BUSINESS NEWS ROUNDUP
COURTS
Apple awarded $539 million
Apple won $539 million from Samsung in the final throes of the companies’ U.S. court struggle over smartphone technology, seven years after the start of a global patent battle.
Apple sought about $1 billion in a retrial of a case that originally produced a verdict of that amount in 2012, while Samsung argued it should pay only $28 million this time.
Jurors in federal court in San Jose decided only on damages Thursday. It was already established that the South Korean company infringed three of Apple’s design patents — covering the rounded corners of its phones, the rim that surrounds the front face, and the grid of icons that users view — and two utility patents, which protect the way something works and is used.
RIDE SERVICES
Uber pursuing London pact
Uber admitted to making mistakes in London, promising to work closely with authorities as it tries to get its operating license renewed.
The apparent rapprochement appears to be good news for people wanting to get around the British capital cheaply and more safely, but it’s an unwanted embarrassment for Prime Minister Theresa May’s Conservative Party.
Tory lawmakers weighed in to support the app in September when Transport for London said it had failed to meet required standards and that its permit wouldn’t be renewed. There were petitions, protests and questions in Parliament in support of Uber, even though the police had also raised doubts about the safety of its cars.
May pitched it as a battle between the San Francisco company and London Mayor Sadiq Khan, accusing him of stifling competition. While Khan — one of the opposition Labour Party’s most prominent politicians — always said the decision was made by the transport agency and not him, he now appears to have won anyway.
EARNINGS
Gap
Gap Inc. reported a first-quarter profit that missed Wall Street expectations, hurt by a deeper slump in demand for its namesake label. Its shares fell 7 percent in extended trading.
The San Francisco chain said that overall sales at established stores rose 1 percent, dragged down by a 4 percent drop at Gap. Old Navy and Banana Republic both saw sales rise 3 percent.
The results underscore how the Gap brand itself is failing to connect with shoppers, even as the company works to overhaul the business. The chain has been shifting its focus to its growing Old Navy and Athleta stores and away from the Gap and Banana Republic brands. Lower-priced Old Navy, in particular, has been a bright spot.
Gap faces the same problems as many other fashion chains as consumers shift their spending away from clothing and more toward experiences. But Gap, in particular, has struggled to differentiate itself from the sea of clothing options from competitors.
The company earned $164 million, or 42 cents per share, in the quarter ended May 5. That compares with $143 million (36 cents) in the year-ago period.
Gap posted revenue of $3.78 billion, topping estimates.
The clothing chain still expects full-year earnings of $2.55 to $2.70 per share.
Autodesk
Autodesk on Thursday reported a loss of $82.4 million in its fiscal first quarter.
On a per-share basis, the San Rafael company said it lost 38 cents. Earnings, adjusted for one-time gains and costs, came to 6 cents per share, beating Wall Street expectations.
The design software company posted revenue of $559.9 million in the period, also beating Street forecasts. For the current quarter, Autodesk expects its pershare earnings to range from 13 to 16 cents.
The company said it expects revenue in the range of $595 million to $605 million for the fiscal second quarter.
Ross Stores
Ross Stores said Thursday it has a fiscal first-quarter profit of $418.3 million.
The Dublin company said it had profit of $1.11 per share. Adjusted for pretax gains and nonrecurring gains, earnings were 92 cents per share.
Although the results fell short of Wall Street expectations, the discount retailer’s revenue of $3.59 billion in the period beat Street forecasts.
Ross Stores expects full-year earnings to be $3.92 to $4.05 per share.