Nike's direct-to-consumer sales are taking off

Business

Quartz 28 June, 2021 - 12:48pm 59 views

These are the core obsessions that drive our newsroom—defining topics of seismic importance to the global economy.

Our emails are made to shine in your inbox, with something fresh every morning, afternoon, and weekend.

Nike didn’t make its billions alone. Most of its sales have come from selling to wholesale partners such as department stores, mom-and-pop shops, sporting goods specialists, and all the thousands of retail businesses Nike has long relied on to distribute its products to shoppers. Just a decade ago, in 2011, roughly 84% of Nike brand sales (pdf) were still to wholesale customers. Sales Nike made to shoppers itself, through channels such as its stores and website, amounted to just 16% of its business.

That balance is rapidly shifting. Nike’s sales straight to shoppers, which have been rising for years, accelerated in the past year as the firm’s overall business rebounded from the pandemic. In the company’s 2021 fiscal year, ended May 31, direct sales rose to approximately 39% of Nike brand sales (pdf), while wholesale accounted for about 61%. (These figures exclude sales of products from subsidiary brands such as Converse.)

The shift is part of a strategy Nike announced in 2017 called the “consumer direct offense.” A key element entails increasing Nike’s own sales to shoppers through its own immersive stores and digital channels, notably its suite of apps, including SNKRS, where it launches limited release products. Direct sales tend to have better margins since there’s no middleman taking a cut; they give Nike direct connections to customers and their data; and they allow Nike more control of its brand. Once Nike sells to a retailer, it has limited say in how its products are displayed, meaning they can end up crammed onto shelves alongside competitors in a generic mass.

At the same time, Nike has been culling the number of retailers it sells to, pulling products from what it deems “undifferentiated” shops that lack a strong identity or don’t offer Nike a different customer than it reaches on its own. These include independent stores and big chains alike. Recently it has ceased sales to Urban Outfitters, DSW, and Macy’s, according to research from Sam Poser, an analyst at investment firm Williams Trading.

That’s not to say Nike’s wholesale business no longer matters. Nike made clear in 2017 it would prioritize a handful of retailers. “Today, we’re working closely with large strategic partners like Dick’s Sporting Goods, Foot Locker, and JD Sports, as well as compelling local neighborhood partners who are authentic to sport performance and lifestyle,” CEO John Donahoe said on the company’s June 24 earnings call.

Local skate shops, for example, have been vital to Nike’s distribution of its Dunk sneaker, which it carefully positioned to be one of the hottest shoes of 2021. Foot Locker, meanwhile, exemplifies how Nike manages to keep its wholesale business growing even as it cuts back on the stores it sells to. As some of its competitors get cut out of Nike’s distribution, it’s working even closer with Nike and buying more of its products, based on data published in Foot Locker’s annual reports.

Nike gets the best of both worlds: It’s able to keep its wholesale business growing, even as it slashes its number of partners. And it does more direct sales to shoppers.

The company plans to keep the shift going. By 2025, it expects direct sales, led by its digital channels, to reach 60% of its business.

📬 Kick off each morning with coffee and the Daily Brief (BYO coffee).

By providing your email, you agree to the Quartz Privacy Policy.

© 2021 Quartz Media, Inc. All rights reserved.

Read full article at Quartz

Carnival Details Safety Drills Process for Pandemic Sailings

Cruise Industry News 28 June, 2021 - 05:00pm

As Carnival Cruise Line’s sail date out of the U.S. is inching up, more details have emerged about how the cruise line will carry out safety drills.

Carnival’s Brand Ambassador and Senior Cruise Director, John Heald, said in a June 25 Facebook video that the drills will be carried out through each passenger walking towards their muster station indicated in Carnival’s new app or on their boarding pass.

“There will be no more large-gathering safety briefings,” Heald said. “Those cruising in the next few months need to download the app called the Hub App. It’s available (for iPhones and Android phones), and it’s free.”

The app will contain information such as the name and location of the guest’s muster station.

