Gap posts surprise rise in comparable sales as Old Navy, Athleta boost online demand By Reuters


© Reuters. A Gap Inc. retail store is shown in La Jolla

By Nivedita Balu

(Reuters) – Apparel retailer Gap Inc (N:) reported a surprise 13% rise in quarterly comparable sales on Thursday, as consumers stuck at home due to the COVID-19 pandemic bought more of its Old Navy and Athleta clothing online.

People working or studying from home have been stocking up on comfortable “stay at home” clothes including fleece and activewear, boosting demand for the company’s budget-friendly Old Navy brand, athleisure label Athleta as well as Gap clothing.

Same-store sales rose 13%, compared with analysts’ forecast of a 20.97% fall, according to IBES data from Refinitiv.

The San Francisco-based retailer said it nearly doubled its e-commerce business for the quarter ended Aug. 1, with about 50% online penetration, and added about 3.5 million new customers.

“We won in the value space with Old Navy, and we won in the premium space of Athleta,” Chief Executive Officer Sonia Syngal told analysts, adding that the company sold about $130 million worth of masks alone.

While the company expects demand for the two brands to fuel sales, it plans to close over 225 unprofitable Gap and Banana Republic stores globally as a part of its restructuring plan.

The back-to-school season, one of the busiest periods for the company, could extend longer and Gap is ready with the “right assortment” for kids whether they are learning at home or in a classroom, Syngal said.

Gap reported second-quarter net loss of $62 million, or 17 cents per share, compared to a profit of $168 million, or 44 cents per share, a year earlier.

Net sales fell about 18% to $3.28 billion, but were above expectations of $2.91 billion.

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TJX posts bigger-than-expected quarterly loss on store closures By Reuters


© Reuters. A T.J. Maxx store which is owned by TJX Cos Inc in Pasadena

(Reuters) – Off-price retailer TJX Cos Inc (N:) on Wednesday posted a bigger-than-expected quarterly loss, as its stores were shuttered for nearly one-thirds of the quarter due to the lockdown, sending its shares down 5% in premarket trading.

TJX reported a net loss of $214.2 million, or 18 cents per share in the second quarter ended Aug. 1, from a profit of about $759 million, or 62 cents per share last year.

Excluding certain items, the retailer lost 18 cents per share, compared with Wall Street expectations of 10 cents per share, according to IBES data from Refinitiv.

TJX, a go-to for deal-seeking shoppers, also cut working hours and limited the numbers of customers at its stores at a point when other retailers have been doubling-down on promotions.

The company also projected that same-store sales at reopened stores will drop 10-20% in the third quarter, as traffic and demand have moderated after an initial surge following reopening of its stores.

Net sales came in at $6.67 billion, compared with $9.78 billion last year. However, analysts on average were projecting net sales of $6.57 billion.

U.S. same-store sales at its reopened HomeGoods stores rose 20%, while that at its Marmaxx stores fell 6%.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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Occidental posts $8 billion loss, outlines oil production cuts By Reuters


© Reuters. The logo for Occidental Petroleum is displayed on a screen on the floor at the NYSE in New York

(Reuters) – Occidental Petroleum Corp (N:) on Monday posted a $8.35 billion second-quarter loss on lower energy prices and write-downs as the U.S. oil producer has been trying to reduce debt amid a pandemic that has sapped fuel demand and prices. Occidental, which borrowed heavily to finance last year’s $38 billion purchase of rival Anadarko Petroleum (NYSE:), cut the value of its oil and gas properties by $6.6 billion, joining BP (NYSE:), Chevron (NYSE:) and Total in massive write-downs as the industry now expects energy prices to stay low for years.

Its oil and gas production will fall 13% this quarter over last, and another 5% in the fourth quarter, to 1.16 million barrels of oil and gas per day, the company said. In the Permian, where it became the largest operator through the Anadarko purchase, shale output will drop 37% this year, it said.

Shares fell nearly 6% in late trading after rising $1.03 at $16.48. The stock is down 61% so far this year.

The average price Occidental received for plummeted about 61% to $23.17 per barrel in the second quarter as oil prices crashed. It has cut jobs, slashed its dividend, reduced spending plans and sold assets to shore up its finances.

