Business

TJX Companies beat Wall Street’s expectations on the top and bottom lines as it raised its full-year guidance.
The retailer behind HomeGoods, TJ Maxx and Marshall has been taking market share from competitors like Target and Macy’s and has become a haven for price-sensitive consumers.
The company has been looking to continue its growth and announced it’s taken a stake in a Dubai-based discounter.

A Marshalls and HomeGoods store entrance in Miami, Florida. 
Jeff Greenberg | Universal Images Group | Getty Images

TJX Companies raised its full-year guidance on Wednesday after posting another quarter of strong sales, but its outlook still fell just short of Wall Street’s expectations.
The discounter behind Marshalls, HomeGoods and TJ Maxx is now expecting full-year earnings to be between $4.09 and $4.13, compared with estimates of $4.14, according to LSEG.

For the current quarter, TJX is expecting earnings per share to be between $1.06 and $1.08, compared with estimates of $1.10.
So far this earnings season, retailers that disappoint with guidance haven’t seen much negative impact to their shares, suggesting investors are prepared for uncertainty in the second half of the year ahead of the U.S. presidential election and a potential rate cut from the Federal Reserve. Shares of TJX rose about 4% in premarket trading.
Here’s how the discounter did compared with what Wall Street was anticipating, based on a survey of analysts by LSEG:

Earnings per share: 96 cents vs.92 cents expected
Revenue: $13.47 billion vs. $13.31 billion expected

The company’s reported net income for the three-month period that ended August 3 was $1.1 billion, or 96 cents per share, compared with $989 million, or 85 cents per share, a year earlier. 
Sales rose to $13.47 billion, up from $12.76 billion a year earlier.

Throughout TJX’s fiscal 2024 year, which ended in February, the company posted strong sales gains and robust guidance, but investors have been keen to see how it will lap those numbers in the quarters ahead and if it can keep growing.
The company has looked abroad as a primary growth avenue and on Wednesday, it announced that it was taking 35% ownership stake in the Dubai-based retailer Brands for Less for $360 million. The privately-held brand is the region’s only major off-price player and operates more than 100 stores, primarily in the United Arab Emirates and Saudi Arabia, along with an e-commerce business, TJX said in a news release.
“As TJX seeks to continue its global growth, this transaction gives the Company an opportunity to invest in an established, off-price retailer with significant growth potential,” TJX said. “The Company’s ownership in BFL is expected to be slightly accretive to earnings per share beginning in Fiscal 2026.”
During the quarter, consolidated comparable store sales increased by 4% and were “entirely driven by an increase in customer transactions,” indicating more shoppers are coming to its stores, TJX said. That jump is ahead of the 2.8% uptick that analysts had expected, according to StreetAccount.
The growth was primarily driven by TJX’s Marmaxx division in the U.S., which includes TJ Maxx, Marshalls and Sierra stores. During the quarter, Marmaxx comparable sales were up 5%, compared with estimates of up 2.9%, according to StreetAccount. HomeGoods posted comparable sales up 2% — short of the 3% that analysts had been looking for, according to StreetAccount — as the overall home furnishings market remains stagnant.
In the current quarter, performance is already “off to a strong start,” said CEO Ernie Herrman.
“We see excellent buying opportunities in the marketplace and are strongly positioned to ship fresh and compelling merchandise to our stores and online throughout the fall and holiday selling seasons. We marked a milestone for our Company in the second quarter by opening our 5,000th store,” said Herrman. “Longer term, we are excited about our potential to capture additional market share in all of our geographies and to continue our global growth”
As of Tuesday’s close, TJX’s stock is up about about 21% year to date. Shares reached a new high in May after the company reported strong quarterly earnings.
The retailer has been taking market share from competitors like Target and Macy’s and has become a haven for price-sensitive consumers who may be watching their dollars but still want to spring for new clothes.
In May, Herrman said the company is winning in part because it’s “become a cooler place to shop” and has made inroads with younger Gen Z customers, who tend to be more concerned with snagging good, high-quality deals than shopping at high-end names.
Some analysts say the nature of TJX’s business model means it does well in any economic environment. In good times, its core lower- to middle-income consumer has the extra cash to buy discretionary items like new clothes, shoes and home decor and in bad times, higher income shoppers come to its stores looking for deals on the branded clothes they’re accustomed to.
However, a sharp downturn in consumer spending, which some analysts have warned could be ahead, could impact the company regardless of its value offering. More

