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Tag: Financial Performance

  • Security tech company Evolv fires its chief executive

    Security tech company Evolv fires its chief executive

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    NEW YORK (AP) — Amid the backdrop of a sales misconduct investigation and other looming legal troubles, security technology company Evolv is now firing its CEO.

    Evolv’s board of directors terminated chief executive Peter George on Wednesday, effective immediately, according to a Thursday announcement from the company. Michael Ellenbogen, Evolv’s current chief innovation officer, will step into the role as interim CEO and president.

    Specifics behind George’s firing were not immediately clear — but Evolv noted the dismissal was without cause and followed months of “careful planning and deliberation” by the board.

    The move arrives just days after Evolv disclosed an ongoing investigation into the company’s sales practices, warning shareholders to no longer rely on recent financial statements. The board acknowledged this investigation Thursday, but maintained that it had been “evaluating leadership and performance for several months — long before we became aware of any potential issues relating to the Company’s sales practices and financial reporting.”

    Evolv shared initial findings this investigation last week. An internal committee found that certain employees engaged in sales “subject to extra-contractual terms and conditions,” the company noted, some of which were not shared with accounting personnel. Evolv says it’s trying to determine if this misconduct impacted revenue reports and other financial metrics, and if so, when senior personnel became aware.

    How high up that could be has yet to be confirmed, but Evolv said it would take any remedial actions as necessary. As of Friday’s disclosure, the investigating committee estimated that sales transactions at issue resulted in premature or incorrect revenue recognition of about $4 million to $6 million through the end of June.

    This is far from the first time Evolv has found itself in hot water. The company has faced other legal issues over the years, including separate federal probes into its marketing practices led by the Federal Trade Commission and the Securities Exchange Commission.

    And earlier this year, investors filed a class-action lawsuit, accusing company executives of overstating the devices’ capabilities and claiming that “Evolv does not reliably detect knives or guns.”

    Evolv, which provides security screening technology powered by artificial intelligence, also made headlines after a pilot testing program used its portable weapons scanners inside some New York City subway stations this summer.

    That program faced ample criticism from some civil liberties groups, as well as questions of efficacy. Recently released police data showed that the scanners did not detect any passengers with firearms — and had more than 100 false alerts over the one-month test.

    Following the news of George’s firing, shares for Evolv were down nearly 10% Thursday afternoon.

    According to the company, Evolv’s board formed a succession planning committee to evaluate leadership performance and plan for a CEO transition back in May. The company noted that it’s been actively recruiting candidates for CEO, and intends to announce an official successor “expeditiously.”

    In a statement Thursday, the board added that a leadership change was necessary “to improve the company’s culture as we prepare for the next phase of growth.”

    Ellenbogen, the current interim CEO, is one of Evolv’s co-founders and previously served as chief executive for seven years.

    In August, Waltham, Massachusetts-based Evolv reported second-quarter revenue was $25.5 million, up 29% from $19.8 million for the same period last year. Its next earnings report is delayed due to the ongoing sales misconduct investigation.

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  • Carmaker Stellantis slashes forecasts as it faces industry slump and Chinese competition

    Carmaker Stellantis slashes forecasts as it faces industry slump and Chinese competition

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    MILAN — Carmaker Stellantis, the world’s fourth largest carmaker, slashed its earnings forecast on Monday, citing investments to turn around its U.S. operations amid a wider industry slump and increased Chinese competition.

    Stellantis said it was accelerating efforts to turn around North America, including bringing dealer inventory levels to no more than 300,000 vehicles by the end of the year, instead of the first quarter of 2025 as previously planned.

    The action is in the back of a decrease in shipments of 200,000 vehicles in the second half of this year compared with a year earlier, twice as many as the company had forecast. The company will offer higher incentives on 2024 and older models.

    In its profit warning, Stellantis said it expected to finish the year with a negative cash flow of 5 billion euros to 10 billion euros, ($5.6 billion to 11.2 billion) instead of positive.

    The carmaker, which was created in 2021 from the merger of PSA Peugeot with Fiat Chrysler Automobiles, also dropped its operating profit margin guidance to 5.5% to 7.0%, instead of double digits.

    The struggling maker of Jeep and Ram is looking for a new CEO to succeed Carlos Taveres, who is under fire from U.S. dealers and the United Auto Workers union after a dismal first-half financial performance. The company has portrayed the search as a normal leadership succession plan.

    Stellantis is also under pressure in Italy, home to one of the main shareholders, due to production cuts. Autoworkers announced a one-day strike on Oct. 18.

    The company reported that first-half net profits were down 48% compared with the same period last year. First-half sales in the United States were down nearly 16%, even though overall new vehicle sales rose 2.4%.

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  • LL Flooring, formerly Lumber Liquidators, is going out of business and closing all of its stores

    LL Flooring, formerly Lumber Liquidators, is going out of business and closing all of its stores

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    NEW YORK (AP) — LL Flooring, the hardwood flooring retailer formerly known as Lumber Liquidators, is going out of business.

    Less than a month after filing for Chapter 11 bankruptcy protection, the Virginia-based company says it is now “winding down operations” after failing to find a buyer in recent negotiations with prospective bidders. That means all of its remaining stores will soon close their doors.

    LL Flooring expected to begin to begin the process this week, with closing sales at hundreds of stores slated to start Friday. The retailer says store closures should be completed over the next 12 weeks, with timing varying by location.

    “This is not the outcome that any of us had hoped for,” LL Flooring CEO Charles Tyson wrote in a letter to customers. “As we begin to wind down operations and close our stores, we are committed to doing so as smoothly as possible to minimize the impact on you, our associates and the communities we serve.”

    LL Flooring touted more than 400 stores earlier this year. By the time of its Chapter 11 petition, the company said it would be continuing forward with closer to 300 locations, with closing sales already beginning at 94 stores. But now, the closings will effect all remaining stores.

    Scores of workers are set to lose their jobs as a result. The company had about 1,970 employees as of its August 11 bankruptcy petition, according to court documents, 99% of whom were working full time in the U.S. across retail, corporate and distribution roles.

    LL Flooring’s history dates back more than 30 years. The brick-and-mortar retailer, founded by Tom Sullivan, got its start in 1993 as a modest operation in Massachusetts, later expanding operations nationwide.

    Known for decades as Lumber Liquidators, the company officially changed its name to LL Flooring at the start of 2022 — in a move following years of turmoil. The retailer faced expansive litigation after a 2015 segment of “60 Minutes” reported that laminate flooring it was selling had illegal and dangerous levels of formaldehyde. Lumber Liquidators later said it would stop selling the product, which was manufactured in China, and agreed to pay $36 million to settle two class-action lawsuits in 2017.

    LL Flooring saw difficulty turning a profit over more recent years, with the company reporting loss after loss. Net sales fell 18.5% in 2023, according to a recent earnings report, amid declines in foot traffic and weak demand. In its Chapter 11 filing, LL Flooring disclosed that total debts amounted to more than $416 million as of July 31, compared to assets of just over $501 million.

    Ahead of filing for bankruptcy, LL Flooring also saw a proxy battle earlier in the summer — centered around attempts to keep Sullivan off the board. In June, company leadership wrote a letter urging shareholders to vote for other nominees, accusing Sullivan of “pushing a personal agenda.” But LL Flooring later confirmed that the founder and his proposed nominees were elected at its annual shareholder meeting in July.

