Latest news with #Schottenstein
New York Post
a day ago
- Business
- New York Post
Ex-hedge fund manager hit with insider trading charges again — 3 years after feds forced to drop case
A former Miami-based hedge fund manager was arrested on Friday after federal prosecutors revived an insider trading case they had been forced to drop in 2022 after a key witness withdrew from an agreement to testify against him. Federal prosecutors in Boston said Kris Bortnovsky, co-founder of Sakal Capital Management, earned over $4 million by placing illegal trades based on tips he received from among others a friend whose family held investments and leadership roles in retailers like DSW owner Designer Brands. That friend was David Schottenstein, a Florida entrepreneur who was sentenced to a year in prison in 2023 after admitting to his role in an insider trading scheme that had led to earlier charges against Bortnovsky and another man. Federal prosecutors in Boston said Kris Bortnovsky, co-founder of Sakal Capital Management, earned over $4 million by placing illegal trades based on tips he received. Getty Images Schottenstein had originally agreed to testify against them but subsequently backed out of his cooperation deal with authorities. Prosecutors then dropped their case against Bortnovsky and the other man in December 2022. Prosecutors reserved the right to bring the case again, saying their investigation was ongoing, and on Friday revealed they had obtained guilty pleas from three other individuals in recent months related to their involvement in the scheme. Friday's indictment charged Bortnovsky not just with securities fraud but also obstruction of justice, alleging he intimidated Schottenstein, identified in the indictment as 'CC-1,' in March 2022. The indictment alleged Bortnovsky while on bail followed Schottenstein into an orthodox synagogue he attended and, while wearing dark sunglasses, stared at Schottenstein with the intent to influence his testimony. Lawyers for Bortnovsky and Schottenstein did not respond to requests for comment. Prosecutors said that from 2017 to 2019, Bortnovsky conspired with others to trade on non-public information of DSW, now called Designer Brands, Aphria Inc. and Rite Aid. Colin Douglas Gray Prosecutors said that from 2017 to 2019, Bortnovsky conspired with Schottenstein and others to trade on non-public information regarding the earnings results and merger-and-acquisition activity of companies including DSW, now called Designer Brands; Aphria Inc; and Rite Aid. Prosecutors said Schottenstein passed along information he learned from a relative on the boards of DSW and Green Growth Brands, which pursued a failed bid to acquire Aphria. A Schottenstein family business was involved in a failed merger involving Rite Aid. The indictment said Bortnovsky also traded on information he received from another person about a private equity firm's potential acquisition of home décor retail chain At Home Group in 2017 and 2019 and the termination of those deal talks.
Yahoo
a day ago
- Business
- Yahoo
Former Florida hedge fund manager charged with insider trading, again
By Nate Raymond BOSTON (Reuters) -A former Miami-based hedge fund manager was arrested on Friday after federal prosecutors revived an insider trading case they had been forced to drop in 2022 after a key witness withdrew from an agreement to testify against him. Federal prosecutors in Boston said Kris Bortnovsky, co-founder of Sakal Capital Management, earned over $4 million by placing illegal trades based on tips he received from among others a friend whose family held investments and leadership roles in retailers like DSW owner Designer Brands. That friend was David Schottenstein, a Florida entrepreneur who was sentenced to a year in prison in 2023 after admitting to his role in an insider trading scheme that had led to earlier charges against Bortnovsky and another man. Schottenstein had originally agreed to testify against them but subsequently backed out of his cooperation deal with authorities. Prosecutors then dropped their case against Bortnovsky and the other man in December 2022. Prosecutors reserved the right to bring the case again, saying their investigation was ongoing, and on Friday revealed they had obtained guilty pleas from three other individuals in recent months related to their involvement in the scheme. Friday's indictment charged Bortnovsky not just with securities fraud but also obstruction of justice, alleging he intimidated Schottenstein, identified in the indictment as "CC-1," in March 2022. The indictment alleged Bortnovsky while on bail followed Schottenstein into an orthodox synagogue he attended and, while wearing dark sunglasses, stared at Schottenstein with the intent to influence his testimony. Lawyers for Bortnovsky and Schottenstein did not respond to requests for comment. Prosecutors said that from 2017 to 2019, Bortnovsky conspired with Schottenstein and others to trade on non-public information regarding the earnings results and merger-and-acquisition activity of companies including DSW, now called Designer Brands; Aphria Inc; and Rite Aid. Prosecutors said Schottenstein passed along information he learned from a relative on the boards of DSW and Green Growth Brands, which pursued a failed bid to acquire Aphria. A Schottenstein family business was involved in a failed merger involving Rite Aid. The indictment said Bortnovsky also traded on information he received from another person about a private equity firm's potential acquisition of home décor retail chain At Home Group in 2017 and 2019 and the termination of those deal talks.