“Look at the app or your boarding pass in the first hour or an hour and a half of being onboard. Follow the signs on the ship and go to your muster station – the app will tell you how to get there. If you're able, use the stairs – because, remember that in a real emergency, the elevators wouldn't be working,” Heald said. “This is the place you need to get to in a real emergency.”

“There will be crew members to help guide you, and there will be team members at every muster station. Once you get to your muster station, find a Carnival team member and check in with them. You don't have to do anything else – the team will take care of you once you get to your muster station,” he added.

The second part of the safety drills with Carnival is watching a safety video, Heald said.

“At some point before the ship sails, you need to go to your stateroom and watch the safety video featuring the brilliant Shaquille O'Neal, our chief fun officer. He'll give you the 411 on all the safety procedures,” Heald said.

Heald said that the cruise line will know if any passenger onboard the ship had not completed their safety drill. That person would therefore be limited in what they can do on the ship.

“We will know. There is a protocol in place, which I'm not going to mention … but you have to trust me when I tell you that we will know. The way that that person will know is that if they don't check in to their muster station before the ship cruises, before the ship sails, they won't be able to do certain stuff. I don't want to go into any more details than that because that's a negative,” Heald noted.

According to him, if carrying out safety drills in this way proves to be effective and working, Carnival will implement this method on a permanent basis.

“It's a huge move forward. But I could only stress that this is going to work if every single person cooperates,” he said.

Carnival Cruise Line Rolls Out Digital Muster Drills

CruiseCritic.co.uk 28 June, 2021 - 05:00pm

(1 p.m. EDT) -- Carnival Cruise Line will introduce a new digital muster drill process when its sailings resume, according to the line's brand ambassador and longtime cruise director, John Heald.

Using Carnival's HUB app, passengers will locate their designated muster station. Once there, passengers will check in with staff members located at each station, and their attendance will be recorded.

Passengers will then be required to watch a video in their cabin explaining the procedures for in case of emergency.

"Obviously the success of this new way of doing ... the Safety Briefing all depends on the cooperation of the guests," Heald wrote.

"Well, without me going into too many details I can say that if you do not go and check in at your Muster Station you will not be getting that Fun Ship Special drink."

Families, couples or friends traveling together must all be present at their muster station in order to check in with staff there. One person can't check-in an entire cabin of people, for example.

Passengers can visit their muster station any time before sailing on embarkation day, and Heald had some advice for guests:

"If it were me, I would get on the ship and go straight to the muster station. That way it's done and you can then go get lunch and yep, a Fun Ship Special."

Carnival's new digital drill is similar to the one introduced by Royal Caribbean Group for use across its brands.

Carnival Cruise Line returns to service with the sailing of Carnival Horizon from Galveston on July 3, followed by Carnival Vista from Miami on July 4.

Cruise Shares Tumble; Disney Delays Tuesday’s Trial Sailing

Yahoo Finance 28 June, 2021 - 03:15pm

Carnival is selling as much as $500 million in stock, according to a filing Monday, with proceeds earmarked for the repurchase of its Carnival Plc shares and for general corporate purposes. The shares fell 7% to $26.15 at the close in New York, the biggest decline since March.

Other operators lost ground in sympathy, with Royal Caribbean Cruises Ltd. tumbling 6.5% and Norwegian Cruise Line Holdings Ltd. sinking 6.1%. Disney, whose business is more diversified, fell 1%. The cruise companies all sold shares during the pandemic to raise funds while they were shut down.

Disney indefinitely delayed a trial cruise of its Disney Dream set for Tuesday after getting inconsistent results in its coronavirus testing. The ship was to sail with 300 volunteer crew members in a demonstration to U.S. authorities that it could manage under new virus protocols.

Royal Caribbean successfully launched its first revenue-generating sailing out of the U.S. this past weekend. In an interview with Bloomberg TV, Chief Executive Officer Richard Fain said Monday that he expects most of the company’s ships to be sailing by year-end and that he was “amazingly happy” with bookings he’s seeing for the next two years.

More stories like this are available on bloomberg.com

Subscribe now to stay ahead with the most trusted business news source.

