The Wall Street Journal - 23.08.2019

B2| Friday, August 23, 2019 **** THE WALL STREET JOURNAL.

INDEX TO BUSINESSES

These indexes cite notable references to most parent companies and businesspeople
in today’s edition. Articles on regional page inserts aren’t cited in these indexes.

A

Aerojet Rocketdyne
Holdings..................B
Alphabet..............B3,B
Altice USA..................B
AT&T.......................B1,B
B

Bank of New York
Mellon.....................B
Beijing Byte Dance
Telecommunications A
Berkshire Hathaway.B
Boeing..................A2,B
BP................................B
BYD............................B
C

Carbon Black...............B
Caterpillar.................B
CenturyLink.................B
Charter Communications
.....................................B
Cisco Systems.............B
Comcast.......................B
Contemporary Amperex
Technology..............B
Cox Communications..B
Cummins...................B
D

Deere.........................B
Dell Technologies........B
Dick's Sporting Goods
............................. B2,B
Dominion Energy........B
D.R. Horton...............B

E

Entertainment One.....B

F

Facebook..............B3,B

Ford Motor..................B

H

Hasbro.........................B

HP.........................B1,B

Humana.......................A

K

KB Home...................B

L

L Brands....................B

Lennar.......................B

LG Chem....................B

LGI Homes................B

M

MGM Resorts

International.............B

N

Netflix.........................B

New Jersey Natural Gas

.....................................B

News Corp...................B

Nordstrom.................B

Northrop Grumman..B

Novartis.......................B

O

Oscar Insurance..........A

Overstock.com............A

P

PG&E...........................A

Pivotal Software.........B

Q

Qantas Airways..........B

R

Raytheon...................B

S

Salesforce...................B

Samsung SDI............B

Singapore Airlines......B

Smithfield Foods........B

Southwestern Energy.B

SPDR S&P

Homebuilders..........B

Sprint..........................B

Square Mile Capital....B

State Street..............B

T

T-Mobile US................B

Toyota Motor............B

U

Uber Technologies....B

United Technologies.B

V

Verizon Communications

.....................................B

Vermont Gas Systems

.....................................B

VMware.......................B

Volkswagen.................B

W

Walmart......................A

Y

Yucaipa........................B

INDEX TO PEOPLE

Like other Las Vegas-based

casino companies, MGM has

become more reliant on reve-

nue from hotels, restaurants

and other nongambling lines

of business as younger con-

sumers migrate away from slot

machines and table games.

On a conference call last

month with Wall Street ana-

lysts, MGM Chief Executive

Jim Murren credited the com-

pany’s nongambling busi-

nesses with boosting Las Ve-

gas revenue by 1% in the most

recent quarter, even as gam-

bling revenue there declined

12%.

Mr. Murren characterized

the push into other businesses

partly as a protective measure

against future economic down-

turns. Last year, about 40% of

MGM’s domestic revenue came

from gambling, a turnaround

from 20 years ago when casi-

nos accounted for the bulk of

its domestic revenue.

Casino operators and lodg-

ing companies have largely

been separate businesses in

the U.S., with distinct business

models. Most casino compa-

nies offer discounted or even

free hotel stays at their prop-

erties to lure big gamblers,

while hospitality companies

derive most of their revenue

from room rates.

But Michael Pollock, a ca-

sino analyst at Horsham, Pa.-

based Spectrum Gaming

Group, said it makes sense for

casinos to get into the hotel

business.

“The biggest challenge for

gaming companies is being

able to attract a younger de-

mographic,” he said.

Mr. Pollock added that both

casino and hotel operators rely

more on loyalty programs to

drive business, which creates

another opportunity to cross-

market properties.

The often affluent visitors

to the NoMad and other

Sydell-run hotels are the sort

of customers casino operators

would like to lure to their

gambling floors, as well as

their nightclubs, bars and res-

taurants.

Hotel companies have tried

in varying ways to enter the

casino business before, with-

out much to show for it.

Hilton Hotels Worldwide

Inc. owned a casino at a Las

Vegas hotel during the 1970s,

and there was gambling at its

Havana, Cuba, hotel in the late

1950s before the Castro gov-

ernment nationalized the

property.

Starwood Hotels and Re-

sorts Worldwide LLC and ca-

sino operator Caesars Enter-

tainment Corp. had a

partnership where loyalty

members in each program

earn or redeem points at cer-

tain of the other company’s

properties.

That agreement ended after

Marriott International Inc. ac-

quired Starwood, but the ca-

sino company now has a simi-

lar arrangement with

Wyndham Hotels and Resorts.