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  • US shoppers sharply boosted spending at retailers in July despite higher prices

    US shoppers sharply boosted spending at retailers in July despite higher prices

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    WASHINGTON — Americans stepped up their spending at retailers last month by the most in a year and a half, easing concerns that the economy might be weakening under the pressure of higher prices and elevated interest rates.

    The Commerce Department reported Thursday that retail sales jumped 1% from June to July, the biggest such increase since January 2023, after having declined slightly the previous month. Auto dealers, electronics and appliance stores and grocery stores all reported strong sales gains.

    The July retail sales data provided reassurance that the U.S. economy, while slowing under the pressure of high interest rates, remains resilient. It showed that America’s consumers, the primary driver of economic growth, are still willing to spend.

    The prospect of a still-growing economy is likely to be promoted by Vice President Kamala Harris’ presidential campaign, which is preparing to roll out policies Friday to ban “price gouging” on groceries. On Wednesday, her opponent, former President Donald Trump slammed the economic record of the Biden-Harris administration Wednesday, though he wildly inflated cost increases on food and monthly mortgage payments.

    Other economic data released Thursday was also mostly positive, including a report on first-time applications for unemployment benefits. The figures show that businesses are mainly holding onto their workers and not increasing layoffs.

    With Americans spending more, economists at Morgan Stanley have boosted their forecast for growth in the July-September quarter to a 2.3% annual rate, from an earlier estimate of 2.1%. The economy expanded at a healthy 2.8% rate in the April-June quarter.

    All told, the latest data is consistent with an economy that is headed toward a “soft landing,” in which the Federal Reserve raises interest rates enough to cool inflation but not so much as to cause a recession.

    “The ongoing resilience of consumer spending should ease recession fears and reduce the odds markets have placed on a larger (half-point) cut” at the Fed’s meeting in mid-September, said Michael Pearce, an economist at Oxford Economics. Instead, economists increasingly expect the Fed to begin cutting interest rates next month with a modest quarter-point reduction in its key rate, which affects many consumer and business loans.

    Adjusted for inflation, sales rose about 0.8% last month. And excluding gas station sales, which don’t reflect Americans’ appetite to spend, retail purchases also rose 1%.

    Consumers have been pummeled since the pandemic by high prices and elevated interest rates. Yet at the same time, average wages have also been rising, providing many households with the means to keep spending.

    Inflation-adjusted wages have increased slightly from a year ago. Upper-income households have also seen their wealth increase, with stock prices and home values having jumped in the past three years. Increases in wealth can encourage more spending.

    Auto sales jumped 3.6% last month, the largest increase since January 2023. It marked a rebound from the previous month, when a cyberattack involving many dealerships slowed sales.

    Sales at electronics and appliances stores surged 1.6%. And they rose 0.9% at hardware stores and garden centers. Restaurant sales were up 0.3%, a sign that Americans are still willing to spend on discretionary items, such as eating out.

    Financial markets had plunged earlier this month on fears surrounding the economy after the government reported that hiring was much weaker than expected in July and the unemployment rate rose for a fourth straight month.

    Yet since then, economic reports have shown that layoffs are still low and that activity and hiring in services industries remains solid. Americans are also still splurging on services, such as travel, entertainment, and health care, which are not included in Thursday’s retail sales report.

    Still, some economists worry that much of Americans’ spending now is being fueled by the increased use of credit cards. And the proportion of Americans who are falling behind on their credit card payments, while still relatively low, has been rising.

    But cooling inflation may give households a needed boost. Consumer prices rose just 2.9% in July from a year earlier, the government said Wednesday. That was the smallest year-over-year inflation figure since March 2021. And core inflation, which excludes volatile food and energy costs, slipped for the fourth straight month.

    While Americans are still willing to spend, they are increasingly searching out bargains. On Thursday, Walmart, the nation’s largest retailer, reported strong sales in the three months that ended July 31.

    More Americans appear to be shopping at lower-prices outlets like Walmart. The company also boosted its sales outlook for this year and said that it hasn’t seen any signs of weakness from the consumer.

    Other companies are also starting to offer lower prices to entice consumers, a trend that is helping slow inflation. McDonald’s said its global same-store sales fell for the first time in nearly four years in the second quarter. The company introduced a $5 meal deal at U.S. restaurants in June; most franchisees plan to extend that deal through August.

    Arie Kotler, CEO of Arko Corp., a convenience chain based in Richmond, Virginia, said he’s noticed that shoppers have cut back their spending on discretionary items like salty snacks and candy bars since May. He said he thinks people are struggling with high interest rates on credit cards, with many of them maxed out.

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    AP Business Writers Anne D’Innocenzio in New York and Dee-Ann Durbin in Detroit contributed to this report.

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  • Warren Buffett surprises by slashing Berkshire Hathaway’s longtime Apple stake in second quarter

    Warren Buffett surprises by slashing Berkshire Hathaway’s longtime Apple stake in second quarter

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    OMAHA, Neb. — Billionaire Warren Buffett slashed Berkshire Hathaway’s massive Apple stake in a move that could prove unsettling for the broader stock market — both because the investor is so revered and because there had been little positive financial news lately.

    Just two years ago Buffett called the stock one of the four giants of his conglomerate’s business alongside Berkshire insurance, utility and BNSF railroad businesses that it owns outright. That gave investors the impression that Buffett might hold onto Apple indefinitely as he has with the Coca-Cola and American Express shares he bought decades ago.

    However, he has trimmed the Apple stake over the past year and has recently also sold off some of his stock in Bank of America and Chinese EV maker BYD while doing very little buying.

    As a result, Buffett is now sitting on nearly $277 billion in cash, up from what was already a record $189 billion just three months earlier.

    “This could could alarm the markets especially given the news from last week” with weak tech earnings, a disappointing jobs report and uncertainty about the future of interest rates, Edward Jones analyst Jim Shanahan said.

    Buffett has consistently lavished praise on Apple CEO Tim Cook, who attended Berkshire’s annual meeting in Omaha in May, and talked about the way consumers are feverishly devoted to their iPhones and don’t like to switch. He did trim more than 10% of Berkshire’s Apple stake in the first three months of this year when he sold off more than 116 million shares, but the sale disclosed Saturday was a much bigger move.

    Wedbush tech analyst Dan Ives said in a research note that he thinks “Buffett is a core believer in Apple and we do not view this as a smoke signal for bad news ahead.” Apple remains the largest investment in Berkshire’s portfolio by far — more than double its Bank of America stake.

    Ives said he thinks the recent tech sell-off is only a temporary distraction from the industry’s long-term boom.

    Berkshire didn’t give an exact count of its Apple shares in Saturday’s report, but it estimated the investment was worth $84.2 billion at the end of the second quarter even though shares soared over the summer as high as $237.23. At the end of the first quarter, Berkshire’s Apple stake was worth $135.4 billion.

    Shanahan estimates that Berkshire still holds about 400 million Apple shares.

    Still, while CFRA Research analyst Cathy Seifert said she looks at the Apple sale more as responsible portfolio management because the tech giant had become such a large portion of Berkshire’s holdings, it does look like Buffett may be preparing for a downturn.

    “This is a company girding itself for a weaker economic climate,” Seifert said.

    Berkshire reported a small drop in its bottom-line earnings because of a drop in the paper value of its investments. The company said it earned $30.348 billion, or $21,122 per Class A share, during the second quarter. That’s down from $35.912 billion, or $24,775 per A share, a year ago.

    Buffett has long cautioned investors that it’s better to look at Berkshire’s operating earnings when judging its performance because those figures exclude investment gains and losses which can vary widely from quarter to quarter.