Summer 2021 marks a surge in travel as reservations for cruise ships approach pre-pandemic numbers Traveling, brought to a halt due to the pandemic, is starting to see a bump in numbers. Airline, hotel, and rental car reservations buzz as consumers, eager to stretch their wanderlust wings, book travel after a year of sheltering in []

Carnival and Royal Caribbean are down in early trading Monday.

Several cruise lines have planned to resume voyages from the United States after many months. Last weekend, Royal Caribbean Group's Celebrity Edge became the first vessel from a major operator to sail from a U.S. port. The Disney Dream had been scheduled to set sail on Tuesday.

Eric Rosengren, the president of the Boston Fed, expressed concern over the housing market in an interview with the Financial Times

Carnival Corp. said Monday morning that it may sell up to $500 million in stock from time to time as part of an at-the-money equity offering program. The cruise company would use the proceeds from this stock offering to purchase ordinary shares of Carnival plc and may use any remaining proceeds for general corporate purposes. Carnival said in a filing with the Securities and Exchange Commission that it would sell shares through the offering only when shares of Carnival plc in the U.K. were tradi

(Bloomberg) -- Stephen Normandin spent almost four years racing around Phoenix delivering packages as a contract driver for Amazon.com Inc. Then one day, he received an automated email. The algorithms tracking him had decided he wasn’t doing his job properly.The 63-year-old Army veteran was stunned. He’d been fired by a machine.Normandin says Amazon punished him for things beyond his control that prevented him from completing his deliveries, such as locked apartment complexes. He said he took th

Two stocks are showing signs of potentially breaking out from the pack.

Peter Thiel transformed a tiny Roth IRA worth approximately $2,000 into a $5 billion tax-free behemoth, according to an article from the investigative news site ProPublica. “You would have to tread very carefully,” said Michelle Gessner of Gessner Wealth Strategies in Houston, Texas. “I don’t think it’s impossible for the average person to do their own smaller scale version of it,” said Malcolm Ethridge, executive vice president at CIC Wealth in Rockville, Md., and host of The Tech Money podcast.

WASHINGTON (Reuters) -The White House is working on an antitrust executive order that aims to push government agencies to consider how their decisions will impact competition in an industry, according to two sources familiar with the matter. The order goes after corporate monopolies across a broad swath of industries ranging from banking to airlines, one of the sources said. The drive comes as House lawmakers are moving forward with sweeping antitrust legislation aimed at restraining the power of Big Tech companies such as Facebook Inc, Alphabet Inc's Google, Amazon.com Inc and Apple Inc and staving off corporate consolidation.

Let’s step back and take a look at the big picture, while keeping stocks in focus. Both the S&P 500 and the Nasdaq hit a series of record highs -- mainly due to increasing investor confidence that the current inflationary environment will be a transitory event rather than a sustained trend. Clearly, investors are not shy about stocks, even though the Commerce Department’s inflation indicator for May hit 3.4%, it’s fastest rate of increase since the 90s. Given this alarming disconnect, it has bec

Morgan Stanley said late Monday it will double its quarterly dividend to 70 cents a share, from 35 cents a share, beginning with the dividend expected to be approved by the board in the third quarter. Morgan Stanley also announced a new increased share buyback program of up to $12 billion through June 2022. "Morgan Stanley has accumulated significant excess capital over the past several years and now has one of the largest capital buffers in the industry," Chief Executive James P. Gorman said in

The trade-off between paying off your mortgage and saving more for retirement depends on how long you've had the mortgage and how far you are from retiring.

Index investors often buy high and sell low, at least in the near-term. And for Tesla's entry to the S&P 500, that especially held true.

The FTC's antitrust case against Facebook was dismissed on Monday.