—Ethan Smith

contributed to this article.

economic uncertainty and

lower sales in its Europe, Mid-

dle East and Africa region. The

printer market is expected to

remain soft, Mr. Weisler said.

HP has been trying to boost its

printing-services business,

which Mr. Lores called critical.

Overall, HP reported sales

of $14.60 billion, compared

with $14.59 billion a year ear-

lier. For the quarter ended

July 31, HP’s profit rose 34%

to $1.18 billion, or 78 cents a

share.

The company raised its fis-

cal-year adjusted earnings out-

look to between $2.18 and

$2.22 a share, compared with

an earlier forecast of $2.14 to

$2.21. For the current quarter,

HP said it expects adjusted

earnings between 55 and 59

cents a share.

The NoMad Hotel on Broadway at 28th Street in New York City.

PETER FOLEY FOR THE WALL STREET JOURNAL (2)

floors of the Park MGM on the

Las Vegas Strip. The new part-

nership is expected to create

more crossover opportunities,

including the potential for ad-

ditional joint properties and a

shared loyalty points program,

people briefed on the matter

said.

Large hotel chains have

been snapping up independent

boutique operators like Sydell,

which tend to have greater ap-

peal to millennial travelers. In-

terContinental Hotels Group

PLC acquired Kimpton Hotels

& Restaurants, while Hyatt Ho-

tels Corp. recently bought Two

Roads Hospitality, which in-

cluded the Joie de Vivre and

Thompson brands.

Mr. Zobler, who will remain

Sydell’s CEO, said the deal

with MGM will give his com-

pany more clout when bar-

gaining for commissions with

online travel agents and will

offer access to a broader dis-

tribution network.

In business, “there are two

types of survivors,” he said.

“Companies that get large and

companies that occupy a

niche. With this partnership,

we’re trying to do both.”

Continuedfromthepriorpage

MGM Buys

Stake in

Hotelier

retailers and other devices,

rose 3% in its fiscal third quar-

ter.

Sales of printers, printing

supplies and related items

dropped 5%. HP’s printing

business has been a focus for

investors. It offers larger

profit margins than those

from HP’s other business seg-

ments but has struggled re-

cently. Mr. Weisler attributed

the quarter’s slump to macro-

Continuedfromthepriorpage

HP’s CEO

To Step

Down

B

Bezos, Jeff................B
Block, Keith.................B
Boling, Mark...............B
Buerger, Jeff..............M
Buffett, Warren........B
Byrne, Patrick.............A
C

Candland, Stephen.....M
E

Erlam, Craig..............B
F

Flores, Adalberto......B
G

Gelsinger, Pat.............B
Goldner, Brian.............B
H-J

Henderson, Carter....B
Hense, Florian...........B
Horrowitz, Hayden.....M
Hughes, Mark.............M
Janssens, Juliette......M

Johnson, Jonathan.....A

Joyce, Alan..................B

K

Kaspar, Allan...............B

Koffman, Allison

Bandier.....................M

L

Leigh, Teresa..............M

Logan, Andrew............B

Lores, Enrique.....B1,B

Lundstrom, Paul.......B

M

MacAdam, Simon.....B

Mahé, Hervé...............B

Marcus, David...........B

McIntyre, Jack..........B

Misra, Priya...............B

Murren, Jim................B

Musk, Elon................B

N

Nadeau, Matt............B

Nedley, Brian.............M

P

Pollock, Michael..........B

Pugh, Brian.................B

R

Rendall, Don................B

Rhodes, Caley Sr........M

Rossiello, Elizabeth..B

Rutherford, James......B

S

Scharf, Charles..........B

Schiestel, Jeremy......M

Schlosser, Mario.........A

Sheehy, Bob................A

Stack, Edward.............B

Stackmann, Jürgen.....B

T

Thunberg, Greta..........B

W

Weisler, Dion..............B

Z

Zelnick, Brad...............B

Zobler, Andrew...........B

can make jet lag worse, she
noted.
One of the test flights from
New York will follow the nor-
mal pattern. But on the other
flight, lights will stay on for
about six or seven hours after
departure. Researchers will
compare passenger data from
the two flights to determine
whether the lighting change
affected jet lag. Meal service
will be aligned with the light-
ing, Ms. Postnova said.
Light plays a key role in
regulating sleep, but “recently
we are learning that meals, ex-
ercise and other environmen-
tal factors also affect our body
clock,” Ms. Postnova said. A
big unknown for air travel is
how to schedule lighting,
meals and exercise to mini-
mize jet lag.
Qantas says it will decide by
December whether to add the
new routes to its passenger
service. If it does, the airline is
considering longer-range Boe-
ing 777Xs or A350s from Air-
bus SE for those trips, whose
duration is expected to be
about 20 hours.
When Qantas launched a
roughly 17-hour nonstop flight
between Perth and London last
year, the airline said menus
were designed to maintain hy-
dration, aid sleep and reduce
jet lag. A yoga studio was also
included in the airline’s new
Perth lounge to help passen-
gers relax. After a year in op-
eration, the flight had the
highest customer-satisfaction
rating despite being the lon-
gest in the Qantas network.

