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Gap inventory falls as supply chain disruptions are expected to result in $650 million in lost revenue

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Gap inventory falls as supply chain disruptions are expected to result in $650 million in lost revenue

The shares of Gap Inc. plunged more than 20% in early trade on Wednesday after the clothing and accessories retailer said disruptions in its global supply chain took a bigger-than-expected toll on its third-quarter results.

gap gps,
-22.78%
Results fell short of expectations, and the company revised its guidance “based solely on the acute revenue and margin impact of supply chain disruptions,” Chief Financial Officer Katrina O’Connell said of the earnings call, according to a transcript from FactSet.

See: Gap stock tanks as results miss, guidance reduced due to ‘significant’ supply chain issues

The company now expects supply chain disruptions to result in $550 million to $650 million in lost revenue. The company also expects to incur $450 million in air freight costs this year.

“We have made a conscious decision to ship about 35% of our holiday product, given the 2.5 month delay due to the closures in Vietnam in the third quarter and the delays of more than three weeks on the west coast, so that we can offer our customers can give as many holiday products as we can supply. on their expectations,” O’Connell said.

“While this is material to our profitability, we believe it is necessary to further mitigate sales losses and retain customers for the long term.”

Other retailers, such as Walmart Inc. wmt,
+0.51%
and Target Corp. TGT,
-0.28%,
chartered own vessels to bypass the bottlenecks in the global supply chain network.

Earlier in the call, Gap Chief Executive Sonia Syngal called Vietnam the company’s “top production country.”

Also: Walmart, Target, Home Depot and other major retailers charter ships to get around supply chain problems. Will the strategy save Christmas?

“While we had taken into account known supply chain constraints as we entered the quarter, including COVID-related shutdowns in Vietnam, the shock to our business lasted longer than expected as weeks turned into months,” Syngal said.

Syngal tried to focus on a few highlights from the troubled quarter, including the launch of BodEquality, Old Navy’s inclusive tailoring program and sales of the Yeezy “Perfect Hoodie,” which Syngal said “delivered the most sales per item in a single day in Gap.com history,” and new digital capabilities that the company expects to scale in 2022.

Athleta and Banana Republic are also part of the Gap portfolio.

But the good news was outweighed by problems, leading to a downgrading of the overweight to neutral at JPMorgan. Analysts lowered their price target from $39 to $22.

“[M]Management quoted “stock is currently underway,” suggesting the timing of the Black Friday/Holiday receipt may have been delayed, raising the markdown risk to 1H,” analysts said.

Read: Supply chain delays could now lead to discounts for shoppers, analysts say

Wells Fargo called the results “disappointing across the board.” Analysts maintained their overweight stock rating but lowered their $40 price target from $25 to $25.

“The biggest problem we see is that the stock is now going into the ‘penalty box’ because management has created a short-term credibility problem – increasing the guidance and calling their prowess in the supply chain, just three months ago, and today significantly reduce guidance while others in space seem to navigate the pressure quite well,” analysts wrote.

GlobalData warns that, in addition to supply chain issues, the Gap brand needs some work to generate the same excitement as the Yeezy merchandise.

“Our recent in-store checks reveal a holiday offering that is mundane to boring,” wrote Neil Saunders, managing director at GlobalData.

“In our view, Gap still has a lot of work to do to rebuild its brand and make it more relevant and interesting for shoppers. If not, the heat will run out of the consumer economy and there is a risk that core sales will deteriorate further.”

Gap stocks are down 7.3% this year, while the S&P 500 index SPX,
-0.44%
is up 24.3% for the period.

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Vienna City Council allows restaurants to dine outside, but only for now

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Vienna City Council allows restaurants to dine outside, but only for now

Viennese restaurants that have set up outdoor dining areas are allowed to keep them for the next six months.

After the formal renewal of a emergency ordinance until the latest possible end date of December 30, Vienna City Council unanimously approved an amendment to the city’s zoning plan on Monday (Dec. 6), allowing businesses with temporary outdoor permits to continue those operations until June 30, 2022.

Councilors said they will use the extra six months to develop rules to permanently relax outdoor dining regulations that balance the interests of businesses with potential concerns from neighbors, particularly regarding noise and parking.

“This is a temporary measure while COVID is still a reality to help these businesses and the residents a little bit,” said Councilman Ed Somers. “But we would instruct ourselves and the staff to work on these complicated and important issues. We are not going to wait until June to start this conversation again.”

The measure applies to any company that obtained a permit before December 31: some conditions to the outdoor dining activities that have been extensively permitted since June 2020 in response to the COVID-19 pandemic.

