Tag: sales

Categories
Business

Transport delays have harm vacation gross sales, says Fanatics’ Michael Rubin

Shipping delays have hurt holiday sales, says Fanatics' Michael Rubin

Michael Rubin, chairman of the board of directors of online sportswear giant Fanatics, told CNBC on Wednesday that retail sales this holiday season were negatively impacted by shipping problems.

“There was so much pressure on the various shipping networks to deliver, I think there was even more demand that could have been had,” Rubin said on Squawk Box. “As good as the business is, it could have been better.”

Overall, e-commerce sales rose 22% to $ 9 billion on Black Friday alone as a result of the coronavirus pandemic, according to Adobe Analytics. However, this growth comes at a price that puts a strain on warehouse and logistics networks. For example, on Cyber ​​Monday, UPS asked its drivers to stop picking up packages from some major retailers after those companies reached their capacity allocations.

The rollout of the coronavirus vaccine, which began this month after the Food and Drug Administration approved the emergency use of Pfizer BioNTech and Moderna vaccines, kicked off millions of additional doses being distributed in the U.S.

UPS spokesman Dan McMackin said vaccine shipments were “the top priority for delivery on the UPS network,” but he said it did not affect vacation package deliveries.

“UPS has carefully planned the main holiday season with our customers. We have also worked with Operation Warp Speed, vaccine manufacturers and other partners to carefully plan for many months what vaccine delivery requirements need to be made,” he said.

Rubin, a partner with the NBA’s Philadelphia 76ers and the NHL’s New Jersey Devils, said the pandemic had generally sped up e-commerce adoption by two or three years.

“I think e-commerce you will see 30% plus [growth] across the border. We had a great year, “said Rubin, whose fanatics were worth $ 6.2 billion during a Series E funding round in August.” Most interesting, however, was that the demand could have been even better if the shipping networks only had more capacity. But with Corona delivering vaccines for the first time, there is so much pressure on the shipping networks this year. “

Earlier this week, Fanatics announced that it has partnered with Barnes & Noble Education to run the e-commerce operation for sporting goods sold in bookstores on campus. The partnership includes Lids, with the companies making a $ 15 million equity investment in Barnes & Noble Education.

“I think somehow the company was misunderstood, and from our perspective we looked at it and said, ‘We really believe we can work together to strengthen this offering,'” said Rubin of Barnes & Noble Education. “We’re going to leverage all of Fanatics’ e-commerce capabilities and place them behind the 775 universities to give them the best deal – better technology, better mobility, wider range.”

Barnes & Noble Education stocks rose 1.7% on Wednesday. The partnership with Fanatics was announced ahead of Monday’s opening, and the stock is up about 12% this week.

Categories
Business

Pent-up demand will maintain Covid increase in RV gross sales

Pent-up demand will sustain Covid boom in RV sales

Michael Happe, Winnebago CEO, told CNBC on Friday that he expected the coronavirus pandemic-inspired surge in recreational vehicle sales to continue into next year.

The comments came after the Forest City, Iowa-based company reported strong quarterly results that exceeded Wall Street’s expectations. Investors enjoyed the quarter on Friday as Winnebago shares rose more than 5%.

Winnebago reported adjusted earnings per share of $ 1.69, beating estimates of $ 1.01, according to FactSet. This corresponds to an increase of 131.5% compared to the same quarter of the previous year. Revenue for the quarter ended November 28th was $ 793.1 million, up 34.8% year over year and beating analysts’ guidance of $ 753 million.

“We were obviously very pleased with the way consumers flocked to the outdoors in 2020 as they tried to manage the impact of the pandemic on their lives and we believe you will see a similar behavioral trend in 2021,” said Happen on “close bell.”

“We believe that consumers who might have been interested in the space and category earlier this year and may not have pulled the trigger but are still very excited to find a way are in great demand for RVing and boating in the Year 2021, “added the executive.

Winnebago Industries RVs on display at Winnebago Motor Homes in Rockford, Illinois.

Daniel Acker | Bloomberg | Getty Images

As the coronavirus pandemic required social distancing, many outdoor recreational activities such as boating, biking, and RV travel have grown in popularity. Happe is not alone in his optimism that America’s newfound interest in nature will carry over into the next year.

