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Retail
Giant Eagle swoops into Kroger’s hands for US$1.65bn
Kroger has agreed to acquire family-owned United States regional supermarket chain Giant Eagle for US$1.65 billion (A$2.4 billion) as it responds to intensifying competition from other retailers. The U.S.' largest supermarket operator said the consideration was $1.25 billion in cash and the assumption of about $400 million in outstanding liabilities. The acquisition will add Giant Eagle's network of 197 supermarkets and 11 standalone pharmacies to Kroger's 2,700 supermarkets in 35 states. “Giant Eagle is a well-run, high-quality regional grocer with a strong reputation for fresh products, pharmacy, private label and customer loyalty,” Kroger Chief Executive Officer Greg Foran said in a news release. “We evaluated the opportunity carefully, and the strategic fit is clear. Giant Eagle expands our reach into attractive adjacent markets, allowing us to do what we do best: Run outstanding stores, deliver fresh foods and convenient meal solutions at affordable prices, and take care of our customers and associates every single day.” This is the first major acquisition under New Zealand-born Foran, who joined as Chief Executive Officer in February after a career including roles at Woolworths, Walmart and Air New Zealand.
Retail
Lululemon shares take a hit after poor quarterly results
Lululemon shares have taken a hit after a difficult quarter. The activewear giant released its latest earnings report at the end of last week, with revenue up but income down. While revenue was posted at US$2.47 billion, compared to $2.37 billion a year ago, the cost of goods sold had spiked up 14%, alongside a 12.4% increase in selling and general expenses for the company. The overall result was a profit down by 4% and net income down by 38% for the quarter, as well as a drop in earnings per share to $1.69, from $2.60 the same time last year. Now, this week, Lululemon found itself trading at an eight year low. “We experienced a solid start to 2026…more recently, we have been navigating headwinds that have led us to adjust our outlook for the full year,” said Meghan Frank, Interim Co-CEO and Chief Financial Officer. “We have assessed the business and are taking additional actions to reposition where needed and further strengthen our product engine. We remain confident in our path forward.” The company maintains a market capitalisation of $14.4 billion.
Retail
Costco earnings: Fuel demand surges amid oil price spike
Costco Wholesale reported third-quarter results after the U.S. market close on Thursday (Friday AEST), with rising fuel prices driving record demand at its petrol stations, helping the retailer outperform expectations for comparable sales growth. The wholesale retailer reported earnings per share (EPS) of US$4.93, in line with market expectations, while revenue came in at $70.53 billion; an increase of 11.6% from $63.2 billion in the prior corresponding period (pcp), and also matching forecasts. Comparable sales rose 9.8% during the quarter, exceeding market expectations for growth of 7.8%. Excluding the impact of higher fuel prices, adjusted comparable sales increased 6.6%. Digital comparable sales climbed 21.5%, supported by a 37% increase in traffic across Costco’s website and mobile app. Membership fee revenue rose 11% to $1.37 billion, while the number of paid members increased 4.1% to 82.9 million. The retailer said its strongest-performing categories included pharmacy, home furnishings, gold and jewellery. Chief executive Ron Vachris said Costco experienced “record-breaking volumes” at its petrol stations during the quarter as consumers sought cheaper fuel amid rising oil prices linked to conflict in th
Retail
Walmart issues low guidance amid high fuel costs
Walmart beat revenue estimates last quarter, but shares fell more than 7% after it issued lower-than-expected guidance amid high fuel prices. Revenue was up 7.9% year-over-year to US$177.75 billion, above LSEG-compiled estimates of $174.98 billion. Earnings per share were $0.66, rising from $0.61 and in line with estimates. “Our results reflect our continued focus on delivering across the enterprise — better shopping experiences, a broader assortment, and faster delivery,” said Walmart president and CEO John Furner. “Our teams are adopting innovative technologies, driving productivity through automation, and growing higher-margin commerce solutions. It’s a disciplined approach that’s helping us grow the business and strengthen returns.” Comparable sales growth was 4.1%, in line with estimates but slowing from 4.5% one year ago. Global e-commerce sales were up 26%, and membership fee revenue rose 17.4%. Operating income increased 5% to $7.49 billion, though it said this included a 250 basis point hit from high fuel costs in distribution and fulfillment. The company’s outlook for the current quarter includes net sales growth of 4.0-5.0% and earnings per share of $0.72-0.74. This is below estimates of $0.75. Risi
Retail
Home Depot beats despite housing market strain
Home improvement retailer Home Depot beat earnings and revenue estimates last quarter, and reaffirmed its outlook despite ongoing housing market pressures. Earnings per share fell 3.7% year-over-year to US$3.43, above LSEG-compiled estimates of $3.41. Revenue was up 4.8% to $41.77 billion, passing estimates of $41.52 billion. “Our first quarter results were in line with our expectations. The underlying demand in our business was relatively similar to what we saw throughout fiscal 2025, despite greater consumer uncertainty and housing affordability pressure,” said CEO, president, and chair Ted Decker. The company reported 391.1 million customer transactions, an 0.9% fall. The average ticket grew 2.3% to $92.76. Comparable sales were up 0.6%, under StreetAccount estimates of 0.8%. Nine of its 16 merchandising departments saw an increase in comparable sales. Operating income was down 3% to $4.98 billion. Operating expenses rose 5.7% to $8.80 billion, driven by 5.7% growth in selling, general and administrative expenses. Across fiscal 2026, Home Depot has projected sales growth of 2.5-4.5% and adjusted diluted earnings per share growth 0-4%. LSEG estimates included sales growth of 4%, with earnings per share increasi

