(Bloomberg Opinion) -- Investors appear to be getting more upbeat about the post-pandemic fates of major clothing retailers. Shares of companies from Gap Inc. to Urban Outfitters Inc. and Kohl’s Corp. have shot up from April lows as shopping centers start to reopen after Covid-19-related closures. Some chains have trumpeted eye-popping numbers about their re-openings, including T.J. Maxx’s parent, which said sales at reopened stores were higher than they were last year. Abercrombie & Fitch Co. has said sales productivity at reopened U.S. locations was at 80% of 2019 levels, while Guess Inc. said on Wednesday that reopened U.S. locations were at 75% productivity compared to last year. Those kinds of tidbits, along with a better-than-expected May jobs report and consumer surveys showing a willingness to spend, offer fresh hope that something close to normal shopping patterns might return sooner than anticipated. Not so fast. Optimism about the clothing business seems misplaced, at least for now. This retailing category will likely end up...
Nio Inc - ADR (NYSE: NIO), which has seen a strong post-COVID rebound, has opted to take the equity route to raise capital following a few debt offerings and a strategic investment.Nio's Equity Offering: The Chinese EV maker announced late Tuesday it has commenced an offering of 60 million ADS shares, with each ADS representing one ordinary share.The ADSs of the company closed Wednesday's session at $6.68.The company said the offering was made under its shelf registration statement on Form F-3 filed with the SEC that became effective June 9.Nio's Use Cases Of Financing: Nio said it intends to use the net proceeds mainly to fund its cash investments in Nio China as well as to meet working capital needs.In late April, Nio signed definitive agreements with a group of strategic investors regarding a 7-billion-yuan ($989 million) injection into Nio China. At that time, the company said as part of the...
(Bloomberg) -- Delta Air Lines Inc. is returning to the bond market within weeks of its last visit, looking to support its liquidity and repay outstanding debt.The carrier is selling five-year unsecured bonds that may yield around 8%, according to a person with knowledge of the matter. The notes are expected to carry high-yield ratings, but the offering is being marketed by investment-grade debt syndicates, the person said, asking not to be identified as the details are private.Delta borrowed $3.5 billion in April through a sale of five-year secured bonds, pledged by domestic slots at New York airports and those at Heathrow in London, but Wednesday’s offering comes with no collateral protection. It’s a sign of how much the market has rallied since then for Delta to merely announce an unsecured offering, especially when the stakes for strong collateral have never been so high.U.S. airlines have been focused on raising capital...
Diamond Hill Capital recently released its Q1 2020 Investor Letter, a copy of which you can download below. The Diamond Hill Small Cap Fund posted a return of -36.17% for the quarter, underperforming its benchmark, the Russell 2000 Index which returned -30.61% in the same quarter. You should check out Diamond Hill Capital's top 5 […]...
(Bloomberg) -- Daniel Kretinsky’s bet on Macy’s Inc. turned out to be short but profitable, and the Czech billionaire might jump back into the stock again if the price is right.His Vesa Equity Investment said Tuesday it owned 0.7% of the U.S. department-store chain, down from the 5% stake unveiled less than a month ago. The investment, billed as a strategic move at the time, coincided with a 65% surge in the stock. Kretinsky made roughly $36 million if he bought Macy’s shares the day before disclosing his 5% stake and sold them on Tuesday.“The reason for our exit certainly isn’t lack of confidence in the company’s future or in the management’s abilities,” said Vesa Equity spokesman Daniel Castvaj. “We will continue closely watching Macy’s and the U.S. retail market in general and we are not ruling out returning among the shareholders of this company.”Macy’s is beginning to reopen stores following...