The 800+ hedge funds and famous money managers tracked by Insider Monkey have already compiled and submitted their 13F filings for the first quarter, which unveil their equity positions as of March 31st. We went through these filings, fixed typos and other more significant errors and identified the changes in hedge fund portfolios. Our extensive […]

Prime Day 2021 is over… right? Amazon definitely said that Prime Day was going to start this year on Monday, June 21, and end on Tuesday, June 22. But here’s the weird thing: it’s now Monday, June 28, which is a full week after Prime Day 2021 began. And despite the fact that it was … The post Who needs iPads when this Windows 10 Pro laptop is only $219.99 at Amazon? appeared first on BGR.

Don't be fooled. A "bipartisan" infrastructure deal still leaves room for tax hikes on businesses and the wealthy

As one of the stocks that provide investors with a sentiment gauge on cryptocurrencies markets, Coinbase (COIN) is an interesting case study to examine. Indeed, the value of COIN stock is uniquely tethered to cryptocurrency prices. When Bitcoin, Ethereum, and the merry gang are outperforming, transaction volumes on exchanges such as Coinbase skyrocket. For investors in COIN stock, higher transaction volumes flow into higher fee-based revenue, and greater profitability for investors. (See Coinbas

The Celebrity Edge left Port Everglades in Ft. Lauderdale, Florida on June 26.

Carnival Cruise Line HUB App Expanding With New Functionality and Features

Cruise Hive 28 June, 2021 - 02:48pm

Carnival Cruise Line has expanded its HUB App with new functionality, features, and much important health and safety details. It comes as the Miami-based cruise line is about to restart cruise operations with new protocols in place to keep guests safe.

As expected, the cruise line is rolling out an update to its hugely popular HUB App with new information, features, and functionality. The app will play a major role as cruise operations resume this summer.

The app will have enhanced food and beverage features, booking capabilities for the spa and shore excursions, virtual queuing for onboard venues, and updated health and safety information.

Menus for all shipboard dining and beverage offerings will be available in a digital form using QR codes. The HUB App will also be expanded to include dining check-in functionality to additional guests and venues, in addition to Your Time Dining.

Virtual Reservations & Queuing: Guests will soon be able to reserve seats virtually for various venues on board and be alerted when it is time to arrive for their function. Additionally, guests will be able to check-in to virtual queues for select locations on board, including guest services, and be alerted when their place in line is ready.

Guests will also leverage the HUB App to reserve tickets for BOLT, the first roller coaster at sea debuting on Mardi Gras July 31 from Port Canaveral.

New Safety Content: Guests will be able to check-in for their cruise via the HUB App with the ability to submit necessary health information, including a health questionnaire and other time-saving steps prior to departure, and new safety content, including new notifications to help guests complete their muster check-in on board.

This update comes as the Carnival Hub App is already filled with helpful features to enhance the cruise experience. With over 8 million total downloads, the app has been enjoyed by guests before suspensions first started in March 2020.

The app is already an important part of a Carnival cruise before passengers even step on board with features to check-in with the youth programs, booking details, reservations, chat, and even keeping track of the on board Sail & Sign account.

Carnival Cruise Line has heavily pushed the importance of the app moving forward to keep guests protected during the voyage. The new updates will be rolling out in the coming months and can be downloaded in the Apple Store and Google Play Store.

Carnival Cruise Line last announced a major update in August 2019 when new features were added for younger guests related to camp Ocean, Circle C, and Club 02.

We'll send you weekly newsletters to your inbox with the latest cruise news and tips.

CRUISE HIVE LTD 2008-2021. ALL RIGHTS RESERVED.

Why Cruise Ship Stocks Are Falling Harder Than the Market Today | The Motley Fool

Motley Fool 28 June, 2021 - 12:06pm

Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services.

Carnival announced it was selling up to $500 million worth of stock, which it mostly intends to use to repurchase shares trading in the U.K., but also for other corporate purposes. The cruise ship operator has had to raise of $2.5 billion to remain afloat while the industry was stuck in a lockdown for over a year, jeopardizing the viability of all operators.

While cruise lines have now been largely given the go-ahead to resume sailing out of the U.S., albeit with limited capacity, they're expected to continue burning cash until normalcy can return, arguably not until late 2022 or 2023.