It expects to receive $2 billion or more in asset sales, according to the presentation.

Among the assets Occidental is trying to sell is a package of land and minerals in Wyoming and Colorado. The company has said that it hopes to close that sale in the fourth quarter.

Its net loss was $8.35 billion, or $9.12 per share, in the quarter, compared with earnings of $635 million, or 84 cents per share, a year earlier.

Excluding one-time items, the company lost $1.76 per share, compared with analysts’ average estimates of $1.68, according to Refinitiv IBES.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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Facebook, Twitter remove Trump posts for making ‘false claims’ about coronavirus


President Donald Trump answers a question during a press conference in the White House on Wednesday.


AFP/Getty Images

Facebook Inc. and Twitter Inc. on Wednesday removed posts by President Donald Trump that violated their coronavirus misinformation policies.

The identical posts were a video clip from a Fox News interview with Trump about reopening schools, in which he wrongly claimed children are “virtually immune” to COVID-19.

While children appear to be generally less affected by the coronavirus, they are not “virtually immune,” and a number have died. The state of California, for example, has recorded more than 48,000 cases of COVID-19 in patients 17 and younger.

A Facebook
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spokesperson said in an email: “This video includes false claims that a group of people is immune from COVID-19 which is a violation of our policies around harmful COVID misinformation.” 

However, that message was not included on Facebook’s site. The post was replaced by a message reading “This content isn’t available right now,” which does not explain why it was removed or that its content was inaccurate.

It was the first time Facebook has taken down a Trump post for violating its coronavirus rules. In June, Facebook took down Trump campaign ads that included a Nazi symbol, and in March took down Trump campaign ads that were misleading about the census.

Trump’s official campaign account — which Trump retweeted — posted the same video on Twitter, which has been more active than Facebook at taking down presidential posts that violate guidelines. It was up for at least five hours before being taken down, with a note reading: “This Tweet violated the Twitter Rules.”

A Twitter
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spokesperson confirmed the tweet was removed for being in violation of the company’s rules on COVID-19 misinformation. Twitter added that the Trump campaign’s official account will be blocked from posting again until the video is removed.

Trump has harshly criticized social-media companies for fact-checking and removing his posts, and in July the Trump administration asked the FCC to reinterpret a 1996 law that gives broad latitude to how tech companies police content on their sites.





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Schlumberger posts quarterly loss as oil rout triggers $3.7 billion charge By Reuters


© Reuters. The exterior of a Schlumberger Corporation building is pictured in West Houston

By Shariq Khan and Liz Hampton

(Reuters) – Oilfield services giant Schlumberger NV (N:) on Friday reported its second straight quarterly loss after recording a $3.7 billion charge related to thousands of job cuts and a major pipeline outage in Ecuador.

The company cut some 21,000 jobs amid a steep crash in oil prices that has prompted a pullback in drilling activities. It reported $1.02 billion in severance costs for the second quarter for dismissed workers and recorded a $730 million charge related to Latin America, after a landslide ruptured a pipeline.

The company rounded off second-quarter earnings reports from major U.S. oilfield services providers this week that laid bare the damage wreaked by the coronavirus crisis, particularly in North America.

Although crude prices have recovered from the historic declines in March and April, they are still down around 33% for the year, and fears of a COVID-19 resurgence are challenging the company’s outlook about a near-term normalization of oil prices, Chief Executive Olivier Le Peuch said in a statement.

Schlumberger, which is restructuring its business to adjust to the price crash, said North America revenue fell to $1.18 billion in the second quarter, less than half of what it was a year earlier, with only slightly better conditions expected in the current quarter.

“The conditions are set in the third quarter for a modest frac completion activity increase in North America, though from a very low base,” Le Peuch said, referring to hydraulic fracturing activities used to complete oil wells.

Shares were up 1% in pre-market trading.

The world’s largest oilfield services provider reported a net loss of $3.43 billion, or $2.47 per share, for the second quarter, compared with a profit of $492 million, or 35 cents per share, a year earlier.

Excluding charges and credits, the company earned 5 cents per share.

(This story corrects charge related to Latin American operations in paragraph 2 to $730 million, not $666 million).

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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