E-Commerce Startup OpenStore Cuts Valuation By 95%, Taps New CEO
The Miami-based company, co-founded by venture capitalists Keith Rabois and Jack Abraham, is raising $15 million in a Series C funding round at the significantly reduced valuation, according to people familiar with the matter. Existing investors Khosla Ventures, where Rabois is a managing director, and Atomic, run by Abraham, are participating in the financing, said the people, who asked not to be identified because the information is private.
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Skift
9 minutes ago
- Skift
Royal Caribbean Sees More Last-Minute Bookings, Plans Loyalty Changes
Royal Caribbean's passengers are definitely spending. Its plans to improve how its loyalty program and co-branded credit card reward guests may fuel future growth. Royal Caribbean Group said that booking rates have accelerated since April, driven by last-minute reservations. 'Our second quarter results exceeded expectations mainly driven by stronger-than-expected close-in demand,' said CEO Jason Liberty in an earnings call. 'Bookings have accelerated since the last earnings call, particularly for close-in sailings.' The company delivered over 2 million vacations in the quarter, a 10% increase year-over-year. Half of its customers were millennials or younger. The results let the Miami-based cruise giant raise its annual profit forecast on Tuesday, banking on resilient demand for its luxury destinations as the cruise operator reported its second quarter with the highest margins in about 20 years. 'We continue to see engaged and excited consumers with roughly 75% intending to spend the same or more on leisure travel over the next 12 months,' Liberty said. 'At the same time, more than half of consumers tell us they are booking closer to their departure date than they used to. And for the people who intend to travel over the next 12 months, the majority have not yet booked.' Loyalty News Coming Cruise lines don't do as good of a job at making their loyalty program and co-branded credit cards drive direct bookings as major hotel groups do. That said, Liberty wants Royal Caribbean to do better, after having integrated all of its brands into one rewards program last year. Liberty acknowledged the company's co-branded credit card 'is tied today to our loyalty program, but not in the way that fits our ambition.' He said passengers would see 'something very meaningful coming out of that very, very soon' as the company works with its credit card provider. 'The number of loyalty members that are sailing with us has now inched up to 40%,' Liberty said. 'Our loyalty members who spend 25% more per trip.' 'Nearly 50% of onboard purchases are now coming through the mobile app compared to one-third at the end of 2023.' 'Our guests are very focused on recognition and also being incentivized for the spend and loyalty that they provide,' the CEO said. 'Especially on the loyalty program side, we are very tuned into and have a lot of plans on what things our guests and our brands feel are a value to them that would result in them behaving even more loyal to us.' The executive framed loyalty as closing the gap with hotels and resorts in attracting guests at a comparable price point. 'If somebody goes outside our ecosystem to another cruise competitor or somebody else on land, then we should look at that as a fail,' Liberty said. 'Every one percentage point [of market share stolen from hotels] is worth a tremendous amount of money.' Cost Pressures Loom Royal Caribbean's performance comes as the industry faces pressure from rising costs. The company expects expenses to climb about 230 basis points in the third quarter, driven partly by higher fuel costs linked to escalated Middle East tensions. Higher tariffs could also impact shipbuilding and supply costs, keeping cruise operators on edge. Capacity Expansion Royal Caribbean has been investing heavily in new ships and private destinations to attract both seasoned cruisers and first-time customers. The company took delivery of Star of the Seas earlier this month and expects Celebrity Excel to launch by year's end. The cruise line anticipates capacity increases of 5.5% in 2025 and 6% in 2026 as it adds seven new ships over the next few years. The expansion includes private beach destinations like Royal Beach Club Paradise Island, which opened for bookings with what Liberty described as 'incredibly strong' early demand. In late 2027, it will debut Perfect Day in Mexico, a private destination that's approximately the size of the Magic Kingdom in Orlando in footprint, though with much fewer guests. Getting Better at Upselling Royal Caribbean has proven adept at getting customers to spend beyond their initial cruise fare. Onboard and other revenue rose 9.5% to $1.3 billion in the quarter. Guest spending onboard the ships and pre-cruise purchases are still above the prior year's levels despite higher overall pricing. 'Customers who purchase onboard experiences before their cruise spend about 2.5 times more than those who do not buy pre-cruise,' Liberty said. Results Net income was $1.2 billion, up from $854 million. Total revenue grew 10.4% from the same period a year ago to $4.54 billion. Net yield grew 5.2%, outpacing the company's projections by 70 basis points. For 2025, the company expects net yield growth between 3.5% and 4%, supported by new ships and continued success at its private destinations. 'Looking back on the 1H, our data indicates that cruise operators held prices throughout March/April and moderated pricing only marginally for the 4Q/1Q during May/June,' wrote Brandt Montour in a report for Barclays. 'Nothing wrong with cruising, for right now. But the key is: for right now. Royal Caribbean seems to be a bit more cautious about Q3, said Tracey Ryniec, stock strategist at Zacks Investment Research. 'They are not allotting for further yield growth, even though it may happen.' Royal Caribbean Group CEO Jason Liberty will speak on stage at Skift Global Forum in New York City in September. Royal Caribbean CEO's Premium Push: Better Pricing, Shorter Cruises, Younger Passengers Royal Caribbean Group's CEO Jason Liberty has a strategy to push his customer base upmarket. Liberty believes there's more willingness among consumers to pay more for premium leisure travel than previously assumed. Read More What am I looking at? The performance of cruise and tours sector stocks within the ST200. The index includes companies publicly traded across global markets including both cruise lines and tour operators. The Skift Travel 200 (ST200) combines the financial performance of nearly 200 travel companies worth more than a trillion dollars into a single number. See more cruise and tours sector financial performance. Read the full methodology behind the Skift Travel 200.
