Walmart unveils plans for its sprawling new home office in Bentonville. Here is what it is going to look like.

Walmart’s existing headquarters, built in 1971, is made up of more than 20 buildings scattered around the corner of Southwest Eighth Street and Walton Boulevard in Bentonville. The new space will be built along J Street, the company said when it first revealed its plans to move, in September 2017. Walmart has been able to establish a presence in other cities across the U.S. through its acquisitions, like when it bought Jet.com, giving Walmart an office in Hoboken, New Jersey. Walmart also is sti


Walmart’s existing headquarters, built in 1971, is made up of more than 20 buildings scattered around the corner of Southwest Eighth Street and Walton Boulevard in Bentonville. The new space will be built along J Street, the company said when it first revealed its plans to move, in September 2017. Walmart has been able to establish a presence in other cities across the U.S. through its acquisitions, like when it bought Jet.com, giving Walmart an office in Hoboken, New Jersey. Walmart also is sti
Walmart unveils plans for its sprawling new home office in Bentonville. Here is what it is going to look like. Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-17  Authors: lauren thomas
Keywords: news, cnbc, companies, look, sprawling, bartlett, walton, unveils, going, walmarts, bentonville, walmart, company, headquarters, plans, buildings, office, windows


Walmart unveils plans for its sprawling new home office in Bentonville. Here is what it is going to look like.

Walmart is getting new digs.

The biggest retailer in the world, headquartered in Bentonville, Arkansas, is one step closer to moving into a new home office for more than 14,000 people, which will be outfitted with fitness centers for employees and their families, a child-care facility, more diverse dining options like food trucks, trails for hiking and biking, and tons of windows — yes, more windows. Walmart’s current home office is notorious for lacking natural light.

Walmart’s existing headquarters, built in 1971, is made up of more than 20 buildings scattered around the corner of Southwest Eighth Street and Walton Boulevard in Bentonville. The new space will be built along J Street, the company said when it first revealed its plans to move, in September 2017.

Walmart on Friday released a blog post with more details about the new office and photos offering a first look at the facilities, which will span more than 300 acres. Demolition of the existing buildings on that land is expected to start this summer, and construction of the new campus will begin over the next two years, with workers moving in phases, the company said.

Walmart said the goal of getting into more modern facilities with an open floor plan — and better food, parking and fitness options — is to “attract the next generation of talent.” That’s as Amazon — arguably Walmart’s biggest rival in retail today — is embarking on opening a new headquarters in Virginia and another office space in Tennessee. (Amazon, which has its main headquarters in Seattle, was planning an office in New York City, but that fell through thanks to plenty of local opposition.)

For Walmart, though, the company didn’t think about leaving its roots behind in Bentonville, Dan Bartlett, executive vice president of Walmart’s corporate affairs team, said Thursday on a call with members of the media.

“This was not a hard decision for us to keep our home office in northwest Arkansas. … We are a part of this community,” he said. Walmart has been able to establish a presence in other cities across the U.S. through its acquisitions, like when it bought Jet.com, giving Walmart an office in Hoboken, New Jersey.

“Arkansas has been good to us, and there’s nowhere else we’d rather call home,” CEO Doug McMillon said.

Walmart’s big move follows McDonald’s opening a $250 million headquarters in Chicago’s West Loop last year. The fast-food chain’s CEO, Steve Easterbrook, sits on Walmart’s board, and Bartlett said Walmart has taken some inspiration from that design, as well as from visits to other corporate offices such as Apple’s and Deloitte’s, and from college campuses.

The company hasn’t announced the lead architect for this project. It also hasn’t disclosed a price tag for the move. But Bartlett said it will fall into Walmart’s “typical annual budgeting process” and that the company”feels good” about the capital it has on hand to pursue this. Since the move is happening in phases, the expenses will be spread over the span of a few years, not hitting on a particular quarter all at once.

Walmart also is still deciding what will become of its current home office once everyone has moved out of those buildings. Bartlett said it’s likely those buildings will be demolished, but the company will work with city and state leaders to turn the area into something the surrounding community can use.

“I think [our founder] Sam Walton himself would say: ‘Don’t conflate history with what needs to be done in the future,'” he said. “We are a company that is aggressively on the move as we continue to shape … the future of retail.”

Here’s a glimpse of what Walmart’s new home office will look like.