Continuedfromthepriorpage

Other airlines are stretching

their long-haul flights.Singa-

pore AirlinesLtd.’s nonstop

service between Singapore and

Newark, N.J., lasts about 18

hours.

Alan Joyce, chief executive

of Qantas, said the airline

needs to get global aviation

regulators on board since cur-

rent rules don’t allow flights

longer than 20 hours. Qantas

also needs “productivity

gains” from its pilots to make

the flights economical, Mr.

Joyce said. He declined to

elaborate on what concessions

pilots would have to offer.

“This is ultimately a busi-

ness decision, and the econom-

ics have to stack up,” Mr.

Joyce said. “And if they don’t,

we won’t do it.”

The Australian and Interna-

tional Pilots Association, the

union that represents Qantas

pilots, said it is seeking more

detail on what the carrier

needs from pilots.

“Pilots have long been at

the forefront of Qantas’s pio-

neering spirit, and we look

forward to meeting the chal-

lenges of ultralong-range fly-

ing, with safety always being

our top priority,” said Mark

Sedgwick, the association’s

president.

William Brougham, 42 years

old, who flew in economy from

London to Perth last week,

said he felt he had more space

than usual. He said meals such

as a beef stew were served at

the appropriate times, helping

to minimize jet lag. His only

quibble was a lack of compel-

ling options on the entertain-

ment system.

“If you can survive 16 hours,

you can probably survive 19,

20 hours,” said Mr. Brougham,

who lives in Sydney but is

from London and would be in-

terested in a nonstop flight be-

tween the two cities. “I’d prob-

ably want to challenge myself.

I’d definitely do it once.”

Departing

Now:a

Hour Flight

Source: the company

Note: routes are not flight paths

Qantas Airways plans two nonstop trips from New York to

Sydney and one from London to Sydney to experiment with

aspects such as lighting patterns. Each flight will be on a Boeing

787-9 jet and take an estimated 19 hours.

EnduranceTest

London

Sydney

New

York

U.S.

AUSTRALIA

U.K.

London-Sydney

2,000 miles NewYork-Sydney

2,000 km

BUSINESS & FINANCE

its.” It previously projected

growth of up to 2%.

The company boosted its

full-year earnings guidance to

a range of about $3.30 and

$3.45 a share, from an esti-

mate of between about $3.

and $3.40.

It said there will be fewer

shares outstanding than it

previously expected.

While the company has

struggled to boost sales for a

while, its decision last year to

stop selling guns to customers

under the age of 21 also has

hurt results.

Profit at Dick’s fell 5.7% to

$112.5 million in the latest

quarter as selling, general and

administrative costs and cost

of sales increased faster than

its net sales.

On a per-share basis, earn-

ings rose to $1.26, from $1.20,

as the company’s weighted av-

erage common shares out-

standing declined.

Net sales rose 3.8% to $2.

billion, beating estimates from

analysts polled by FactSet of

$2.21 billion.

The Pittsburgh-based com-

pany’s cost of sales rose 4.2%

and its selling, general and ad-

ministrative costs climbed

5.2%.

Dick’s also said Thursday

that it sold its Affinity Sports

and Blue Sombrero technology

subsidiaries to Stack Sports

for $45 million.

Shares ofDick’s Sporting

GoodsInc. climbed Thursday

after the retailer reported its

first rise in comparable-store

sales in about two years and

raised its earnings outlook.

The company said sales at

stores open more than a year

rose 3.2% in its fiscal second

quarter, trumping the estimate

of analysts polled by Consen-

sus Metrix.

An increase in transactions

and the average customer

ticket fueled the sales gain for

the quarter, which ended Aug.

3, Chief Executive Edward

Stack said.

The last time Dick’s re-

ported positive same-store

sales was in the second quar-

ter of fiscal 2017.

Its shares closed Thursday

up 3.6% at $34.15.

Dick’s said it expects same-

store sales for the current fis-

cal year to show percentage

growth in the “low-single dig-

BYALLISONPRANG

Dick’s Ends Skid, Raises Outlook

The sporting-goods retailer posted a 3.2% rise in same-store sales.

MATT SAYLES/INVISION FOR DICK’S SPORTING GOODS/ASSOCIATED PRESS

   

 



 





 







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