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Seven & i (OTCPK:SVNDY) names new CEO, unveils 7-Eleven IPO and stock buyback plans. (00:27) SpaceX says Starlink only ‘partial fix’ for air traffic systems, denies reports about FAA contract. (02:07) Victoria’s Secret (VSCO) tops estimates, but warns on near-term headwinds. (03:04)
This is an abridged transcript.
Seven & i (OTCPK:SVNDY) has appointed its first foreign CEO. The company also announced plans to take its convenience store business public and implement an over $13B stock buyback.
Steve Dacus, head of the Japanese firm’s special committee evaluating the takeover bid by Canada’s Alimentation Couche-Tard (TSX:ATD:CA), will replace Ryuichi Isaka as CEO.
Seven & i (OTCPK:SVNDY) plans to list its 7-Eleven business on one of the major U.S. stock exchanges, with the IPO expected to happen by the second half of next year.
Seven & i (OTCPK:SVNDY) will retain its majority stake.
The company also said it would sell a 60% stake in its supermarket business to a Bain Capital-owned special purpose company for JPY 814.7B (~$5.5B). Seven & i (OTCPK:SVNDY) will hold a 35.07% stake, while the founding family will own 4.93%. The deal is expected to close in September.
To further unlock shareholder value, Seven & i (OTCPK:SVNDY) plans to buy back shares worth around JPY 2T (~$13.5B) by FY30 with the proceeds from the sale of its supermarket chain and the 7-Eleven IPO. The repurchases will begin once the Bain Capital deal closes.
Seven & i (OTCPK:SVNDY) also plans to implement a progressive dividend policy, and is continuing to sell down its ownership stake in its banking unit to below 40%.
The company added that its special committee will continue to constructively engage with Couche-Tard (TSX:ATD:CA) on its takeover proposal and how to address U.S. antitrust challenges if a deal is reached.
SpaceX (SPACE) on Wednesday clarified that Starlink (STRLK) was not getting any contracts from the U.S. government after recent media reports suggested that it could possibly receive one from the Federal Aviation Administration that was originally with Verizon (NYSE:VZ).
Reports from major news outlets like The Washington Post, Bloomberg, Reuters, and Associated Press alleged the FAA is thinking of nixing its $2.4B Verizon contract and giving the same to Starlink.
The company clarified that it is working in coordination with L3Harris Technologies (NYSE:LHX) and the FAA to test the use of Starlink as a part of an infrastructure upgrade that was “so badly needed along with fiber, wireless, and other technologies.”
SpaceX went on to say that Starlink is “a possible partial fix to an aging system,” and it has no intent to take over any existing contract.
Victoria’s Secret (NYSE:VSCO) reported sales rose 1% year-over-year in Q4 to reach $2.106 billion. Total comparable sales were up 5% during the quarter. Notably, sales increased across most major merchandise categories, in stores and digital channels, and in both the company’s North America and International businesses.
The company’s adjusted net income was $216 million, or $2.60 per diluted share vs. $2.30 consensus, while adjusted operating income reached $299 million. Those figures were positively impacted by a change in accounting estimate related to gift card redemptions, which added approximately $26 million to net sales, gross margin, and operating income. Excluding the accounting change, the company’s performance still exceeded expectations, with net sales increasing by about 4% and adjusted operating income reaching $273 million, both at or above the high end of previously communicated guidance ranges.
Looking ahead, Victoria’s Secret (NYSE:VSCO) acknowledged some near-term headwinds and ongoing uncertainty in the macro environment. For Q1, Victoria’s Secret (VSCO) sees revenue of $1.30 billion to $1.33 billion (midpoint $1.315 billion) vs. $1.4 billion consensus. For FY26, guidance was set at revenue of $6.20 billion to $6.30 billion (midpoint $6.25 billion) vs. $6.35 consensus.
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Notable investor events include Confluent’s (CFLT) Investor Day, V.F. Corporation’s (VFC) Investor Day, and Wendy’s Company’s (WEN) Investor Day.
Now let’s take a look at the markets ahead of the opening bell. Dow, S&P and Nasdaq futures are in the red. Crude oil is up 0.4% at $66/barrel. Bitcoin is up 1.5% at $91,000.
In the world markets, the FTSE 100 is down 1% and the DAX is flat.
The biggest movers for the day premarket: Veeva Systems (NYSE:VEEV) +6% – Shares climbed after the company delivered strong Q4 results and an upbeat outlook.
On today’s economic calendar:
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7:30 am Challenger Job-Cut Report
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8:30 am International Trade in Goods and Services
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3:30 pm Federal Reserve Board Governor Christopher Waller speaks on the economic outlook before the Wall Street Journal CFO Network Summit.
Editor’s Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.
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