Last week, Royal Caribbean set sail from Fort Lauderdale, the first cruise out of the U.S. since the pandemic halt began. But two unvaccinated passengers under 16 years of age tested positive for COVID-19. The cruise operator notes 92% of its guests are vaccinated, and those who are not are under 16. All of its crew members are vaccinated as well, it says.

More debt, more dilution, and lingering coronavirus news is likely weighing on all three cruise lines, including Norwegian, which -- as the industry's smallest operator -- can't afford to have its sailing plans disrupted.

The industry will undoubtedly remain in choppy waters for some time, and bad news for one will likely hurt them all.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Stock Advisor launched in February of 2002. Returns as of 06/28/2021.

Cruise ship stocks sink after passengers test positive for COVID-19

Yahoo Finance 28 June, 2021 - 09:47am

Carnival shares were off nearly 6%, while Royal Caribbean fell nearly the same amount as of 10:30 a.m. ET, after reports this weekend that two passengers aboard Royal Caribbean’s Adventure of the Seas ship tested positive for COVID-19.

The guests, who were unvaccinated and under the age of 16, were disembarked in The Bahamas and were sent home to Florida after the virus was detected in a routine test on board the ship.

Carnival, last Thursday, also said it expected to lose $2.1 billion in the second quarter, though it's unclear if that's affecting traders' thinking Monday.

The incident fanned fears among investors for the cruise industry, which sat in dry dock for 15-months due to the pandemic. It was on board a Princess Cruises ship—the Diamond Princess—that 712 people became infected in one of the first major outbreaks outside of China. Passengers were quarantined on the ship beginning Feb. 1 and many who were not infected were not permitted to leave their cabins until Feb. 17 or Feb. 19.

The cruise industry has made several changes to how it handles passengers, ranging from reduced capacity to changes to the buffets. Still, bookings are currently slow, even as Americans begin venturing out and actively vacationing in 2021.

Carnival and Royal Caribbean aren’t the only cruise lines suffering Monday. Norwegian Cruise Line was off 5% in early trading as well.

This story was originally featured on Fortune.com

Summer 2021 marks a surge in travel as reservations for cruise ships approach pre-pandemic numbers Traveling, brought to a halt due to the pandemic, is starting to see a bump in numbers. Airline, hotel, and rental car reservations buzz as consumers, eager to stretch their wanderlust wings, book travel after a year of sheltering in []

(Bloomberg) -- Cruise stocks fell after industry leader Carnival Corp. announced an additional stock sale and Walt Disney Co. delayed a trial sailing.Carnival is selling as much as $500 million in stock, according to a filing Monday, with proceeds earmarked for the repurchase of its Carnival Plc shares and for general corporate purposes. The shares fell 7% to $26.15 at the close in New York, the biggest decline since March.Other operators lost ground in sympathy, with Royal Caribbean Cruises Ltd

Several cruise lines have planned to resume voyages from the United States after many months. Last weekend, Royal Caribbean Group's Celebrity Edge became the first vessel from a major operator to sail from a U.S. port. The Disney Dream had been scheduled to set sail on Tuesday.

The plane returned to the Charlotte airport with nearly 190 people aboard Sunday morning. Here’s what passengers said happened.

In this article we will take a look at whether hedge funds think Norwegian Cruise Line Holdings Ltd (NASDAQ:NCLH) is a good investment right now. We check hedge fund and billionaire investor sentiment before delving into hours of research. Hedge funds spend millions of dollars on Ivy League graduates, unconventional data sources, expert networks, and […]

Let’s step back and take a look at the big picture, while keeping stocks in focus. Both the S&P 500 and the Nasdaq hit a series of record highs -- mainly due to increasing investor confidence that the current inflationary environment will be a transitory event rather than a sustained trend. Clearly, investors are not shy about stocks, even though the Commerce Department’s inflation indicator for May hit 3.4%, it’s fastest rate of increase since the 90s. Given this alarming disconnect, it has bec

Money raised will be used to purchase ordinary shares of Carnival Plc, trading in the United Kingdom, and for general corporate purposes, the company said. The cruise operator has raised over $2.5 billion by selling its shares over the past year as travel restrictions due to the pandemic brought its business to a standstill. Shares of Carnival and peers Royal Caribbean Group, Norwegian Cruise Holdings Ltd were down about 2% each.

