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Biden open to negotiating on corporate tax hike, but says U.S. must take bold action on infrastructure

“I’m willing to listen to that,” Biden said when asked if he would consider a lower corporate tax rate than 28%, as his plan currently calls for.

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President Joe Biden said Wednesday that he is willing to negotiate on the proposed corporate tax rate hike in his $2 trillion infrastructure plan.

“I’m willing to listen to that,” Biden said at the White House when asked if he would consider a lower corporate tax rate than 28%, as his plan currently calls for.

“We’ve got to pay for this,” Biden added, noting that there are “many other ways we can do it.”

“But I’m willing to negotiate that,” he said.

The president’s remark about the corporate tax rate came after he delivered a sweeping defense of the size and scope of his proposed infrastructure overhaul.

Republicans have been quick to criticize the plan for funding too many projects that, in their view, fall outside the definition of infrastructure. Senate Minority Leader Mitch McConnell, R-Ky., has tried to brand the plan a “Trojan Horse” for liberal policies, and other GOP lawmakers have claimed that only a small fraction of the massive bill goes toward “real infrastructure.”

But Biden argued Wednesday afternoon that “the idea of infrastructure has always evolved to meet the aspirations of the American people and their needs. And it is evolving again today.”

The president said he welcomes debate about the specifics of the bill, and said “any Republican who wants to get this done” is invited to the White House.

But he noted that his own view is that infrastructure reform should be crafted with the future in mind, rather than focused on repairing existing structures.

“We don’t just fix for today. We build for tomorrow,” Biden said.

“It’s not a plan that tinkers around the edges. It’s a once-in-a-generation investment in America, unlike anything we’ve done since we built the interstate highway system and won the Space Race decades ago,” the president said.

“It’s a plan that puts millions of Americans to work to fix what’s broken in our country: Tens of thousands of miles of roads and highways, thousands of bridges in desperate need of repair. It’s also a blueprint of infrastructure needed for tomorrow,” he added.

Biden’s proposal, dubbed the American Jobs Plan, includes roughly $2 trillion in spending over eight years. The White House offered a 15-year path to funding the plan, in part by hiking the corporate tax rate to 28%. Republicans had slashed the levy to 21% from 35% as part of former President Donald Trump’s 2017 tax law.

The infrastructure plan would also implement other measures, such as boosting the global minimum tax for multinational corporations and closing so-called offshoring loopholes, for funding.

“Building the infrastructure of tomorrow requires major investments today,” Biden said. “The divisions of the moment shouldn’t stop us from doing the right thing for the future.”

The ambitious, expensive push to update U.S. infrastructure kicked off just weeks after Biden signed a $1.9 trillion coronavirus relief bill into law. That package passed through Congress without any GOP support, and it’s likely to be even tougher for the White House to convince Republicans to back another huge bill that also includes tax increases.

But Biden also faces pressure from Democratic Sen. Joe Manchin of West Virginia, who has already come out against a 28% corporate rate. In a Senate split 50-50 between the two parties, Manchin’s vote could make all the difference.

“But I’m willing to negotiate that,” he said.

Source: https://www.cnbc.com/2021/04/07/biden-willing-to-negotiate-on-corporate-tax-rate-but-says-inaction-not-an-option-on-infrastructure-.html

biden-open-to-negotiating-on-corporate-tax-hike,-but-says-u.s.-must-take-bold-action-on-infrastructure

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Source: https://www.cnbc.com/earnings/

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Stitch Fix shares surge as online styling service reports surprise profit

Stitch Fix shares jumped after the online shopping and styling service reported a surprise profit for its fiscal fourth quarter.

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The Stitch Fix application for download in the Apple App Store on a smartphone arranged in Hastings-on-Hudson, New York, U.S., on Saturday, June 5, 2021. Stitch Fix Inc. is scheduled to release earning on June 7.

Tiffany Hagler-Geard | Bloomberg | Getty Images

Stitch Fix shares jumped 14% in extended trading Tuesday after the online shopping and styling service reported a surprise profit for its fiscal fourth quarter.

Sales for the three-month period ended July 31 also came in higher than analysts were expecting, thanks to outsized growth in Stitch Fix’s women’s and kids’ categories. Menswear has been growing more slowly, the company said.

Consumers have been splurging on new outfits in recent months, as many head back to school and return to social gatherings. Some have also citied the need for new clothes after either gaining or losing weight during the Covid pandemic.

Here’s how Stitch Fix did compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

  • Earnings per share: 19 cents vs. a loss of 13 cents expected
  • Revenue: $571.2 million vs. $548 million expected

Net income attributable to shareholders was $28 million, or 19 cents per share, in the latest period. A year ago, it posted a net loss of $44.5 million, or 44 cents a share. Analysts had been looking for the company to book a loss of 13 cents per share.

Revenue grew to $571.2 million from $443.4 million a year earlier. That was better than analysts’ expectations for $548 million.

Stitch Fix reported nearly 4.2 million active clients, up 18% from a year earlier. The company said net revenue per active client was $505, surpassing the $500 threshold for the first time ever. Customers have been purchasing more items to keep at home, Stitch Fix said, as they have more brands and price points to choose from.

Stitch Fix defines active clients as people who either ordered a “Fix” subscription or bought an item directly from its website in the preceding 52 weeks from the final day of the quarter.

The company also said it had its lowest ever churn rate at the end of the period, meaning its customers are sticking around.

Last month, Stitch Fix finally opened up its direct-buy option, which is now known as “Freestyle,” to the public. This allows people to shop Stitch Fix for individual items of clothing, without needing to sign up for a subscription.

CEO Elizabeth Spaulding said this should help Stitch Fix grow its addressable market in the year ahead. The company’s next initiative will be to market and raise broader awareness around the offering, she said. Stitch Fix is preparing to roll out a national advertising campaign on the debut.

Early indications are that “Freestyle” is meaningfully accretive to the company’s revenue per active client metric, Spaulding told analysts on a conference call.

“Clients have agency, flexibility and choice while also experiencing a highly personalized shopping experience,” Spaulding said.

For its fiscal first quarter, Stitch Fix said it sees sales in a range of $560 million to $575 million. That’s below analysts’ expectations for $588 million.

For the upcoming fiscal year, Stitch Fix anticipates sales rising 15% or more from the prior year. Analysts polled by Refinitiv had been looking for an 18% increase.

While the entire retail industry is working through supply chain complications, Stitch Fix said it is seeing a small impact, but nothing that will hurt the business in the fall and winter months. The company said it is less reliant on Vietnam, where manufacturing has largely come to a standstill due to ongoing pandemic lockdowns in the region.

As of Tuesday’s market close, Stitch Fix shares have fallen nearly 39% this year. The company has a market cap of $3.8 billion.

Find the full press release from Stitch Fix here.

Sales for the three-month period ended July 31 also came in higher than analysts were expecting, thanks to outsized growth in Stitch Fix’s women’s and kids’ categories. Menswear has been growing more slowly, the company said.

Source: https://www.cnbc.com/2021/09/21/stitch-fix-sfix-q4-2021-earnings.html

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© 2021 CNBC LLC. All Rights Reserved. A Division of NBCUniversal

Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes, and Market Data and Analysis.

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Data also provided by Reuters

Source: https://www.cnbc.com/earnings/

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