Apparel & Accessories | Digital Commerce 360

Guess to acquire Rag & Bone

Mary Meisenzahl — Mon, 19 Feb 2024 21:40:42 +0000

Guess Inc. agreed to acquire Rag & Bone, the retailers announced on Feb. 16. The acquisition is in partnership with brand management firm WHP Global.

“We are excited to add an iconic brand such as Rag & Bone to Guess, further diversifying our portfolio with complementary customer bases and price points. We look forward to partnering with WHP Global to build on Rag & Bone’s heritage,” Guess CEO Carlos Alberini said. “Guess has an incredible platform with a strong global distribution network and outstanding licensee partners that will enable us to power the growth and expansion of the Rag & Bone business.”

Guess is No. 178 in the Top 1000, Digital Commerce 360’s ranking of North America’s leading retailers by online sales. Rag & Bone ranks No. 652.

Terms of the deal

Guess will buy all of Rag & Bone’s operating assets, the retailer said. Guess and WHP Global will also each own half of Rag & Bone’s intellectual property, according to a public statement. They will create a licensing agreement that gives Guess exclusive rights to manufacture and sell licensed products in exchange for royalties.

The retailers did not share all financial terms of the deal. However, Guess’ commitment in the agreement totals $56.5 million, with the potential for an additional $12.8 million dependent on Rag & Bone’s 2024 results.

The deal is expected to close during the first quarter of Guess’s 2025 fiscal year.

Rag & Bone’s history

Rag & Bone was founded in New York City in 2002. As of February 2024, the retailer operates 34 stores in the U.S., and another two in the U.K. Its products are also sold through other retailers, including Nordstrom (No. 21 in the Top 1000), Saks Fifth Avenue (No. 28) and Neiman Marcus (No. 72).

In 2023, Rag & Bone generated $250 million in revenue, it said. The apparel company is privately held.

Following the acquisition, Rag & Bone will continue to be headquartered in New York City. It will operate as an independent fashion brand under the Guess umbrella, the retailer said.

“I am thrilled about this new relationship with Guess and WHP Global. Today marks the beginning of an exciting new chapter as Rag & Bone joins forces with a much larger international fashion company,” Rag & Bone chairman Andrew Rosen said in a written statement. “It’s a great opportunity for our team to take the brand to the next level, blending our unique styles and respective expertise to create new possibilities for Rag & Bone on a global scale.”

Why the acquisition is significant for Guess

Guess will make its first-ever acquisition in its 43-year history with Rag & Bone, co-founder and chief creative officer Paul Marciano said.

In its most recent financial report, Guess said revenue grew 3% to 651.2 million in its Q3 ended Oct. 28. Guess CEO Alberini said the addition of Rag & Bone will improve the retailer’s financial position further.

“We expect the transaction to deliver earnings per share accretion in the first year and strong value creation for our shareholders for years to come,” he stated.

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Ecommerce earnings recap: What you missed from Crocs, Hasbro and more

Mary Meisenzahl — Mon, 19 Feb 2024 16:58:25 +0000

More retailers in Digital Commerce 360’s Top 1000 list of leading ecommerce retailers in North America reported ecommerce earnings results for the most recent fiscal quarter. Retailers reported mixed results across industries including apparel, toys and sporting goods. Here’s the ecommerce earnings summary you need to know from this quarter. Read more ecommerce earnings coverage here.

Parentheses indicate the merchant’s ranking in the Top 1000.

Amazon.com Inc. (No. 1)

Amazon beat expectations with earnings for its fiscal fourth quarter ended Dec. 31, 2023. Its net sales in the quarter grew 14% year over year to $170.0 billion.

Full-year sales grew 12% to $574.8 billion in 2023, up from $514.0 billion in 2022. Read more about Amazon’s earnings here.

Costco Wholesale Corp. (No. 6)

Costco said net sales grew 6.1% to $56.72 billion in its first fiscal quarter of 2024 ended Nov. 26, 2023. Ecommerce comparable sales grew 6.3% in the same period. E-gift cards, snacks and pet items were all strong in the ecommerce channel, the retailer said.