Under the revised regulation, restaurants may continue to serve dinners on an outdoor patio or in off-street parking if they meet the following rules:

  • Do not use more than eight seats per parking space
  • For businesses with outdoor dining options within 20 meters of a residence, limit occupancy to 9 AM to 9 PM Monday through Thursday, 10 AM to 9 PM Sunday, and 9 AM to 9:30 PM Friday and Saturday

Those terms are intended to address noise complaints filed at a public hearing on Nov. 15 by residents living behind Church Street restaurants Bazin’s and Blend 111.

City officials initially presented a draft that would apply the time limits to restaurants 15 meters from a residential boundary and allow them to work until 10pm on Fridays and Saturdays, but the council wondered if that would be enough.

“I’m trying to give the neighbors there some respite,” Councilman Nisha Patel said. “…Even after people leave the patio, there will be wait staff. They will have to clean up. They are still going to make noise. So if we stick to 10, we’re basically saying we’re going to be making noise until 10:30.”

Councilor Steve Potter pushed for a provision requiring residential restaurants to submit a noise reduction plan as part of the permitting process, but others said it would be too complicated to decide how noise violations could be identified and enforced with a measure that will last only six years. months.

“The six months was to look at, ‘Do these two things help?’” Mayor Linda Colbert said. “I think a noise reduction plan would be really good, but I don’t know how to judge that, and I don’t think we have those answers tonight.”

The council eventually agreed to a clause requiring the recognition of Vienna existing noise ordinance, including a ban on live entertainment without a conditional use license.

City officials proposed an ordinance in October that would allow outdoor dining permanently with administrative approval, streamlining a permitting process that typically requires public hearings and a $1,500 fee.

The design received the support of the Vienna Planning Commission, but last month public hearing, the city council decided it needed more time to work out details, such as criteria for when a permit must be approved and an appeals process.

According to city officials, Vienna issued 22 temporary permits for outdoor commercial activities while the emergency ordinance was in effect.

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Major Amazon outage disrupts US businesses, including McDonald’s and Disney+

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Major Amazon outage disrupts US businesses, including McDonald's and Disney+

A major outage in Amazon’s cloud computing network on Tuesday for more than five hours yesterday severely disrupted the services of many US companies, including Instacart, Venmo, Kindle, Roku, McDonald’s and Disney+.

xperts said it was the latest sign of how focused the company has become on running the internet.

The Amazon Web Services incident mostly affected the eastern US, but it still affected everything from airline and car dealership reservations to payment apps and video streaming services to Amazon’s own massive e-commerce operation. That included The Associated Press, whose publishing system was down for much of the day, significantly limiting its ability to publish its news story.

Amazon still hasn’t said anything about what exactly went wrong. In fact, the company limited its communications on Tuesday to succinct technical explanations on an AWS dashboard and a brief statement delivered through spokesperson Richard Rocha acknowledging that the outage had affected Amazon’s own warehouse and delivery operations, but said the company “worked to improve it.” solve the problem as soon as possible.”

About five hours after numerous companies and other organizations began reporting issues, the company said in a post on its AWS status page that it had “softened” the underlying issue responsible for the outage, which it failed to describe. Some affected companies took more hours to thoroughly check their systems and restart their own services.

Amazon Web Services was previously run by Amazon CEO Andy Jassy, ​​who succeeded founder Jeff Bezos in July. The cloud service operation is a huge profit center for Amazon. According to a report from Synergy Research, it controls about a third of the $152 billion cloud services market — a larger share than its closest rivals, Microsoft and Google, combined.

For public-access data technologist and activist Carl Malamud, the AWS outage highlights how much Big Tech has distorted the Internet, which was originally designed as a distributed and decentralized network intended to survive massive disasters such as a nuclear attack.

“By putting everything in one place, whether it’s Amazon’s cloud or Facebook’s monolith, we’re violating that fundamental principle,” said Malamud, who developed the first radio station on the Internet and later an essential database of the U.S. Securities and Exchange Commission put online. “We saw that when Facebook became the tool of a massive disinformation campaign, today we saw that with Amazon’s failure.”

Widespread and often prolonged outages due to single-point failures are becoming more common. In June, content distributor Fastly suffered a behind-the-scenes outage that briefly shut down dozens of major Internet sites, including CNN, The New York Times and the UK government’s home page.

In October, Facebook — now known as Meta Platforms — blamed a “faulty configuration change” for an hour-long global outage that brought Instagram and WhatsApp down alongside the titular platform.