Retail
Target sales rise, lifts guidance amid turnaround plan
Retailer Target beat earnings and revenue estimates last quarter, and has doubled its annual sales growth guidance amid its turnaround efforts. Earnings per share were US$1.71, up from $1.30 one year ago and above LSEG-compiled estimates of $1.46. Net sales rose 6.7% to $25.44 billion, passing estimates of $24.64 billion. “First quarter financial results were stronger than expected, providing encouraging early signs that our clarified strategy is resonating with our guests and driving broad-based growth across our business,” said CEO Michael Fiddelke. “While we're pleased with our Q1 performance, our focus remains on building consistent, long-term growth, and we recognize there is much more work in front of us. As we look ahead, we're focused on staying disciplined and flexible in an uncertain operating environment and continuing to invest boldly in our team, capabilities, and an elevated guest experience to unlock our full potential over time.” Target credited the sales increase to a 6.4% rise in merchandise sales to $24.89 billion, above estimates of $24.18 billion. This was driven by its baby & kids and health & wellness categories, according to Fiddelke. It also reported 24.6% growth in non-merchandise sales. To
Retail
eBay rejects GameStop’s US$56bn bid
Global e-commerce company eBay Inc. has described a US$56 billion (A$77.3 billion) takeover proposal from smaller retailer GameStop Corp as “neither credible nor attractive". “The Board, with the support of its independent advisors, has thoroughly reviewed your proposal and has determined to reject it,” eBay Chairman Paul Pressler said in a news release. eBay considered factors like its standalone prospects, uncertainty about the bid’s financing, the impact on the long-term growth and profitability, leverage, operational risks and leadership structure of a combined entity and the implications of these for valuation, and GameStop's governance and executive incentives. A retailer focused on video games, gaming hardware, collectibles and consumer electronics and well known for a 700% one week share price surge in 2021 driven by retail investors, GameStop is offering $125 per share cash and shares. Pressler said he was confident eBay was well-positioned to continue to drive sustainable growth, execute with discipline and deliver long-term value for shareholders. “Our team remains focused on executing our strategy and driving our business forward in the best interests of the company, our shareholders, our employees, and
Retail
The Founders: Bringing a heritage brand back to life
Toni Briggs-Brown re-launched TH Brown after realising the 115-year-old heritage furniture brand still had legs. Following taking over the brand, Briggs-Brown defined herself as a refounder of the business as she was refining the brand and bringing it into the future. “To me, every founder is not taking anything from someone who finds a founder of a new business or a founder of a new brand, but making the commitment to relaunch a brand and take it to the next generation,” she tells Azzet. “That's probably where we came from with that refounder positioning.”Booming industryThe Australian furniture industry was growing by around 5.98% each year in 2025, with the typical Australian household sending around A$3,016 per year on furniture and household equipment. In 2024, the market was valued at $10.86 billion and is expected to grow to $15.35 billion by 2030. While the furniture industry is competitive, Briggs-Brown also emphasises how supportive it can be. “For the most part, I’ve found that everyone is supportive,” she says. “I think it’s because if we all succeed, if people are committed to buy Australian-designed or Australian-manufactured, that supports the whole industry.” Australia is currently the compa
Retail
GameStop bids US$55.5bn for eBay
Games retailer and meme stock GameStop has offered to buy eBay, a company almost four times its size, for around US$55.5 billion (A$77.27 billion). GameStop currently has a 5% stake in eBay, and has bid $125 per share split equally between cash and stock. GameStop CEO Ryan Cohen said he aims to transform eBay into a rival to Amazon and boost its valuation to “hundreds of billions of dollars” if the transaction completes. “GameStop Corp. today submitted a non-binding proposal to acquire 100% of eBay Inc. at $125.00 per share in cash and stock. The offer represents a 46% premium to eBay’s unaffected closing price on February 4, 2026, the day GameStop started accumulating its position in eBay,” GameStop wrote. “eBay spent $2.4 billion on Sales & Marketing in fiscal 2025 while only adding one million net active buyers,” per GameStop. “GameStop will deliver $2 billion of annualised cost reductions within twelve months of closing.” According to eBay, the bid was unsolicited, and it had no discussions with GameStop beforehand. It said its board would review the proposal. GameStop said it had a commitment letter from TD Securities to provide up to $20 billion in debt financing, along with the company’s existing $9.4 billion