Crocs Inc. (No. 104)

Crocs reported that revenue grew 1.6% to $960 million in its fiscal fourth quarter ended Dec. 31. Direct-to-consumer sales, including ecommerce, grew 6.8%, while wholesale declined 4.6%. Revenue grew 11.5% to $3.96 billion for the full year.

CEO Andrew Rees says he expects personalization to be a major trend Crocs can capitalize on going forward. He pointed to Jibbitz sales, which grew 17% in 2023 to $250 million in sales.

Hanesbrands Inc. (No. 277)

Hanes reported net sales declined 12% to $1.3 billion in its fiscal fourth quarter ended Dec. 30. Activewear sales declined 24% in the quarter. For the full year, sales declined 9.6% to $5.6 billion.

“Our fourth-quarter performance did not meet our expectations as the sales environment proved to be more challenging than expected,” CEO Steve Bratspies said in a statement.

Hasbro Inc. (No. 555)

Hasbro said revenue declined 23% to $1.2 billion in its fiscal fourth quarter ended Dec. 31. Revenue declined 15% for the year to $5.0 billion. In both periods, digital gaming grew but was offset by declines in consumer products and entertainment segments. Hasbro attributed some of the entertainment segment decline to lower film and TV revenue from strikes in the entertainment industry in 2023.

“The consumer remains value conscious and we anticipate entertainment will be less of a tailwind in the year ahead, behind a reduced box office slate,” CEO Chris Cocks said.

Shopify Inc.

Shopify revenue and gross merchandise volume (GMV) both increased in the ecommerce platform provider’s Q4, which ended Dec. 31, 2023. Its revenue and GMV both increased for the full fiscal year, too.

45 retailers in the Top 1000 use Shopify as an ecommerce platform. Read more about Shopify’s earnings.

Target Corp. (No. 5)

Third-quarter sales declined 4.9% for the mass merchant, to $25 billion from $26.12 billion in its fiscal third quarter ended Oct. 28. Meanwhile, Target online sales decreased 6% year over year.

Moreover, Target’s online sales declined 6.7% year over year for the first nine months of its fiscal year. Read more about Target’s earnings here.

Walmart Inc. (No. 2)

Walmart reported that U.S. online sales grew 24% for its fiscal 2024 third quarter ended Oct. 27. Global ecommerce sales grew 15% over the same period, while international ecommerce declined 3%.

U.S. comparable sales grew 4.9%, and total revenue grew 5.2% to $160.8 billion. Read more about Walmart’s earnings here.

Yeti Holdings Inc. (No. 135)

Yeti reported sales increased 16% to $519.8 million in its fiscal fourth quarter ended Dec. 30. DTC sales grew 11%, and wholesale increased 26%.

Full-year sales grew 4% to $1.66 billion. Sales through Amazon were strong, the retailer said, although it did not participate in Amazon’s October Prime sales event.

“The channel continues to prove effective in reaching both new and existing customers on the platform,” CEO Matt Reintjes said. Amazon makes up about 25% of DTC sales, Yeti said. However, higher fees and freight costs negatively impacted margins, the retailer said.

So what does it mean?

Amazon has the power to make or break retailers that rely on online sales, as evidenced by Yeti. The retailer is feeling the pinch of higher fees, and it relies on the 25% of DTC sales that go through Amazon.
The toy industry remains challenged. Hasbro fared worse than competitor Mattel, which forecasted further industry declines in 2024.

Ecommerce earnings calendar

Here’s when other ecommerce earnings are scheduled to report this quarter:

Amazon.com Inc.: Feb. 1
Best Buy Co Inc.: Feb. 29.
Costco Wholesale Corp.: Dec. 14
The Home Depot Inc.: Feb. 20
Lowe’s Cos Inc.: Feb. 27
Target Corp.: March 5
Walmart Inc.: Feb. 20

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Nike layoffs to impact 2% of athletic apparel giant’s workforce

Brian Warmoth — Fri, 16 Feb 2024 18:48:42 +0000

Job cuts were expected to begin at the apparel and shoe brand Nike on Friday, following a Thursday announcement and circulated memo. The Nike layoffs will reportedly hit 2% of its total workforce, impacting more than 1,500 employees.

