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CBL Properties reveals stock repurchase plan
CBL Properties on Thursday said that its board of directors authorized a stock repurchase program for the company to buy up to $25 million of its common stock.
“Authorizing a repurchase program provides us with an additional tool to allocate our capital effectively and capture an attractive opportunity when our stock is trading at a significant discount,” CBL President Stephen Lebovitz said in a statement.
The Chattanooga-based shopping center company said it plans to repurchase shares from time to time on the open market, in privately negotiated transactions or otherwise depending on market prices and other conditions and all in compliance with the rules of the Securities and Exchange Commission and other applicable legal requirements.
The size and timing of any purchases will depend on a number of factors, including share price, general business and market conditions, and other factors, the company said. The repurchase program does not obligate the company to acquire any particular amount of shares, and the repurchase program may be suspended or discontinued at any time at the company’s discretion. Purchases may be made through the program by Aug. 10, 2024, according to CBL.
$8.5 billion fashion merger consolidates luxury market
Tapestry, the fashion company that owns Coach and Kate Spade, said Thursday it had acquired Capri Holdings, the parent of Versace and Michael Kors, for about $8.5 billion in cash, as consolidation in the luxury market gathers pace.
The deal between two large U.S. companies with familiar luxury brands comes as high-end retailers look for growth amid signs that U.S. consumers are pulling back on discretionary spending. It also comes as the most dominant luxury players jostle to snap up brands and broaden their portfolios.
Combined, the two groups would generate about $12 billion in revenue, bringing brands such as Coach, Kate Spade and Stuart Weitzman together with Versace, Jimmy Choo and Michael Kors. Once the transaction is completed, they will operate under the name Tapestry.
The move is the boldest effort yet by American fashion executives to build a collective that might be able to compete with the might of European giants such as LVMH Moët Hennessy Louis Vuitton and Kering, which owns brands such as Gucci and Saint Laurent.
The CEOs of Tapestry and Capri stressed that the combination would bring their handbags, shoes and apparel to a broader consumer base and allow them to tap more resources. The acquisition will help expand Tapestry’s reach in Europe, the Middle East and Africa, while Capri’s brands will gain more exposure in Asia.
The companies said the merger also presented an opportunity to increase their direct-to-consumer businesses and save $200 million in operating and supply-chain costs within three years.
30-year mortgage rates increase to nearly 7%
The average long-term U.S. mortgage rate rose this week to just under 7%, the latest setback for would-be homebuyers already facing affordability challenges due to a housing market limited by a shortage of homes for sale.
Mortgage buyer Freddie Mac said Thursday that the average rate on the benchmark 30-year home loan rose to 6.96% from 6.90% last week. A year ago, the rate averaged 5.22%.
It’s the third consecutive weekly increase for the average rate, which now matches its high for the year set on July 13. High rates can add hundreds of dollars a month in costs for borrowers, limiting how much they can afford in a market already unaffordable to many Americans.
“There is no doubt continued high rates will prolong affordability challenges longer than expected, particularly with home prices on the rise again,” said Sam Khater, Freddie Mac’s chief economist. “However, upward pressure on rates is the product of a resilient economy with low unemployment and strong wage growth, which historically has kept purchase demand solid.”
— Compiled by Dave Flessner
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