United Airlines was putting the finishing touches on Monday to an airplane order potentially worth $30 billion at list values for up to 270 narrowbody jets in a bid to secure a pandemic recovery at favorable prices, industry sources said. The order could include up to 200 Boeing 737 MAX and some 70 Airbus A321neo which competes with the top end of the MAX family for single-aisle trips needing most range. None of the parties commented ahead of an announcement expected at a United investor event on Tuesday.

Two stocks are showing signs of potentially breaking out from the pack.

The New York Giants select OL Kenyon Green and QB Desmond Ridder in Pro Football Network's latest 2022 NFL mock draft.

Hong Kong announced it will ban passenger flights from the United Kingdom starting Thursday, citing the spread of the delta variant of coronavirus.

Julia Herrin, Miss Clarendon County, seemed to gasp as her name was called Saturday night as the new Miss South Carolina. She’s from Bluffton.

Cruise operator unveils arbitrage plan to sell U.S.-listed stock when the U.K.-listed shares trade at a discount

Groups representing Europe's largest airlines and airports have warned of chaos and hours-long queues unless countries better coordinate the roll-out of the EU's digital COVID-19 certificate and ensure passengers are processed before arriving at airports. The European Union's system of digital COVID-19 travel certificates is due to come into force on Thursday, but airports group ACI and airlines representative bodies A4E, IATA and ERA warned in a letter to EU national leaders of a "worrying patchwork of approaches" across the continent. "As passenger traffic increases in the coming weeks, the risk of chaos at European Airports is real," the groups said in the joint letter sent on Monday and seen by Reuters.

In Europe, Spain revealed that it will start to demand a negative COVID test, or proof of vaccination from British tourists who are looking to enter Mallorca, Ibiza, and the surrounding Balearic islands.

(Bloomberg) -- Portugal and Spain imposed new restrictions on U.K. visitors amid concern about the coronavirus delta variant as Germany pushed for a more coordinated European Union response to try to limit the strain taking hold in the bloc.The changes are a setback for Europe’s holiday destinations just as the summer tourism season should be kicking up a gear, and shares of airlines including Ryanair Holdings Plc fell on Monday.The latest decisions add to the patchwork of confusing, and rapidly

The first time I clapped eyes on the plans for M/Y Njord, an enormous superyacht currently under construction in Europe being billed ‘the world’s largest private residence yacht’, I thought, hang on a minute - haven’t we been here already? Surely, that’s The World. In case The World passed you by, that’s a highly luxurious residential, 644ft-long cruise ship, with 165 private apartments owned by the very rich - individuals with a net worth of at least US$10m to be exact. Offering every imaginabl

The sleek Tankoa Sportiva is also ignoring the trend of supersizing the interior. "A yacht should be functional and beautiful," says the yard's CEO.

Nestled in her 1960s hillside home perched high above the glittering sea, Julie Lea awakens each morning to the sound of rustling palms, chirping birds and the gentle bleating of goats that wander a nearby farm. Vibrant flowers burst from the gardens surrounding her home, and if she’s up early enough to see the sunrise — which she often is these days — she watches from her terrace as the West Indian sky goes from black to grey to an eruption of pinks, oranges and yellows. “There is something magical about life here,” says the 76-year-old artist and painter, who with her writer husband of 50 years, moved full-time to the Caribbean island of Bequia in 2005.

Carnival Doesn't Look Like It's Ready to Party as It Raises Red Flags

RealMoney 28 June, 2021 - 09:30am

Cruise line operator Carnival Corp. (CCL) provided an update late last week as it released its second-quarter results and reported a loss of $2 billion. The loss was not a surprise, and while there were not many surprises in this report or during Carnival's conference call there were red flags amid reminders of just how far Carnival had to go in order to see its way through the pandemic. In addition, there was the stark reminder that resuming operations will exhaust even more cash.

