Latest news with #retailindustry
Yahoo
5 days ago
- Business
- Yahoo
‘Vegas is not fun anymore': $9 cups of coffee and pricier rooms are steering travelers away from the vacation mecca
For decades, Las Vegas was considered a destination of bargains galore, offering 99-cent shrimp cocktails, $10 steak dinners and shows that cost no more than the price of a drink. But those days are long gone. Instead, think $9 cups of coffee, $100-a-person buffet spreads and a movie ticket that can set you back a whopping $279. 'Vegas is not fun anymore': $9 cups of coffee and pricier rooms are steering travelers away from the vacation mecca 'He cannot match my spending': I'm 65 and have $7 million. My boyfriend is 73. Should he release equity from his home so we can enjoy retirement? America's 63 million family caregivers are mostly unpaid, stressed and begging for help Dow left behind as S&P 500 soars to record after record. What gives? 'His income is limited': Should I pay $800 a month towards my husband's $67,000 student debt? It's prices like these that have some Vegas regulars saying the tourist and gambling mecca has lost its appeal. 'Vegas is not fun anymore,' said Amrita Bhasin, a retail-industry entrepreneur who has traveled there frequently for business as well as pleasure. Her pet financial peeve? The resort fees that hotels charge, which she said can add as much as $50 a day to the tab. Such complaints are coming at a time when Vegas has seen a sizable drop in visits. In June, hotel occupancy rates fell 14.6% versus the prior year, according to CoStar, a global provider of real-estate data, analytics and news. They were down 12.3% for the current month through July 19. Among the city's major hotel and gaming operators are such corporate giants as Caesars Entertainment CZR and MGM Resorts International MGM. Both companies declined comment for this story. Vegas tourism officials don't deny that the city is going through a dry spell, but they say it's reflective of tourism declines nationwide, particularly as foreigners hesitate to come to the U.S. 'Very little of the drop is a Vegas issue,' said Steve Hill, president and CEO of the Las Vegas Convention and Visitors Authority. Hill pointed to a significant decline in travelers from Canada as a critical factor, since Canadians have traditionally been the city's biggest international market. Specifically, Hill said the number of Canadian visitors has declined around 20% in Las Vegas. That dovetails with a broader U.S. trend, which shows a decline of nearly 19% in visits by our northern neighbors. David Cárdenas, a tourism expert who teaches at the University of Nevada's William F. Harrah College of Hospitality in Las Vegas, said foreigners are staying away from Vegas and other U.S. destinations for a host of reasons, from weak exchange rates to concerns about U.S. immigration policies under President Donald Trump. Canadians have also been particularly incensed over Trump's comments about making the country the 51st U.S. state, as has been widely reported, and that may be playing a role in their decision not to travel to the U.S. But plenty of travelers say Vegas has simply become a budget buster. And hospitality experts who know the city say the high costs are definitely a factor in the tourism slump. Philip Knott, an asset-strategy adviser and hospitality executive who has worked for companies operating and investing in Vegas, is one of those who view it that way. 'Vegas is now seen as overpriced,' he said, pointing to everything from expensive dining to hidden charges at hotels. 'All of those things are impacting booking.' Even without those hidden charges, hotels have gotten much pricier over the years. In 2015, the average daily room rate in Vegas was $124.42, according to CoStar. In 2024, it was $209.54, an increase of nearly 70%. It's not just about room rates, however. Visitors point to a variety of things that are hitting them in the wallet. Like that $9 cup of coffee, which is what you'll spend for a regular-size brew at Café Belle Madeleine, located in the Paris Las Vegas resort, a Caesars property. Or that $100 buffet, which is roughly what you'll pay for the spread on a weekend, including tax, at the Bacchanal, located at Caesars Palace. What about that $279 movie ticket? Technically, that's the price of a VIP package for what's called the Sphere Experience, a screening of the Darren Aronofsky film 'Postcard from Earth' plus a few preshow attractions at the Sphere, the $2 billion Vegas entertainment venue that opened in 2023. Even if you don't opt for the VIP treatment, a basic ticket starts at $89 for upcoming shows, according to what's listed on Ticketmaster. Officials with the Sphere didn't respond to a MarketWatch request for comment. Of course, value-conscious travelers will still find ways to save on a Vegas vacation. Lisa Nicole Jackson, a Los Angeles resident who visits Vegas about three times a year, said she always hunts for deals — and usually finds them. For example, she attended the Sphere Experience for free as part of a hotel package. Still, Jackson admits that there is the occasional reminder of how expensive Vegas can get these days. Her prime example: a $17 smoothie. Jackson also said she doesn't like the resort fees that hotels charge, especially when she feels the service and amenities aren't commensurate with the tacked-on cost. An example she cited was hotel pools that close relatively early in the day — 'like 6 p.m.,' she said of a recent experience. Vegas tourism officials say that deals can readily be found for hotels, particularly during the summer, which is considered the off-season in the city. And sure enough, one of the big deals being promoted right now by some establishments is waiving those pesky resort fees. 