Company: cnbc, Activity: cnbc, Date: 2019-05-17  Authors: lauren thomas
Keywords: news, cnbc, companies, look, sprawling, bartlett, walton, unveils, going, walmarts, bentonville, walmart, company, headquarters, plans, buildings, office, windows


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The cost of your shoes could jump thanks to the US-China trade war

The cost of your sneakers or high heels could soon jump, thanks to another round of tariffs under consideration by the Trump administration as part of an ongoing trade war with China. The list includes footwear — everything from sneakers to sandals, golf shoes, rain boots and ski shoes. Should the tariff increase ultimately take effect, analysts say consumers would feel the brunt of the impact. FDRA said a popular type of canvas “skate” sneaker, currently retailing at $49.99, with a 25% tariff,


The cost of your sneakers or high heels could soon jump, thanks to another round of tariffs under consideration by the Trump administration as part of an ongoing trade war with China. The list includes footwear — everything from sneakers to sandals, golf shoes, rain boots and ski shoes. Should the tariff increase ultimately take effect, analysts say consumers would feel the brunt of the impact. FDRA said a popular type of canvas “skate” sneaker, currently retailing at $49.99, with a 25% tariff,
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Company: cnbc, Activity: cnbc, Date: 2019-05-14  Authors: lauren thomas
Keywords: news, cnbc, companies, war, footwear, billion, jump, shoes, increase, trade, thanks, tariff, cost, tariffs, 25, china, working, uschina


The cost of your shoes could jump thanks to the US-China trade war

The cost of your sneakers or high heels could soon jump, thanks to another round of tariffs under consideration by the Trump administration as part of an ongoing trade war with China.

The White House on Monday released a fresh list of about $300 billion in Chinese goods that could get hit with 25% tariffs, if President Donald Trump decides to move forward with his threat. The list includes footwear — everything from sneakers to sandals, golf shoes, rain boots and ski shoes.

Should the tariff increase ultimately take effect, analysts say consumers would feel the brunt of the impact. And the American footwear industry is particularly dependent on China.

In 2017, China accounted for about 72% of all footwear imported into the U.S., according to the American Apparel and Footwear Association. The U.S. imported $11.4 billion worth of footwear from China last year, according to data from the U.S. Census Bureau.

“While brands have moved their production into other countries in Asia because labor costs are lower there, everybody is still making shoes in China,” said Matt Powell, a sports analyst for NPD Group. “The Chinese have years of expertise. They tend to be the best at making high-value product.”

Both Nike and Adidas — the top two sneaker makers in the U.S. by sales — have steadily been easing their reliance on China, shifting production to Vietnam instead. Both companies declined to comment when reached by CNBC.

Puma has said it’s working to do more of the same. But China still dominates when it comes to footwear manufacturing.

“For a lot of working families who buy shoes at Walmart, Target and these other retailers … a ton of volume runs through [China], ” said Matt Priest, the president and CEO of the Footwear Distributors and Retailers of America, a trade organization. The proposed tariffs on footwear “are concerning to say the least,” he said. “It’s every single type of shoe.”

FDRA said a popular type of canvas “skate” sneaker, currently retailing at $49.99, with a 25% tariff, could increase to $65.57. The price of a typical hunting boot would increase from $190 to $248.56. And a popular performance running shoe could jump from $150 to $206.25, FDRA said.

Ultimately, a 25% tariff on footwear could cost shoppers more than $7 billion each year, Priest said — what he called a “conservative” estimate.

— CNBC’s Jessica Golden contributed to this reporting.

WATCH: Cramer explains which businesses have the most exposure to the trade war


Company: cnbc, Activity: cnbc, Date: 2019-05-14  Authors: lauren thomas
Keywords: news, cnbc, companies, war, footwear, billion, jump, shoes, increase, trade, thanks, tariff, cost, tariffs, 25, china, working, uschina


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Retailers to take a hit: Trade war could cause ‘widespread store closures’

Another potential round of tariffs in a tit-for-tat trade war between the U.S. and China could have an unintended consequences: massive store closures. “The market is not realizing how much brick & mortar retail is incrementally struggling and how new 25% tariffs could force widespread store closures,” UBS analyst Jay Sole said in a research note. “We think potential 25% tariffs on Chinese imports could accelerate pressure on these company’s profit margins to the point where major store closures