    By that measure, Berkshire’s operating earnings grew more than 15% to $11.598 billion, or $8,072.16 per Class A share, from $10.043 billion, or $6,928.40 per Class A share, a year ago. Geico led the improvement of Berkshire’s businesses while many of its other companies that are more sensitive to the economy reported lackluster results.

    The results easily topped the $6,530.25 earnings per share that four analysts surveyed by FactSet Research predicted.

    Berkshire owns an assortment of insurance businesses along with BNSF railroad, several major utilities and a varied collection of retail and manufacturing businesses, including brands like Dairy Queen and See’s Candy.

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  • Warren Buffett surprises by slashing Berkshire Hathaway’s longtime Apple stake in second quarter

    Warren Buffett surprises by slashing Berkshire Hathaway’s longtime Apple stake in second quarter

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    OMAHA, Neb. — Billionaire Warren Buffett slashed Berkshire Hathaway’s massive Apple stake in a move that could prove unsettling for the broader stock market — both because the investor is so revered and because there had been little positive financial news lately.

    Just two years ago Buffett called the stock one of the four giants of his conglomerate’s business alongside Berkshire insurance, utility and BNSF railroad businesses that it owns outright. That gave investors the impression that Buffett might hold onto Apple indefinitely like he has with the Coca-Cola and American Express shares he bought decades ago.

    However, he has trimmed the Apple stake over the past year and has recently also sold off some of his stock in Bank of America and Chinese EV maker BYD while doing very little buying.

    As a result, Buffett is now sitting on nearly $277 billion in cash, up from what was already a record $189 billion just three months earlier.

    “This could could alarm the markets especially given the news from last week” with weak tech earnings, a disappointing jobs report and uncertainty about the future of interest rates, Edward Jones analyst Jim Shanahan said.

    Buffett has consistently lavished praise on Apple CEO Tim Cook, who attended Berkshire’s annual meeting in Omaha in May, and talked about the way consumers are feverishly devoted to their iPhones and don’t like to switch. He did trim more than 10% of Berkshire’s Apple stake in the first three months of this year when he sold off more than 116 million shares, but the sale disclosed Saturday was a much bigger move.

    Berkshire didn’t give an exact count of its Apple shares in Saturday’s report, but it estimated the investment was worth $84.2 billion at the end of the second quarter even though shares soared over the summer as high as $237.23. At the end of the first quarter, Berkshire’s Apple stake was worth $135.4 billion.

    Shanahan estimates that Berkshire still holds about 400 million Apple shares.

    Still, while CFRA Research analyst Cathy Seifert said she looks at the Apple sale more as responsible portfolio management because the tech giant had become such a large portion of Berkshire’s holdings, it does look like Buffett may be preparing for a downturn.

    “This is a company girding itself for a weaker economic climate,” Seifert said.

    Berkshire reported a small drop in its bottom-line earnings because a drop in the paper value of its investments. The company said it earned $30.348 billion, or $21,122 per Class A share, during the second quarter. That’s down from $35.912 billion, or $24,775 per A share, a year ago.

    Buffett has long cautioned investors that it’s better to look at Berkshire’s operating earnings when judging its performance because those figures exclude investment gains and losses which can vary widely from quarter to quarter.

    By that measure, Berkshire’s operating earnings grew more than 15% to $11.598 billion, or $8,072.16 per Class A share, from $10.043 billion, or $6,928.40 per Class A share, a year ago. Geico led the improvement of Berkshire’s businesses while many of its other companies that are more sensitive to the economy reported lackluster results.

    The results easily topped the $6,530.25 earnings per share that four analysts surveyed by FactSet Research predicted.

    Berkshire owns an assortment of insurance businesses along with BNSF railroad, several major utilities and a varied collection of retail and manufacturing businesses, including brands like Dairy Queen and See’s Candy.

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  • McDonald’s same-store sales fall for the 1st time since pandemic, profit slides 12%

    McDonald’s same-store sales fall for the 1st time since pandemic, profit slides 12%

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    McDonald’s posted weak sales in the second quarter as increasingly value-conscious consumers in the U.S., China and paid fewer visits to restaurants.

    Sales at locations open at least a year fell 1% worldwide across every company segment in the April-June period, the first decline since the final quarter of 2020 when the pandemic shuttered stores and millions stayed home.

    In the U.S., same-store sales fell nearly 1%. McDonald’s saw fewer customers, but it said those who came spent more because of price increases. The company also reported lower store traffic in China, France and the Middle East, where people have been boycotting McDonald’s because of a perception that it supports Israel in the war in Gaza.

    McDonald’s warned in April that more of its inflation-weary customers were seeking better value and affordability. The Chicago burger giant introduced a $5 meal deal at U.S. restaurants on June 25, which was late in this financial reporting period.

    Quarterly revenue was flat at $6.5 billion and just off the $6.6 billion that Wall Street was expecting, according to analysts polled by FactSet.

    The company’s net income fell 12% to $2 billion, or $2.80 per share. Excluding one-time items such as restructuring charges, McDonald’s earned $2.97 per share. That was far from the per-share profit of $3.07 that industry analysts had forecast.

    McDonald’s shares fell less than 1% in premarket trading.

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  • US new-vehicle sales barely rose in the second quarter as buyers balked at still-high prices

    US new-vehicle sales barely rose in the second quarter as buyers balked at still-high prices

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    DETROIT — U.S. new-vehicle sales rose only slightly in the second quarter, despite larger discounts and slightly lower prices.

    But brisker sales could be on the horizon: Auto industry analysts say they expect prices to drop further and there’s a possibility of interest-rate cuts that would make taking out a loan for a new vehicle more affordable.

    Overall, U.S. sales were up only 0.1% compared to a year ago, as still-high prices kept many potential buyers out of the market, according to preliminary tallies Tuesday by Motorintelligence.com.

    Sales were crimped in late June, when cyberattacks knocked out software from CDK Global that dealerships use to do sales paperwork. CDK said most dealers were back up by Tuesday afternoon, but companies such as General Motors said the problem pushed some deliveries into the third quarter.

    Analysts say inventories on dealer lots are building, especially for pickup trucks and other higher-priced vehicles.

    Discounts vary by demand for vehicles, with smaller, less-expensive models and gas-electric hybrids generally being in shorter supply. Many customers are delaying purchases, figuring that bigger discounts are coming.

    “Waiting may be the optimal strategy here,” said Cox Automotive Senior Economist Charlie Chesbrough.

    Toyota, which sells many popular gas-electric hybrids, posted a 9.2% sales increase from April through June. Honda sales were up 2.7%, while General Motors posted just a 0.3% gain and Hyundai reported a 1.8% increase. Subaru had a 5.4% sales gain.

    Sales at Stellantis fell 20.7% in the second quarter, with the Ram brand off 26% and Jeep sales falling 19%. Nissan sales fell 3.1%, while Kia was down 1.6%.

    Together, automakers reported selling roughly 4.13 million new vehicles from April through June. That’s on pace to reach forecasts of nearly 16 million for the year, a little above last year’s 15.6 million.

    Ivan Drury, director of insights at Edmunds.com, said interest rates for new vehicles are averaging just above 7%, a high number for people who bought or leased vehicles years ago but now find they need to replace their rides.

    Many, he said, are going for what few lower-priced vehicles remain in the mid- to upper- $20,000 range.

    “The stuff that’s very affordable, that’s where it’s at,” said Drury. “You really have to have an attractive product at an attractive price for it to move today.”

    For instance, sales of the Chevrolet Trax compact SUV, which starts at $20,400 excluding shipping, were up 152.7% during the quarter.