Target beat Wall Street’s earnings and revenue expectations on Wednesday.
Sales at the discounter grew as shoppers made more visits to Target’s stores and website and bought more discretionary items like clothing.
Yet, the retailer struck a cautious note, saying it expects comparable sales for the full year to be in the lower range of its guidance.

A Target store stands in Manhattan, New York City, on March 5, 2024.
Spencer Platt | Getty Images

Target said Wednesday that sales grew about 3% in its fiscal second quarter, a return to growth after a prolonged stretch of sluggish sales and squeezed profits.
The discounter beat Wall Street’s earnings and revenue expectations, as shoppers made more visits to Target’s stores and website, and bought more discretionary items like clothing.

Even so, the company stuck by its previous full-year sales forecast and struck a cautious note. Target said it expects comparable sales for the full year to range from flat to up 2%, but said it now expects the increase will likely be in the lower half of the range. 
Target raised its profit guidance, however, saying it expects adjusted earnings per share to range from $9 to $9.70, up from the previous range of $8.60 and $9.60.
The company’s shares rose more than 10% in premarket trading as Target showed improvement in generating profits.
On a call with reporters, Chief Operating Officer Michael Fiddelke said Target took a “measured approach” with its outlook because it’s hard to predict consumers’ mindsets and the state of the economy in the coming months.
“While we’ve been pleased with our performance so far this year, and our view of the consumer remains largely the same, the range of possibilities and the macroeconomic backdrop in consumer data and in our business remains unusually high,” he said.

Here’s what Target reported for the three-month period that ended Aug. 3 compared with what Wall Street expected, based on a survey of analysts by LSEG:

Earnings per share: $2.57 vs. $2.18 expected
Revenue: $25.45 billion vs. $25.21 billion expected

Target, known for its wide array of trendy but low-priced merchandise, has been hurt as consumers buy fewer items like new outfits or home decor while they pay more for everyday expenses like food and housing. The big-box retailer has also struggled with reduced profits in recent quarters, as customers purchased items like groceries that tend to be lower margin, and losses from damaged inventory and theft, including organized retail crime, took a toll.
Those trends improved in the second quarter, as Target attracted shoppers with new merchandise and reduced prices.
Target’s net income jumped to $1.19 billion, or $2.57 per share, from $835 million, or $1.80 per share, in the year-ago quarter. That’s a more than 40% year-over-year increase.
Total revenue rose from $24.77 billion in the prior year.
Comparable sales climbed 2% in the quarter, the first time in five quarters that Target posted a gain. The industry metric tracks sales online and at stores open at least 13 months.
Digital sales drove most of those gains, growing 8.7% in the quarter, as more customers used same-day services like curbside pickup and home delivery. Comparable store sales rose slightly, up 0.7%.
Target has tried to rev up sales and drive higher foot traffic by deepening loyalty and offering discounts. The company relaunched its loyalty program early this year and introduced a new paid membership, Target Circle 360, that includes perks like free same-day deliveries. Target threw its own sales event in July to compete with Amazon’s Prime Day. And it announced in May that it would cut prices on about 5,000 frequently bought items, including diapers, milk and paper towels. 
CEO Brian Cornell said customers have responded well to the price reductions and credited them for contributing to traffic growth in the quarter. 
Customer traffic across Target’s website and store grew 3% in the second quarter compared with the year-ago period. The average size of customers’ shopping baskets, however, declined slightly, Fiddelke said.
Discretionary sales, which have been under pressure across the retail industry, improved. Target said apparel sales, for instance, grew more than 3% in the quarter compared with the year-ago period. 
Back-to-school has also been an important season for the retailer. Chief Commercial Officer Rick Gomez said on the call with reporters that the shopping season has matched Target’s expectations, as many customers gravitate toward items with good value like backpacks that cost $5 and crayons that cost 25 cents. 
He said back-to-college shopping tends to be a longer season, as students gradually decorate their apartments and dorms.
Shares of Target closed Tuesday at $143.21. As of Tuesday’s close, the company’s stock is up about 1% so far this year. That’s trailed behind the S&P 500’s approximately 17% gains during the same period.

