Financial News

Which retail companies have reported the most successful year-over-year growth? How much did company X spend on its latest expansion? In the Retail TouchPoints Financial News section, industry insiders can find out what their peers are spending and how they are faring in the marketplace. This information can be useful for future implementation strategies, real estate ventures and growth opportunities.

Bread Secures $60 Million To Extend Financing Platform Capabilities

Bread, a marketing technology company that builds customizable financing solutions for retailers and brands, has completed a $60 million round of equity financing. The company, which first closed $126 million of equity and debt financing in August 2017, offers a white label financing platform designed to help retailers reach more consumers seeking to pay in monthly installments. The company will use the capital to extend Bread’s omnichannel capabilities, expand into new verticals and strategic opportunities, and offer more cross-channel marketing strategies designed to help the retailer improve conversions and customer lifetime value (LTV).

Postmates Raises $300 Million Funding Round, Eyes 2019 IPO

In the latest sign that investor confidence in on-demand delivery continues to skyrocket, Postmates has raised $300 million in a funding round led by Tiger Global Management. The deal values the company at approximately $1.2 billion, according to Fortune. Postmates previously raised $140 million at a $600 million valuation in 2016. The funding comes one month after last mile competitor DoorDash raised $250 million to reach a $4 billion valuation.

Custora Raises $13.75 Million In Latest Funding Round

Custora, a cloud-based retail customer analytics platform, has raised $13.75 million in a Series B funding round led by General Capital, with participation from existing investors Foundation Capital and Greycroft. The Custora software unifies data from disparate sources, creates AI-powered predictive analysis and shares the analytics across internal teams and customer touch points. The company works with both small and large retail brands including J.Crew, Tiffany & Co., Uniqlo and Kenneth Cole.

Dollar General Outperforms Dollar Tree; Discounters Overall Continue To Thrive

Dollar General saw net sales jump 10.6% to $6.44 billion in Q2 as stronger sales of consumables, seasonal items and apparel offset declines in home goods. The company also raised its fiscal 2018 outlook for net sales to rise between 9% and 9.3%, compared with previous guidance of rising approximately 9%. The discounter continues to grow rapidly, reiterating that it plans to open approximately 900 new stores in fiscal 2018. It also will remodel 1,000 locations and relocate 100 stores.

DSW Boosts Comp Sales Nearly 10%, Shutters Canadian Town Shoes Banner

DSW is the latest retailer to experience an excellent Q2, beating analyst estimates and raising its full-year financial outlook. Q2 revenue increased 16.4% to $795.3 million, well ahead of the $691 million expected; comparable sales increased 9.7%, significantlysurpassing a Thomson Reuters forecast of 2.5% growth. Gross profit increased from 29.2% of sales to 32.1%. Adjusted earnings came to $0.63 per share, ahead of $0.46 per share projections. The company updated its full-year adjusted earnings guidance in the range of $1.60 to $1.75 per diluted share, compared to its previous range of $1.52 to $1.67 per diluted share.

Best Buy Sees Q2 Sales, Profit Growth Even As Retailer Maintains Long-Term Focus

Best Buy has continued its solid run as consumer confidence reaches its highest point since October 2000. In Q2, the electronics retailer took advantage of increased traffic to improve financial results across the board: Comparable store sales jumped 6.2%;  Revenue rose 4.9% to $9.38 billion, up from $8.9 billion a year ago, as domestic revenue rose 4.4% to $8.6 billion and international revenue rose 10.8% to $740 million; and Net income rose from $209 million to $244 million, while adjusted earnings per share (EPS) reached $0.91, well ahead of the $0.83 expected.

Narvar Raises $30 Million; Aims To Expand Global Footprint

Retail logistics software provider Narvar has secured $30 million in a Series C funding round, raising a total of $64 million since its founding in 2012. This round was led by venture capital firm Accel with participation from Battery Ventures, Salesforce Ventures and Scale Venture Partners. In conjunction with the financing, Ryan Sweeney, partner at Accel, will join Narvar's board. "We recognized a huge opportunity for brands to deliver exceptional post-purchase customer engagement and have helped retailers realize this vision for more than 300 million people,” said Amit Sharma, Founder and CEO of Narvar in a statement. “We'll use this new investment to continue developing leading products for our customers while investing heavily in international growth to support global brands."