    Kevin Roberts, director of analytics for the CarGurus auto site, said automakers want to keep making higher-profit SUVs and trucks when a big chunk of buyers are after less-expensive vehicles such as compact sedans.

    “You’re seeing people search more and more for affordable vehicles. You’re seeing people searching for under $30K,” Roberts said.

    The U.S. industry, he said, is at an inflection point where automakers will have to add discounts to get the prices down, or they’ll have to change what they produce to “try to get more attractive price points and try to keep those inventory levels lighter.”

    A move toward lower prices, though, could hurt Detroit automakers, which exited the lower-priced small and midsize sedan markets years ago after having trouble making money on the vehicles.

    Ever since the coronavirus pandemic began early in 2020, autos have been in short supply as a shortage of vital computer chips hobbled production. Coupled with strong demand, the lack of cars drove average prices to a peak of near $50,000 by December of 2022.

    But this year, chip supplies improved, production is up and supplies are on the rise. In June, dealers had about 3 million vehicles in stock, 55% more than a year ago, according to Cox.

    As a result, average selling prices dropped 1% to about $48,400 last month. That’s 3% below than the peak of near $50,000 in December of 2022 but still 20% higher than before the pandemic.

    Of the vehicles that sit on dealer lots the longest, all are big pickups or SUVs made by Detroit automakers. Stellantis’ Ram 1500 tops the list, remaining at dealers for 141 days, CarGurus said.

    Deals can be had on vehicles that sit on lots longer, Roberts said. For example, 6% of national dealer new vehicle sales listings are from the 2023 model year.

    U.S. electric vehicle sales overall rose 7% during the first half of the year to 599,134, Motorintelligence reported. EVs accounted for 7.6% of the U.S. new vehicle market, about the same as it was for all of last year. Lease deals, which include federal tax credits, helped to boost sales.

    Sales of gas-electric hybrids skyrocketed 35.3% from January through June to 715,768, eclipsing electric vehicle sales. Plug in hybrids, which can go a short distance on battery power before a gas-electric powertrain kicks in, also saw a big increase. Sales were up 24% to 159,399. Both are alternatives for people who fear running out of juice with an EV.

    Earlier Tuesday, Tesla reported that its second-quarter global sales fell 4.8%, with a 6.6% decline in the first half of the year. The company doesn’t break out U.S. sales. Ford releases its sales numbers on Wednesday.

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  • Why I love my CSA (it’s more than the weekly box of fresh produce)

    Why I love my CSA (it’s more than the weekly box of fresh produce)

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    I might never have fallen in love with kohlrabi had I not joined a CSA.

    Signing up for a Community-Supported Agriculture program means getting a box of produce from local farms every week or two. It’s a way to take advantage of summer’s bounty, discover new fruits and vegetables, and support the folks who grow food in your area.

    The basic idea: Customers buy a “share” of a farm’s harvest before or at the beginning of the growing season. That helps the farmers with cash flow, and the customer is rewarded with fresh, seasonal food and good value.

    There are thousands of CSAs around the U.S. A share typically costs somewhere between $400 and $700 for the season, depending on its size, the items included and how long the growing season lasts. Sometimes, the food is delivered — usually weekly — either to your home or to a communal pickup spot. (I took part in one at my office, and another at my kids’ school.) Sometimes people pick up their shares at the farm.

    Besides produce, farmers might also include items such as honey, meat, flowers, dairy products and so on, and be able to charge accordingly.

    Many CSAs invite customers to put in time on the farm, growing and harvesting food. Some offer a discount for those who do. In other CSAs, working on the farm is part of the agreement for all members. It’s a great way to show kids how food is grown and the work entailed in farming.

    Benefits to consumers include:

    — Healthy, seasonal food. You will almost certainly include more fruits and vegetables in your cooking. And boy, will they be fresh.

    — Appreciating where food comes from. It’s heartening to be part of the local food chain, knowing where your produce is grown and how. You’ll be supporting nearby farmers — no farms, no food!

    — Experimenting with new foods. My favorite part. You’ll likely get some items in your share that are new to you, and will enliven your cooking repertoire. I wouldn’t have tried that kohlrabi, for instance, had it not been included in my haul.

    — More than produce. In my CSA experiences, I have received some amazing breads, cider, cheeses and microgreens, along with the fruits and vegetables. Keep an open mind and your CSA will infuse a lot of energy into your kitchen.

    — Community. A CSA is often a communal experience, connecting farmers and cooks. At my kids’ school in past years, the high schoolers ran the program. It was cool to watch them running the show, weighing produce, bagging everything. They were involved in sourcing the produce and working with the farm that supplied the weekly windfall.

    — Value. Buying a membership in a CSA is often cheaper than buying the same items at a supermarket. Some CSAs offer payment plans, subsidize the cost or donate shares for low-income families.

    One drawback (or is it a benefit?) is you get what you get. Usually, it’s just what is in season.

    The farm will often list the things they typically grow, but it’s not an iron-clad menu, and you can’t pick from month to month — you just get a box.

    When certain types of vegetables are in season, you might get more than you really need. So share the wealth with friends and neighbors, or preserve some of the bounty for later in the year by freezing, canning or drying it. Or, split a share with a friend if you don’t think you’ll be able to use up all the produce before it goes bad.

    If the farm has a bad year due to weather or pests, the output might suffer. But my experience has been that the risks are worth it.

    Offerings are very much based on location and weather, so explore what’s available in your region. Search “CSAs in (fill in your town)” online; for information, go to the websites of Local Harvest, a company that connects farms and consumers, or the U.S. Department of Agriculture.

    Look for flyers anywhere from a church bulletin board to a farmers’ market.

    CSAs often list the foods likely to be included to help people decide if the program is right for them.

    Many send their customers regular newsletters or fliers with tips and recipes.

    All in all, CSAs are a way to expand your culinary horizons. It’s like getting an edible gift every week!

    —-

    Katie Workman writes regularly about food for The Associated Press. She has written two cookbooks focused on family-friendly cooking, “Dinner Solved!” and “The Mom 100 Cookbook.” She blogs at https://themom100.com/. She can be reached at Katie@themom100.com.

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    For more AP food stories, go to https://apnews.com/hub/recipes

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  • Nintendo to announce Switch successor in this fiscal year as profits rise

    Nintendo to announce Switch successor in this fiscal year as profits rise

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    TOKYO — Japanese video-game maker Nintendo said Tuesday that it will make an announcement about a successor to its Switch home console sometime before March 2025.

    In reporting its financial results, Nintendo gave no details about the announcement, including about whether it would launch that successor product during this fiscal year, or just announce its plans for it.

    “We will make an announcement about the successor to Nintendo Switch within this fiscal year. It will have been over nine years since we announced the existence of Nintendo Switch back in March 2015,” the company’s president, Shuntaro Furukawa, said in a statement.

    Kyoto-based Nintendo Co. reported a 13% rise in profit for the fiscal year that ended in March, boosted by solid demand for Switch software like “The Legend of Zelda: Tears of the Kingdom.”

    Nintendo’s net profit for the fiscal year through March 2024 totaled 490.6 billion yen ($3 billion), up from 432.7 billion yen in the previous fiscal year. Annual sales rose 4% to 1.67 trillion yen ($11 billion), nearly 80% of it from outside Japan.

    Besides “The Legend of Zelda,” whose global sales for the fiscal year totaled 20.6 million units, “Super Mario Bros. Wonder” sold 13.4 million units, and “Pikmin 4” sold nearly 3.5 million, according to Nintendo.