Yahoo
17-05-2025
- Business
- Yahoo
American Eagle Outfitters pulls 2025 outlook on ‘disappointing' Q1
In its preliminary report for the first quarter, American Eagle Outfitters said its performance was 'disappointing', which has led to a reconsideration of its strategy for the upcoming months. AEO expects revenue for full year to decline by low-single-digit decline, with anticipated operating income ranging between $360m and $375m. AEO chief executive officer and board executive chairman Jay Schottenstein said: "We are clearly disappointed with our execution in the first quarter. Merchandising strategies did not drive the results we anticipated, leading to higher promotions and excess inventory. As a result, we have taken an inventory write down on spring and summer goods." Initial financial data for Q1 suggests a projected revenue of approximately $1.1bn, representing a 5% decline from the previous year's corresponding period. Comparable sales also fell by an estimated 3%, with American Eagle brand sales down by 2% and Aerie by 4%. AEO anticipates reporting a GAAP operating loss around $85m for the quarter, with an adjusted operating loss of about $68m. The adjusted loss reflects heightened promotional activity and includes an inventory charge nearing $75m due to discounts on seasonal merchandise. In its fiscal 2024 report released this March, revenue for the first quarter was expected to decline mid-single-digit decline and operating income was projected to be between $20m and $25m. The GAAP operating loss encompasses an additional charge of nearly $17m for asset impairment and restructuring costs, primarily linked to shutting down two distribution centres as part of AEO's supply chain optimisation efforts. Schottenstein added: "We have entered the second quarter in a better position, with inventory more aligned to sales trends. Additionally, we are actively evaluating our forward plans. Our teams continue to work with urgency to strengthen product performance, while improving our buying principles." "American Eagle Outfitters pulls 2025 outlook on 'disappointing' Q1" was originally created and published by Just Style, 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
Fashion United
15-05-2025
- Business
- Fashion United
American Eagle Outfitters withdraws guidance after millions in write-downs on inventories
US clothing group American Eagle Outfitters withdrew its forecasts for the full year following disappointing preliminary figures for the first quarter. Revenues are expected to fall by 5 percent to 1.1 billion dollars. Sales at the main brand American Eagle fell by 2 percent, and at the activewear label Aerie by 4 percent. An adjusted operating loss of approximately 68 million dollars is also expected. Excess inventories The group attributed the adjusted operating loss to higher-than-planned advertising expenses and an inventory write-down of approximately 75 million dollars for summer and winter goods. Back in March, American Eagle Outfitters stated that inventories of 637 million dollars were 'healthy and well-positioned for the spring season'. 'We are clearly disappointed with our performance in the first quarter. The merchandising strategies did not deliver the results we anticipated, leading to higher promotional costs and excess inventories. As a result, we have taken an inventory write-down on spring and summer goods,' said chief executive officer (CEO) Jay Schottenstein in a statement on Tuesday. Forecast withdrawn Given the business development in the first quarter and macroeconomic uncertainties, the company is withdrawing its forecasts for the full year. In March, American Eagle Outfitters still expected revenue to decline by a low single-digit percentage in 2025, while operating income would be approximately 360 to 375 million dollars. 'We have started the second quarter in a better position and have better aligned our inventories with sales performance. We are also actively reviewing our future plans,' added Schottenstein. 'Our teams continue to work with vigour to increase product performance while improving our purchasing.' The group plans to announce its final business figures for the first quarter on May 29. This article was translated to English using an AI tool. FashionUnited uses AI language tools to speed up translating (news) articles and proofread the translations to improve the end result. This saves our human journalists time they can spend doing research and writing original articles. Articles translated with the help of AI are checked and edited by a human desk editor prior to going online. If you have questions or comments about this process email us at info@
14-05-2025
- Business
American Eagle tumbles after pulling financial guidance for 2025
Shares of American Eagle Outfitters are tumbling before Wednesday's opening bell after the retailer withdrew its financial outlook for the year citing 'macro uncertainty' and said it would write down $75 million in spring and summer merchandise. American Eagle said late Tuesday that it expects first-quarter revenue to slide 5%, or more than $1 billion. Same-store sales, a key gauge of a retailer's health, are projected to fall about 3%. The Pittsburgh company foresees a first-quarter adjusted operating loss of about $68 million due to the inventory write-down as well as heavier spending on promotions. The company's stock slumped more than 14% in premarket trading Wednesday. CEO and Executive Chairman Jay Schottenstein said the retailer is unhappy with its execution during the first quarter. 'Merchandising strategies did not drive the results we anticipated, leading to higher promotions and excess inventory,' Schottenstein said in a statement. "As a result, we have taken an inventory write down on spring and summer goods." A large number of companies across multiple sectors have withdrawn financial guidance this year as a U.S.-led trade war creates uncertainty about costs for imported goods. The massive shift in U.S. trade policy has unsettled consumers as well and there are early signs that may Americans are becoming more judicious about spending. American Eagle cited macro uncertainty as it pulled it 2025 financial guidance as it reviews future plans. Schottenstein said American Eagle is in a better position for the second quarter, with inventory more aligned to sales trends. "Our teams continue to work with urgency to strengthen product performance, while improving our buying principles,' he said. Paul Lejuez of Citi Investment Research said in a note to clients that he expects American Eagle to aggressively cut its inventory plans for the second half of the year and to focus on cost control. 'With the demand picture less clear and margin pressure from tariffs, promos and freight, American Eagle is in a tough spot to navigate the current uncertain environment,' he wrote.
