TJX raises annual profit forecast on strong demand
The TJ Maxx parent expects earnings per share for fiscal 2026 to be between $4.52 and $4.57, compared with its previous forecast of between $4.34 and $4.43.
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Reuters
22 minutes ago
- Reuters
Fed dissenters appeared alone in favoring rate cut at July meeting, minutes show
WASHINGTON, Aug 20 (Reuters) - The two Federal Reserve policymakers who dissented against the U.S. central bank decision's to leave interest rates unchanged last month appear not to have been joined by other policymakers in voicing support for lowering rates at that meeting, a readout of the gathering released on Wednesday showed. "Almost all participants viewed it as appropriate to maintain the target range for the federal funds rate at 4.25% to 4.50% at this meeting," the minutes of the July 29-30 meeting said. Fed Vice Chair for Supervision Michelle Bowman and Governor Christopher Waller both voted against the decision to leave the benchmark interest rate unchanged, favoring instead a quarter-percentage-point reduction to guard against further weakening of the job market. It was the first time since 1993 that more than one Fed governor dissented against a rate decision. Not even 48 hours after the conclusion of last month's meeting, data from the Labor Department appeared to validate the concerns of Bowman and Waller when it showed far fewer jobs than expected were created in July, a rise in the unemployment rate and a drop in the labor force participation rate to the lowest level since late 2022. More unsettling, though, was an historic downward revision for estimates of employment in the previous two months. That revision erased more than a quarter of a million jobs thought to have been created in May and June and put a hefty dent in the prevailing narrative of a still-strong-job market. The event was so angering to President Donald Trump that he fired the head of the Bureau of Labor Statistics. Data since then, however, has provided some fodder for the camp more concerned that Trump's aggressive tariffs risk rekindling inflation to hold their ground against moving quickly to lower rates. The annual rate of underlying consumer inflation accelerated more than expected in July and was followed by an unexpectedly large jump in prices at the producer level. The minutes showed officials continued an active debate on the effects of tariffs on inflation and the degree of restrictiveness in their policy stance. Several policymakers commented that the current level of the federal funds rate may not be far above its neutral level, where economic activity is neither stimulated nor constrained. Fed policymakers assessed that the effects of higher tariffs had become more apparent in some goods prices but that the overall effect on the economy and inflation remained to be seen, the minutes showed. Looking ahead, participants noted they may face difficult tradeoffs ahead if elevated inflation proved more persistent while the job market outlook weakened. Heading into the release of the minutes, CME's FedWatch tool assigned an 85% probability of a quarter-percentage-point reduction in the Fed's policy rate at the September 16-17 meeting. That rate has been unchanged since December. The minutes were released just two days before a highly anticipated speech from Fed Chair Jerome Powell at the annual economic symposium near Jackson Hole, Wyoming, which is hosted by the Kansas City Fed. Powell's keynote speech on Friday morning - set to be his last such address as head of the central bank, with his term expiring next May - could show whether he has joined ranks with those sensing the time has come for steps to shield the job market from further weakening or if he remains in league with those more wary of inflation in light of its moves away from the Fed's 2% target. The lack of rate cuts since Trump returned to the White House has agitated the Republican president, and he regularly lashes out at Powell for not engineering them. Trump is already in the process of screening possible successors to Powell. After the unexpected resignation earlier this month of one of the seven Fed governors, Trump has a chance to put his imprint on the central bank soon. The president has nominated Council of Economic Advisers Chair Stephen Miran to fill the seat recently vacated by former Fed Governor Adriana Kugler, a term that expires at the end of January. It is unclear whether Miran will win Senate confirmation before the Fed's next meeting. On Wednesday Trump demanded that Fed Governor Lisa Cook resign from the central bank over allegations of wrongdoing connected to mortgages on properties she owns in Georgia and Michigan.
Reuters
22 minutes ago
- Reuters
Breakingviews - Thoma Bravo hails tech's ‘show me the money' era
TORONTO, Aug 20 (Reuters Breakingviews) - The cycle of technology fads is brutal. Once the darlings of public markets, given wide latitude to chase unprofitable growth, cloud software developers now seem pedestrian next to the incredible promise of artificial intelligence. Private equity firm Thoma Bravo's $11.2 billion mooted deal to buy, opens new tab human resources application provider Dayforce (DAY.N), opens new tab, disclosed on Wednesday, signals the end result of this shift: accept being a bit boring and transition into a cashflow machine, or become a target. Interest-rate hikes beginning in 2022 challenged the industry's 'expand at all costs' mantra: burning cash became more expensive, forcing a retrenchment that trimmed growth and valuations. Some firms have since regained speed, steadily beating, opens new tab Wall Street's revenue expectations by growing margins since early 2024, according to Altimeter Capital. Valuations, though, are still in the dumps. It might be a matter of measuring up to the next big thing. Bessemer Venture Partners research, opens new tab shows that, on average, private cloud software firms have taken about 7 years to hit $100 million in annual recurring revenue. Successful AI startups are crossing that threshold in just 4 years, or as little as 18 months for particularly hot breakthroughs. Just compare the BVP Nasdaq Emerging Cloud Index, which is down 10% year-to-date, to an exchange-traded fund tracking the AI-exposed Magnificent Seven stocks, up 7%. If you can't impress with growth, the next best thing is to at least throw off cash. Here, Dayforce has fallen behind its peers. The company is expected to achieve a free cash flow margin of 13.7% in the financial year ending this December, according to Visible Alpha. Rivals Paycom Software and Paylocity should notch margins of 18% and over 20%, respectively. Little wonder that Dayforce's stock had fallen over 25% thus far in 2025 before news of a potential sale arrived. Thoma Bravo's mooted $70 per share offer would represent a respectable 32% premium, valuing the company at a little over 6 times last year's revenue. That roughly matches the average multiple paid in deals across the industry in the second quarter, according to, opens new tab Software Equity Group data. Buyout barons can benefit from software investors' short attention spans. TD Cowen analysts reckon that Thoma Bravo could plausibly increase Dayforce's cash flow margin to over 20% while maintaining low-double-digit topline growth. If it can subsequently exit after five years at a multiple of between 6 and 7 times revenue, an average of where peers Automatic Data Processing and Paychex trade, its annualized rate of return could hit 24%, Breakingviews calculates. Dayforce struggled to meet public markets' 'show me the money' challenge. Private equity is probably happy to do the job.