'We've got an offering for every budget,' said Hill of the city's Convention and Visitors Authority. As for things like that $9 cup of coffee, he said: 'You're not paying $9 for the coffee. You're paying $9 for the setting.' There's a reason that Vegas has a $9 cup of coffee, experts say, and that those $10 steak dinner deals of yesteryear are largely gone: Vegas hotels no longer rely as heavily on gambling revenue. Those steak-dinner deals were often loss leaders aimed at getting people inside to play the slots or hit the craps table. Now Vegas is about the setting, with elaborately themed hotels — yes, Paris in Nevada — along with restaurants helmed by celebrity chefs and performances by star entertainers. In the upcoming week alone, Beyonce, Kelly Clarkson and the Backstreet Boys are in town, and there are ongoing engagements by the likes of David Copperfield and Penn & Teller. The Vegas of today also demands a highly qualified workforce, one that requires good salaries and benefits, says Tony Abou-Ganim, a renowned bar professional who's been based in Vegas for more than 20 years and is now a managing partner at Libertine Social, a craft cocktail establishment at Mandalay Bay. 'It takes a $9 cup of coffee to provide that,' said Abou-Ganim. 'In turn, hopefully the guest experience is elevated.' But experts say there's no disputing that such costs can make Vegas seem out of reach for many middle-class travelers — the very same vacationers who helped put the city on the tourism map. As for Bhasin, the entrepreneur who has been a Vegas regular, she's fairly certain she'll be cutting back on her trips to the city, in large part because of the cost. Her next vacation there is with family, but she says the plan is actually to visit national parks far from the famed Vegas Strip. 'The only reason we're flying into Vegas is because the flight was cheaper,' Bhasin said. My ex-husband's benefit will be $2,600 at retirement age, and mine is $2,200. Can I claim on his record instead? 'If I was writing the checks at Coke, I wouldn't write the check for this,' one expert says about cane-sugar Coke Homeowners in these states are the winners if Trump ends capital-gains taxes for home sellers Newly built homes are cheaper than previously owned homes as builders ramp up price cuts Social Security Administration quietly corrects blog on taxation of benefits — but confusion persists Solve the daily Crossword
Yahoo
14-07-2025
- Business
- Yahoo
Reflecting On Specialty Retail Stocks' Q1 Earnings: Academy Sports (NASDAQ:ASO)
Quarterly earnings results are a good time to check in on a company's progress, especially compared to its peers in the same sector. Today we are looking at Academy Sports (NASDAQ:ASO) and the best and worst performers in the specialty retail industry. Some retailers try to sell everything under the sun, while others—appropriately called Specialty Retailers—focus on selling a narrow category and aiming to be exceptional at it. Whether it's eyeglasses, sporting goods, or beauty and cosmetics, these stores win with depth of product in their category as well as in-store expertise and guidance for shoppers who need it. E-commerce competition exists and waning retail foot traffic impacts these retailers, but the magnitude of the headwinds depends on what they sell and what extra value they provide in their stores. The 9 specialty retail stocks we track reported a satisfactory Q1. As a group, revenues along with next quarter's revenue guidance were in line with analysts' consensus estimates. Luckily, specialty retail stocks have performed well with share prices up 15% on average since the latest earnings results. Founded in 1938 as a tire shop before expanding into fishing equipment, Academy Sports & Outdoor (NASDAQ:ASO) sells a broad selection of sporting goods but is still known for its outdoor activity merchandise. Academy Sports reported revenues of $1.35 billion, flat year on year. This print fell short of analysts' expectations by 1.5%. Overall, it was a softer quarter for the company with a significant miss of analysts' EBITDA and EPS estimates. 