David Foulkes, CEO of Brunswick, told CNBC earlier this month: “We have incredible momentum in the [boating] Industry now. We have attracted a new population. … I think that gives us great momentum, not only in the next year but also in the years to come. “

Winnebago, which sells RVs and boats, has seen a similar shift in buyers, according to Happe. “Our consumers are getting younger. They are becoming more diverse in background and profile, and they are using the products in many different ways,” he said. “The trend to work from anywhere is pretty strong right now, and many of our new consumers see these products as an opportunity to work from the street or from a nice campsite here in America.”

Winnebago’s shares are up 18% so far this year and more than 260% since the March 19 low.

Categories
Business

Nike (NKE) stories Q2 fiscal 2021 earnings, gross sales beat

Nike (NKE) reports Q2 fiscal 2021 earnings, sales beat

Nike reported quarterly sales and earnings on Friday that exceeded analyst estimates. This is due to triple-digit online growth in North America and strong Chinese consumer demand for sneakers and workout clothing.

Due to the pandemic, costs could be reduced as less marketing spending was made at sporting events. The lower costs increased profitability. Strong sales during Alibaba’s Single’s Day in China and Black Friday in the US helped it kick off the holiday season with stock shortages, reducing the need for discounts.

“These are the times when strong brands are getting stronger,” said CEO John Donahoe during a conference call on the results. “Constant changes in the direction of digital, sporty clothing as well as health and wellness continue to offer us incredible opportunities.”

Its stocks jumped more than 4% in trade outside of business hours.

Here’s how the company performed in the second quarter of the fiscal year compared to analyst expectations based on refinitive data:

  • Earnings per share: 78 cents versus 62 cents, expected
  • Revenue: $ 11.24 billion versus $ 10.56 billion expected

For the three-month period ended November 30, Nike reported net income of $ 1.25 billion, or 78 cents per share, compared to $ 1.12 billion, or 70 cents per share, last year. Analysts had demanded a profit of 68 cents per share.

Revenue increased 9% year over year to $ 11.24 billion from $ 10.33 billion last year. That was better than what analysts had expected to be $ 10.56 billion.

According to Nike, digital sales for its eponymous brand rose 84% in the quarter as more shoppers visited the site to purchase sportswear and shoes to help maintain their fitness routines and personal health during the pandemic. This has helped to compensate for declines in wholesale partners and in the company’s own brick and mortar stores, as the global health crisis made fewer people feel good when they left their homes to shop.

Sales for the Converse brand, owned by Nike, declined 1% in the second quarter. According to Nike, thanks to the introduction of yoga and plus sizes, the women’s category has grown faster than business as a whole.

In Greater China, Nike sales grew 24%, compared to just 1% year-over-year growth in North America.

With domestic turf sales stagnating, Nike has doubled in the Chinese market, viewing the region as a key growth opportunity for the brand. Over the summer, a new type of store called Nike Rise opened in a mall in Guangzhou, hosting local meetups for mobile app users.

According to Nike, more than 4 million new customers bought their products during Singles Day, a shopping event hosted by Chinese e-commerce giant Alibaba. Overall, Nike achieved online sales of over half a billion dollars on Singles Day on November 11th.

The retailer also said it had “record” sales online during the week of Black Friday in the US but did not disclose the amount.

Nike stands alongside Lululemon, Dick’s Sporting Goods, and other retailers selling exercise gear and exercise equipment that have recovered faster this year. Other clothing retailers, especially those that deal with workwear and dresses, have problems.

Still, pedestrian traffic in stores in North America, Europe, and Latin America is down year-over-year due to social distancing measures. However, customers who venture into stores are more likely to buy, which increases conversion rates. Ninety percent of the stores are open, but some have reduced hours.

At the close of the market on Friday, Nike shares were up more than 37% this year. The company has a market capitalization of $ 215.5 billion.

The full press release on Nike’s earnings can be found here.

Categories
Business

Darden Eating places (DRI) Q2 2021 earnings beat, gross sales fall brief

Darden Restaurants (DRI) Q2 2021 earnings beat, sales fall short

Customers arrive at an Olive Garden location in San Antonio, Texas.