Another potential round of tariffs in a tit-for-tat trade war between the U.S. and China could have an unintended consequences: massive store closures. “The market is not realizing how much brick & mortar retail is incrementally struggling and how new 25% tariffs could force widespread store closures,” UBS analyst Jay Sole said in a research note. “We think potential 25% tariffs on Chinese imports could accelerate pressure on these company’s profit margins to the point where major store closures
Retailers to take a hit: Trade war could cause ‘widespread store closures’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-14  Authors: lauren thomas
Keywords: news, cnbc, companies, war, trump, struggling, 25, trade, list, cause, goods, hit, tariffs, retailers, closures, store, chinese, widespread


Retailers to take a hit: Trade war could cause 'widespread store closures'

Another potential round of tariffs in a tit-for-tat trade war between the U.S. and China could have an unintended consequences: massive store closures.

The White House on Monday evening released a fresh list for about $300 billion in Chinese goods that President Donald Trump has said he’s contemplating hitting with tariffs as high as 25%. The list includes everything from clothing and sneakers to sporting goods and other accessories, often found at the mall.

“The market is not realizing how much brick & mortar retail is incrementally struggling and how new 25% tariffs could force widespread store closures,” UBS analyst Jay Sole said in a research note. “We think potential 25% tariffs on Chinese imports could accelerate pressure on these company’s profit margins to the point where major store closures become a real possibility.”

Just last week, the Trump administration raised tariffs to 25% from 10% on $200 billion worth of Chinese goods. But retailers, for the most part, were unscathed, with many of the items impacted by that hike hurting agricultural workers. Furniture, handbags and some consumer electronics were on that list, but not apparel and shoes.

Then, China retaliated on Monday by raising tariffs on about $60 billion of U.S. goods.

And now the Trump administration has proposed a new list that targets items like performance wear, windbreakers, headbands, gloves, bathing suits and ski suits.

UBS said it was already calling for nearly 21,000 stores to close by 2026 in the U.S. But now, it said a new round of tariffs could cause more than 50% of those closures to happen within the course of one year, rather than four, as it was estimating. And this is only looking a publicly traded retailers, Sole said. “We continue to think the apparel and footwear consumer’s willingness to spend remains tepid at best.”

Many retailers — and specifically those that sell clothing — have already been struggling, without the threat of tariffs hanging over them. Companies like Victoria’s Secret, Gap, Gymboree, Chico’s, Payless Shoesource and Charlotte Russe have been shutting stores, struggling to find ways to differentiate themselves from popular fast-fashion brands like Zara, and up-start brands like Everlane, Rockets of Awesome and ThirdLove.


Company: cnbc, Activity: cnbc, Date: 2019-05-14  Authors: lauren thomas
Keywords: news, cnbc, companies, war, trump, struggling, 25, trade, list, cause, goods, hit, tariffs, retailers, closures, store, chinese, widespread


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Walmart announces next-day delivery, firing back at Amazon

Amazon hasn’t yet detailed a timeline for its own rollout of next-day shipping. Amazon’s next-day shipping plan expands the number of items and ZIP codes eligible for expedited service. “We have been working on this for the past several years,” Marc Lore, head of Walmart’s e-commerce business in the U.S., said about the move toward next-day shipping. To start, next-day delivery will be available for about 220,000 items “most frequently purchased” online, Walmart said, including toys and electron


Amazon hasn’t yet detailed a timeline for its own rollout of next-day shipping. Amazon’s next-day shipping plan expands the number of items and ZIP codes eligible for expedited service. “We have been working on this for the past several years,” Marc Lore, head of Walmart’s e-commerce business in the U.S., said about the move toward next-day shipping. To start, next-day delivery will be available for about 220,000 items “most frequently purchased” online, Walmart said, including toys and electron
Walmart announces next-day delivery, firing back at Amazon Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-13  Authors: lauren thomas
Keywords: news, cnbc, companies, nextday, prime, firing, shipping, announces, orders, retailers, delivery, online, amazon, items, walmart


Walmart announces next-day delivery, firing back at Amazon

Walmart is firing back.

The biggest retailer in the world will now offer shoppers the option to have their online orders delivered the next day, following Amazon, which on April 25 announced plans to spend $800 million for one-day delivery for all Amazon Prime members.