Carnival's operations essentially have been suspended for more than a year, and during that time the company has had to take bold steps to get to the point where it can resume operations.  Those steps have involved drastic changes to the company's capital structure, including massive increases in debt. It also sold 19 ships to raise cash.   

While we don't have a balance sheet for the second quarter, we do know that Carnival ended the quarter with $9.3 billion in cash and short-term investments. That is down an incredible $2.4 billion from the end of last quarter. Carnival is burning cash at a rate of $500 million a month, which is better than its earlier $550 million forecast, but that's still a lot of cash. During the quarter Carnival also paid back $1 billion in debt.

With the restart of cruise operations happening -- Carnival expects 42 ships will be cruising by the end of November -- Carnival should start to see some revenue, finally. However, the restart also will drive the cash burn rate higher, and coincidentally, Carnival has coming "progress payments" due on new ships that are being built for it. Given this confluence of events and difficulty in "projecting the timing" of restart expenses, capex and revenue, Carnival will not provide a third-quarter cash burn forecast. That was red flag No. 1.

Red flag No. 2, from Carnival chief financial officer David Bernstein, was the following statement: 

"For those of you who were trying to model our future results, don't forget that margins on the third-quarter cruises will be less than our normal margins given the lower level of occupancy that is anticipated during the third quarter. However, with $9.3 billion of cash and short-term investments on our balance sheet, we believe we have enough liquidity to get it back to full guest cruise operation in the spring of 2022."

Now, as a pessimist in this case, I read that statement as a cautionary tale, one that suggests the company may need to seek more liquidity in order to get back to full strength. There certainly is enough uncertainty amid the restart to reach that conclusion. Against the backdrop of massive amounts of additional debt, equity dilution, rising interest expense, increasing cash burn and little visibility on a return to profitability, Carnival's stock looks well-overpriced, at least to me.

None of this means that Carnival will not survive; it just means there's a big disconnect between the stock current stock price and valuation.

At the time of publication, Heller was long CCL $30 Jan. 22 puts.

Thank you, your email to has been sent successfully.

Email Real Money's Wall Street Pros for further analysis and insight

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Carnival says it may sell up to $500 million in shares

MarketWatch 28 June, 2021 - 09:01am

Tesla will need to implement a software fix on more than 285,000 cars in China. This may be a big test on whether the auto maker can set things right in the key Asian market.

Emily Bary is a MarketWatch reporter based in New York.

Cruise operator Carnival to sell $500 million in shares

Yahoo Finance 28 June, 2021 - 08:43am

Money raised will be used to purchase ordinary shares of Carnival Plc, trading in the United Kingdom, and for general corporate purposes, the company said.

The cruise operator has raised over $2.5 billion by selling its shares over the past year as travel restrictions due to the pandemic brought its business to a standstill.

With cruises ordered to operate with fewer passengers onboard while following strict hygiene and sanitization protocols, Carnival and others are expected to burn more cash to stay in business.

Cruise operators began sailing from U.S. ports last week with mostly vaccinated passengers and crew.

Shares of Carnival and peers Royal Caribbean Group, Norwegian Cruise Holdings Ltd were down about 2% each.

(Reporting by Nivedita Balu in Bengaluru; Editing by Krishna Chandra Eluri)

Several cruise lines have planned to resume voyages from the United States after many months. Last weekend, Royal Caribbean Group's Celebrity Edge became the first vessel from a major operator to sail from a U.S. port. The Disney Dream had been scheduled to set sail on Tuesday.

(Bloomberg) -- Cruise stocks fell after industry leader Carnival Corp. announced an additional stock sale and Walt Disney Co. delayed a trial sailing.Carnival is selling as much as $500 million in stock, according to a filing Monday, with proceeds earmarked for the repurchase of its Carnival Plc shares and for general corporate purposes. The shares fell 7% to $26.15 at the close in New York, the biggest decline since March.Other operators lost ground in sympathy, with Royal Caribbean Cruises Ltd

Carnival Corp. said Monday morning that it may sell up to $500 million in stock from time to time as part of an at-the-money equity offering program. The cruise company would use the proceeds from this stock offering to purchase ordinary shares of Carnival plc and may use any remaining proceeds for general corporate purposes. Carnival said in a filing with the Securities and Exchange Commission that it would sell shares through the offering only when shares of Carnival plc in the U.K. were tradi

Cruise operator unveils arbitrage plan to sell U.S.-listed stock when the U.K.-listed shares trade at a discount

"Fiat is fraud," the billionaire said in a recent video.