“This is a painful reality and not one that I take lightly,” Nike CEO John Donahoe said in the memo. “We are not currently performing at our best, and I ultimately hold myself and my leadership team accountable.”

Nike ranks No. 9 in the Top 1000, Digital Commerce 360’s database of the largest North American e-retailers by online sales.

Why Nike layoffs are happening

Nike’s layoffs come as part of an ongoing restructuring effort announced in December 2023. In that plan, the company outlined its intent to cut $2 billion in costs over three years.

“While interest in sport, health, wellness and comfort has never been stronger, we are in a highly competitive industry where speed and end-to-end execution is critical to win,” Donahoe wrote in his emailed announcement. “To compete, we must edit, shift and divest less critical work to create greater focus and capacity for what matters most.”

For Nike, that means reinvestment in areas of growth and streamlining budgets. As recently as its last earnings call in December, Nike chief financial officer Matthew Friend indicated that the company “saw softness in digital traffic and higher levels of promotional activity across the marketplace.” He also cited “indications of more cautious consumer behavior around the world in an uneven macroenvironment.”

Timeframe for Nike’s job cuts

The global layoffs will occur in two phases, CNBC reported. The first of those would begin Friday, with the second ending by the time Nike’s fiscal fourth quarter concludes.

The workforce reductions referenced in the Thursday memo would follow reported cuts from November and December, as reported by The Oregonian. The total number of workers laid off during that time was unknown.

Nike reported having 83,700 employees worldwide as of May 31, 2023.

Where layoffs will occur

Specific departments were not named in the memo, though recent leadership changes have touched design, innovation, marketing and technology operations, The Wall Street Journal reported. Earlier cuts reported by The Oregonian encompassed brand, engineering, human resources, innovation, recruitment and sourcing divisions.

Cuts in Europe, the Middle East and Africa would occur on unique timelines in observance of local labor laws. Meanwhile, retail and warehouse workers were not expected to be included in the cuts.

In a Nike statement shared with Complex, the company named areas of strength where it hopes to build, even as the workforce reduction continues.

“Nike’s always at our best when we’re on the offense,” the Nike spokesperson said. “The actions that we’re taking put us in the position to right-size our organization to get after our biggest growth opportunities as interest in sport, health and wellness have never been stronger.”

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Shoe Carnival acquires Rogan’s Shoes

Mary Meisenzahl — Thu, 15 Feb 2024 21:48:47 +0000

Shoe Carnival acquired Rogan’s Shoes, the retailer announced Feb. 13. The deal was worth $45 million, it said in a statement.

Shoe Carnival is No. 335 in the Top 1000. The Digital Commerce 360 database ranks North America’s leading retailers by online sales.

Why did Shoe Carnival acquire Rogan’s?

The footwear retailer expects to see benefits from the acquisition in its 2024 fiscal year. Adding Rogan’s to Shoe Carnival’s portfolio will generate approximately $84 million in sales and $10 million in operating income in 2024, the retailer said. That doesn’t include transaction and integration costs.

Rogan’s is 53 years old, with 28 locations across Wisconsin, Illinois and Minnesota. The acquisition makes Shoe Carnival the market leader in Wisconsin and establishes a store base in Minnesota.

“Our growth strategy is focused on becoming the nation’s leading family footwear retailer through a combination of organic growth initiatives and M&A activity that expands our geographic footprint and customer base,” Mark Worden, president and CEO of Shoe Carnival, said in a statement. “Over the past five decades, the Rogan family has built a brand that is well known and trusted throughout the state of Wisconsin. As such, they have established a clear market leadership position in Wisconsin for work and family footwear, with a compelling assortment, great customer service, and a highly committed team of employees.”

With Rogan’s, Shoe Carnival will also reach an all-time high store count of 429. That’s on track toward its goal of 500 stores by fiscal 2025, the retailer said.

Shoe Carnival’s 2023 results

Shoe Carnival reported $1.176 billion in sales for fiscal 2023, which ended Feb. 3, 2024. That’s down slightly from $1.26 billion in 2022. However, results were on the high end of expectations, the retailer said. Shoe Carnival credited a strong holiday period for the results, which will be fully released in March.

