products.”Founded in 2015, Trade Republic has rapidly grown over the years and now has more than 1 million users in Germany, France and Austria. The company currently has over 400 employees, and said it plans to use the fresh cash to grow its business and hire more staff.The latest cash injection makes Trade Republic one of the most valuable fintech start-ups in Europe. The continent’s tech sector has grown dramatically over the past decade, and 2020 marked a record year in terms of investment into European start-ups. More

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    Why thefts of cars and pricey car parts have skyrocketed

    Thefts of cars and catalytic converters — a pricey and essential car part — surged in 2020, adding stress to consumers during an already-trying time.Law enforcement experts, insurance industry insiders, and even mechanics have all seen the spike effect their professions.In 2020, auto thefts increased 9.2% over 2019, according to a study by the National Insurance Crime Bureau. Overall, the group counted 873,080 thefts throughout the year compared with 799,644 in 2019.In addition to entire cars, thieves have been sawing catalytic converters off the vehicle undercarriages, because the devices contain precious metals, mainly platinum, palladium and rhodium, which have seen sharp price increases in recent months. Rhodium’s price hovered around $28,000 an ounce this week.Experts say the economic effects of the pandemic and high metal prices are among the factors emboldening thieves. But consumers can take steps to protect themselves by locking their cars and not leaving their key fobs in the vehicle, and installing anti-theft devices for catalytic converters. More

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    Stocks making the biggest moves in the premarket: Virgin Galactic, Kohl's, Cisco Systems & more

    Take a look at some of the biggest movers in the premarket:Virgin Galactic (SPCE) – Virgin Galactic shares surged 14.1% in the premarket after the space travel company said the next test flight of its SpaceShipTwo Unity will occur on May 22. Virgin Galactic said a maintenance review on VMS Eve – the mothership which will carry SpaceShipTwo Unity to altitude – had been completed.Hormel Foods (HRL) – Hormel reported quarterly earnings of 42 cents per share, a penny a share above estimates. The food producer’s revenue also came in above analysts’ projections. The company behind brands like Spam, Dinty Moore and Jennie-O said demand in its various channels remains elevated compared to pre-pandemic levels.BJ’s Wholesale (BJ) – The warehouse retailer reported quarterly earnings of 72 cents per share, 15 cents a share above estimates. Revenue beat estimates as well. The retailer’s comparable-store sales ex-fuel fell by 5%, but that was smaller than the 8.3% drop predicted by analysts who were surveyed by FactSet. BJ’s also said that the rest of 2021 remains difficult to forecast. Its shares sank 3.3% in premarket trading.Kohl’s (KSS) – Kohl’s shares fell 3.6% in premarket action, despite beats on both the top and bottom lines for its latest quarter. Kohl’s earned $1.05 per share, compared to a 4 cents a share consensus estimate. Revenue topped forecasts and the retailer also raised its outlook.Petco (WOOF) – Petco gained 1% in premarket action, after reporting quarterly earnings of 17 cents per share compared to a consensus estimate of 9 cents a share. The pet products retailer’s revenue also beat Wall Street forecasts, and it raised its full-year outlook.Cisco Systems (CSCO) – Cisco beat estimates by a penny a share, with quarterly earnings of 83 cents per share. The networking equipment maker’s revenue also topped Wall Street forecasts, however Cisco issued weaker-than-expected current-quarter guidance. The company said its profit margins are under pressure from supply chain challenges. Cisco’s shares tumbled 5.6% in premarket trading.L Brands (LB) – L Brands came in 4 cents a share above estimates, with quarterly profit of $1.25 per share. Revenue came in very slightly above consensus. Comparable-store sales at its Victoria’s Secret unit jumped 25%, while Bath & Body Works saw a same-store sales increase of 16%. The company is not providing guidance for the full year, and also said it is targeting the completion of its split into two separate companies for August. The company’s shares fell 2% in premarket action.Squarespace (SQSP) – Squarespace remains on watch after the website hosting company’s stock fell during its first trading day. Squarespace went public via direct listing, with a reference price of $50 and initial trading at $48, but the value was below where it had been during a private stock sale earlier this year.Synopsys (SNPS) – Synopsys shares rose 2.2 % in the premarket after it beat top and bottom line estimates for its latest quarter, with profits nearly doubling from a year ago for the maker of semiconductor testing and design software. The company said demand is strong and that it foresees a new wave of growth ahead.Shoe Carnival (SCVL) – Shoe Carnival shares slid 7.2% in premarket trading after the footwear retailer predicted a drop in current-quarter sales compared to a year ago. The company did not provide an outlook for the second half of the year, citing supply chain issues and other potential uncertainties.Coinbase (COIN) – Coinbase is on watch after the cryptocurrency exchange operator’s shares fell for the past six days in a row, now down more than 40% from its initial trade on April 14, the day it went public. Wedbush initiated coverage on the stock with an “outperform” rating, citing strong cryptocurrency adoption. Its shares rose 1.7% in premarket action. More