The UK's financial watchdog has banned Binance's cryptocurrency exchange in the UK,

“Since vaccines were not available until after the start of the season, some of our players decided to wait until the completion of the season in case of side effects.”

Before we spend countless hours researching a company, we like to analyze what insiders, hedge funds and billionaire investors think of the stock first. This is a necessary first step in our investment process because our research has shown that the elite investors’ consensus returns have been exceptional. In the following paragraphs, we find out […]

Mexican billionaire Ricardo Salinas Pliego said on Sunday his banking business may begin using bitcoin, becoming the country's first bank to start accepting the cryptocurrency. Salinas, who is ranked as Mexico's third richest man with a family fortune estimated at $15.8 billion by Forbes, is the owner of the large Banco Azteca banking business. Salinas last year said he had about 10% of his liquid portfolio invested in bitcoin.

The S&P 500 and the Nasdaq hit record highs in early trade on Monday, as tech-related growth stocks edged up, while investors awaited corporate earnings later in the week and data on a U.S. labor market recovery. The tech-laden Nasdaq jumped 0.6%, with Microsoft Corp , Apple Inc, Amazon.com Inc and Nvidia Corp providing the biggest boost. The S&P 500 on Friday logged its best weekly performance in 20 following a bipartisan agreement on a $1.2 trillion infrastructure spending deal and waning concerns about a sooner -than-expected policy tightening from the Federal Reserve.

The Nasdaq and S&P 500 hit all-time highs on Monday, fueled by tech stocks as investors expect a robust earnings season while interest rates remain low. Big tech companies including Facebook Inc, Netflix Inc, Twitter Inc and Nvidia Corp were among the biggest boosts to the S&P 500 and the Nasdaq.

Development in the ongoing saga of Bitcoin and its many competitors and copycats in the $2.22 trillion global cryptocurrency market seems to never stop. Even so, just a tiny fraction of Americans...

In this article, we will take a look at the 15 best very cheap stocks to buy right now. You can skip our detailed analysis of these companies and go directly to the 5 Best Very Cheap Stocks to Buy Right Now. The pandemic-led recession brought massive financial distress to the global market. Many businesses […]

Two stocks are showing signs of potentially breaking out from the pack.

Let’s step back and take a look at the big picture, while keeping stocks in focus. Both the S&P 500 and the Nasdaq hit a series of record highs -- mainly due to increasing investor confidence that the current inflationary environment will be a transitory event rather than a sustained trend. Clearly, investors are not shy about stocks, even though the Commerce Department’s inflation indicator for May hit 3.4%, it’s fastest rate of increase since the 90s. Given this alarming disconnect, it has bec

Morgan Stanley said late Monday it will double its quarterly dividend to 70 cents a share, from 35 cents a share, beginning with the dividend expected to be approved by the board in the third quarter. Morgan Stanley also announced a new increased share buyback program of up to $12 billion through June 2022. "Morgan Stanley has accumulated significant excess capital over the past several years and now has one of the largest capital buffers in the industry," Chief Executive James P. Gorman said in

The 800+ hedge funds and famous money managers tracked by Insider Monkey have already compiled and submitted their 13F filings for the first quarter, which unveil their equity positions as of March 31st. We went through these filings, fixed typos and other more significant errors and identified the changes in hedge fund portfolios. Our extensive […]

The environment for dividends continues to improve after a tough stretch in 2020 due to the Covid-19 pandemic.

Eric Rosengren, the president of the Boston Fed, expressed concern over the housing market in an interview with the Financial Times

Business Stories

Top Stores