The footwear retailer also said it reduced inventory levels 10% year over year, down more than $40 million as part of an inventory optimization plan. Shoe Carnival ended the year with $110 million in cash on hand and reported no debt for the 19th consecutive year.

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Express prepares for possible bankruptcy with debt restructuring

Mary Meisenzahl — Wed, 14 Feb 2024 22:51:54 +0000

Express Inc. is restructuring its debt and may file for bankruptcy, the Wall Street Journal reported. The move is an attempt to avoid filing for Chapter 11 bankruptcy.

The apparel retailer hired M3 as a restructuring advisor and law firm Kirkland Ellis, the WSJ reported. Its share price fell 40% by end of business on Tuesday.

Express is No. 114 in the Top 1000, Digital Commerce 360’s ranking of North America’s leading retailers by online sales.

Express reports growing debt

The retailer reported $274.7 million in debt in the third fiscal quarter of 2023. That was an increase from $235.4 million in the year-ago period. $65 million of the debt is from a loan the retailer took out in 2023 at 15% interest as a “short-term measure to strengthen our liquidity position,” former chief financial officer Jason Judd said in a Q2 earnings call.

The retailer is in talks with its creditors, which include Wells Fargo, Bank of America, Hilco Global and Gordon Brothers Group, Bloomberg reported.

If lenders agree to give Express more liquidity or repayment options, the retailer may avoid bankruptcy. Express is also beholden to its vendors, who could stop shipping products without a strict payment schedule, according to the WSJ report.

Express financial results

The apparel retailer, which includes the UpWest and Bonobos brands, reported net sales grew 5% to $454 million in the most recent fiscal quarter ended Oct. 28. However, it also recorded an operating loss of $28.7 million and a net loss of $36.8 million.

Express introduced an expense reduction initiative in 2022, with a goal of saving $200 million by 2025.

“The company is continuing to conduct a comprehensive review of its business model to identify actions that are expected to meaningfully reduce pre-tax costs and enable a more efficient and effective organization and has engaged external advisors to assist in this effort,” it said in a third-quarter press release.

Express saved $30 million during that third quarter and was on track to achieve $80 million in cost savings for 2023.

The retailer undertook extensive discounting to sell apparel in the quarter, it said. That had a negative impact on margins.

“Beginning last year, we faced a number of challenges, including declines in our customer file, conversion and store traffic, driven by missteps in our merchandise strategy, most notably in women’s, where we were out of balance across categories, price points and wearing occasions,” CEO Steward Glendinning told investors. “This misalignment between our assortment architectures and customer demand significantly impacted our historic sales and margins.”

Express executive changes

Former CEO Tim Baxter announced his resignation in September, one day after the retailer announced Q2 results. Express announced Stewart Glendinning would replace him. Glendinning previously worked as group president of prepared foods and chief financial officer at Tyson Foods.

Chief financial officer Jason Judd left Express in November, one year after joining the company. The retailer has not yet named a new CFO, and senior vice president Mark Still is interim CFO.

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Neiman Marcus ends partnership with Farfetch

Mary Meisenzahl — Mon, 12 Feb 2024 23:33:22 +0000

Neiman Marcus Group (NMG) abandoned plans to use Farfetch to update its online store and app, the company confirmed. As a result, the apparel retailer will no longer join Farfetch’s marketplace.

NMG is the parent company of Neiman Marcus, Bergdorf Goodman, Last Call and Horchow.

“NMG is well positioned with exceptional technology, talent, and resources to further invest in and expand our digital and ecommerce capabilities,” a Neiman Marcus representative told Women’s Wear Daily. “Our focus remains on continuing to deliver a differentiated luxury experience across all facets of our integrated retail model, and to position our business for sustainable, profitable growth. We appreciate Farfetch, which continues to be a minority investor in NMG.”

Neiman Marcus ranks No. 72 in the Top 1000. The Digital Commerce 360 database ranks North America’s leading online retailers by their web sales. Farfetch is No. 30 in the Global Online Marketplaces Database, Digital Commerce 360’s ranking of the top 100 online marketplaces by gross merchandise value.

Neiman Marcus and Farfetch

The department store first announced a partnership with Farfetch in 2022. Farfetch, a luxury fashion online marketplace based in the U.K., invested $200 million in Neiman Marcus. That made Farfetch a minority investor in Neiman Marcus, which it remains today.