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Health-care marketplace Sesame announced a new clinical weight loss program that will help eligible consumers access compounded versions of Novo Nordisk’s blockbuster obesity drug Wegovy for $249 per month.
The company said it is adding compounded semaglutide — the active ingredient in Wegovy and the diabetes injection Ozempic — to its platform to help users safely access obesity and diabetes treatments at a time when many of them are in short supply.
The program could serve as a more affordable alternative for pursuing weight loss, as compounded medications are typically cheaper than their branded counterparts.

Cr | Istock | Getty Images

Health-care marketplace Sesame on Wednesday announced a new clinical weight loss program that will help eligible consumers access compounded versions of Novo Nordisk’s blockbuster obesity drug Wegovy for $249 per month.
Sesame allows patients to book and pay for appointments with doctors and specialists directly through its website, so it cuts out middlemen such as insurers.

The company said it is adding compounded semaglutide — the active ingredient in Wegovy and Novo Nordisk’s diabetes injection Ozempic — to its platform to help users safely access obesity and diabetes treatments at a time when many of the branded drugs are in short supply. Sesame already offers branded weight loss and diabetes drugs through its platform, including through a partnership with Costco. 
But the company’s new program could serve as a more affordable weight loss alternative, as compounded medications are typically cheaper than their branded counterparts. Wegovy and Ozempic both cost roughly $1,000 per month before insurance, and most weight loss programs from competing digital health companies do not include the cost of those medications. 
“We are, based on this drug supply shortage, on behalf of American consumers, making a version of compounded semaglutide available to our users at … [a] very accessible price point,” Michael Botta, president and co-founder of Sesame, told CNBC in an interview. “In fact, we think it’s probably the most affordable price point the consumer can find on an apples to apples basis.”
Wegovy and Ozempic are part of a highly popular class of weight loss and diabetes medications called GLP-1s, which mimic certain gut hormones to tamp down a patient’s appetite and regulate their blood sugar. The treatments have exploded in popularity in recent years, and some analysts predict the industry could generate more than $100 billion in annual revenue by 2030.
Supply shortages are one of the biggest hurdles for Novo Nordisk and its main rival, Eli Lilly, since spiking demand can make it difficult for many patients to find the treatments. When brand-name GLP-1 medications are in shortage, certain manufacturers can prepare compounded versions if they meet U.S. Food and Drug Administration requirements.

