Core Insights - Kohl's reported a significant decline in comparable sales, dropping 9.3% in the third quarter, which CEO Tom Kingsbury described as "frankly disappointing" despite efforts to enhance products and in-store experiences [2][5] - The company experienced a net income decrease to $22 million for the third quarter, down from $59 million in the same period last year [4] - Full-year comparable sales are now expected to be 6% to 7% lower compared to 2023, leading to a 17% drop in shares on a recent trading day, with a total decline of 45% for the year, valuing the company at less than $1.6 billion [5] Sales Performance - Sales in apparel and footwear remained weak, although categories like Sephora, home decor, gifting, and impulse items showed strong performance [3][8] - The partnership with Sephora, which has about 1,050 concessions in Kohl's locations, resulted in a 15% increase in total beauty sales for the quarter, but also led to missed opportunities in other categories like fine jewelry [6][8] Strategic Challenges - The decision to focus on Sephora led to a 20% drop in inventory for private brands, which negatively impacted Kohl's ability to serve customers [6] - The fine jewelry business was largely displaced by the introduction of Sephora Shops, creating a persistent headwind for sales performance [7][9]

Advertisement Chipotle is considering raising prices due to the rising cost of avocados, queso, and sour cream.New CFO Adam Rymer aims to keep menu items affordable despite cost pressures, the Wall Street Journal reported.Chipotle's sales rose 6% last quarter, showing resilience amid fast food price hikes.Chipotle's new chief finance officer is eager to keep menu items affordable for cash-strapped customers, but has warned that prices could rise as the cost of raw materials keeps going up.Executives at the ...

Core Points - Intel is set to receive $7.9 billion in federal grants from the Biden administration as part of the CHIPS Act [1][2] - The grant amount is $600 million less than the initially announced $8.5 billion due to a separate $3 billion grant for military chip production [2] - Intel is expected to receive at least $1 billion of the total grant before the end of the year [3] - The CHIPS Act funding will support Intel's plans to increase semiconductor production in the US, with nearly $90 billion in investments expected by the end of the decade [4] - Intel's CEO emphasized the importance of bipartisan support for restoring US technology and manufacturing leadership [5] - Intel's share price has decreased by almost 50% this year, with significant losses and layoffs reported [5] - Qualcomm's interest in acquiring Intel has diminished due to complications in the acquisition process [6]

Advertisement Microsoft CEO Satya Nadella called for a culture change amid the company's security challenges.The company has contended with the global CrowdStrike outage and vulnerability to Chinese hacks.Microsoft has accepted responsibility for security flaws, acknowledging breaches by hackers.Microsoft, the world's largest software maker, doesn't have the best track record regarding security.Microsoft CEO Satya Nadella says the company needs to change that. "That's what will be culture change," he said ...

Advertisement Amazon announced another $4 billion investment in AI startup Anthropic on Friday.The deal includes an agreement for Anthropic to use Amazon's AI chips more. The cloud giant is trying to challenge Nvidia and get developers to switch away from those GPUs.Amazon's Trainium chips are about to get a lot busier. At least that's what Amazon hopes will happen after it pumps another $4 billion into AI startup Anthropic. The two companies announced a huge new deal on Friday that brings Amazon's total i ...

Core Points - The FAA is reviewing an issue with the Boeing 737 Max's CFM LEAP-1B engine, which may lead to further delays in the certification of the Max 7 and Max 10 models [1][5][8] - Recent incidents involving smoke in the cabin due to birdstrikes have prompted this review, although the FAA stated it is not an immediate flight-safety issue [3][4][6] - Boeing's timeline for certification has already been pushed back from the end of 2022 to 2024, and further delays could hinder the company's recovery efforts following a challenging year [9][10][12] Regulatory and Operational Changes - The FAA may require changes to takeoff procedures for 737 Max pilots, including turning off airflow from the engines into the cabin to prevent smoke infiltration during birdstrikes [7][8] - These changes would be temporary until Boeing develops a permanent solution to the engine issue [8] Impact on Boeing and Airlines - The delays have caused frustration among airlines, particularly United Airlines, which is considering alternative plans due to the ongoing certification issues [12] - Boeing is facing significant operational challenges, including the layoff of 17,000 employees and the aftermath of a seven-week strike [8]

Advertisement The DOJ proposed banning Google from paying for search distribution deals.Google's search dominance relies on distribution, not just technology.Investors worry Google's market share could drop if distribution deals end.The online search business is not about technology. It's about distribution.The US Department of Justice made that clear Wednesday when it proposed fixes for a judge's earth-shaking ruling that Google is an illegal monopolist.Advertisement The DOJ's remedies cut to the heart o ...

Advertisement Nvidia has a lot riding on Blackwell, its new flagship AI chip. Investors had a tepid response to earnings despite reporting $35.1 billion in third-quarter revenue. To deliver with Blackwell, Nvidia must juggle performance expectations and complex supply chains. Nvidia looks set to end the year as confidently as it started. How next year plays out will significantly depend on the performance of Blackwell, its next-generation AI chip. The Santa Clara-based chip giant reminded everyone why it ha ...

Core Points - Dell has agreed to pay $2.3 million to settle claims of violating the False Claims Act in its dealings with the US Army [1][5] - The allegations involve overcharging on government contracts from May 2020 to April 2024, specifically related to the Army Desktop and Mobile Computing 3 (ADMC-3) contract [2][3] - The settlement amount is a small fraction of Dell's overall revenues, which were reported at $88.4 billion for the last financial year [6] Company Specifics - Dell and its reseller Iron Bow allegedly inflated prices to create a false appearance of competition, influencing the Army's selection process [4][5] - Iron Bow has also agreed to pay over $2 million, bringing the total settlement to $4.3 million [5] - A whistleblower, Brent Lillard, will receive $345,000 from Dell's payment [5] Industry Context - The ADMC-3 contract is valued at approximately $5 billion and is open to eight contractors, including Dell and Iron Bow [7] - The DOJ has emphasized the importance of competition in government contracting to ensure value for taxpayers [8] - In 2023, the DOJ recovered nearly $2.7 billion from 543 settlements related to fraud and false claims against the government, marking a record year for such claims [11]

Advertisement The DOJ asked the judge in its antitrust case against Google to force the company to sell Chrome.Chrome is a key distribution method for Search, which provides crucial data for Google's ads.A breakup would be a blow to Google and likely create opportunities for competitors.A possible breakup of Google just became slightly more likely.The Justice Department on Wednesday asked the judge in its antitrust case against Google to force the company to sell its Chrome browser.Advertisement That foll ...