As part of the agreement, Bergdorf Goodman planned to replatform its website and mobile app using Farfetch Platform Solutions. Both Bergdorf Goodman and Neiman Marcus agreed to join Farfetch marketplace as partners and expand to new global markets, they said in a joint press release at the time.

“We continue to partner closely with thousands of brands and boutiques around the world to provide an elevated online luxury experience for millions of customers,” a Farfetch spokesperson said a statement regarding the end of the partnership.

Farfetch’s acquisition

NMG and Farfetch ended their relationship just days after Coupang completed its acquisition of Farfetch. Farfetch faced potential bankruptcy and agreed to be taken private by the South Korean ecommerce platform. The deal consisted of $500 million in bridge loans through a partnership with the investment firm Greenoaks Capital Partners.

Coupang ranks No. 12 in the Global Online Marketplaces Database. It operates the largest online marketplace in South Korea.

“Farfetch is a landmark of the luxury landscape and has been a transformative force in demonstrating that online luxury is the future of luxury retail,” said Bom Kim, founder and CEO of Coupang. “Farfetch will rededicate itself to providing the most elevated experience for the world’s most exclusive brands, while pursuing steady and thoughtful growth as a private company. We also see tremendous opportunities to redefine the customer experience for luxury clients everywhere.”

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Shein to open fulfillment and logistics hub in Seattle area

Brian Warmoth — Sat, 10 Feb 2024 02:20:00 +0000

As Shein works toward a U.S. initial public offering and awaits approval for that IPO from the Chinese government, it still intends to push forward with U.S. expansion. On Thursday, the fast-fashion company announced plans for a new fulfillment and logistics facility to be located in the Seattle area.

Located in Bellevue, Wash., the new Shein outpost in the city’s Key Center will occupy 10,000 square feet, according to Shein’s announcement.

As of November 2023, Shein ranked as one of the three fastest-growing online merchandise companies in Asia by web sales, according to Digital Commerce 360’s Asia Database. Shein is also No. 2 in Digital Commerce 360’s Asia Database ranking ecommerce retailers in the region by online sales.

Shein’s fulfillment and logistics office near Seattle

“The U.S. is an important market for Shein, and we are thrilled to establish a presence in the Seattle area as we continue enhancing our fulfillment process and improving the customer experience,” said Andy Huang, head of U.S. fulfillment and logistics at Shein, in a statement. “This expansion underscores our commitment to efficiency across our operations, and we look forward to contributing to the local community and fostering innovation in the heart of the Pacific Northwest.”

Shein, which is officially headquartered in Singapore, hopes to shorten its delivery times in the U.S. with the new move. It has already moved aggressively into the fast-fashion market, announcing a deal in 2023 to acquire one-third of Sparc Group. That deal gave Shein a stake in Forever 21. As a result, Shein paved the way to list Forever 21 products alongside Shein’s own inventory.

Jobs at the new Shein facility

The new Shein fulfillment and logistics location will be home to 50 workers, according to the company’s press release. It expects those positions to be filled by the end of 2024. To date, Shein counts 1,500 corporate and warehouse employees at its U.S. operations. Those jobs are located at existing offices in Los Angeles, San Diego, Philadelphia, Washington, D.C., and Whitestown, Ind., according to Shein.

IPO approval questions linger in China

Shein has faced questions from U.S. senators and other concerned parties over labor practices in its supply chain. Most recently, however, regulators in China appear to be holding up efforts for the company to go public.

Shein officially moved its headquarters to Singapore and does not collect revenue or sell to customers in China. Nevertheless, it engaged in talks with the Chinese government as an apparent safety measure to obtain approval for its IPO. Specifically, Shein is awaiting clearance from the Cyberspace Administration of China and China Securities Regulatory Commission, The Financial Times reported.

Currently, China’s sign-off on Shein’s IPO remains in question. The result could signal to other companies in the country whether regulators are open to new U.S. listings.