The lowest dose of Wegovy is in short supply, but all other doses of the drug and Ozempic are available, according to the FDA’s drug shortage database. 
Compounded medications are custom-made alternatives to branded drugs designed to meet a specific patient’s needs, such as not being able to swallow a pill or being allergic to the dye of a certain product. Those compounded drugs can be prescribed, made and dispensed under two sections of the Federal Food, Drug and Cosmetic Act. 
That law created two classes of compounding pharmacies. The FDA regulates so-called 503B pharmacies, which can make larger batches of medications without individual prescriptions. Meanwhile, 503A compounding pharmacies can create custom medications for individual patients and are largely regulated by states rather than the FDA. 
But both Wegovy and Ozempic are under patent protection in the U.S. and abroad, and Novo Nordisk and Eli Lilly do not supply the active ingredients in their drugs to outside groups. The companies say that raises questions about what some manufacturers are selling and marketing to consumers.
Novo Nordisk and Eli Lilly have both stepped in to address illicit versions of their treatments, suing weight loss clinics, medical spas and compounding pharmacies across the U.S. over the past year. The FDA last month also said it had received reports of patients overdosing on compounded semaglutide due to dosing errors such as patients self-administering incorrect amounts of a treatment. 
Botta said Sesame initially “stayed very far away” from compounded medications because the company felt uncertain about their purity and quality. But he said the more Sesame learned about compounded versions of GLP-1s, the “more we see that they’re effective, they seem to be quite safe. People tend to have a good experience taking them.” 
Sesame then sent its teams to inspect several 503B compounding pharmacies. 
“What we decided to do was work with a compounding pharmacy that certainly meets our bar when it comes to inspecting their processes, their quality, their output,” Botta said. 
The compounding pharmacy partnered with Sesame will manufacture prefilled, single-use syringes rather than a single vial of medicine that patients have to measure themselves. Botta said that could help patients “avoid the risk that comes from overfilling a syringe, over-injecting, taking too much — overdosing on this medication.” 
To participate in Sesame’s new program, patients will have to fill out an intake form and select a health-care provider. They will have a consultation with the provider via video, complete some lab work and receive a prescription if the provider decides it is appropriate. 
Patients will be able to access ongoing consultations via video chat, as well as a nutrition, fitness and mindfulness content library. The content will not be immediately available upon the launch of the new program Wednesday, but Sesame said it will be live in about two weeks. 
Anyone who signs up in the interim will automatically get access to it when it is available, the company added. 
“There are millions upon millions of Americans who are struggling both with obesity itself and with all of the downstream effects of obesity,” Botta said. “Being able to connect patients who otherwise are struggling with the supply shortage is something we think is worth doing.”

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GM’s GMC brand wants to become the leader in all-electric truck sales for U.S. consumers as it begins selling its new electric Sierra pickup.
The Sierra EV joins electric versions of the Hummer, including an SUV and pickup, in GMC’s electric “truck” lineup.
But to reach the top, the new Sierra EV will have to outsell its sibling Chevrolet Silverado EV, as well as competitors from Ford Motor, Rivian Automotive and Tesla.

2024 GMC Sierra EV Denali Edition 1
Courtesy: GM

MILFORD, Mich. — General Motors’ premium GMC brand wants to become the leader in all-electric truck sales for U.S. consumers as it launches its new electric Sierra pickup.
The Sierra EV joins electric versions of the Hummer, including an SUV and pickup, in GMC’s electric “truck” lineup. The automaker is expecting the Sierra will become GMC’s top seller for its EV lineup as lower-priced variants become available next year. A roughly $100,000 “Edition 1” of the vehicle recently started reaching customers.

“We believe this is a totally different proposition than anything that’s been launched by anybody else before. So, we’re confident about the demand,” Duncan Aldred, global vice president of GMC, told CNBC at GM’s proving grounds in suburban Detroit.
GMC did not disclose a timeline for when the brand expects to lead retail electric truck sales. But to do so, it will have to outsell its sibling Chevrolet Silverado EV as well as competitors from Ford Motor, Rivian Automotive and Tesla, which Motor Intelligence reports led such sales with its Cybertruck in the second quarter.
Aldred said he believes there will be cross-shopping between the Sierra and Cybertruck, but he doesn’t necessarily believe they are primary competitors, despite the vehicles being similarly priced. Citing internal data, he said many Cybertruck buyers already own Teslas, while roughly 80% of GMC’s reservation holders for the Sierra previously had non-GMC vehicles.
“What we know is about 70% of Cybertruck buyers are Tesla owners,” he said during a media event. “So, they’re not necessarily truck buyers, they’re Tesla buyers.”

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Developing market

Automakers such as GM rushed to release all-electric pickup trucks, in part because Tesla planned to build such a vehicle. That led to fears that the U.S. EV leader would dominate the truck market, which is crucial to the Detroit automakers, like it did for electric cars.

