Today’s news in brief-9/2/24

Retail giant Tesco has finalised the sale of its banking arm to Barclays in a £600m deal. The partnership aims to leverage Tesco's strong brand presence and extensive customer base with Barclays' financial services expertise. This collaboration will enable Tesco to offer customers Tesco-branded banking products and services, leveraging the power of Tesco Clubcard, the UK's largest loyalty program. The sale involves the transfer of Tesco Bank's existing operations in credit cards, loans, and savings to Barclays, reducing Tesco's financial liabilities and strengthening its balance sheet. Around 2,800 Tesco Bank employees are expected to transition to Barclays, ensuring continuity of service for customers. EE has expanded its presence with the opening of a new Experience store in Gateshead, marking the fourth of 10 planned openings as part of a £6m investment in the British high street. The Gateshead store, featuring dedicated experience zones and a connected home zone, showcases the latest in smart home and gaming technologies. Asif Aziz OBE, EE's retail director, expressed excitement about the new store, highlighting its role in elevating the retail experience for shoppers in the vibrant tech hub of Newcastle. Waterstones has reported a significant decline in pre-tax profits, attributed to a technical issue at its central distribution centre. Despite a 13% increase in sales during the year ending April 29, 2023, pre-tax profits plummeted from £50.6m to £11.2m. The technical issue, stemming from the introduction of a new warehouse management system, led to a backlog of orders, impacting sales and increasing operating costs. However, sales growth was supported by the rising popularity of reading and physical bookshops, as well as the acquisition of Blackwell's, strengthening Waterstones' portfolio to over 320 stores across the UK and Belgium. Under Armour has reported a 25% dip in operating income and a 6% decline in revenues for the three months ending December 31, 2023. The drop in revenue was primarily driven by decreases in wholesale and North America revenues, along with declines in apparel and footwear revenues. However, direct-to-consumer revenue increased by 4%, fueled by growth in owned and operated store and ecommerce revenue. Despite a challenging retail environment, the company remains focused on achieving its full-year outlook.