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Sephora to take over cosmetics at Kohl's

Sephora will be replacing all cosmetics areas at Kohl’s with 2,500-square-foot shops, starting with 200 locations next fall.

It will expand to at least 850 stores by 2023, the companies announced Tuesday.

Wall Street liked the idea, sending shares of Kohl’s up 15 percent Tuesday to levels not seen since the coronavirus began to spread in the United States early this year.

Sephora’s online beauty experience will launch on Kohls.com next fall. The deal upends Sephora’s 14-year exclusive relationship with J.C. Penney, which filed for Chapter 11 bankruptcy protection in May.

The partnership will help Kohl’s reach its goal of tripling cosmetics and beauty sales, said CEO Michelle Gass.

Gass said that both companies will share in the operating profit of the shops.

— Associated Press

ECONOMY

Oct.: Factories slowed, home building rose

American factories grew at a slower pace last month, and there are concerns that surging coronavirus infections will endanger an economic recovery.

The Institute of Supply Management, an association of purchasing managers, reported Tuesday that its manufacturing index dipped to 57.5 in November from 59.3 in October. Any reading above 50 signals that manufacturing is expanding.

Meanwhile U.S. construction spending jumped 1.3 percent in October, again on the strength of single-family home building.

The October gain follows a downward revision in September to a 0.5 percent decline from a previous estimate of a 0.3 percent gain, the Commerce Department reported Tuesday.

Single-family home construction rose 5.6 percent in October, helping to boost a 2.9 percent increase in total private residential construction for the month.

— Associated Press

HEALTH CARE

UnitedHealth ties its forecast to pandemic

UnitedHealth has debuted a lower-than-expected 2021 earnings forecast partly due to the unknown extent of covid-19’s impact on the health-care system.

The nation’s largest health insurance provider said Tuesday that it expects to take a hit in the new year from treatment and testing costs tied to the pandemic. It believes it may see more claims for things such as elective surgeries that people deferred this year as the pandemic spread.

The company also cited a potential impact from rising unemployment, which can reduce employer-sponsored health insurance enrollment.

The company said it expects adjusted earnings to range from $17.75 to $18.25 per share on revenue of between $277 billion and $280 billion.

— Associated Press

Also in Business

Airbnb hopes to raise as much as $2.6 billion in its initial public stock offering this month, betting investors will see its home-sharing model as the future of travel. In a government filing Tuesday, the San Francisco company said it expects to offer 51.9 million common shares priced between $44 and $50 each. The company is expected to list its shares on the Nasdaq stock exchange on Dec. 10. At the midpoint of its proposed range, Airbnb would command a market value of $32.3 billion, according to Renaissance Capital, which tracks IPOs.

Walt Disney Co. named a new executive to oversee programming at ABC and eliminated one of its three TV studios as part of a push to streamline and focus on online video. Craig Erwich, who has headed original productions at Hulu, will also be given the title of president of entertainment at ABC, Disney said on Tuesday. In his six years at Hulu, Erwich helped create hits such as “The Handmaid’s Tale” and “Little Fires Everywhere.” The company will now operate two TV studios, 20th Television and ABC Signature. Touchstone, a unit previously called Fox 21 that it acquired last year, will be disbanded.

From news reports