Duncan Aldred, vice president of Buick-GMC sales for General Motors Co., speaks next to a GMC Sierra Denali HD truck displayed during an event in Chula Vista, California, U.S., on Tuesday, Jan. 22, 2019.
Sandy Huffaker | Bloomberg via Getty Images

But EV adoption has been slower than many expected, and the electric truck market remains in its infancy.
The all-electric pickup truck market was roughly 38,500 vehicles during the first half of the year, including retail and fleet sales, according to Motor Intelligence. That compares with the more than 1 million traditional or hybrid full-size pickup trucks sold this year through June.
Leading all-electric pickup truck sales through June was Ford’s F-150 Lightning at 15,645 vehicles, according to Motor Intelligence. It was followed by the Tesla Cybertruck at nearly 11,600 units during that time, including a segment-leading 8,755 during the second quarter, according to the automotive data and analytics firm.
GMC’s Hummer pickup, which has been slow to ramp up production and sales, was last at less than 1,500 vehicles, including about 1,100 during the second quarter, according to Motor Intelligence.
“This is a very infant market. This is just the baby steps. For General Motors to have confidence that they can be a leader in the space is justified in their history with trucks and their understanding of being able to make a transition to electric vehicles,” said Stephanie Brinley, principal automotive analyst at S&P Global Mobility. “The big question now is how quickly consumers [adopt electric trucks], more so than the product attributes.”

Including all-electric SUVs from the brands, which some companies such as GM report under truck sales, Rivian is the clear leader through the first half of the year at more than 22,700 R1S SUV and R1T pickups sold. That compares with GMC’s Hummer SUV and pickup models, with sales of roughly 4,600 units.  
Aldred said GM expects to ramp up production of the Sierra EV — including the AT4 off-road and entry-level Elevation models coming next year — faster than the Hummer models that took years. Denali versions of the vehicle are expected to begin production during the fourth quarter, GM said.
The Sierra EV is now GM’s third electric pickup, including the Hummer and a new Chevrolet Silverado that began arriving in dealerships in December.

Chevy vs. GMC

The Sierra EV’s closest competitor is arguably the Chevy Silverado EV. Both are built on GM’s “Ultium” vehicle platform and share many parts, features and performance characteristics.
The Detroit automaker has differentiated the vehicles through their interior and exterior designs, as well as brand personalities.
“Chevrolet really focused on the fleet side. We’re really focused on the retail side, same as on [GMC’s internal combustion engine] trucks. When you look at it, the EV truck space is a premium space,” Aldred said.

The all-electric Chevrolet Silverado at the New York Auto Show, April 13, 2022.
Scott Mlyn | CNBC

The Silverado currently has a sporty, pricey edition for about $96,500 and a work truck, meant for fleet and commercial customers, that starts at roughly $67,000.
The Sierra is more refined and luxurious than its Chevrolet counterpart: It has open pore wood, larger total screens, standard hands-free highway Super Cruise driving, GMC’s “crab mode” with four-wheel steering and other features.
“General Motors has been good with their differentiation between GMC and Chevrolet,” S&P Global’s Brinley said. “The GMC Sierra and the Chevrolet Silverado EVs look different enough from each other, and General Motors has worked those two customers very well for decades. They understand what they need to do to make something appeal to a GMC buyer versus a Chevrolet buyer, and that they’re very subtly different.”

2024 Sierra EV Denali Edition 1
Source: General Motors

Both vehicles have an EPA-rated range of 440 miles and offer up to 754 horsepower and 785 pound-feet of torque. Important for many truck customers, they also tow up to 10,000 pounds and can charge for 100 miles in roughly 10 minutes with a DC Fast Charger.
A unique feature of the Silverado and Sierra EVs compared with others is the capability of a “midgate,” in which the back seats of the vehicle fold down and the back glass can come out to create a nearly 11-foot-long truck bed and large cargo area.

