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.

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.

Weblinc Secures $6 Million In Funding To Scale Up Platform Development

Weblinc, a commerce and operations management systems provider, has secured a $6 million investment led by Montage Capital and Partners for Growth (PFG). Weblinc offers the SaaS platforms Workarea and Orderbot. In the past year, numerous international brands such as Reformation,Lonely PlanetandBuzzfeed have adopted Weblinc’s platforms into their systems. The new funding will enable Weblinc to expedite the scale required to meet increasing demands for the platforms in North America and globally.

Backbone PLM Raises $8 Million In Series A Funding

Backbone PLM, a cloud-based collaborative product development platform provider, has closed an $8 million funding round that includes $6.7 million in Series A funding. Signal Peak Ventures led the round, with participation from Grotech Ventures, Spider Capital, Novel TMT Ventures, Beanstalk Ventures, Brainchild Holdings and Peterson Ventures. With the funding, Backbone PLM plans to accelerate its growth and support continued innovation of its product lifecycle management platform. Founded by brothers Matthew Klein and Andrew Klein, who have more than 30 years of combined experience in product development, Backbone PLM seeks to automate the design and production process for consumer goods companies launching new products, enabling them to reduce lead times throughout the supply chain. Additionally, Backbone PLM is designed to enable retailers and brands to manage milestone calendars, iterate designs, and track factory communications, samples, approvals, cancellations, actions and purchase orders through to the end product. The company currently works with more than 100 direct-to-consumer brands, including Allbirds, Kith, Outdoor Voices, Parachute Home, Stitch Fix and Warby Parker.

Clobotics Raises $11 Million To Accelerate North American Expansion, Product Development

Clobotics, a computer vision and artificial intelligence (AI) solutions startup, has raised an additional $11 million as a continuation of its Series A financing, bringing the total raised to $21 million. The round was led by Nantian Infotech VC and Wangsu Science and Technology, with additional participation from previous investors KTB Network, GGV Capital and Capital Development Investment Fund Management Co. With the new capital, the Shanghai- and Seattle-based firm plans to continue expanding its footprint in the North American wind power and retail industries, invest in ongoing product development and continue to build its team of computer vision, AI and machine learning experts.

Macy’s Raises Full-Year Outlook After Beating Earnings Forecast

Despite a slight drop in overall sales, Macy’s has continued to strengthen its business as it bolsters the store experience, revamps its rewards program and forges new partnerships. In Q2 2018, Macy’s saw: Earnings per share (EPS) reach $0.70 vs. $0.51 cents expected; Revenue fall 1.1%, reaching $5.57 billion vs. $5.55 billion expected; Net income reach $166 million, well ahead of the $111 million in Q2 2017; and Same-store sales (in owned plus licensed stores) increase 0.5% vs. an expected decrease of 0.9%, marking the third consecutive quarter of comparable store growth.

Home Depot Raises 2018 Outlook After Beating Sales, Earnings Expectations

In the wake of a very successful Q2 that exceeded Wall Street expectations across the board, The Home Depot has boosted its guidance for the remainder of 2018. Home Depot now expects full-year revenue to climb roughly 7%, compared to a prior forecast of 6.5% growth. Same-store sales should be up approximately 5.3% in fiscal 2018, Home Depot said, up from a previous target of 5% growth. In Q2 2018, Home Depot saw: Earnings per share (EPS) of $3.05 vs. $2.84 expected; Net income of $3.5 billion (a 31% year-over-year jump) vs. $2.7 billion expected; Revenue: $30.46 billion vs. $30.03 billion expected; and Same-store sales: up 8% globally vs. an increase of 6.6% expected.

Walmart And JD.Com Invest Combined $500 Million In Chinese Grocery Delivery Service

In the U.S.-based retail giant’s latest effort to expand its influence in China, Walmart has joined forces with to invest $500 million in Dada-JD Daojia, a Chinese grocery delivery company. Dada-JD Daojia is a dual-entity business comprising JD Daojia, which is’s online-to-offline (O2O) business, and New Dada, a crowdsourcing delivery platform.The combined logistics company said it intends to invest the funds in supply chain technology and to better serve retailers on its platform, which connects scooter-riding delivery drivers in approximately 400 cities with nearly 1.2 million online merchants.

Dynamic Yield Raises $32 Million, Boosting Personalization Capabilities To More Touch Points

Dynamic Yield, an AI-powered omnichannel personalization solution provider, has raised $32 million in a Series D funding round led by Viola Growth, with participation from Union Tech Ventures. The funding will help Dynamic Yield expand its personalization capabilities across kiosks, call centers, POS systems, IoT devices and other platforms. This round brings the company’s total funding to $77 million.

Salsify Secures $43 Million In Funding, Plans To Expand Global Footprint

Salsify, a product experience management (PXM) platform, has closed a $43 million Series D funding round, bringing the total amount raised to more than $98 million since the company was founded in 2012. With the new funding, Salsify plans to further deepen its R&D investments and expand both its global footprint and partner ecosystem. To support an aggressive product development roadmap and global customer acquisition efforts, Salsify already has invested approximately 40% of its revenue into R&D during the first half of 2018. Over the course of the past year, Salsify has worked to offer a full suite of PXM functionality. The company works with brands including Coca Cola, Bosch,  GSK,  Rawlings, Fruit of the Loom, Perry Ellis, Michelin, and Asics. The funding round was led by Greenspring Associates with participation from existing investors Matrix Partners, Venrock, Underscore VC and North Bridge Venture Partners.
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