    The release a year ago of the film, “The Super Mario Bros. Movie,” also helped sales.

    The yen’s weakness against the dollar, which lifts the value in yen of overseas earnings of Japanese exporters like Nintendo, also helped. The U.S. dollar has averaged about 151 Japanese yen over the past fiscal year, up from 133 yen in the previous fiscal year.

    Nintendo, which did not break down quarterly numbers, was less optimistic about its financial results for the fiscal year through March 2025, forecasting net profit to fall to 300 billion yen ($1.9 billion).

    Nintendo has sold more than 141 million Switch machines, 15.7 million of them during the fiscal year that just ended.

    Such sales tend to gradually decline over the years, so offering a steady stream of fun games is crucial.

    “Endless Ocean Luminous,” which went on sale this month, has the player go on a virtual scuba diving adventure, complete with whales, colorful fish and other sea creatures. “Luigi’s Mansion 2,” featuring the plumber Mario’s brother, goes on sale next month.

    Nintendo is also planning a new film for worldwide release in April 2026. It’s counting on the openings of Donkey Kong Country in Universal Studios Japan, as well as a museum on Nintendo in Kyoto, both scheduled for later this year, to woo more fans to its franchise.

    ___

    Yuri Kageyama is on X: https://twitter.com/yurikageyama

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  • Nintendo to announce Switch successor in this fiscal year as profits rise

    Nintendo to announce Switch successor in this fiscal year as profits rise

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    TOKYO — Japanese video-game maker Nintendo said Tuesday that it will make an announcement about a successor to its Switch home console sometime before March 2025.

    In reporting its financial results, Nintendo gave no details about the announcement, including about whether it would launch that successor product during this fiscal year, or just announce its plans for it.

    “We will make an announcement about the successor to Nintendo Switch within this fiscal year. It will have been over nine years since we announced the existence of Nintendo Switch back in March 2015,” the company’s president, Shuntaro Furukawa, said in a statement.

    Kyoto-based Nintendo Co. reported a 13% rise in profit for the fiscal year that ended in March, boosted by solid demand for Switch software like “The Legend of Zelda: Tears of the Kingdom.”

    Nintendo’s net profit for the fiscal year through March 2024 totaled 490.6 billion yen ($3 billion), up from 432.7 billion yen in the previous fiscal year. Annual sales rose 4% to 1.67 trillion yen ($11 billion), nearly 80% of it from outside Japan.

    Besides “The Legend of Zelda,” whose global sales for the fiscal year totaled 20.6 million units, “Super Mario Bros. Wonder” sold 13.4 million units, and “Pikmin 4” sold nearly 3.5 million, according to Nintendo.

    The release a year ago of the film, “The Super Mario Bros. Movie,” also helped sales.

    The yen’s weakness against the dollar, which lifts the value in yen of overseas earnings of Japanese exporters like Nintendo, also helped. The U.S. dollar has averaged about 151 Japanese yen over the past fiscal year, up from 133 yen in the previous fiscal year.

    Nintendo, which did not break down quarterly numbers, was less optimistic about its financial results for the fiscal year through March 2025, forecasting net profit to fall to 300 billion yen ($1.9 billion).

    Nintendo has sold more than 141 million Switch machines, 15.7 million of them during the fiscal year that just ended.

    Such sales tend to gradually decline over the years, so offering a steady stream of fun games is crucial.

    “Endless Ocean Luminous,” which went on sale this month, has the player go on a virtual scuba diving adventure, complete with whales, colorful fish and other sea creatures. “Luigi’s Mansion 2,” featuring the plumber Mario’s brother, goes on sale next month.

    Nintendo is also planning a new film for worldwide release in April 2026. It’s counting on the openings of Donkey Kong Country in Universal Studios Japan, as well as a museum on Nintendo in Kyoto, both scheduled for later this year, to woo more fans to its franchise.

    ___

    Yuri Kageyama is on X: https://twitter.com/yurikageyama

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  • US first-quarter auto sales grew nearly 5% despite high interest rates, but EV growth slows further

    US first-quarter auto sales grew nearly 5% despite high interest rates, but EV growth slows further

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    DETROIT — New vehicle sales in the U.S. rose nearly 5% from January through March, as buyers stayed in the market despite high interest rates. But electric vehicle sales growth slowed during the first three months of the year, with mainstream buyers wary of limited range and a lack of charging stations.

    Automakers, most of which reported U.S. sales numbers Tuesday, sold nearly 3.8 million vehicles in the first quarter versus a year ago, for an annual rate of 15.4 million in sales.

    With inventory on dealer lots growing toward pre-pandemic levels, auto companies were forced to reduce prices. J.D. Power said the average sales price in March was $44,186, down 3.6% from a year ago and the largest recorded decline for the month of March.

    The company said automaker discounts in March were two-thirds higher than a year ago, around $2,800. That includes increased availability of lease deals. J.D. Power expected leases to account for almost a quarter of retail sales last month, up from 19.6% in March of last year.

    Sales of electric vehicles grew only 2.7% to just over 268,000 during the quarter, far below the 47% growth that fueled record sales and a 7.6% market share last year. The slowdown, led by Tesla, confirms automakers’ fears that they moved too quickly to pursue EV buyers. The EV share of total U.S. sales fell to 7.1% in the first quarter.

    Nearly all of the early adopters and people concerned about internal-combustion engines’ impact on the planet have bought electric vehicles, and now automakers are facing more skeptical mainstream buyers, Edmunds Director of Insights Ivan Drury said.

    “That’s where all of those headwinds come in that we’ve seen in survey data,” Drury said. “Those real-world concerns about charging infrastructure, battery life, insurance costs.”

    Cox Automotive Chief Economist Jonathan Smoke cautioned it appears the industry has already hit its spring sales peak as buyers expect the Federal Reserve to cut interest rates later in the year.

    “Interest rates are still near 24-year highs, and consumers just don’t have the urgency to buy, with the expectation that rates will be lower later this year,” he wrote in a market report. Automobile interest rates still are averaging around 7% per year.

    Drury said vehicles that are more affordable are selling faster than more expensive ones. Sales of many large and expensive SUVs fell during the quarter as companies faced more frugal buyers.

    “Small sells, whether it be size or the sales price,” Drury said.

    For example, General Motors‘ Chevrolet brand sold 37,588 Trax small SUVs in the quarter, more than a fivefold increase from a year ago. By itself, the Trax, which starts around $21,500, outsold the entire Cadillac brand.

    Most automakers reported strong year-over-year sales increases from January through March, but General Motors, Stellantis, Kia and Tesla all reported declines.

    GM, the top-selling automaker in the U.S., reported that sales were down 1.5% for the quarter, while Stellantis sales were off nearly 10%. Kia sales were down 2.5%. All three companies reported strong first-quarter sales a year ago.

    Toyota reported a large sales increase, 20%, for the quarter, and said combined sales of its hybrids and lone electric vehicle rose 36%. Honda said its sales increased 17%, while Nissan and Subaru both posted 7% increases. Hyundai reported an increase of just 0.2%.

    Tesla global sales were off nearly 9%, which the company blamed on factory changes to build an updated Model 3, shipping delays in the Red Sea and an attack that knocked out power to its factory in Germany. Motorintelligence.com estimated that Tesla’s U.S. sales were down more than 13% in the first quarter.