PebblePost Raises An Additional $25 Million In Funding

PebblePost, creator of Programmatic Direct Mail, has secured $25 million in Series C funding led by Advance Venture Partners (AVP). The additional capital will enhance the company’s Programmatic Direct Mail capabilities, which use online interest and intent data to send more meaningful physical promotions.

Q2 Growth At Walmart, Target, TJX Hints That Retail’s Woes Are In The Rear-View Mirror

In 2017, the stories of retail bankruptcies, store closures and the decline of department stores conveyed a bleak outlook for the state of retail, giving rise to the term “retail apocalypse.” But one year later, it appears the industry has gone a long way toward righting itself, with some of retail’s top players leading the way in Q2. Walmart, Target, The Home Depot and TJX all had excellent financial quarters, with the troubled department store sector even experiencing a slight bounceback (excepting JCPenney) on the strength of continued reinvestments. Urban Outfitters, the biggest winner of Q2, is something of a surprise. The retailer’s success showed that fashion and apparel can perform if fast inventory churn and low markdown rates are executed properly.

L Brands Boosts Q2 Net Sales 8.3%; PINK CEO Retires

L Brands, the parent company of Victoria’s Secret, PINK, Bath & Body Works, La Senza and Henri Bendel, achieved net sales of $2.984 billion in Q2, an 8.3% increase over the $2.755 billion reported for the same period the previous year, and comparable store sales increased 3%. The company also announced that Denise Landman, CEO of PINK, will retire at the end of 2018. While net sales and comp sales increased, other financial indicators were down for the quarter, which ended August 4, 2018. Earnings per share dropped to $0.36 from $0.48 for the same period in 2017; operating income fell to $228.1 million from $300.9 million; and net income dipped to $99.0 million from $138.9 million.

Boxed Secures $111 Million Funding Round

Boxed has raised $111 million in its latest funding round, which was led by Japanese grocer Aeon. With the new funding, the brand plans to continue to ramp up automation of its facilities with hardware developed by the in-house robotics team at Boxed. The e-Tailer also is considering future expansion of its operations around the country, including in the Chicago area, where execs have begun visiting potential new sites for a Midwest-based facility.

Target Achieves Biggest Comparable Sales Growth In 13 Years

  • Published in News Briefs
Target is on a roll, boosting comparable store sales for the fifth quarter in a row and improving results across the board. It appears that Target’s enormous investments in just about every channel are working. The retailer’s better-than-expected Q2 results included: A 6.9% revenue increase, to $17.55 billion; Traffic growth…

Farfetch Files For IPO

Farfetch, the UK-based online luxury fashion marketplace, has filed for an IPO and plans to list on the New York Stock Exchange under the ticker “FTCH.”Proceeds from the initial public offering will be used for working capital, including possible acquisitions, the company said. The company is seeking a valuation as high as $5 billion, according to CNBC. The decision to go public comes at a time when shoppers are becoming more comfortable with the idea of buying luxury goods online. Online sales made up 9% of global luxury revenue in 2017 and are forecast to reach 25% of all sales by 2025, according to Bain and Co. Yet Farfetch operates on a different model, selling products from nearly 900 brands and boutiques worldwide. The company prides itself on curation and inspiration, allowing shoppers to navigate by brand, item or its stylized edits.

DoorDash Raises $250 Million; Now Valued At $4 Billion

DoorDash, a last mile logistics platform, has raised $250 million in a growth round co-led by investment management firms Coatue Management and DST Global. The round comes just five months after the company raised $535 million in Series D funding led by SoftBank Group, boosting the company’s valuation from $1.4 billion to approximately $4 billion. DoorDash has raised $978 million to date. The company has generated significant growth in a short period, seeing sales grow 250% year-over-year, according to a blog post. While the company has now extended its delivery services to more than 100 major restaurant chains, including Wendy’s, Chipotle and IHOP, its biggest coup has been its recent partnership with Walmart that has expanded to 300 stores in 20 states. As Walmart continues to push into online grocery delivery, it will rely more on third parties such as DoorDash and Postmates to achieve its goal to extend these services to 40% of U.S. households by the end of 2018.
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