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Ecommerce earnings recap: What you missed from Canada Goose, PetMed Express and more

Mary Meisenzahl — Fri, 09 Feb 2024 17:55:55 +0000

More retailers in Digital Commerce 360’s Top 1000 list of leading ecommerce retailers in North America reported ecommerce earnings results for the most recent fiscal quarter. Retailers reported mixed results across industries including apparel, pets and beauty. Here’s the ecommerce earnings summary you need to know from this quarter. Read more ecommerce earnings coverage here.

Parentheses indicate the merchant’s ranking in the Top 1000.

Amazon.com Inc. (No. 1)

Amazon beat expectations with earnings for its fiscal fourth quarter ended Dec. 31, 2023. Its net sales in the quarter grew 14% year over year to $170.0 billion.

Full-year sales grew 12% to $574.8 billion in 2023, up from $514.0 billion in 2022.

Read more about Amazon’s earnings here.

Alibaba Group

Alibaba’s revenue grew 5% to $36.67 billion in its third quarter ended Dec. 31.

Alibaba owns the world’s two largest online marketplaces by gross merchandise value (GMV), Taobao and Tmall. Taobao ranks No. 1 in the Global Online Marketplaces Database, Digital Commerce 360’s ranking of the largest such marketplaces by GMV. Tmall ranks No. 2. Taobao and Tmall grew their combined revenue 1% to $17.43 billion.

Bark (No. 186)

Bark reported revenue declined 6.9% to $125.1 million in its fiscal third quarter ended Dec. 31. Results were at the high end of Bark’s expectations. The retailer attributed the sales decline to fewer total orders due to a decrease in subscribers. Direct-to-consumer (DTC) sales, which make up the bulk of revenue, declined 7.6%. However, improvements to Bark’s website are driving increases in traffic and conversion, the retailer said.

Canada Goose (No. 218)

Canada Goose said total revenue grew 6% to $609.9 million in its fiscal third quarter ended Dec. 31. DTC revenue grew 14% due to growing in-store retail sales, partially offset by a decline in ecommerce. Wholesale sales, meanwhile, declined 28%. Canada Goose is evaluating its online product assortment to potentially make room for new categories going forward, said Jonathan Sinclair, chief financial officer.

The Container Store (No. 347)

The Container Store net sales declined 14.8% to $214.9 million in its fiscal third quarter ended Dec. 30. Online sales declined even more drastically, down 26.3% year over year. Website-generated sales, which include those designated for curbside pickup, declined 15.8%, accounting for 21.8% of net sales in the quarter. That’s flat with Q3 last year, the retailer said.

Costco Wholesale Corp. (No. 6)

E.l.f. Cosmetics Inc. (No. 951)

E.l.f. Reported it grew net sales 85% to $270.9 million in its fiscal third quarter ended Dec. 31. Online sales made up 24% of total revenue, compared to 18% in the year-ago period. Loyalty members are a driving force behind online sales growth, the retailer said, accounting for nearly 80% of online sales. The Beauty Squad loyalty program has 4.5 million members, and grew 30% year over year, e.l.f. said.

Estee Lauder (No. 43)

Estee Lauder reported net sales declined 7% to $4.28 billion in its second fiscal quarter ended Dec. 31. The retailer attributed much of the sales decline to waning demand in China. It will lay off 3% to 5% of its workforce in 2024.

Mattel (No. 205)

Mattel reported net sales grew 16% to $1.6 billion in its fiscal fourth quarter ended Dec. 31, while sales were flat for the year. Dolls, vehicles, games and building sets were the most successful categories, the retailer said.

“We expect the toy industry to decline in 2024, although at a lesser rate than 2023. The anticipated decline is due to a lighter toy theatrical film slate and the impact of the shift in consumer spending patterns towards experiences and services, which we believe will moderate over the year,” CEO Ynon Kreiz told investors.

PetMed Express Inc. (No. 354)

PetMed Express reported net sales for its fiscal third quarter ended Dec. 31 grew 11% year over year to $65.3 million. Recurring orders through the AutoShip & Save and PetPlus programs made up the majority of sales, accounting for 52.2% of revenue. That’s an increase from 42.3% of revenue in the year-ago period.

The retailer noted that pet food is a small but fast-growing part of the business. PetMed Express recently added the brand Hill’s Science Diet and has plans to pursue more premium pet food partnerships in the future.

