BUSINESS BRIEFS
Hilfiger signs exclusivity deal with Macy's
Associated Press
NEW YORK — Department-store operator Macy's Inc. yesterday said it agreed to be the exclusive department-store retailer for Tommy Hilfiger U.S.A. men's and women's sportswear in the U.S., beginning in fall 2008.
Financial terms were not disclosed. Under the deal, Macy's will expand Hilfiger merchandise in every Macy's division and on www.macys.com. That means that within the next 10 months or so Tommy Hilfiger sportswear will no longer be distributed in stores like Bon-Ton Stores Inc. and Dillard's Inc.
The deal is the latest in a slew of exclusive agreements between store chains and designers as a way to differentiate themselves in a fiercely competitive environment. But the Macy's-Tommy Hilfiger partnership is different from others because of the designer's immense popularity in the marketplace
Tommy Hilfiger, which built big shops next to other powerhouse designer names such as Calvin Klein and Ralph Lauren in U.S. department stores, has suffered a sales slowdown in recent years.
MERRILL LYNCH CEO MAY BE OUT
NEW YORK — Merrill Lynch & Co. Chief Executive Stan O'Neal faces the potential loss of his job over questions about his leadership of the world's largest brokerage — and he may face a revolt led by former top executives calling for his ouster.
Shares of the company had their biggest jump in five years yesterday as speculation swirled that O'Neal's job was on the line. He lost the confidence of investors earlier in the week after Merrill posted a $2.24 billion third-quarter loss — the biggest amount in its 93-year history.
In the face of reports that O'Neal angered Merrill Lynch's board by initiating merger talks with Wachovia Corp. without their knowledge, there is growing sentiment on Wall Street that his days are numbered.
SALE OF WENDY'S STILL ON HOLD
COLUMBUS, Ohio — Wendy's International Inc. said changes at its restaurants are paying off, but that a decision about the possible sale of the nation's third-largest hamburger chain is taking longer than expected.
Wendy's reported its third-quarter earnings fell 57 percent from a year ago, before it spun off the Tim Hortons. But its results easily beat Wall Street estimates, helped by improving margins and cost controls.
Wendy's said it made $29.9 million, or 34 cents a share, for the quarter ended Sept. 30 compared with earnings of $69.2 million, or 58 cents a share, a year ago. Revenue was about flat at $631.1 million versus $630.1 million in the year-ago quarter.
Sales at stores opened at least a year rose 0.2 percent in the quarter, compared with 4.1 percent a year ago.
Wendy's shares rose 57 cents, to $34.06 trading yesterday.
CRUDE FUTURES AT RECORD LEVELS
NEW YORK — Crude oil futures rose to record levels yesterday, supported by worries over political tensions in the Middle East where the U.S. imposed sanctions on Iran and Turkish troops remained massed at the Iraq board to counter Kurdish rebels.
In addition, the market was unsettled by a dawn attack on an oil vessel off the coast of Nigeria by anti-government militants and suggestions that OPEC oil shipments are not rising as quickly as expected.
While rising more than $1, crude futures retreated from an earlier all-time high above $92 as investors sold to lock in profits from the latest multi-day record-setting rally.
Oil futures have risen nearly $7 a barrel, or 8 percent, since the government Wednesday reported a sharp drop in crude inventories in the United States. The inventory numbers reinforced a view that oil supplies are falling at a time of year when they should be rising to meet fourth-quarter demand.
Light, sweet crude for December delivery rose $1.40 to settle yesterday at a record $91.86 a barrel on the New York Mercantile Exchange.