'During the first quarter we saw continued progress across our strategic initiatives, including the opening of five new stores, and the biggest brand launch in the Company's history with the addition of the Jordan Brand,' said Steve Lawrence, Chief Executive Officer. Interestingly, the stock is up 14% since reporting and currently trades at $50.64. Read our full report on Academy Sports here, it's free. A go-to destination for individuals passionate about hunting, fishing, camping, hiking, shooting sports, and more, Sportsman's Warehouse (NASDAQ:SPWH) is an American specialty retailer offering a diverse range of active gear, equipment, and apparel. Sportsman's Warehouse reported revenues of $249.1 million, up 2% year on year, outperforming analysts' expectations by 4.6%. The business had a stunning quarter with an impressive beat of analysts' EBITDA estimates. Sportsman's Warehouse pulled off the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 43.2% since reporting. It currently trades at $3.35. Is now the time to buy Sportsman's Warehouse? Access our full analysis of the earnings results here, it's free. Spun off from L Brands in 2020, Bath & Body Works (NYSE:BBWI) is a personal care and home fragrance retailer where consumers can find specialty shower gels, scented candles for the home, and lotions. Bath and Body Works reported revenues of $1.42 billion, up 2.9% year on year, in line with analysts' expectations. It was a slower quarter as it posted EPS guidance for next quarter missing analysts' expectations significantly and full-year EPS guidance missing analysts' expectations. Interestingly, the stock is up 8.5% since the results and currently trades at $33.06. Read our full analysis of Bath and Body Works's results here. With humble beginnings as a stereo equipment seller, Best Buy (NYSE:BBY) now sells a broad selection of consumer electronics, appliances, and home office products. Best Buy reported revenues of $8.77 billion, flat year on year. This number met analysts' expectations. Overall, it was a satisfactory quarter as it also recorded an impressive beat of analysts' EBITDA estimates. Best Buy delivered the highest full-year guidance raise among its peers. The stock is flat since reporting and currently trades at $71.66. Read our full, actionable report on Best Buy here, it's free. Drawing gaming fans with demo units set up with the latest releases, GameStop (NYSE:GME) sells new and used video games, consoles, and accessories, as well as pop culture merchandise. GameStop reported revenues of $732.4 million, down 16.9% year on year. This print missed analysts' expectations by 2.9%. Zooming out, it was actually a strong quarter as it produced an impressive beat of analysts' EPS estimates and a solid beat of analysts' gross margin estimates. GameStop had the weakest performance against analyst estimates and slowest revenue growth among its peers. The stock is down 22.5% since reporting and currently trades at $23.40. Read our full, actionable report on GameStop here, it's free. As a result of the Fed's rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed's 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump's victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. 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
Daily Mail
03-07-2025
- Business
- Daily Mail
Currys boss warns Reeves against further tax hikes as retailer cuts hiring
The boss of Currys has warned the Chancellor that further tax hikes will hurt growth and jobs. Chief executive Alex Baldock said the government should 'think very carefully before they make the situation any worse'. But he insisted Currys could 'swim against the tide' as the electronics retailer reported a 37 per cent jump in annual profits. His warning came amid growing fears that Rachel Reeves will increase the tax burden on UK businesses in her October Budget. Currys and other retailers have already cut back on hiring after Reeves hiked employer National Insurance contributions and granted workers an inflation-busting minimum wage increase last autumn. Baldock said hiring had been 'more depressed by the policy environment'. 'We could be employing more people were the outside world more conducive,' he added. 'We want to be helping to grow the economy and bring investment into the UK…retailers would like to do it and we would be able to do more of it with a more helpful policy environment.' Baddock said: 'The tax burden that retailers already suffer is dampening the contribution that we could make, any further tax burden would further dampen growth investment and employment and increase prices.' But Baldock is confident Currys can 'swim somewhat against the tide'. 'Without any help from the outside…what we've shown is that Currys will get on with doing what's in our control,' Baldock said. The electronics retailer beat analyst expectations to report profit of £162million – a 37 per cent increase on a year earlier. Group revenue rose 3 per cent to £8.7billion in the 12 months to 3 May. UK sales were driven by demand in Currys mobile phone and computing businesses. It also reported that health and beauty products such as Oura rings, Garmin watches and electrical face masks were growing fast. The recent heatwave has seen fans 'flying out of stores' as well as an increase in sales of air conditioning units and barbeques. Baldock said the balance sheet is the strongest it has been for a decade with net cash of £184million. The retailer reinstated its dividend for the first time in two years as it proposed a payout of 1.5p per share and hinted at the prospect of a share buyback in the future.