Callaghan O’Hare | Bloomberg | Getty Images

Darden Restaurants reported quarterly sales on Friday that fell short of analysts’ expectations as another wave of pandemic food restrictions weighed on sales in the same store.

For the next quarter, usually the best of the year, Olive Garden’s parent company expects sales to decline by 30% to 35%. CFO Rick Cardenas said the company doesn’t expect significant revenue improvements until the fourth quarter of fiscal 2021, which ends in May.

The company’s shares fell 1.6% in premarket trading.

The company reported for the quarter ended November 29th, versus Wall Street’s expectations, based on an analyst survey conducted by Refinitiv:

  • Earnings per share: 73 cents compared to 71 cents expected
  • Revenue: $ 1.66 billion versus $ 1.69 billion expected

The company reported net income of $ 96 million, or 73 cents per share, for the second quarter, compared to $ 24.7 million, or 20 cents per share, a year earlier. Analysts polled by Refinitiv expected earnings of 71 cents per share.

Net sales declined 19.4% to $ 1.66 billion, falling short of expectations of $ 1.69 billion. Sales of all brands in the same store decreased 20.6% in the quarter. Revenue was also impacted by the timing of Thanksgiving, which shifted from the third fiscal quarter to the second fiscal quarter this year.

Olive Garden, the jewel in Dardens portfolio, saw sales drop 19.9% ​​in the same store. The chain has focused its marketing on its convenient pickup options and main menu items, rather than limited-time promotions that could hurt profit margins. LongHorn Steakhouse, which saw strong demand for its take-out, saw sales in the same store decline just 11.1%.

Dardens gourmet business, which also includes The Capital Grille, was hit hardest. The segment’s revenue in the same store decreased 31% for the quarter.

During the previous quarter’s earnings call, CEO Gene Lee said Darden needs states to relax its food restrictions in order to improve sales in the same business. Instead, the governors did the opposite when the number of new Covid-19 cases increased. About a quarter of Darden restaurants had their dining rooms closed by December 13, up from just 8% of locations in the week ending November 8.

“We have been able to do business effectively and move it off-premise, and we can do it effectively again,” Lee told analysts.

During November and December, combined sales of Darden in the same store declined in turn as more states rolled back restrictions on personal dining and temperatures dropped. After falling just 23.4% for the week ending November 8, sales in the same store were down 36.9% for the week ending December 13.

The company reintroduced its program to pay employees whose dining rooms were closed, costing Darden $ 3 million in the quarter.

For the third quarter of the financial year, Darden expects earnings per share from continuing operations of 50 to 75 cents. The company reiterated its full year guidance of 35 to 40 net new restaurants and total investments of $ 250 to 300 million.

Lee said the company is seeing more availability in real estate, but rents have not fallen significantly despite permanent closings. Darden predicts that 5% to 15% of restaurants will close permanently due to the pandemic.

Darden also announced some changes in its management. Cardenas will become President and Chief Operating Officer in January and Treasurer Rajesh Vennam will take over as Chief Financial Officer. The board also voted to appoint Lee as chairman, replacing Charles Elseeby, the former CFO of Brinker International and Michaels Stores.

The company will pay a dividend of 37 cents to shareholders on February 1st.

Categories
Business

Lululemon (LULU) stories Q3 2020 earnings, gross sales beat estimates

Lululemon (LULU) reports Q3 2020 earnings, sales beat estimates

Lululemon Athletica store exterior, Ponce City Market.

John Greim | LightRocket | Getty Images

Lululemon reported sales of $ 1.1 billion on Thursday, up 22% year over year, beating analysts’ estimates as shoppers visited the retailer’s stores and website to purchase workout clothes during the reporting period.

In North America, net sales increased 19% driven by the e-commerce business. Overall, direct sales to consumers increased 94%, representing 42.8% of total sales, compared to 26.9% a year ago. This represents the sales that Lululemon makes directly to consumers through its stores and website with no intermediaries.

