Wall Street Breakfast Podcast: Hanesbrands Hit By Champion Sale
Listen below or on the go on Apple Podcasts and Spotify
Hanesbrands (HBI) reportedly sells Champion to Authentic Brands. (00:22) Costco (COST) launches a weight loss program for members. (01:13) Amazon (AMZN) shelves Just Walk Out tech at some grocery stores. (01:54)
This is an abridged transcript of the podcast.
Authentic Brands has agreed to buy Champion from Hanesbrands (NYSE: HBI) for a little over $1B.
According to Women’s Wear Daily, the deal happened within the last week and is expected to close sometime late May or early June.
Hanesbrands (NYSE:HBI) fell more than 10% Tuesday on the report.
Last September, Hanesbrands (HBI) confirmed it was putting the Champion business up for sale.
Even with slumping sales and dwindling collaborations, Champion garnered the attention of several suitors. Hanesbrands (HBI) was seeking $1.4B for the company.
Sources cited by WWD say thousands of jobs could be lost as a result of the transaction as Champion will likely outsource much of the manufacturing, design, logistics, and operations of the label’s various components.
Costco Wholesale Corporation (NASDAQ:COST) has started offering its members in the U.S. access to a weight loss program through healthcare marketplace provider Sesame.
The service will cost $179 every three months.
The renewable program includes a video consultation with a weight loss doctor or specialist, as well as a GLP-1 or weight loss prescription if it is deemed appropriate.
Costco (COST) and Sesame noted that they were responding to customer interest in offering the new weight loss program.
“Sesame’s unique model allows us not only to make high-quality specialty care like weight loss much more accessible and affordable but also to empower clinicians to create care plans that are specific to – and appropriate for – each individual patient,” stated Sesame CEO David Goldhill in an interview.
Shares of Costco (COST) fell 1.4% on Tuesday amid a broad market decline. The retail stock is up 7.8% year-to-date.
Amazon (NASDAQ:AMZN) is shelving the ‘Just Walk Out’ technology, which lets shoppers pay for items and skip the checkout line, from its Fresh stores in the U.S.
Apparently, customers preferred to see their receipts and savings in real time.
Amazon (AMZN) Fresh stores will replace the grab-and-go technology with Dash Carts, which will let shoppers track their spending by scanning items as they go, while still allowing them to skip checkout lines.
The option for self-checkout or with a cashier will still be available.
Out of the 44 Amazon (AMZN) Fresh stores in the U.S., 27 use ‘Just Walk Out,’ which relies on cameras and shelf sensors.
The technology will remain in Amazon (AMZN) Go stores and some Fresh stores in the U.K. It will also be available to some third-party retailers.
Other articles to look out for on Seeking Alpha:
Buy vs. Sell ideas paired within each sector – Oppenheimer
Apple’s latest research suggests tech giant will be an ‘AI winner’
Biden open to ending LNG export pause in push for Ukraine aid – Reuters
On our catalyst watch for the day,
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The 2024 Sohn Investment Conference will be held in New York City. The conference has led to share price jumps for some stocks in the past after hedge funds made pitches.
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Walt Disney (DIS) will hold its annual meeting amid a proxy fight for board representation. Activist investor Nelson Peltz and his Trian Group have nominated two director candidates — Peltz and former Disney Chief Financial Officer Jay Rasulo — while Blackwells Capital has put up three.
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Management with Dick’s Sporting Goods (DKS) will participate in a fireside chat at J.P. Morgan’s 10th Annual Retail Round-Up.
U.S. stocks on Tuesday ended lower.
The Dow (DJI) fell the most among the three major averages, sliding 1.00%. The Nasdaq (COMP:IND) declined 0.95%, while the S&P 500 (SP500) retreated 0.72%.
Of the 11 S&P sectors, eight ended in the red.
Now let’s take a look at the markets as of 6 am. Ahead of the opening bell today, Dow, S&P and Nasdaq futures are in the red. Crude oil is flat at more than $85 per barrel. Bitcoin is up 0.6% at more than $66,000.
In the world markets, the FTSE 100 is down 0.3% and the DAX is up 0.4%.
The biggest movers for the day premarket: Intel’s (NASDAQ:INTC) is down 5.2% after the semiconductor giant revealed an operating loss of $7B on revenues of $18.9B for its Foundry business in 2023, which is wider than the loss of $5.2B recorded in 2022 on $27.5B of sales.
On today’s economic calendar:
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9:45 Fed’s Michelle Bowman will speak on “Bank liquidity, regulation and the Fed’s role as lender of last resort” at a roundtable in Washington D.C.
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10:00 ISM Service Index
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12:10 PM Jerome Powell will speak on the economic outlook at a forum in California.
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1:10 PM Fed’s Michael Barr will speak on the Community Reinvestment Act at the Just Economy 2024 conference in Washington D.C.
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4:30 PM Fed’s Adriana Kugler will speak on The Outlook for the U.S. Economy and Monetary Policy in St. Louis, Missouri.
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OPEC meeting