Seven & i (SVNDY) names new CEO, unveils 7-Eleven IPO and stock buyback plans. (00:27) SpaceX says Starlink only 'partial fix' for air traffic systems, denies reports about FAA contract. (02:07) Victoria's Secret (VSCO) tops estimates, but warns on near-term headwinds. (03:04)Episode transcripts seekingalpha.com/wsb.Show links: Biggest stock movers Thursday: MRVL, ZS, and moreMicrosoft withdraws some agreements with CoreWeave - reportAlibaba stock soars as new AI reasoning model rivals DeepSeek, OpenAITrump grants Big Three automakers one-month delay on Canada, Mexico tariffsSign up for our daily newsletter here and for full access to analyst ratings, stock quant scores, dividend grades, subscribe to Seeking Alpha Premium at seekingalpha.com/subscriptions.
Chapter 1: Who is the new CEO of Seven & i and what are their plans?
Welcome to Seeking Alpha's Wall Street Breakfast, where we cover the top news for investors every morning. Good morning. Today is Thursday, March 6th. I'm Julie Morgan. A leadership shakeup, IPO plans, and a major buyback at 7 and high. Starlink pushes back on recent media reports. And Victoria's Secret sees growth but flags uncertainty. Seven and I has appointed its first foreign CEO.
Chapter 2: What are the details of Seven & i's U.S. IPO and stock buyback?
The company also announced plans to take its convenience store business public and implement an over $13 billion stock buyback. Steve Dacus, the head of the special committee evaluating the takeover bid by Canada's Alimentation Couchtard, will replace the current CEO. Seven and I also plans to list its 7-Eleven business on one of the major U.S.
Chapter 3: How is Seven & i restructuring its business?
stock exchanges, with the IPO expected to happen by the second half of next year. Seven and I will retain its majority stake. The company also said it would sell a 60 percent stake in its supermarket business to a Bain Capital-owned special purpose company for the Japanese yen equivalent of $5.5 billion. 7NI will hold a 35.07% stake, while the founding family will own 4.93%.
The deal is expected to close in September. To further unlock shareholder value, 7NI plans to buy back shares worth the Japanese yen equivalent of $13.5 billion by fiscal year 2030 with the proceeds from the sale of its supermarket chain and the 7-Eleven IPO. The repurchases will begin once the Bain Capital deal closes.
Seven and I also plans to implement a progressive dividend policy and is continuing to sell down its ownership stake in its banking unit to below 40%. The company added that its special committee will continue to constructively engage with CouchTard on its takeover proposal and how to address U.S. antitrust challenges if a deal is reached.
Chapter 4: What is SpaceX saying about the Starlink and FAA contract?
SpaceX on Wednesday clarified that Starlink was not getting any contracts from the U.S. government after recent media reports suggested that it could possibly receive one from the Federal Aviation Administration that was originally with Verizon.
Reports from major news outlets like the Washington Post, Bloomberg, Reuters, and the Associated Press allege that the FAA is thinking of nixing its $2.4 billion Verizon contract and giving the same to Starlink.
The company clarified that it is working in coordination with L3Harris Technologies and the FAA to test the use of Starlink as part of an infrastructure upgrade that was, quote, so badly needed along with fiber, wireless, and other technologies. SpaceX went on to say that Starlink is a possible partial fix to an aging system, and it has no intent to take over any existing contract.
Victoria's Secret reported sales rose 1% year-over-year in Q4 to reach $2.106 billion. Total comparable sales were up 5% during the quarter. Notably, sales increased across most major merchandise categories, in stores and digital channels, and in both the company's North America and international businesses.
The company's adjusted net income was $216 million or $2.60 per diluted share versus $2.30 consensus, while adjusted operating income reached $299 million. Those figures were positively impacted by a change in accounting related to gift card redemptions, which added approximately $26 million to net sales, gross margin, and operating income.
Excluding the accounting change, the company's performance still exceeded expectations, with net sales increasing by about 4% and adjusted operating income reaching $273 million, both at or above the high end. of previously communicated guidance ranges. Looking ahead, Victoria's Secret acknowledged some near-term headwinds and ongoing uncertainty in the macro environment.
For Q1, Victoria's Secret sees revenue of $1.30 billion to $1.33 billion versus the $1.4 billion consensus. For fiscal year 26, guidance was set at revenue of $6.20 billion to $6.30 billion versus the $6.35 billion consensus. Pre-market Victoria's Secret is down nearly 2.7%. Now for a look at the trending articles on Seeking Alpha. Microsoft reportedly withdraws some agreements with CoreWeave.
Alibaba soars on a new AI reasoning model that rivals deep-seek and open AI. And President Trump grants the big three automakers a one-month delay on the Canada and Mexico tariffs. We have a very short list for our catalyst to watch for the day. Notable investor events include Confluence Investor Day, VF Corporation's Investor Day, and Wendy's Company's Investor Day.
Now for a look at the markets today ahead of the opening bell. Dow S&P and Nasdaq futures are in the red. Crude oil is up 0.4% at $66 a barrel. Bitcoin is up 1.5% at $91,000. In the world markets, the FTSE 100 is down 1% and the DAX is flat. Viva Systems is on our list of the biggest movers of the day pre-market. Veev is up 6% after the company delivered strong Q4 results and an upbeat outlook.
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