International Business

Monday's May Day demonstrations across the country and world are yet another reminder that we are in a politically precarious position in this country. The intensity of anger within our populace far outweighs the ability of our government mechanisms to address it.  

Coach reported better-than-expected profit for its third quarter as its turnaround efforts to reduce discounts on its goods sold in the United States gain increased traction.   The upscale retailer reported net income of $130 million, with earnings per diluted share of $0.46, in the quarter ended April 1, compared to $124 million in the year-ago period. Its results exceeded Wall Street expectations.    

In his 1987 book "The Art of the Deal," then developer Donald Trump wrote about the value of starting a negotiation with a dramatic and even unrealistic proposal. That makes one ponder how much of President Trump’s strong language is just bluster and how much might be indicative of a true departure from policy orthodoxy.  

Although Amazon's sales advanced by a respectable 23% over the quarter (do link to our story yesterday), the pace of growth at the online behemoth remains much slower than it was over most of the prior fiscal year. Some of this is the result of a less favorable exchange rate diluting contributions from the international business. However, some is also down to a more challenging demand environment in North America which has limited spending uplifts on products within Amazon's core territory.  

Samsung Pay is expanding its breadth.   Besides launching in Sweden and the United Arab Emirates (UAE), the digital wallet also kicked off an early access program in Hong Kong and Switzerland. The launches in UAE and Sweden are Samsung Pay’s first introduction in the Middle East and the Nordics respectively, Samsung said.   Samsung Pay users in Sweden and the UAE can also integrate loyalty and membership cards within their mobile wallets.  

Amazon on Thursday posted its eight straight quarter of net profitability, fueled by growth in e-commerce sales and its lucrative cloud service platform, Amazon Web Services.   Amazon easily topped earning expectations for its first quarter, ended March 31, reporting $1.48 per share, above the $1.12 Wall Street expected. Net income rose to $724 million from $513 million in the year-ago period.  

Bankruptcies in the sporting goods sector is taking a toll on Under Armour, but the brand still managed to beat expectations in its first quarter.   

Kit and Ace, the company founded by the family of Lululemon founder Chip Wilson, is pulling back on brick-and-mortar outside of its home base to focus online.   The upscale athleisure retailer announced it is “simplifying” its business plan and operations, reducing head office staff and closing its 32 locations in the United States, Australia and the United Kingdom. Kit and Ace said it is shifting focus to its “solid” Canadian showrooms and global e-commerce platform.  

Starbucks Coffee Company is going big in the Windy City — in a space that is currently to home to one of the city’s iconic retail flagships.    The coffee retailer will open a four-level, 43,000-sq.-ft. Starbucks Reserve Roastery on Michigan Avenue in Chicago in 2019, in the building currently occupied by Crate & Barrel. The home goods chain, which has operated a store on the site for 27 years, is expected to close its door in early 2018.   

In an action that reflects its strong performance, Costco Wholesale Corp. is about to return some $3.1 billion to investors.    The retailer announced a special cash dividend on Costco common stock of $7.00 per share, payable May 26, 2017, to shareholders. The dividend is in addition to a 5 cent increase of the company’s quarterly cash dividend to 50 cents a share.