Latest news with #economicuncertainty
Yahoo
an hour ago
- Business
- Yahoo
Accenture says CEOs are postponing hiring consultants due to uncertainty
A 'significantly elevated' level of economic and geopolitical uncertainty is causing business leaders to hold off on hiring consultants for 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
CTV News
3 hours ago
- Business
- CTV News
Kroger lifts annual sales target on resilient grocery demand
This file photo shows bagged purchases from the Kroger grocery store. (AP Photo/Rogelio V. Solis, File) Kroger bumped up its annual same-store sales forecast on Friday, betting on strong grocery demand to offset reduced discretionary spending as American consumers grapple with tariff-driven economic uncertainty. U.S. President Donald Trump's sweeping tariff policy has rattled global markets, raising fears of persistent inflation in the United States due to impending price hikes on imported goods. Most other retailers have either lowered or withdrawn their financial targets for the year. While Kroger raised its target for full-year 2025 identical sales growth to 2.25 to 3.25 per cent, from two to three per cent expected earlier, the company maintained its annual profit forecast, with new CFO David Kennerley noting in a statement that the macroeconomic environment remained uncertain. Bellwether Walmart also maintained its annual profit forecast, while Target cut its sales guidance for the year. Kroger has invested in sprucing up its curbside pickups as well as its more affordable private label brands as it battles stiff competition from Walmart. It has also benefited from an uptick in its pharmacy business, driven by the popularity of GLP-1 weight-loss drugs. Kroger's top brass has undergone a shakeup in recent months, with longtime CEO Rodney McMullen resigning following an investigation into his personal conduct. Kennerley, a former PepsiCo executive, also began his tenure as finance chief at the grocer in April. Kroger reported a first-quarter identical sales growth of 3.2 per cent, beating analysts' average expectation of 2.4 per cent, according to estimates compiled by LSEG. The grocer's gross margin was 23 per cent of sales for the quarter ended May 24, compared with 22 per cent a year ago. Its shares were down marginally in premarket trading. They have risen about seven per cent so far this year. (Reporting by Juveria Tabassum in Bengaluru; Editing by Pooja Desai)
CNA
4 hours ago
- Business
- CNA
Accenture bookings drop eclipses upbeat revenue, unveils AI-focused revamp
Accenture reported a second straight drop in quarterly new bookings on Friday and unveiled an organizational revamp to bolster its AI consulting services, as a cutback in U.S. government spending and economic uncertainty pressure growth. The bookings decline overshadowed the consulting giant's better-than-expected quarterly revenue and an increase in its annual forecasts, sending its shares down 5 per cent before the bell. Consulting and IT firms are under pressure as U.S. tariffs and accompanying economic uncertainty force companies to rethink their spending plans, while the Trump administration's cost-cutting efforts have led to contract cancellations and delays. Accenture said bookings - which represent future revenue secured through contracts - fell 6 per cent to $19.70 billion in its fiscal third quarter, below the Visible Alpha estimate of $21.54 billion and worse than the 3 per cent decline in the previous quarter. CEO Julie Sweet said 30 clients recorded quarterly bookings of greater than $100 million, compared with 32 in the previous quarter. Generative AI bookings totaled about $1.5 billion. Rival IBM also reported a small consulting revenue drop in April and said 15 of its U.S. government contracts worth about $100 million were shelved under the cost-cutting drive, while Indian IT firms including Infosys have warned of a tough year ahead. To navigate the uncertainty, Accenture plans to focus on AI consulting with the creation of a new business unit called reinvention services, which would combine its AI offerings and be led by Manish Sharma, the head of its Americas business. Sharma will be succeeded by chief operating officer John Walsh, while Americas COO Kate Hogan will take over as global COO. In the May quarter, Accenture posted revenue of $17.7 billion, beating analysts' average estimate of $17.30 billion, according to data compiled by LSEG. That growth was powered by higher spending by its clients in the financial services industry. Profit per share of $3.49 also beat estimates of $3.32.
Yahoo
5 hours ago
- Business
- Yahoo
Darden Restaurants operating income slips in fourth quarter despite sales jump
- Darden Restaurants has reported a slide in fourth-quarter operating income and provided a weaker-than-anticipated outlook for its current fiscal year despite a surge in sales. The group, whose portfolio includes popular eatery chains like LongHorn Steakhouse and Chuy's, reported quarterly operating profit of $382.8 million, a slide of 3.2% versus a year earlier. Analysts had anticipated $444.1 million, according to Bloomberg consensus estimates. But sales during the period jumped by 11% to $3.27 billion, compared with estimates of $3.26 billion, bolstered in part by stronger-than-anticipated performance at Olive Garden and LongHorn. Darden (NYSE:DRI) also noted a boost from the acquisition of 103 Chuy's restaurants and 25 net new locations. "Our strategy remains the right one for the company, and we will continue to execute it to drive growth and long-term shareholder value," said CEO Rick Cardenas in a statement. For its 2026 fiscal year, Darden said it projects total sales growth of 7-8% and diluted net earnings per share from continuing operations of $10.50 to $10.70. Analysts had anticipated per-share income of $10.75. Mirroring peers like Domino's Pizza (NYSE:DPZ) and McDonald's (NYSE:MCD), Darden has recently been rolling out promotional drives aimed at attracting price-conscious customers wary of spending heavily during a time of broad economic uncertainty. Earlier this year, Cardenas told analysts that he expected consumers to continue to spend as long as incomes rise and outpace inflation. Recent data points have suggested that price pressures in the U.S. have been mostly benign, although economists have flagged that the impact of sweeping U.S. tariffs on inflation may still be coming. CFO Raj Vennam has also said in March that, because Darden sources most of its products domestically, it is more likely to avoid President Donald Trump's punishing import tariffs. The rest of its materials could easily be found in the U.S., he added. Shares in Darden were higher in premarket trade on Friday, erasing some earlier losses. The stock has risen by over 19% so far this year. Related articles Darden Restaurants operating income slips in fourth quarter despite sales jump Accenture shares slide despite raised full-year outlook, third quarter beat Jabil stock rises as Q3 earnings top estimates, guidance raised
Bloomberg
5 hours ago
- Business
- Bloomberg
Thriving Southern Cities Face Economic Threat From Funding Cuts
Economics North Carolina's Research Triangle shows how federal efforts to curb spending are unleashing economic uncertainty in communities across the US. The same economic anchor that propelled North Carolina's Research Triangle into one of America's most thriving economies now risks becoming a liability. Major academic institutions in the community have helped lure businesses of all sizes — and the jobs that come with them — to Raleigh, Durham and Chapel Hill, transforming an economy once reliant on industries like tobacco and textiles into a leading science and technology hub.
