European Retail Distress Has Overtaken Industrials, Real Estate
Retail is now the most distressed sector in Europe, overtaking industrials and real estate companies, according to Weil, Gotshal & Manges ' latest measure of corporate distress in the region.
Retail and consumer goods companies are suffering from weak discretionary spending, margin compression and tightening credit conditions, the report said, pushing distress to the highest level since the global financial crisis in 2009. The deterioration has been rapid, with retail jumping two spots among sectors in Weil's European Distress Index since the firm last published the report in April.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
28 minutes ago
- Yahoo
Mars 'optimistic' as EU starts in-depth probe into Kellanova takeover
Mars today (25 June) said it is 'disappointed but optimistic' after the EU launched an in-depth probe of the US giant's planned takeover of Kellanova. The European Commission said it has 'preliminary concerns' the transaction, which would bring together brands including Snickers and Pringles, could lead to higher prices for consumers. Privately-owned snacks and confectionery giant Mars sealed a deal for Kellanova last August for $35.9bn but with the proviso the transaction would need to be approved by competition authorities. In a statement, the Commission said its initial findings indicate the acquisition could increase Mars' 'bargaining power vis-à-vis retailers' in the European Economic Area, which includes the EU as well as Iceland, Liechtenstein, and Norway. Brussels said the companies 'each have a strong market position in several product markets in multiple member states'. The Commission said several – unnamed – retailers had 'raised concerns' about the prospect of Mars' bargaining power if the company acquires Kellanova's portfolio. In a statement, Mars told Just Food the combination of the manufacturers' 'complementary footprints and portfolios will deliver more choice and innovation to consumers'. It added: 'We are disappointed yet remain optimistic that this investigation will be positively resolved. We have cooperated with the regulatory authorities, furnishing substantial supporting information and will continue to do so.' Mars' takeover of Kellanova, formerly part of Kellogg Company before a demerger of the business in 2023, is one of the largest the packaged foods industry has seen in recent times, rivalling the 2015 merger of Kraft Foods and HJ Heinz. The EU has until the end of October to make a decision on the proposed $36bn deal. Mars said it now expects the transaction to close 'towards the end of 2025' but it added: 'The exact timing cannot be predicted with any certainty at this point. We look forward to delivering the benefits of the pending transaction to all Mars and Kellanova stakeholders.' The merger of Mars and Kellanova would create a business with annual sales revenue of at least $60bn and a product range that would house brands including Skittles confectionery and Special K cereal. The deal would cover the Kellogg's range of cereals outside North America. Mars also operates in pet food whereas its US peer does not. Plant-based foods, or Kellanova's MorningStar Farms brand, would also come under the Mars' umbrella. Just Food has asked Mars if the company would consider offloading assets to secure EU approval for its move for Kellanova. At the time of publication, Mars had not commented. 'By acquiring Kellanova, Mars will add several very popular brands of potato chips and cereals to its already broad and strong product portfolio," Commission EVP Teresa Ribera said. "As inflation-hit food prices remain high across Europe, it is essential to ensure that this acquisition does not further drive up the cost of shopping baskets. Our in-depth investigation will assess the transaction's impact on the price of these companies' products for consumers in the EEA." "Mars 'optimistic' as EU starts in-depth probe into Kellanova takeover" was originally created and published by Just Food, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
40 minutes ago
- Yahoo
Levi Strauss (LEVI) Stock Moves -2.95%: What You Should Know
In the latest trading session, Levi Strauss (LEVI) closed at $18.07, marking a -2.95% move from the previous day. Meanwhile, the Dow lost 0.25%, and the Nasdaq, a tech-heavy index, added 0.31%. The jeans maker's stock has climbed by 1.25% in the past month, falling short of the Retail-Wholesale sector's gain of 2.13% and the S&P 500's gain of 5.05%. Market participants will be closely following the financial results of Levi Strauss in its upcoming release. The company plans to announce its earnings on July 10, 2025. The company is expected to report EPS of $0.14, down 12.5% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $1.37 billion, indicating a 5.23% decline compared to the corresponding quarter of the prior year. Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.23 per share and revenue of $5.97 billion. These totals would mark changes of -1.6% and -6.11%, respectively, from last year. Investors should also pay attention to any latest changes in analyst estimates for Levi Strauss. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook. Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system. The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, Levi Strauss is carrying a Zacks Rank of #3 (Hold). From a valuation perspective, Levi Strauss is currently exchanging hands at a Forward P/E ratio of 15.14. This expresses a discount compared to the average Forward P/E of 17.27 of its industry. Also, we should mention that LEVI has a PEG ratio of 1.75. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. LEVI's industry had an average PEG ratio of 1.94 as of yesterday's close. The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 187, finds itself in the bottom 24% echelons of all 250+ industries. The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Don't forget to use to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Levi Strauss & Co. (LEVI) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