The Hill
39 minutes ago
- The Hill
Spirit Airlines furloughing 270 pilots, demoting another 140 amid slower schedule
Spirit Airlines is furloughing around 270 pilots and demoting another 140 later this year as the budget carrier looks to slim down the workforce and adjust to a slower schedule. 'We are taking necessary steps to ensure we operate as efficiently as possible as part of our efforts to return to profitability. Among these steps, we have made the difficult decision to furlough approximately 270 Pilots, effective Nov. 1, 2025, to better align staffing with our flight schedule,' the airline said in an emailed statement to The Hill on Tuesday. The demotion of approximately 140 captains will take place on Oct. 1. They will downgraded to first officer, according to the Air Line Pilots Association, the largest pilot union in the world, CNBC reported. 'We recognize the weight of this decision and are committed to treating all affected Team Members with compassion and respect during this process,' the airline added. The Florida-based carrier had filed for Chapter 11 bankruptcy protection in November, after failed attempts at merging with other airlines and financial losses. Spirit emerged from bankruptcy in March. Ahead of filing for bankruptcy, Spirit furloughed around 200 pilots in September. 'We know how hard this news hits, and there's no dressing that up. Spirit continues to shrink, and with it, the value of pilot seniority and Spirit careers continues to erode,' Ryan Muller, a captain and the chairman of Spirit's Air Line Pilots Association, said, according to CNBC.
Yahoo
2 hours ago
- Yahoo
Carnival Corporation's Q3 2025 Earnings: What to Expect
Miami, Florida-based Carnival Corporation & plc (CCL) is a cruise company that provides leisure travel services in North America and internationally. With a market cap of $34.7 billion, the company operates through four segments: NAA Cruise Operations, Europe Cruise Operations, Cruise Support, and Tour and Other. CCL is expected to release its Q3 earnings on Monday, Sept. 29. Ahead of its release, analysts project the company to report a profit of $1.31 per share, up 3.2% from $1.27 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in each of the last four quarters, which is impressive. More News from Barchart Tesla Just Signed a Chip Supply Deal with Samsung. What Does That Mean for TSLA Stock? Dear Microsoft Stock Fans, Mark Your Calendars for Aug. 1 Is Lucid Motors Stock a Buy, Sell, or Hold for July 2025? Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! For the full year, analysts expect CCL to report EPS of $2, up 40.9% from $1.42 in fiscal 2024. Moreover, its EPS is expected to grow in fiscal 2026, rising 14% year over year to $2.28. Shares of CCL have climbed 72.2% over the past 52 weeks, outperforming both the S&P 500 Index's ($SPX) 17.1% uptick and the Consumer Discretionary Select Sector SPDR Fund's (XLY) 23.9% gain over the same time frame. On Jun. 27, Carnival stock closed up more than 4% after Moody's Corporation (MCO) upgraded Carnival's long-term corporate rating to Ba2 from Ba3. The consensus opinion on CCL stock is highly optimistic, with an overall 'Strong Buy' rating. Out of the 25 analysts covering the stock, opinions include 18 'Strong Buys,' one 'Moderate Buy,' and six 'Holds.' The mean price target of $31.29 indicates a 5.2% upside potential from current price levels. On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Sign in to access your portfolio