Walmart said Tuesday it is rolling out next-day delivery in Phoenix, Las Vegas and Southern California over the next few days and will expand it to reach roughly 75% of American consumers by the end of 2019, including 40 of the top 50 major metros.

Amazon hasn’t yet detailed a timeline for its own rollout of next-day shipping. But even before its April announcement, the company had offered same-day and two-hour delivery for Prime members in certain markets for certain products and at an additional cost. Amazon’s next-day shipping plan expands the number of items and ZIP codes eligible for expedited service.

Walmart isn’t disclosing the cost of its latest delivery push. But the company says it has been working on it for quite some time.

In January 2017, Walmart started offering free, two-day shipping for orders totaling more than $35, lowering its minimum purchase threshold from $50. It had already bought Jet.com for $3 billion in 2016 to juice its online business and compete with Amazon. That deal helped it reach shoppers in bigger cities, like New York, in less time.

“We have been working on this for the past several years,” Marc Lore, head of Walmart’s e-commerce business in the U.S., said about the move toward next-day shipping. “We’ve been investing … and now we are in the position to reap the benefits.”

To start, next-day delivery will be available for about 220,000 items “most frequently purchased” online, Walmart said, including toys and electronics. The company said it plans to make more items available to ship next day over time. And the option is only free for orders over $35. Amazon, for comparison, has no minimum purchase threshold for free, next-day delivery but requires customers to have a Prime membership, which costs $119 annually.

“This is the future of the Walmart.com supply chain,” Lore said. “The more products we add to this experience … the more profitable the orders will be.”

When Amazon made its one-day shipping the new standard for all Prime customers last month it sent shares of Walmart and Target tumbling, as investors worried bricks-and-mortar retailers would now have to spend more money to match the e-commerce giant’s steps. Walmart’s stock price was up 0.5% in Tuesday’s premarket. Amazon shares were 1% higher.

“It’s this nebulous thing called the Amazon effect,” said John Bonno, managing director in the retail practice at AlixPartners. “I think retailers are so afraid. … [They’re] so nervous that any new service that Amazon offers, retailers feel they need to go through hoops,” to match it.


Company: cnbc, Activity: cnbc, Date: 2019-05-13  Authors: lauren thomas
Keywords: news, cnbc, companies, nextday, prime, firing, shipping, announces, orders, retailers, delivery, online, amazon, items, walmart


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Amazon Go opens for the first time in New York. And the cashier-free store will accept cash

Amazon is finally bringing its cashier-less convenience store to New York. And it will also mark the first time this type of store, called Amazon Go, accepts cash. Amazon, having faced backlash from people who say its cashier-free stores are discriminatory toward the unbanked, is also now starting to accept cash in this New York location. It’s been reported that Amazon is considering opening up as many as 3,000 of its cashier-free stores by 2021. Amazon did not comment on when its other location


Amazon is finally bringing its cashier-less convenience store to New York. And it will also mark the first time this type of store, called Amazon Go, accepts cash. Amazon, having faced backlash from people who say its cashier-free stores are discriminatory toward the unbanked, is also now starting to accept cash in this New York location. It’s been reported that Amazon is considering opening up as many as 3,000 of its cashier-free stores by 2021. Amazon did not comment on when its other location
Amazon Go opens for the first time in New York. And the cashier-free store will accept cash Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-07  Authors: lauren thomas
Keywords: news, cnbc, companies, open, accept, cashierfree, cash, place, york, opening, stores, amazon, store, shoppers, opens, san


Amazon Go opens for the first time in New York. And the cashier-free store will accept cash

Amazon is finally bringing its cashier-less convenience store to New York. And it will also mark the first time this type of store, called Amazon Go, accepts cash.

The e-commerce company announced Tuesday that Amazon Go is opening to the public this week at Brookfield Place in downtown New York, on the second level of the enclosed shopping mall. The roughly 1,300-square-foot store makes this the twelfth Amazon Go location to open in the U.S. It is, however, the first one to make it to New York, with most of the others blanketing the West Coast, including in Seattle and San Francisco.

Amazon, having faced backlash from people who say its cashier-free stores are discriminatory toward the unbanked, is also now starting to accept cash in this New York location. While there still won’t be cash registers in the store, shoppers will have the option to use paper money or coins by having a store employee come to them with a mobile device to help them check out and pay, the company said. Otherwise, Amazon Go shoppers are able to simply walk in and out of the store’s turnstiles, scanning the Amazon app, to purchase items.