Ralph Lauren (No. 78)

Ralph Lauren said revenue grew 6% to $1.9 billion in its fiscal third quarter ended Dec. 30. Global direct-to-consumer (DTC) same-store sales grew 9% over the same period. Gross profit was $1.3 billion, the retailer said.

Tapestry (No. 44)

Tapestry reported a 3% increase in net sales to $2.08 billion in its fiscal second quarter ended Dec. 30. Online sales grew in the single digits, the retailer said, making up one-third of total revenue. Direct-to-consumer revenue grew 4% over the period. Tapestry also opened a new fulfillment center in Las Vegas as part of a plan to grow omnichannel capabilities, the retailer said.

Target Corp. (No. 5)

Third-quarter sales declined 4.9% for the mass merchant, to $25 billion from $26.12 billion in its fiscal third quarter ended Oct. 28. Meanwhile, Target online sales decreased 6% year over year. Moreover, Target’s online sales declined 6.7% year over year for the first nine months of its fiscal year.

Read more about Target’s earnings here.

Under Armour Inc. (No. 97)

Under Armour reported 2% growth in ecommerce revenue during its fiscal 2024 third quarter, which ended Dec. 31, 2023. Total revenue declined 6% to $1.5 billion.

Walmart Inc. (No. 2)

Walmart reported that U.S. online sales grew 24% for its fiscal 2024 third quarter ended Oct. 27. Global ecommerce sales grew 15% over the same period, while international ecommerce declined 3%.

U.S. comparable sales grew 4.9%, and total revenue grew 5.2% to $160.8 billion.

Read more about Walmart’s earnings here.

The Walt Disney Company Ltd. (No. 100)

Disney said revenue for its fiscal first quarter ended Dec. 30 was flat from the year-ago period at $23.5 billion. DTC revenue, which includes the company’s streaming channels, grew 15% to $5.5 billion in the quarter. The DTC segment led to an operating loss of $138 million, but that’s a decrease of 86% from the loss in Q1 of 2023. The company said it projects streaming to become profitable in fiscal 2024.

So what does it mean?

The pet industry is subject to the same troubles facing other retailers. PetMed Express reported success with the same strategy that’s been successful for Chewy based on food and medications. Meanwhile, Bark felt a pullback in more discretionary pet items.
e.l.f.’s 85% sales growth on top of the 49% it grew in Q3 2023 shows that the cosmetics retailer isn’t slowing down as it gains name recognition and expands on social media platforms.

Ecommerce earnings calendar

Here’s when other ecommerce earnings are scheduled to report this quarter:

Amazon.com Inc.: Feb. 1
Best Buy Co Inc.: Feb. 29.
Costco Wholesale Corp.: Dec. 14
The Home Depot Inc.: Feb. 20
Lowe’s Cos Inc.: Feb. 27
Target Corp.: March 5
Walmart Inc.: Feb. 20

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Ralph Lauren grows online sales in Q3

Mary Meisenzahl — Thu, 08 Feb 2024 23:23:14 +0000

“We delivered a strong holiday, with continued progress on our Next Great Chapter: Accelerate plan and third quarter results that exceeded our expectations led by continued momentum in our direct-to-consumer channels,” Patrice Louvet, President and CEO said in a statement. “These results underscore the diversity of our strategic growth drivers around the world in a still-volatile operating environment as well as our culture of operating discipline and agility.”

Ralph Lauren ranks No. 78 in the Top 1000, Digital Commerce 360’s database of the largest North American e-retailers by online sales.

Ralph Lauren revenue by channel

Comparable sales on Ralph Lauren’s ecommerce websites grew 8% year over year, the retailer said. That was on top of 11% growth in the year-ago period.

In North America, online sales grew 4% while in-store sales grew 6%. Meanwhile, wholesale revenue declined 15%. North America total revenue remained flat year over year at $933 million.

In Europe, online sales led growth, up 12% year over year. Ralph Lauren brick-and-mortar sales grew 10%, and wholesale revenue grew 5%. Total European revenue grew 11% to $522 million.

Revenue in Asia grew fastest of all, up 16% to $446 million. Online sales grew even faster, recording a 25% increase. Ralph Lauren Asia brick-and-mortar sales grew 13%.