Building on the GMC brand

The Sierra EV, including the Denali edition, is expected to continue to assist GMC with its pricing power and reputation as a premium truck brand, according to Patrick Finnegan, senior marketing manager for GMC trucks and SUVs.
GMC has grown its average transaction prices and high-end models thanks to the newer off-road AT4 vehicles as well as Denali, which is celebrating its 25th year as a GMC sub-brand.
For example, GMC’s traditional Sierra pickup truck has an average transaction price of roughly $60,000. That includes the Denali models at about $71,000, and a Denali “Ultimate” model at $78,500, according to the company.

2024 Sierra EV Denali Edition 1
Source: General Motors

GM has not released pricing for the electric GMC Sierra Denali, AT4 and Elevation models that will follow the 2,500-unit “Edition 1” models. But Aldred did say the Sierra could potentially be eligible for up to $7,500 federal tax credits, which would mean it would have a price of less than $80,000.
Denali models have grown from simple tweaks differentiating them from other vehicles to offering their own interiors, parts and features. The vehicles still largely share the same “bones” but offer more luxurious features and materials.
About 34% of GMC’s retail sales are Denali models, GMC said. That’s up from 18% a decade ago and 30% in 2019. The sales have assisted GMC in what’s expected to be seven consecutive years of growth for the brand.
“This is going to continue to help protect our space in that premium average transaction price space. It’s going to help us open the door to new customers,” Finnegan said. “We intend to be the retail leader in the electric vehicle truck space, and we’re going to have a fuller breadth of product to really help us achieve that.” More

Mynaric slashed its 2024 revenue guidance nearly 70% at the midpoint, citing production delays in its laser communications product.
The company also announced the departure of Chief Financial Officer Stefan Berndt von-Bulow.
Mynaric shares fell more than 50% in Tuesday trading.

A rendering of the company’s laser communications system on satellites in orbit.

Space stock Mynaric tanked in trading Tuesday after the company announced heavy cuts to its previous revenue forecast and the departure of the company’s chief financial officer.
Germany-based Mynaric slashed its 2024 revenue guidance nearly 70% at the midpoint, cutting its previous range of 50 million euros to 70 million euros, to a range of 16 million euros to 24 million euros, or $18 million.

The company had stated that revenue outlook as recently as June 20.
“The guidance decrease is due to production delays of [our satellite laser communication terminal] CONDOR Mk3 caused by lower than expected production yields and component supplier shortages of key components,” Mynaric said in a press release.
At the same time, Mynaric announced “the voluntary departure of CFO Stefan Berndt von-Bulow for personal reasons, effective last week.” Berndt von-Bulow has been with the company since 2018, serving in the CFO role for the past four years.
The German space lasers company debuted on the Nasdaq in late 2021 at a market value of about $325 million. But the stock has fallen steadily since, dropping below $2 a share and trading below a market value of $50 million, according to FactSet.
Mynaric shares fell 56% on Tuesday to close at $1.83, their worst single day of trading since going public.

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Mynaric makes optical communication terminals, devices that use a laser to send data from one point to another. Its target market is supplying companies and government organizations building satellite constellations, including for broadband and imagery uses.
Mynaric has won several contracts — notably for companies building satellites for the network being built by the Space Force’s Space Development Agency — and has a backlog representing orders for as many as 1,000 of its terminals.
The company warned that, as of Friday, it had cash reserves totaling 6.3 million euros.
“With the lower than previously expected revenue and cash-in from customers for fiscal year 2024, we will need to pursue additional capital sources to secure our on-going operations and production ramp,” Mynaric said.

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Beyoncé is entering the luxury liquor business with the launch of a new whiskey line, dubbed SirDavis, in collaboration with LVMH’s Moët Hennessy.
LVMH’s wine and spirits division is looking to expand in the American whiskey market.
The singer joins Mark Wahlberg, George Clooney and other celebrities using their status to elevate premium liquor brands.