Daily Mail
26-06-2025
- Business
- Daily Mail
H&M profits fall as stores close and boss weighs 'uncertain times'
H&M Group has unveiled a sharp fall in operating profits after the retailer closed stores and suffered the impact of currency fluctuations and high freight costs. The world's second-largest listed fashion retailer saw operating profits slump 22 per cent for the six months to SEK 7.1billion, or £548million, in the six months to 1 May. It credited the drop to a lower gross margin driven by 'negative external factors such as a more expensive US dollar and high freight costs, but also by markdowns and the company's investments in the customer offering'. H&N also finished the second quarter with 4 per cent fewer shops worldwide than it had at the same point a year ago. At the beginning of the second quarter, the business had 125 fewer stores than at the same time a year earlier, with net store closures coming in at 47. Across all its locations, it had 4,166 shops on 31 May 2025, against 4,319 a year ago. Update: H&M Group flagged store closures and lower operating profits in its latest half-year update During the first six months of the current financial year, 24 new stores opened and 111 shops closed, H&M Group said. The group, which operates H&M and brands like Cos and & Other Stories, said there were 3,706 H&M stores open globally on 31 May 2025, compared to 3,832 the previous year. H&M eyes improvement The world's second-largest listed fashion retailer said it expected sales in June, measured in local currencies, to rise 3 per cent, representing an improvement after a 6 per cent fall a year ago in the same period. H&M also said it was ploughing on with plans to open new shops and an online shopping website in Brazil later this year. The group said it would benefit from Brazil's population of around 200million people. Chief executive, Daniel Ervér, said: 'Our plan, with its focus on the product offering, the shopping experience and brand, is again confirmed by the progress we see. 'The positive development in important areas such as online, H&M womenswear and H&M Move, as well as continued focus on good cost control, will contribute to a profitable sales development. 'In uncertain times with cautious consumers we monitor macroeconomic and geopolitical developments closely and continuously adapt both the customer offering and the business to meet our customers' needs in the best way. In November, H&M confirmed it would be closing its call centre in Edinburgh, Scotland, with 150 jobs lost. H&M blamed increased competition, changing customer behaviours and operational costs for the closure. The Swedish-based business announced during the Covid-19 pandemic that it planned to close 250 shops globally. This year, the group closed all its Monki stores across Britain. British retailers face a barrage of higher costs as a result of changes to employer national insurance contributions and the national minimum wage announced in the Autumn Budget by Rachel Reeves last year.
Times
16-06-2025
- Business
- Times
John Lewis scion quits job over hybrid working demands
A scion of the John Lewis founding family has resigned from Oak Furnitureland less than a year into his role over hybrid working demands. Patrick Lewis, the great-grandson of John Spedan Lewis, the founder of the department store chain, stepped down as chief financial officer this month having joined the retailer last July. Oak Furnitureland required staff to be in the Swindon-based head office three days a week, but it is understood the demands became unsustainable and Lewis wanted to be closer to his family, who live in the southeast of England. Lewis, 59, has not taken on another executive role elsewhere but will continue with a number of non-executive board positions he already held. His last executive role was at John Lewis Partnership, where he was chief financial officer between 2015 and 2020. He is the last remaining family member of John Lewis. Oak Furnitureland, which has struggled since it was bought in a pre-pack deal in 2020, has appointed Grayham Dibb-Fuller as interim chief financial officer. Alex Fisher, chief executive of Oak Furnitureland, said Dibb-Fuller brought 'extensive retail and consumer experience, which will be invaluable as we continue to focus on delivering the next phase of growth'. The change in leadership comes as Oak Furnitureland continues to navigate a difficult trading environment. Revenue fell by 17 per cent to £236 million in the 12 months to the end of June last year, which it blamed on 'a weak furniture market'. It added that 'despite improving gross margins, overall profit margins have remained under pressure due to reduced volumes driven by a soft market and external inflationary factors, such as Red Sea disruption, which have impacted freight rates'. Pre-tax losses narrowed from £31.9 million to £17.1 million, which it said was 'driven by the diverse product pipeline and focus on enhancing the online and showroom estate'. Losses are understood to have narrowed further in the latest financial year. The company, owned by Davidson Kempner Capital Management, the New York-based investment management company, secured an extra £10 million in funding and £47.8 million in a debt-for-equity swap in June last year. Fisher said he 'was encouraged by the company's performance during the past ten months and the clear progress that we're making against our strategic plan since we last reported our financial results'. He thanked Lewis for his time at the company: 'He has been a key part of the leadership team and a real champion of our business. We're grateful for the impact he's made during his time at Oak Furnitureland and wish him the very best as he takes more time to focus on his non-executive commitments and his family.'
