Business News at a Glance
Posted December 29, 2017 9:39 p.m. EST
In Year’s Busy Final Days, Stores See a ‘13th Month’
The final stretch of December, traditionally a slow period used by retailers to purge outdated inventory, is generating so much traffic and sales that some chains are calling it the 13th Month or the Second Season. It is a recognition of the swarms of consumers who are flooding back into shops and websites on a rising tide of returns, exchanges and gift cards. The day after Christmas was most likely the fourth-busiest shopping day of the season this year, behind Black Friday and the two Saturdays before the holiday. The Saturday after Christmas is expected to be the ninth-busiest day.
Goldman Sees Earnings Taking a $5 Billion Hit
Goldman Sachs expects to take a $5 billion charge to its fourth-quarter earnings as a result of the tax bill that President Trump signed into law last week, the bank said in a regulatory filing. It is a one-time blow for Goldman: The benefits of the law’s tax cuts — including a reduction of the corporate income tax to 21 percent from 35 percent — will be much longer lasting. Two-thirds of the estimated $5 billion charge comes from Goldman preparing to pay taxes on assets it holds overseas. Another portion stems from the bank revaluing assets it intended to use as a tax shield under the old, higher rate.
Switch Flips Nintendo’s Fortunes, Setting Records and Leading a Revival
Thanks largely to the arrival of the Switch in March, Nintendo has had a startling turnaround year. The new console became the fastest-selling video game system in Nintendo’s history, to the point where the company failed to keep up with demand. Nintendo’s internal target for its first-year sales of the Switch has risen to 16 million from 10 million. In the company’s most recent quarterly report, released in October, it announced profit of $209 million, after regularly reporting losses in previous quarters. Its stock is up more than 75 percent this year.
Guy Fieri Says Farewell to Times Square
Celebrity chef Guy Fieri says he has “opened over 63 restaurants around the world and at sea.” He doesn’t say how many he has closed, but the monster Guy’s American Kitchen & Bar in Times Square is about to become one. Its signature Donkey Sauce will stop flowing after the nearby ball drop Dec. 31. “I’m proud that for over 5 1/2 years, Guy’s American in New York City served millions of happy guests,” Fieri said in a statement. Fieri did not say why he was closing the restaurant, which features what he calls “American comfort food gone wild.”