an hour ago
- Yahoo
‘Deploying': Aus steps up action on Russia
Australia is deploying a surveillance plane and some 100 defence personnel to Poland in a major pledge to NATO allies. The move comes amid growing fears Russia's war in Ukraine could spill over the border and trigger a much broader conflict in Europe. Deputy Prime Minister Richard Marles announced the deployment from the NATO Summit in the Netherlands overnight. 'We just concluded a really successful summit here at the NATO gathering in The Hague,' Mr Marles told reporters. 'We have been able to announce that we will be deploying an E-7 Wedgetail to Poland in August for a three-month rotation, which will help support Ukraine in its struggle and defiance against Russia. 'There will be about 100 Australian personnel who come with that asset.' Mr Marles, who is also defence minister, said Australia slapped further 'financial and travel sanctions on 37 individuals and seven entities' related to Russia's 'defence, energy and … other critical sectors'. The commitment builds on an agreement signed at the summit to deepen defence industry co-ordination as Australia and NATO countries scramble to ramp up production and procurement. Mr Marles said it would help both parties spend smarter – somewhat of a mantra for the Albanese government as it resists US calls to boost Australia's defence budget. He said the summit 'reaffirmed the connection that exists between the Indo Pacific on the one hand and the North Atlantic on the other'. 'We are obviously focused on the Indo Pacific in terms of our own strategic landscape, but what's happening here in Europe is having an influence on the strategic landscape in the Indo Pacific,' Mr Marles said. 'And as we seek to focus on the Indo Pacific, we really need to have an eye on what's occurring here, which is why this meeting has been so important and has grown importance over the last few years. And I see it as being very important as we go into the future.' Still no Trump meet Among the summit's attendees was Donald Trump. Neither Anthony Albanese nor any of his senior ministers have had an in-person meeting with the US President since his inauguration in January, driving concerns about the Prime Minister's management of the Australia-US alliance. Mr Marles was close to meeting Mr Trump as part of talks with the Indo Pacific Four (IP4), but a last-minute schedule change dashed chances of a face-to-face. Mr Marles said it was a 'really important meeting with the (NATO) Secretary General' all the same, stressing that fellow IP4 countries Japan, Korea and New Zealand 'are deeply important in terms of Australia's strategic interests'. 'In respect of all of them, we really are at a high point of our bilateral relationship, and we are working increasingly as a team,' he said. He added that having 'the best lines of communication possible with NATO, to be working as closely as possible with NATO is very much in the advantage of the four of us in terms of how we jointly assert our national interests within the Indo Pacific'. 'And it was a very important meeting in respect of that,' Mr Marles said. He also said he did not get to meet US Defence Secretary Pete Hegseth. They last met on the sidelines of the Shangri La Dialogue in Singapore earlier this month. Mr Hegseth used the meeting to call on the Albanese government to lift defence spending to 3.5 per cent of GDP, igniting a major debate in Canberra and fuelling criticisms that Australia is ill-prepared to defend itself against an increasingly aggressive China. Mr Marles said it was not disappointing he did not get to meet his US counterpart. 'I'm in contact with Pete,' he said. 'We met in Singapore just a few weeks ago, and I met him literally a few months before that.' He said there would 'be opportunities to be able to further the conversations that need to be had with Pete Hegseth in the future'. No budge on budget NATO members agreeing to boost defence spending to 5 per cent of GDP was the key outcome of this week's summit. The collective commitment is a major win for Mr Trump, who has threatened to drop US military support for Europe it did not spend more. Mr Marles said it was 'obviously a very significant decision has been made here in relation to European defence spending', but noted it was 'fundamentally a matter for NATO'. 'We've gone through our own process of assessing our strategic landscape, assessing the threats that exist there, and the kind of defence force we need to build in order to meet those threats, to meet the strategic moment, and then to resource that,' he said. 'And what that has seen is the biggest peacetime increase in Australian defence spending that we have seen in our history.' Mr Marles said the Albanese government's position was 'understood' by NATO. Finance Minister Katy Gallagher echoed the position when fronting media on Thursday, saying Labor had 'put billions of dollars into defence'. 'But I would again say in the last three years we put $11bn across the forward estimates and $57bn into defence over the medium term,' she told the ABC. 'We've been able to do that at a time we have put increases into health, and other important social programs. 'So … it is a balancing act. But the government's job is to make sure that all areas of government are funded properly, including defence.' While the Albanese government has committed record cash for the defence budget, much of it would not kick in until after 2029. With the Australia itself predicting a major global conflict by 2034 and some analysts warning of a US-China conflict before 2030, critics have argued the money is not flowing fast enough and instead tied up in longer-term projects at the cost of combat-readiness.