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  • MyPillow, owned by election denier, faces eviction from Minnesota warehouse

    MyPillow, owned by election denier, faces eviction from Minnesota warehouse

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    ST. PAUL, Minn. — A court plans to order the eviction of MyPillow from a suburban Minneapolis warehouse that it formerly used, but company founder and prominent election denier Mike Lindell said Wednesday that it’s just a formality because the landlord wants to take the property back.

    Lindell denied in an interview with The Associated Press that the eviction was another sign of his money woes. He said his financial picture is actually improving after a credit crunch last year disrupted cash flow at MyPillow after the company lost one of its major advertising platforms and was dropped by several national retailers.

    “We’re fine,” he said.

    Lindell faced a setback last month when a federal judge affirmed a $5 million arbitration award in favor of a software engineer who challenged data that Lindell said proves China interfered in the 2020 U.S. presidential election and tipped the outcome to Joe Biden. Lindell acknowledged in January that Fox News stopped running MyPillow commercials amid a billing dispute.

    Lindell confirmed Wednesday that MyPillow owes around $217,000 to Delaware-based First Industrial LP for rent for the facility in Shakopee. He said MyPillow no longer needed the space and removed its remaining property from the warehouse last June before subleasing the space to another company through December.

    Another company was going to start subleasing the space in January but backed out and “left us all stranded,” he said. MyPillow offered to find another tenant, he said, but the landlord just wanted to take back control of the warehouse instead. The $217,000 is for unpaid rent for January and February, he said. He also said MyPillow continues to lease space elsewhere.

    The Star Tribune reported that a Scott County judge on Tuesday said she would approve the warehouse owner’s request to formally evict MyPillow, which did not contest the landlord’s request.

    “MyPillow has more or less vacated but we’d like to do this by the book,” attorney Sara Filo, representing First Industrial, said during a hearing Tuesday, the newspaper reported. “At this point there’s a representation that no further payment is going to be made under this lease, so we’d like to go ahead with finding a new tenant.”

    Lindell, who continues to propagate former President Donald Trump’s lies that the 2020 election was stolen from him, in part by rigged voting machine systems, still faces defamation lawsuits by two voting machine companies. Lawyers who were originally defending him in those cases quit over unpaid bills.

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  • Japan’s Nissan promises aggressive electrification push to cut costs, boost global sales

    Japan’s Nissan promises aggressive electrification push to cut costs, boost global sales

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    TOKYO — Nissan will expand its electric vehicle lineup, develop more powerful batteries and cut production costs, while speeding up the whole process, in what the Japanese automaker’s chief called “The Arc” pathway to higher sales by 2030.

    “The auto industry is now being forced to reshape its values so we can say continuous change is the new normal,” Chief Executive Makoto Uchida told reporters Monday, in outlining a sprawling but ambitious business plan.

    “Nissan must change. We cannot succeed if we continue along the same path.”

    Costs will come down for electric models so they’ll be about the same as gasoline-engine models by fiscal 2030, while global sales will grow by a million vehicles during that period, he added.

    Last year, Nissan Motor Co. sold nearly 3.4 million vehicles around the world, up about 5% from the previous year.

    The company is planning 30 new models over the next three years, 16 of them EVs. Nissan plans to launch 34 EV models from fiscal 2024 through fiscal 2030, so that EVs will account for 40% of its global offerings by fiscal 2026, and 60% by the end of the decade.

    To slash costs, Nissan says it will start working with suppliers from the development stage, upgrade production methods to incorporate robotics and artificial intelligence, and have models sharing components — not just platforms but also parts. It also promised innovation in autonomous vehicles to make driving safer.

    Nissan, based in the port city of Yokohama, southwest of Tokyo, will leverage its partnerships around the world, including those with smaller Japanese maker Mitsubishi Motors Corp., with Dongfeng Nissan in China, and in the alliance it has with French automaker Renault.

    Earlier this month, Nissan announced it was in talks on forming a partnership with Japanese rival Honda Motor Co. in electrification and artificial intelligence.

    Such tie-ups between rivals are relatively unusual but are needed to keep up with surging demand for more sustainable transport as concerns grow over carbon emissions and sustainability, analysts say.

    Nissan, Japan’s No. 2 automaker, was an early EV adapter, coming out with the Leaf EV in late 2010. In recent years, Japanese automakers have fallen behind Tesla of the U.S. and Chinese manufacturers like BYD.

    Automakers, including Nissan, have taken a hit from shortages of computer chips and other parts due to disruptions related to the pandemic.

    Nissan’s offerings of new EVs, plug-ins and hybrids will increase across all global markets, including the U.S., Europe, Japan, the rest of Asia, Australia and Africa, Uchida said.

    “The Arc plan shows our path to the future. It illustrates our continuous progression and ability to navigate changing market conditions. This plan will enable us to go further and faster in driving value and competitiveness,” he said, referring to Nissan’s goals.

    Nissan’s stock price, which shot up earlier this month after its talks with Honda was announced, finished 2% lower shortly before Uchida’s news conference.

    ___

    Yuri Kageyama is on X: https://twitter.com/yurikageyama

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  • Etsy drifts further away from its roots with first Super Bowl ad

    Etsy drifts further away from its roots with first Super Bowl ad

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    Etsy Inc., once known as a quirky marketplace for handmade, artisanal and vintage items, seems to be moving further away from its origins amid a much tougher e-commerce landscape and the impact of AI.

    Etsy
    ETSY,
    +4.83%
    will be marketing to a whole new audience on Sunday, when its first Super Bowl commercial will run. The 30-second ad is quirky; it depicts a generic 19th-century American leader who’s flummoxed over how to reciprocate France’s gift of the Statue of Liberty. With the help of an anachronistic smartphone, he and his team search on Etsy using its new Gift Mode option, and find its “Cheese Lover” category after determining that the French love cheese. Voilà — they decide to send the French some cheese.

    The commercial is part of Etsy’s push of a new user interface featuring Gift Mode, which lets shoppers search for gifts for a specific type of person or occasion — combining generative AI and human curation to give gift buyers some unusual options.

    But are these moves desperate and costly efforts to try to reach potential new buyers, coming on the heels of Etsy’s plans to lay off 11% of its staff?Or could running a TV ad at the most expensive time of the year actually lead to more sales on the once-fast growing marketplace?

    Etsy believes these moves will help the company grow again, and its research shows the average American spends $1,600 a year on gifts. “There is no single market leader and Etsy sees a real opportunity to become the destination for gifting,” Etsy’s Chief Executive Josh Silverman said in a recent blog post.

    Etsy is clearly under pressure after seeing its gross merchandise sales more than double in 2020 during the pandemic, when it became a go-to place to buy handmade masks and all kinds of items for the home, from vintage pieces to antiques to castoffs. From personal experience as an Etsy seller, I saw sales at my own small vintage-clothing shop more than double in 2020 and then fall back in 2021, while still remaining higher than in 2019. In the last two years, sales have slowed, and some other sellers have witnessed similar patterns, based on their comments in seller forums.

    The number of sellers and buyers on the platform has increased on the same level as gross merchandise sales. But e-commerce competition has also gotten more fierce.

    “Our main concern with Etsy is growing competition in the space from new players like Temu,” said Bernstein Research analyst Nikhil Devnani, in an email. Temu and fellow Chinese online retailer Shein have raised a lot of investor jitters, as Etsy’s gross merchandise sales have slipped over the last year and are forecast to fall again in its upcoming fourth-quarter earnings report later this month.

    Devnani said a Super Bowl ad could potentially help the marketplace gain visibility, something it has always lacked.