As catering to those people who don’t have credit cards or bank accounts has become a bigger topic for debate, Philadelphia was the first city to ban cashless stores earlier this year. New Jersey then passed a state-wide ban. And similar laws are still being looked at for New York and San Francisco.

The new store in New York, like the other Amazon Go locations, will offer grab-and-go food options for meals throughout the day, Amazon said, catering to people in a hurry. It also will sell Amazon’s own meal kits.

Brookfield Place in New York is notably surrounded by office space, sitting right next to the World Trade Center in Manhattan. It tends to draw in a huge lunch crowd for its high-end food hall that includes a French-inspired grocery store. There’s also an Equinox gym, and a slew of online retailers including Untuckit, Rhone and b&ta have opened up stores there. The Saks Fifth Avenue women’s shop recently closed at Brookfield Place, to be replaced by a co-working complex.

It’s been reported that Amazon is considering opening up as many as 3,000 of its cashier-free stores by 2021.

Amazon did not comment on when its other locations already open will start accepting cash, if at all.


Company: cnbc, Activity: cnbc, Date: 2019-05-07  Authors: lauren thomas
Keywords: news, cnbc, companies, open, accept, cashierfree, cash, place, york, opening, stores, amazon, store, shoppers, opens, san


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Walmart is opening dozens of veterinary clinics in its stores and launching an online pet pharmacy

Walmart is opening up dozens more veterinary clinics in its stores and launching its first online pet pharmacy, hoping to lure more U.S. pet owners who are spending billions of dollars each year on their dogs and cats. Walmart also will launch an online pet pharmacy, WalmartPetRX.com, rivaling PetSmart’s e-commerce business, Chewy.com, which also has an online pharmacy unit. And that doesn’t include online sales or people making their own fresh pet food, Nielsen said. Amazon notably has its own


Walmart is opening up dozens more veterinary clinics in its stores and launching its first online pet pharmacy, hoping to lure more U.S. pet owners who are spending billions of dollars each year on their dogs and cats. Walmart also will launch an online pet pharmacy, WalmartPetRX.com, rivaling PetSmart’s e-commerce business, Chewy.com, which also has an online pharmacy unit. And that doesn’t include online sales or people making their own fresh pet food, Nielsen said. Amazon notably has its own
Walmart is opening dozens of veterinary clinics in its stores and launching an online pet pharmacy Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-06  Authors: lauren thomas
Keywords: news, cnbc, companies, dozens, sales, pets, veterinary, billion, food, launching, opening, pharmacy, stores, clinics, spent, online, walmart, care, spending, pet


Walmart is opening dozens of veterinary clinics in its stores and launching an online pet pharmacy

Walmart is opening up dozens more veterinary clinics in its stores and launching its first online pet pharmacy, hoping to lure more U.S. pet owners who are spending billions of dollars each year on their dogs and cats.

The biggest retailer in the world already operates 21 veterinary clinics in its stores across six states, but over the next 12 months it will growth that number to 100. It will start the expansion by opening nine new clinics in the Dallas-Fort Worth area later this month and into June, Walmart said in a blog post. There, pets can receive vaccines, care for minor illnesses and other routine exams.

Walmart also will launch an online pet pharmacy, WalmartPetRX.com, rivaling PetSmart’s e-commerce business, Chewy.com, which also has an online pharmacy unit. Walmart said its website will offer low-cost prescriptions for dogs, cats, horses and livestock, from more than 300 brands.

Walmart has seen a roughly 60% increase in the number of dog- and cat-related health-care items sold on its website over the past year, a company spokeswoman said.

More shoppers in the U.S. are pampering their pets, opting to splurge a little more for better care and even organic food options. A record $72.5 billion was spent on pets in the U.S. last year, according to the American Pet Products Association. The industry trade group estimates spending will exceed $75.3 billion this year, compared with $60 billion spent on pets just four years ago.

In 2018, pet parents spent the most on food, APPA said, or $30.32 billion. Another $18.11 billion was spent on vet care; $16.01 billion on supplies and over-the-counter medicines; $2.01 billion on purchasing the pets themselves; and $6.11 billion went toward “other services,” according to the trade group.