Ralph Lauren Q3 highlights

The apparel retailer noted some of the high points behind the successful quarter. In Q3, Ralph Lauren added more customers than in any quarter since the onset of the pandemic. It gained 1.7 million DTC customers.

Much of the growth was attributable to a successful holiday season, the retailer said, pointing to the “Season for Dreaming” holiday campaign. Traffic to outlet stores especially grew over the holidays, it said. Average unit retail (AUR) grew 9% in the third quarter across DTC sales, on top of 10% growth last year.

During the same period, Ralph Lauren recorded strong online sales on Singles Day, the online shopping holiday in China on Nov. 11.

Finally, Ralph Lauren credited dressing Taylor Swift for her Time 2023 Person of the Year issue for growing brand awareness.

For the fiscal third quarter ended Dec. 30, 2023, Ralph Lauren reported:

Revenue grew 6% to $1.9 billion.
Global DTC same-store sales grew 9%.
Ralph Lauren online sales in North America grew 4%.

For nine months ended Dec. 30, 2023, Ralph Lauren reported:

Ralph Lauren revenue grew 3% to $5.1 billion.
Gross profit grew 5% to $3.4 billion.

Percentage changes may not align exactly with dollar figures due to rounding. Check back for more earnings reports.

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Saks partners with electric vehicle company Lucid to book test drives

Mary Meisenzahl — Wed, 07 Feb 2024 19:50:55 +0000

Saks just added a new perk for customers: test drives of luxury electric cars.

The retailer announced a partnership with luxury electric vehicle company Lucid on Feb. 6. The relationship will extend across the Saks Fifth Avenue ecosystem. Lucid’s vehicles will be available for test drives at certain locations. Lucid marketing materials will be displayed in stores and on the retailer’s ecommerce website, the companies said.

SaksFifthAvenue.com and SaksOff5th.com are owned by Hudson’s Bay Co. The parent company is No. 28 in the Top 1000, Digital Commerce 360’s ranking of the largest North American online retailers.

“Our partnership with Saks, a longtime authority in the luxury space, blends our technology and design excellence with high-end retail in an incredible collaboration,” said Peter Rawlinson, CEO and chief technology officer of Lucid. “The collaboration brings the Lucid brand directly to Saks’ clientele searching for fine craftsmanship and innovation that seamlessly blend into their lifestyle, such as can be found with the Lucid Air.”

Inside the partnership between Saks and Lucid

Saks customers will get exclusive access to test drives of the Lucid Air, it said. Consumers can book a test drive of the $77,400 vehicle through Saks’ website or at the retailer’s West Coast flagship store in Beverly Hills. Test drives are available beginning Feb. 8.

Saks said more participating locations will be announced in:

Atlanta
Boca Raton, Fla.
Chicago
Greenwich, Conn.
Houston
Las Vegas
Troy, Mich.

Lucid Air’s lineup has four trims:

Air Pure
Air Touring
Air Grand Touring
Air Sapphire

The company claims to have the longest range in the electric car market of up to 500 miles.

In conjunction with the test drives, Lucid launched a digital campaign through Saks’ online channels. The electric vehicle company now has a landing page on the Saks website, with an email campaign and social media content to come, Saks said.

Saks and Lucid previously worked together in December 2023. At the time, Saks placed the Lucid Air Sapphire model in its New York flagship store on the floor dedicated to jewelry and watches.

Selling luxury vehicles and luxury clothes

Saks positioned Lucid on its website as just another luxury product.

“A new luxury brand debuts at Saks February 6, but it doesn’t offer handbags, shoes, fragrances, clothing — or anything else you can fit in a shopping bag,” the website copy reads.

CEO Marc Metrick said as much in a press release.

“We’re committed to utilizing the entirety of the Saks Fifth Avenue ecosystem to introduce our customers to the best in luxury,” he said in a statement. “As an iconic luxury brand and an authority in the luxury space, Saks has been able to partner with companies that we know are of interest to our customers and complement the luxury lifestyle. With Lucid, we’re providing our customers with new, unique offerings outside of our traditional assortment, and we’re excited for them to experience this innovative offering online and in our stores for the first time.”

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