    “One dynamic they’ve talked about a lot is that brand awareness/recollection is still low, and this keeps frequency low,” he said, noting that Etsy buyers shop on the site about three times per year, on average. “They want to be more top-of-mind … Super Bowl ads are notoriously expensive of course, but can be impactful/get noticed.”

    The company’s big focus on Gift Mode, however, could be a risky strategy. How many times a year do consumers look for gifts? And in a note Devnani wrote in October, before the company’s Gift Mode launch, he said that one of the concerns investors have is that Etsy is too niche. “’How often does someone need something special?’ is the rhetoric we hear most often,” he said. Etsy, then, is counting on buyers returning for other items for themselves.

    Etsy CEO Silverman believes buyers will come back again and again to purchase gifts. Naved Khan, a B. Riley Securities analyst, said in a recent note to clients that he believes Gift Mode plays to Etsy’s core strengths, offering “unique goods at reasonable prices” versus the mass-produced products sold on Shein, Temu, Amazon.com Inc.
    AMZN,
    +2.71%    ,
    and other sites.

    Consumer spending has changed, though. At an investor conference in December, Silverman said that consumers are spending on dining out and traveling, instead of buying things.

    But while investors still view Etsy as a niche e-commerce site, some buyers and sellers see it overrun with repetitive, non-relevant ads. Complaints about a decline in search capabilities, reliance on email and chat for support, and constant tech changes are common on seller forums and Facebook groups. AI-generated art offered by newer sellers as a side hustle has also become a thought-provoking, debated issue. And there are complaints about mass-produced items making their way on the site.

    Etsy said that in addition to its human and automated efforts, it also relies on community flags to help take down infringing products that are not allowed on its marketplace, and that community members should contact the company when if they see mass-produced items for sale on the site.

    It also continues to work on search. On its last earnings call, Silverman said the company was moving beyond relevance to the next frontier of search, one “focused on better identifying the quality of each Etsy listing utilizing humans and [machine-learning] technology, so that from a highly relevant result set we bring the very best of Etsy to the top — personalized to what we understand of your tastes and preferences.”

    The pressure could build on the company if its latest moves don’t generate growth. Etsy recently gave a seat on its board to a partner at activist investor Elliott Management, which bought a “sizable” stake in the company in the last few months. Marc Steinberg, who is responsible for public and private investments at Elliott, has also has been on the board at Pinterest
    PINS,
    -9.45%
    since December 2022.

    Elliott Management did not respond to questions. But in a statement last week, Steinberg said he was joining the board because he “believe[s] there is an opportunity for significant value creation.” Some sellers fear that the pressure from investors and Wall Street will lead to Etsy allowing mass-produced products onto the site. In its fall update, Etsy said the number of listings it removed for violating its handmade policy jumped 112% and that it was further accelerating such actions.

    Etsy’s stock before the news of Elliott’s stake was down about 18% this year. Its shares are now off about 3.65% this year, after recently having their best day in seven years on the news that Steinberg joined the board.

    Etsy is a unique marketplace that for many years had a much better reputation than some of its rivals, like eBay
    EBAY,
    +0.98%    .
    But since going public and answering to Wall Street, the need to provide growth and profits for investors has become much more of a driver. The Super Bowl ad and Gift Mode may bring a broader awareness to Etsy, but will it be the right kind of awareness? Sellers like me hope these new efforts will stave off the continuing fight with the likes of Temu and other vendors of mass-produced products, and help Etsy retain the remaining unique aspects of its marketplace.

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  • Barclays to buy retail banking arm of supermarket chain Tesco for £600 million

    Barclays to buy retail banking arm of supermarket chain Tesco for £600 million

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    Tesco on Friday said it was selling the retailing banking business of Tesco Bank to Barclays for £600 million initially, and then another £100 million after the settlement of certain regulatory capital amounts and after transaction costs.

    The U.K. supermarket chain said it will use majority of a combined £1 billion, which also includes a special dividend previously announced from Tesco Bank, for a share buyback.

    It will retain insurance, ATMs, travel money and gift cards, that on a proforma basis account for roughly £80 million to £100 million in operating profit, and said the deal is mildly accretive to earnings per share.

    Barclays said it’s acquiring credit cards, unsecured personal loans, deposits and the operating infrastructure that includes £8.3 billion of unsecured lending balances with a credit quality consistent with its existing U.K. portfolios. The business it’s buying had an adjusted operating profit of approximately £85 million in the 12 months ended February 2023.

    Barclays also will enter into an exclusive strategic partnership with Tesco for an initial period of 10 years to market and distribute credit cards, unsecured personal loans and deposits using the Tesco brand, paying £50 million per year.

    Tesco
    TSCO,
    +0.89%
    shares have dropped 3% this year while Barclays
    BARC,
    -1.02%
    shares have declined by 7%.

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  • British American Tobacco Swings to Pretax Loss on U.S. Cigarette Write-Down — Update

    British American Tobacco Swings to Pretax Loss on U.S. Cigarette Write-Down — Update

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    By Joe Hoppe

    British American Tobacco said it swung to a pretax loss, driven by a previously reported write-down of its U.S. cigarette brands, but backed forecasts for growth in 2024.
    

    

    The FTSE 100 cigarette maker–which houses the Kent, Dunhill and Lucky Strike brands–said pretax loss for 2023 was 17.06 billion pounds ($21.54 billion) compared with a profit of GBP9.32 billion a year prior. It said the swing was largely driven by an impairment of GBP27.6 billion. Of the impairment, GBP27.3 billion relates to pressure on some of its traditional cigarette brands in the U.S., as it shifts focus to smokeless products, it said.
    

    BAT said in early December that its performance in the U.S. had been hindered by smokers switching to cheaper, nonpremium brands and a rise in illegal disposable vapes. The brands being written down included Newport, Pall Mall, Camel and Natural American Spirit, a company spokesperson said at the time.
    

    Adjusted profit from operations edged up to GBP12.465 billion from GBP12.41 billion in 2022. Despite the growth, it skirted under a company-provided consensus forecast of an adjusted operating profit of GBP12.595 billion.
    

    New categories revenue rose to GBP3.35 billion from GBP2.89 billion, missing a forecast of GBP3.46 billion, according to company-provided consensus.
    

    Revenue was GBP27.28 billion compared with GBP27.66 billion, dragged by the sale of its businesses in Russia and Belarus, foreign-exchange pressures and lower cigarette volumes, and partially offset by the increased new categories revenue. Revenue was forecast at GBP27.60 billion, according to consensus provided by the company.
    

    BAT said global tobacco industry volume is expected to decline around 3% in 2024, and it backed prior guidance for low single digit organic revenue and adjusted operating profit growth for the year.
    

    The company said it will invest this year to strengthen its U.S. business, accelerate innovation and enhance its capabilities, which it said would weight its performance toward the second half.
    

    “Thereafter, we will progressively build to deliver 3-5% organic revenue, and mid-single digit adjusted organic profit from operations growth by 2026 on a constant currency basis. We are committed to continuing to reward shareholders with strong cash returns throughout this period,” Chief Executive Tadeu Marroco said.
    

    The board declared a dividend of 235.52 pence a share, up from 230.9 pence.
    

    Write to Joe Hoppe at joseph.hoppe@wsj.com
    

    

    

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  • 
		
		
    
			
    Mattel announces cost cuts after fourth-quarter results miss expectations
    
			
    Mattel announces cost cuts after fourth-quarter results miss expectations
    
			
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    Toy maker Mattel Inc. on Wednesday reported fourth-quarter results that missed expectations, with the company saying it plans to cut costs this year while continuing to buy back stock.
    

