Anglo-Dutch consumer goods giant Unilever plc (LON:ULVR, NYSE:UL) is reportedly lining up a bid for the Estée Lauder Companies Inc (NYSE:EL).
Former Proactive Investors stalwart Jamie Nimmo reports in the market report column of the London Evening Standard that the US cosmetics giant is “in play”.
“City sources said the front-runner is consumer goods giant Unilever,” Nimmo reports, while adding the caveat that in the newspaper world, the “silly season” is in full swing, with rumors replacing hard news.
Nimmo's sources reckon Unilever will probably face competition from the likes of French cosmetics heavyweight L’Oréal, as well as 3G and Warren Buffett’s Berkshire Hathaway, who together control plastic cheese company and dissembling specialist Kraft.
Shares in Estée Lauder were off 0.3% at US$105.70 in pre-market trading.
Sticking with beauty products, Ulta Beauty Inc (NASDAQ:ULTA) tumbled 7.4% to US$216.34 after the company reported second quarter results that showed higher net income but with slower like-for-like (LFL) sales growth.
The beauty product retailer said net income in the second quarter ending July 29 was US$114 million or $1.83 a share, up from US$90 million or $1.43 a share in the corresponding period last year.
Sales rose 21% to US$1.29bn from US$1.07bn while LFL sales rose 12%, slower than the 14% rise in the second quarter of 2016.
READ Ulta Beauty shares dip after second-quarter results
Discount retailer Big Lots Inc's (NYSE:BIG) stock was going cheap in screen-based trading after its second quarter earnings disappointed.
The shares fell a dollar to US$49.10 despite earnings per share (EPS) coming in ahead of expectations, and the company raising full year earnings guidance to US$4.15 – US$4.25 a share, compared to previous guidance of US$4.05 to US$4.20.
EPS of 67 cents was 15 cents higher than the year before and five cents ahead of market expectations.
Revenue in the second quarter rose 1.7% to US$1.22bn from US$1.20bn the year before.
The shares were off 2.1% at US$49.02.