In 2019, APPA estimates food spending will climb to $31.68 billion, with spending on vet care reaching $18.98 billion; spending on supplies and medicines amounting to $16.44 billion; spending on animal purchases equating to $1.97 billion; and “other services” costing $6.31 billion.

With pet food, it’s the “fresh” category that’s really driving sales, as owners become more conscious about what they’re feeding their animals. That’s as many owners — and many millennial pet owners — are taking better care of their own bodies.

Sales of fresh pet food in the U.S. skyrocketed 70%, to more than $546 million, between 2015 and 2018, according to data compiled by Nielsen. And that doesn’t include online sales or people making their own fresh pet food, Nielsen said.

Walmart, in turn, has been expanding its pet assortment online to include more health-conscious brands like Blue Buffalo, Greenies and Hill’s Science Diet, Kieran Shanahan, an executive on Walmart’s U.S. e-commerce team overseeing food, consumables and health-and-wellness, said. Walmart has also been developing more “premium” food options (like those using farm-raised chicken) through its in-house brands Pure Balance, Golden Rewards and Vibrant Life, Shanahan said.

Other retailers are jumping at the opportunity to take a greater share of the billion-dollar pet market, too.

Amazon notably has its own pet food brand called Wag, named after Wag.com, which it acquired when it bought Quidsi in 2011. Target has partnered with popular dog-toy maker BarkBox to sell its treats and chew toys in Target stores and online. And Petco has partnered with “JustFoodForDogs” to open a kitchen at its New York flagship location where it says it will produce more than 2,000 pounds of fresh pet food every day.

“The pet category is one where it’s Amazon that faces a threat from Chewy.com, the top destination for pet sales online,” said Dave Aronson, an analyst at 1010data. “And it’s not surprising to now see Chewy focus on its own private label … as a way to capitalize on the popularity of its site, in order to generate higher profits. ”

Aronson said pet food and snack sales should continue to grow online, as shoppers appreciate the convenience of not having to lug heavy bags home from the store.

Building on its momentum in the industry, Chewy.com just last month filed documents with regulators to prepare for an initial public offering, as its sales grew to $3.5 billion in fiscal 2018, up from $2.1 billion in 2017. Chewy says it offers free shipping in one to two days on orders over $49, while Walmart offers free two-day shipping for online orders exceeding $35.


Company: cnbc, Activity: cnbc, Date: 2019-05-06  Authors: lauren thomas
Keywords: news, cnbc, companies, dozens, sales, pets, veterinary, billion, food, launching, opening, pharmacy, stores, clinics, spent, online, walmart, care, spending, pet


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Wayfair shares plunge 12% as losses widen, hurt by high costs

Shares of online furniture retailer Wayfair plunged as much as 12% Thursday after the company reported a double-digit gain in first-quarter revenue, but losses widened amid high costs. Wayfair’s revenue rose 39% to $1.94 billion in the first quarter of the year, compared with the $1.92 billion expected by analysts, according to Refinitiv. Wayfair’s loss widened to $200.4 million, or $2.20 a share, from $107.8 million, or $1.22 a share, during the same period a year earlier. The company also said


Shares of online furniture retailer Wayfair plunged as much as 12% Thursday after the company reported a double-digit gain in first-quarter revenue, but losses widened amid high costs. Wayfair’s revenue rose 39% to $1.94 billion in the first quarter of the year, compared with the $1.92 billion expected by analysts, according to Refinitiv. Wayfair’s loss widened to $200.4 million, or $2.20 a share, from $107.8 million, or $1.22 a share, during the same period a year earlier. The company also said
Wayfair shares plunge 12% as losses widen, hurt by high costs Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-02  Authors: matt lavietes, lauren thomas
Keywords: news, cnbc, companies, share, shares, company, costs, customers, high, 12, billion, widened, million, online, plunge, widen, stock, losses, hurt, quarter, wayfair


Wayfair shares plunge 12% as losses widen, hurt by high costs

Shares of online furniture retailer Wayfair plunged as much as 12% Thursday after the company reported a double-digit gain in first-quarter revenue, but losses widened amid high costs.

Wayfair’s revenue rose 39% to $1.94 billion in the first quarter of the year, compared with the $1.92 billion expected by analysts, according to Refinitiv.

Wayfair’s loss widened to $200.4 million, or $2.20 a share, from $107.8 million, or $1.22 a share, during the same period a year earlier. On a pro forma basis, it lost $1.62 a share, but that was steeper than the $1.60 a share loss analysts were expecting.