Due to the uncertainty surrounding the Covid-19 pandemic, which has forced it to temporarily close a handful of its stores again, Lululemon doesn’t offer a full outlook for 2020. Like others in retail, Lululemon faces the risk of additional store closings Coronavirus- Cases are still increasing in the US and other parts of the world.

However, CFO Meghan Frank noted that the company planned the holiday quarter “based on multiple performance scenarios” and believes it is “well positioned” for the holiday season. During the week of Thanksgiving and Black Friday, the company announced that its online business was generating record sales, offsetting the decline in store traffic.

Lululemon shares started to make gains, falling around 1% in after-hours trading shortly after 5pm. As of Thursday’s close of trading, Lululemon shares were up more than 59% year-to-date, bringing the company’s market cap to $ 48.1 billion.

Here’s how the retailer performed in the third quarter of fiscal year compared to analyst expectations based on refinitive data:

  • Earnings per share: $ 1.16, adjusted versus 88 cents expected
  • Revenue: $ 1.12 billion versus $ 1.02 billion expected

For the quarter ended November 1, Lululemon made $ 143.6 million, or $ 1.10 per share, compared to $ 126 million, or 96 cents per share, a year ago. Without a one-time charge, the company made $ 1.16 per share, better than what analysts had expected to be 88 cents.

Net sales rose 22% to $ 1.12 billion, beating analysts’ estimates of $ 1.02 billion.

In-store sales, tracking sales online and in stores that have been open for at least 12 months, increased 19%.

The company said sales for women were up 22% year over year, while those of men were up 14%.

While the entire apparel category has struggled this year, Lululemon is a retailer that has taken advantage of more consumers focusing on exercising at home during the pandemic and opting for comfortable sportswear over dresses and suits.

“While a V-shaped rebound may not happen for most of the apparel retail sector, Lululemon has recovered from a poor start to the year with impressive third quarter numbers,” said Neil Saunders, managing director of GlobalData Retail.

“Our data also shows that Lululemon has attracted a lot of new buyers, especially in women’s fashion,” he added.

Earlier this year, Lululemon also acquired home exercise equipment maker Mirror for $ 500 million to compete with the likes of bike maker Peloton. During the quarter, Lululemon announced it had started selling the startups’ $ 1,500 mirror-like devices in 18 stores and on its website.

The full press release on the result can be found here.

Categories
Business

Lowe’s expects gross sales to rise about 22% in fiscal 2020

Lowe's expects sales to rise about 22% in fiscal 2020

Customers support Lowes Hardware Store in Farmingdale, New York on May 20, 2020.

Bruce Bennett | Getty Images

Lowe’s said Wednesday that it expects sales to grow about 22% over the next year as its turnaround efforts gain momentum and the popularity of home improvement projects receives a boost during the coronavirus pandemic.

Revenue in the same store is expected to grow about 23% over the same period, helping the company earn between $ 7.53 and $ 7.63 per share. After adjustments, Lowe projects earnings of $ 8.62 to $ 8.72 per share.

Speaking at an investor meeting, Lowe CEO Marvin Ellison said the company will pursue a “total home” strategy as it expands its strategy A selection of products that homeowners and home professionals need, from kitchen appliances to home decor, and provide a better customer experience.

He highlighted the investments and improvements Lowe’s already made in brick and mortar and digital businesses. A loyalty program was launched among them to attract more business from home professionals such as electricians and building contractors. The website has been redesigned to simplify navigation and better handle data traffic. In addition, new digital fulfillment options have been added, such as: B. Roadside pickup and in-store lockers.

“Our commitment to retail fundamentals was critical to our financial success in 2020,” he said. “Our supply chain, in-store and digital systems would have collapsed under the weight of the unprecedented customer demand created by the pandemic without that focus.”

Still, he added, “The best days at Lowe are ahead of us,” as the company turns its attention to entering the home improvement market, valued at approximately $ 900 billion.

Dave Denton, Lowe’s chief financial officer, said his efforts over the coming months would increase the company’s revenue per square foot. He said it expects to reach $ 423 per square foot by the end of this year and will increase its target to $ 460 for the future.

“2020 was a pivotal year for the company,” he said. “We are taking market share earlier than expected and making the right investments for future growth.”

This is breaking news. Please try again.