Moët Hennessy SirDavis American Whisky.
Courtesy: Moët Hennessy

Beyoncé is holding her whiskey up high.
The megastar is entering the luxury liquor business with the launch of a new whiskey line in collaboration with LVMH’s Moët Hennessy, the brand announced in a press release Tuesday.

Beyoncé shared the news holding up a glass of the whiskey, dubbed SirDavis, in a promotional Instagram post with the caption, “DAVIS IN MY BONES,” and a link to the liquor’s website.
Following a growing trend of consumers seeking luxury spirits, Beyoncé joins Mark Wahlberg, George Clooney and more celebrities who are using their status to elevate premium liquor brands.
As LVMH’s wine and spirits division expands in the American whiskey market, SirDavis also serves to honor Beyoncé’s heritage. SirDavis is named for Davis Hogue, Beyoncé’s great-grandfather who stashed whiskey bottles as a farmer during Prohibition in the South, according to the release.
“When I discovered that my great-grandfather had been a moonshine man, it felt like my love for whisky was fated,” Beyoncé said. “SirDavis is a way for me to pay homage to him, uniting us through a new shared legacy.”
The whiskey line is headquartered out of Houston, Beyoncé’s hometown. Crafted and bottled in Texas, SirDavis marks Moët Hennessy’s first spirit brand developed by the company entirely in the U.S., according to the release.

SirDavis comprises 51% rye and 49% malted barley and is matured in sherry casks, which the distiller said creates a profile of “bold sophistication.”
The tall bottle, which features a bronzed horse, is also a nod to Beyoncé’s most recent albums.
Retailing for $89 a bottle, SirDavis will be available in September.

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The motorcycle company is no longer consulting the Human Rights Campaign’s metric for treatment of LGBTQ+ employees.
Harley-Davidson also affirmed its rejection of hiring quotas, supplier diversity spend goals and “socially motivated content” included in training.
The announcement follows internal stakeholder review from earlier this year, as well as significant online pressure.

Harley-Davidson is dropping some of its diversity, equity and inclusion efforts, according to a statement released Monday on social media site X.
The motorcycle company said it has stopped consulting the Human Rights Campaign’s metric for treatment of LGBTQ+ employees, and that its sponsorship decisions will now be determined by the company and foundation, which will focus on “retaining our loyal riding community.”

“We do not have a DEI function today,” and Harley-Davidson has not since April, according to the statement.
Harley-Davidson also affirmed its rejection of hiring quotas and “socially motivated content” included in training. In the statement, the brand maintained support for first responders, active military members and veterans.
The moves come after an online campaign by conservative activist Robby Starbuck, who has taken on similar fights against DEI initiatives at other companies. He posted a list of grievances against Harley-Davidson in July, claiming “they’ve gone totally woke.” The company also conducted an internal stakeholder review from earlier this year, according to the statement.
“We are saddened by the negativity on social media over the last few weeks, designed to divide the Harley-Davidson community,” the statement said.
Eric Bloem, HRC’s vice president of programs and corporate advocacy, called Harley-Davidson’s decision to cut DEI initiatives “impulsive,” saying it put politics ahead of the interests of workers and consumers.

Starbuck praised the move Monday, saying it was “another win for our movement.”
Harley-Davidson’s anti-DEI sentiment follows retail chain Tractor Supply’s decision in June to eliminate DEI roles, as well as walk back its support for the LGBTQ+ community and commitment to carbon emission goals.
Both changes follow a U.S. Supreme Court decision in 2023 to strike down affirmative action in colleges, which experts predicted could have implications for corporate hiring and recruiting. Since then, Starbucks, Disney and Target have faced legal challenges over DEI initiatives for LGBTQ+ customers and employees.

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Lowe’s beat fiscal second-quarter earnings expectations, but missed on sales and cut its full-year outlook.
Lowe’s cited “lower-than-expected DIY sales and a pressured macroeconomic environment.”
Its results come a week after rival Home Depot said it expected a weaker second half of the year.