    The cost cuts would follow layoffs by rival Hasbro Inc.
    
        HAS,
    
        +1.34%
    
       amid a slowdown in demand for toys. They also come as other companies over the past several weeks have announced layoffs and plans to tighten up expenses, as investors seek out bigger profit margins. 
    

    

    Shares of Mattel
    
        MAT,
    
        +1.57%
    
       were up 1.5% after hours.
    

    “Looking ahead, we are launching a new cost-savings program focused on profitable growth and expect to improve profitability and continue share repurchases in 2024,” Mattel Chief Financial Officer Anthony DiSilvestro said in the company’s earnings release. 
    

    Mattel — known for its Barbie and Hot Wheels toys and, increasingly, its efforts to turn them into content — reported fourth-quarter net income of $147.3 million, or 42 cents a share. That compares with net income of $16.1 million, or 4 cents a share, in the same quarter in 2022. 
    

    Adjusted for things like severance, product recalls and changes to deferred tax assets, Mattel earned 29 cents a share. Sales rose 16% to $1.62 billion. 
    

    Analysts polled by FactSet expected Mattel to report adjusted earnings per share of 31 cents, on revenue of $1.65 billion. 
    

    “Execution on our toy strategy was strong and we made meaningful progress in entertainment across film, television, digital and publishing,” Chief Executive Ynon Kreiz said in the company’s earnings release. 
    

    “We ended 2023 with the strongest balance sheet we have had in years, putting us in an excellent position to execute our strategy to grow Mattel’s IP-driven toy business and expand our entertainment offering,” he continued.
    

    Mattel reported earnings after the key holiday-shopping season, and as analysts try to gauge the sales impact from the success of the “Barbie” movie released last summer. Mattel executives have said they want to make more films based on some of its other popular toys, and turn “Barbie” into a film franchise. 
    

    However, toy demand has been cooler recently, thanks to two years of inflation-fueled higher prices for goods and necessities. Retailers have taken a cautious approach toward stocking their shelves, after getting caught two years ago with too many toys and electronics that people didn’t want.
    

    The Wall Street Journal reported this month that activist investor Barington Capital had taken a stake in Mattel, adding that Barington believed the company should consider “pursuing strategic alternatives” for its Fisher-Price and American Girl businesses.
    

    Bank of America analysts on Tuesday said Mattel and Hasbro were among the companies that were “most at risk of direct impact” from shipping disruptions in the Red Sea. Yemen-based Houthi fighters opposed to Israel’s war in Gaza have attacked ships in the area, forcing lengthy detours and driving up shipping costs. Mattel, the analysts noted, got around 24% of its total sales from the Europe, Middle East and Africa regions in 2022.
    

    During a conference in December, Kreiz said he believed in the long-term growth of the toy industry. But he said that after a jump in growth between 2019 and the pandemic, 2023 would likely be tamer. 
    

    “We believe 2023 will be back to normal in terms of shopping patterns and consumer behavior,” he said. “And also even inventory at the retail level and at our level is now reverting back to historical norms.”
    

    

    

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  • 
		
		
    
			
    Disney, Fox and Warner Bros. team up to launch new sports streaming service
    
			
    Disney, Fox and Warner Bros. team up to launch new sports streaming service
    
			
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    Walt Disney Co.’s ESPN, Fox Corp. and Warner Bros. Discovery Inc. are teaming to create a joint sports streaming service. 
    

    The as-yet unnamed service, which could be available as early as the fall and offer a sort of Hulu model for sports, comes amid an explosion in sports-streaming rights and audiences. 
    

    

    The service would essentially be a skinny bundle of the companies’ linear channels, including ESPN, ESPN2, ESPNU, SECN, ACCN, ESPNEWS, ABC, Fox, FS1, FS2, BTN, TNT, TBS, truTV, as well as the ESPN+ streaming service.
    

    “The launch of this new streaming sports service is a significant moment for Disney
    
        DIS,
    
        +2.73%
    
       and ESPN, a major win for sports fans, and an important step forward for the media business,” Disney Chief Executive Bob Iger said in a statement late Tuesday. “This means the full suite of ESPN channels will be available to consumers alongside the sports programming of other industry leaders as part of a differentiated sports-centric service.”
    

    Added Warner Bros.
    
        WBD,
    
        
    
       CEO David Zaslav: “This new sports service exemplifies our ability as an industry to drive innovation and provide consumers with more choice, enjoyment and value and we’re thrilled to deliver it to sports fans.”
    

    Each company will own one-third of the platform, according to Disney, in a deal reminiscent of the original Hulu, which started off as a joint venture between ABC, Fox and NBCUniversal.
    

    The service will have a new brand with an independent management team, and will be available to bundle with Disney+, Hulu and Max subscriptions.
    

    “We’re pumped,” Fox
    
        FOX,
    
        +0.55%
    
       CEO Lachlan Murdoch said. “We believe the service will provide passionate fans outside of the traditional bundle an array of amazing sports content all in one place.”
    

    More details, including pricing, will be announced later.
    

    Prominently missing from the deal are Comcast Corp.
    
        CMCSA,
    
        -1.00%    ,
    
       which owns NBCUniversal and its sports lineup that includes NFL football and the Olympics, and Paramount Global
    
        PARA,
    
        -0.21%    ,
    
       which owns CBS — which carries the NFL and college football, among other sports.
    

    The new service will showcase thousands of high-profile sporting events and include all four major sports leagues — the NFL, NBA, MLB and NHL — as well as college football and basketball, golf, tennis, cycling, soccer and UFC.
    

    Shares of Disney were down 1% in extended trading Tuesday, while Fox shares jumped 6% and WBD gained 3%.
    

    Mike Murphy contributed to this report.
    

    

    

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    McDonald’s misses revenue target as it cites impact from Middle East war
    
			
    McDonald’s misses revenue target as it cites impact from Middle East war
    
			
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    McDonald’s Corp.’s stock fell 1.3% in premarket trading on Monday after the fast-food giant missed Wall Street analysts’ estimates for revenue and same-store sales, while citing an impact from war in the Middle East.
    

    The global fast-food giant said it expects “macro challenges” to persist in 2024.
    

    McDonald’s
    
        MCD,
    
        -0.35%
    
       said its fourth-quarter net income rose by 7% to $2.04 billion, or $2.80 a share, from $1.9 billion, or $2.59 a share, in the year-ago quarter. 
    

    

    McDonald’s said the latest quarter’s results included 15 cents a share in one-time charges. 
    

    Breaking those charges out, McDonald’s would have earned $1.95 a share.  Analysts expected McDonalds to earn $1.83 a share, according to FactSet data. 
    

    Revenue rose 8% to $6.41 billion, short of the FactSet consensus estimate of $6.45 billion.
    

    Fourth-quarter global comparable-store sales increased by 3.4%, including a 4.3% rise in the U.S.. Analysts expected same-store sales growth of 4.7%.
    

    McDonald’s said its comparable sales fell in the Middle East as a reflection of war in the region since Oct. 7.
    

    All other same-stores sales rose in international developmental licensed markets. 
    

    Total international developmental licensed markets same-store sales rose by 0.7%, well below the result in the previous quarter, which saw a 10.5% increase.
    

    Looking back at the balance of 2023, McDonald’s said its net income rose by 37% to $8.47 billion.
    

    Revenue jumped by 10% in 2023 to $25.49 billion.
    

    Free cash flow for 2023 increased to $7.25 billion from $5.49 billion.
    

    Before Monday’s moves, McDonald’s stock was up by 10.9% in the past year.
    

    

    

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