The Sun
22 minutes ago
- The Sun
High street fashion chain to shut another shop after closing 12 – see the full list
ANOTHER big name on the high street is shutting its doors for good – adding to a growing list of store closures this year. The latest blow is in Scarborough, North Yorkshire, where New Look will close its Brunswick Centre store on Tuesday, September 17. 4 4 A Facebook post confirmed the news: 'NEW LOOK TO CLOSE FOR GOOD IN SCARBOROUGH. "New Look is one of the last remaining stores within the Brunswick Centre, which will officially close to the public on Tuesday, September 17, 2025.' It added that while shoppers had hoped the brand might relocate elsewhere, the company had now ruled this out. In a statement, New Look said: 'Unfortunately there are currently no plans to relocate this store, it will be closing down for the foreseeable future. 'Our store estate is an important part of our business, alongside our best-in-class website and app. "It is this omni-channel approach which allows us to best serve our 8 million customers, however they like to shop. 'On occasion we do have to close stores, either due to the landlord's request or because the site becomes unviable. "However, we always remain on the lookout for appropriate new opportunities across the country and continue to invest in our existing store estate.' Locals were quick to react online. One wrote: 'One of the reasons I go to Scarborough over Filey and Whitby is its High Street, especially New Look!' Another said: 'Feel sorry for the staff.' Britain's retail apocalypse: why your favourite stores KEEP closing down And a third added: 'So many empty shops they could have relocated too. "There will be nothing left in town centre soon but vape shops / cafes and charity shops.' This latest closure follows a string of shut downs by the retailer. In just weeks, New Look will also close its Hamilton, Scotland branch on July 1, with locals calling it the 'end of an era'. A shopper posted: 'Aw I'm gutted to see it go! Spent a good 10 years in there over the years.' A spokesperson confirmed: 'Our store in Hamilton is set close on July 1. "We would like to thank all of our colleagues and the local community for their support over the years. "We hope customers continue to shop with us online at where our full product ranges can be found.' The chain will then shut its Neath, Wales branch on August 6, sparking more sadness from shoppers. One blamed online shopping, claiming it has 'killed the high street', while another admitted they 'couldn't believe it.' The retailer has already closed 12 sites this year and previously warned almost 100 could be at risk as part of cost-cutting moves. Why are retailers closing shops? EMPTY shops have become an eyesore on many British high streets and are often symbolic of a town centre's decline. The Sun's business editor Ashley Armstrong explains why so many retailers are shutting their doors. In many cases, retailers are shutting stores because they are no longer the money-makers they once were because of the rise of online shopping. Falling store sales and rising staff costs have made it even more expensive for shops to stay open. The British Retail Consortium has predicted that the Treasury's hike to employer NICs from April 2025, will cost the retail sector £2.3billion. At the same time, the minimum wage will rise to £12.21 an hour from April, and the minimum wage for people aged 18-20 will rise to £10 an hour, an increase of £1.40. In some cases, retailers are shutting a store and reopening a new shop at the other end of a high street to reflect how a town has changed. The problem is that when a big shop closes, footfall falls across the local high street, which puts more shops at risk of closing. Retail parks are increasingly popular with shoppers, who want to be able to get easy, free parking at a time when local councils have hiked parking charges in towns. Many retailers including Next and Marks & Spencer have been shutting stores on the high street and taking bigger stores in better-performing retail parks instead. In some cases, stores have been shut when a retailer goes bust, as in the case of Carpetright, Debenhams, Dorothy Perkins, Paperchase, Ted Baker, The Body Shop, Topshop and Wilko to name a few. What's increasingly common is when a chain goes bust a rival retailer or private equity firm snaps up the intellectual property rights so they can own the brand and sell it online. They may go on to open a handful of stores if there is customer demand, but there are rarely ever as many stores or in the same places. The Centre for Retail Research (CRR) has warned that around 17,350 retail sites are expected to shut down this year. 4 4