Lowe’s on Tuesday cut its full-year forecast, as the retailer’s quarterly sales declined and it projected weak home improvement spending in the second half of the year.
The company said it now projects total sales of between $82.7 billion and $83.2 billion for the full year, compared with the $84 billion to $85 billion that it previously expected. It said it expects comparable sales to fall by 3.5% to 4%, compared with its prior forecast of a decline of 2% to 3%. It anticipates adjusted earnings per share will be about $11.70 to $11.90, compared with the prior outlook of between $12 and $12.30.

In an interview with CNBC, CEO Marvin Ellison said consumers are waiting for the Federal Reserve to cut interest rates. He added shoppers also under pressure from the economic backdrop.
“Inflation remains high,” he said. “And big-ticket purchases are being delayed as customers sit back and wait for interest rates to fall.”
Fed Chair Jerome Powell has signaled a rate cut could come as soon as September, but Ellison said it’s difficult to predict how soon home improvement activity would gain momentum again after that.
About 90% of Lowe’s customers are homeowners and most have a fixed 30-year mortgage rate of less than 4%, he said. That explains customers’ hesitance to get a new mortgage or take out a loan for a major home project with higher interest rate, he added.
He said Lowe’s has not seen “a dramatic shift one way or another in overall consumer sentiment,” but is waiting for housing turnover to go up.

Here’s what the company reported for the fiscal second quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

Earnings per share: $4.10 adjusted vs. $3.97 expected
Revenue: $23.59 billion vs. $23.91 billion expected

In the three-month period that ended Aug. 2, Lowe’s net income fell to $2.38 billion, or $4.17 per share, compared with $2.67 billion, or $4.56 per share, in the year-ago period.
Lowe’s got a $43 million pretax gain from the sale of its Canadian retail business in 2022, which lifted its earnings in the second quarter. That boosted the company’s earnings per share in the period by 7 cents. Excluding the gain, the company earned $4.10 per share.
Net sales dropped from $24.96 billion in the prior year. Lowe’s posted a year-over-year sales decline for the sixth straight quarter.
Comparable sales, an industry metric that takes out one-time factors like store openings and closures, dropped 5.1%, as the company said customers took on fewer discretionary home projects and unfavorable weather hurt sales of outdoor and seasonal items. It said those declines were partially offset by growth in its online business and sales to home professionals, such as contractors and electricians.
Lowe’s shared its quarterly results and outlook at a time when investors and economists are watching consumer spending particularly closely. Recent economic data and corporate earnings have given mixed indications about American households’ financial health, as the Federal Reserve weighs a much-awaited rate cut.
Jobs growth in July came in much lower than expected. Yet on the other hand, Walmart’s CFO, John David Rainey, told CNBC that the largest U.S. retailer does not “see any additional fraying of consumer health.” Goldman Sachs also cut the odds of a recession to 20%.
For home improvement retailers, the strain may be greater because of higher mortgage rates and elevated costs for borrowing. Lowe’s rival, Home Depot, last week beat Wall Street’s quarterly expectations for earnings and revenue. Yet the company said it expects the back half of the year to be weaker than anticipated as consumers continue to have a “deferral mindset.”
In an interview with CNBC, Home Depot CFO Richard McPhail said customers are not only putting off projects because of higher interest rates. He said they also have “a sense of greater uncertainty in the economy,” even though most of Home Depot’s customers own homes and have seen sharp property value gains.
Ellison told CNBC that the medium- and long-term outlook for the home improvement industry is bright. He said U.S. housing stock is aging, more millennials are forming households and Baby Boomers are choosing to adapt their current homes rather than move as they get older — all factors that will boost the segment.
“We’re just waiting for that inflection to happen, and when it happens, we believe that we’re in a great position to take [market] share,” he said.
Shares of Lowe’s closed Monday at $243.21. As of Monday’s close, the company’s stock is up about 9% year to date, trailing behind the nearly 18% gains of the S&P 500. More