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    IHOP to launch new restaurant, Flip'd by IHOP, after rethinking pilot during pandemic

    In this articleDINRendering of a Flip’d by IHOP locationSource: IHOPIHOP will launch its fast-casual spinoff, Flip’d by IHOP, in July — more than a year after initially planned.The Dine Brands chain first unveiled Flip’d in late 2019, positioning it as a way to win over consumers in busy urban areas. The first location was meant to open in Atlanta in April, but Covid appeared and spread across the U.S., inciting lockdowns and a pause on IHOP’s plans for the spinoff.As consumers adjusted to ordering food online and off-premise sales soared, the pancake chain rethought its strategy for Flip’d. Now, rather than just targeting high-traffic city centers, IHOP plans to pilot the fast-casual locations in suburban areas and inside high-end convenience stores as well.”We expect to continue to open restaurants, and as we open new ones, we’ll incorporate whatever learnings we have into the future design as we go,” IHOP President Jay Johns said in an interview. “This isn’t like a test where you start and then stop to assess before you make more decisions.”The first pilot Flip’d location will open in late July in midtown Manhattan. Other markets that could see a Flip’d by IHOP open later this year are Lawrence, Kansas, and Columbus and Dublin, Ohio. Johns said IHOP has signed a deal to open several Flip’d locations with EG America, which owns convenience store chains like Kwik Stop and Minit Mart.”We’re going to learn our way into where will this work the best and where to focus our future development once we get those learnings,” Johns said.A rendering of the interior of a Flip’d by IHOP locationSource: IHOPFlip’d customers will be able to order their food at digital kiosks or at the counter. Delivery and digital order pickup will also be available. And similar to a Chipotle Mexican Grill or Sweetgreen, the locations have significantly less seating that a full-service IHOP restaurant.IHOP formulated the menu to be more convenient for on-the-go customers and put its own twist on fast-casual classics like bowls. Entrees include pancake bowls, customizable egg sandwiches, burritos and sandwiches as a way to appeal to customers throughout the day. Grab-and-go salads and sandwiches will also be sold.During the pandemic, as the Flip’d pilot waited in limbo, IHOP launched burritos and bowls across its entire footprint as a way to reach more takeout customers.All of the Flip’d locations will be operated by franchisees. Johns said IHOP will be offering $150,000 to each to the first 10 franchisees who open their first Flip’d location to incentivize them and speed up the learning process for IHOP.”We expect we’ll get outside interest — people who want to get into the system to do this — but initially the majority of these will be existing franchisees,” Johns said.IHOP is not the first fast-casual chain to try out a spinoff. In 2019, the Cheesecake Factory launched Social Monk Asian Kitchen, and Bloomin’ Brands opened Aussie Grill by Outback locations internationally and in the U.S. Not all have fared well. Cracker Barrel killed off Holler & Dash, the fast-casual spinoff it launched in 2016, after it acquired Maple Street Biscuit.Shares of Dine Brands, which also owns Applebee’s, have risen 61% this year as investors bet on a strong comeback once the pandemic subsides. The company has a market value of $1.6 billion. More