This time, the trouble started mid-morning on the US East Coast, said Doug Madory, director of Internet analytics at Kentik Inc, a network intelligence company. Netflix was one of the more prominent names affected; Kentik saw a 26 percent drop in traffic to the streaming service.

Customers trying to book or change trips with Delta Air Lines had trouble connecting with the airline. “Delta is working quickly to restore functionality to our AWS-supported phone lines,” said spokesman Morgan Durrant. The airline apologized and encouraged customers to use its website or mobile app instead.

Dallas-based Southwest Airlines said it was switching to West Coast servers after some airport-based systems were affected by the outage. More than three hours after they started, customers were still reporting outages to DownDetector, a popular information center for user outage reports. Southwest spokesman Brian Parrish said there were no major disruptions to flights.

Toyota spokesman Scott Vazin said the US East Region for the company’s dealer services has declined. The company has apps that access inventory data, monthly payment calculators, service bulletins, and other items. More than 20 apps were affected.

Also according to DownDetector, people trying to use Instacart, Venmo, Kindle, Roku and Disney+ reported problems. The McDonald’s app was also down. But the airlines American, United, Alaska and JetBlue were unaffected.

Madory said he saw no reason to suspect any nefarious activity. He said the recent cluster of major outages reflects how complex the network industry has become. “More and more, these failures are the product of automation and centralization of the administration,” he said. “This ultimately leads to failures that are difficult to completely avoid due to operational complexity, but have a major impact when they occur.”

It was unclear how or if the outage affected the federal government. The US Cybersecurity and Infrastructure Security Agency said in an email response to questions that it was working with Amazon “to understand the potential impact this outage could have on federal agencies or other partners.”

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Builder who won £1million with lottery Links ticket on counter in shop

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Builder who won £1million with lottery Links ticket on counter in shop

A builder who won £1 million ($1.3 million) from the lottery left his ticket on the counter in the shop. Watch the moment he found out he had won here:

Things looked unfavorable for Terry Kennedy, from Barnsley, UK, when he tried to get his hands on a EuroMillions Lucky Dip ticket last month, thinking it was a Friday – only to be told it was in fact a Saturday.

The 28-year-old then picked up a Lotto ticket instead and it matched two main numbers in the draw, entitling him to another free Lucky Dip.

And when he went to pick up this ticket, he was a little shocked.

“I had a bit of a nightmare in the store,” Terry told LADbible.

“I think I bought some pop and candy and that too, I was eating, and I dropped my pop, dropped candy.

“I think I left my change when I stepped out of the store and the old woman said, ‘Don’t forget this!’

“I turned around and it was the lottery lottery ticket, and she even said, ‘See if it’s a winner now,’ and joked about it — crazy.”

Terry left almost a million pounds.  Credit: Camelot
Terry left almost a million pounds. Credit: Camelot

The fortune-telling shop assistant was proved right on November 10, when the lottery ticket matched five main numbers and the Bonus Ball in the Lotto draw, making it worth a million pounds.

Terry didn’t hear about his lucky charm until the next day at work, though he didn’t believe it at first. Neither did his colleagues, including his father, who went back to work.

It wasn’t until an operator confirmed the incredible news over the phone that reality kicked in, with images of the life-changing moment going viral.

Terry – who was a professional soccer player in his youth until his career was derailed by a recurring injury – called his girlfriend Kay Yoxall to share the news, but she too didn’t believe him.

Video of the life-changing moment went viral.  Credit: Jam Press
Video of the life-changing moment went viral. Credit: Jam Press

Kay said, “We’ve always said that if we won and we checked our ticket at work, we’d call each other and just say, ‘Come home, we won.’

“But that’s just always a dream and you never think it’s really going to happen. When he called me and said we won — and you could hear everyone in the background — I was like, ‘You’re just squirming us up, the whole construction site is working on it, it’s a joke.’

“I had to get my brother [who also works on the site] FaceTime me and put it on Tells so I could see his reaction. And it wasn’t until I saw him that I knew it wasn’t a joke.”

As for Terry and the guys on site, they all dropped tools and headed straight for a few pints.

The couple now plans to travel the world.  Credit: Camelot
The couple now plans to travel the world. Credit: Camelot

Terry said: “We all went to the pub, it’s about two minutes away.

“I had literally just been paid, so I had to get laps for everyone. I got everyone a few laps and basically all my pay was gone.”

Terry has been out of work since then but he has been to Tenerife and Dublin – with New York booked for January.

Kay has also been allowed to take a sabbatical and if Covid allows it, they plan to travel the world next year.

Hopefully Terry will buy that store clerk some candies and candies before he starts his life-changing adventure!

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