The company also said it had 16.4 million active customers in the first quarter, 39% greater than the same period last year.

Although its number of repeat customers rose from a year ago and the average order value crept up to $237 in the first quarter, expenses are still weighing on the company’s bottom line. Wayfair said it is investing in its logistics infrastructure and new product offerings.

The company is also spending a lot to acquire new customers, according to Daniel McCarthy, an assistant professor of marketing at Emory University. He has been warning about this trend for some time. In the first quarter, customer acquisition costs were $88 per customer.

The Boston-based company’s stock has become notorious for attracting short sellers within the online retail sector. Skeptics have highlighted that while the company has been able to master the art of selling furniture online, it has yet to do so profitably. And Thursday’s report did little to quell investor concerns.

Despite Thursday’s vast sell-off, Wayfair’s stock, which is valued at $13.3 billion, has climbed 61% this year. In the past 12 months, the stock has surged more than 95%.


Company: cnbc, Activity: cnbc, Date: 2019-05-02  Authors: matt lavietes, lauren thomas
Keywords: news, cnbc, companies, share, shares, company, costs, customers, high, 12, billion, widened, million, online, plunge, widen, stock, losses, hurt, quarter, wayfair


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Under Armour shares soar on earnings beat and higher profit outlook

Analysts were calling for Under Armour to break even on a per-share basis, with sales of $1.18 billion, according to a Refinitiv survey. Sales in North America were down 3% during the quarter, amounting to $843 million, while international revenues grew 12%, to $328 million. Nike during its latest quarter managed to grow North American sales by 7%, for example. Like Nike, Under Armour is also trying to grow its direct-to-consumer business, which is said now represents 27% of total revenues. Appa


Analysts were calling for Under Armour to break even on a per-share basis, with sales of $1.18 billion, according to a Refinitiv survey. Sales in North America were down 3% during the quarter, amounting to $843 million, while international revenues grew 12%, to $328 million. Nike during its latest quarter managed to grow North American sales by 7%, for example. Like Nike, Under Armour is also trying to grow its direct-to-consumer business, which is said now represents 27% of total revenues. Appa
Under Armour shares soar on earnings beat and higher profit outlook Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-02  Authors: lauren thomas
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Under Armour shares soar on earnings beat and higher profit outlook

Under Armour on Thursday reported quarterly earnings and sales that topped analysts’ expectations, as it sold more running shoes and cleaned up inventories, sending its stock soaring. It also raised its profit outlook for 2019.

The athletic apparel retailer reported earnings of 5 cents a share for the first quarter ended March 31 on sales of $1.21 billion. Analysts were calling for Under Armour to break even on a per-share basis, with sales of $1.18 billion, according to a Refinitiv survey.

Under Armour shares jumped more than 7% in early trading on the news. Including those gains, the stock has climbed more than 34% this year, bringing Under Armour’s market cap close to $10.6 billion.

Under Armour said it now expects annual 2019 earnings to fall within a range of 33 to 34 cents per share, compared with a prior range of 31 to 33 cents. It’s still calling for revenues to be up roughly 3% to 4% overall, with sales growth remaining “relatively flat” in North America.

Sales in North America were down 3% during the quarter, amounting to $843 million, while international revenues grew 12%, to $328 million. Under Armour said revenues from international markets now make up 27% of total sales.

The company has been grappling with how to grow U.S. sales amid a landscape flush with competition from Adidas, Nike and Lululemon. Nike during its latest quarter managed to grow North American sales by 7%, for example.

Part of Under Armour’s efforts to turn things around have included cutting staff, trimming excess inventory sitting in warehouses, and promising a bigger focus on new shoes and women’s items. Some of its best-selling footwear brands now include Project Rock, Curry 6 and the Hovr sneakers.

COO Patrik Frisk told analysts during a post-earnings conference call the brand has “stabilized” in North America, as it continues to push toward selling more at “premium” price points, thereby pulling out of some discount channels. Like Nike, Under Armour is also trying to grow its direct-to-consumer business, which is said now represents 27% of total revenues.

CEO Kevin Plank has said the Baltimore-based company plans to stay true to its “performance” gear, like moisture-wicking shirts, despite “athleisure” gaining more momentum in its home turf. Some analysts say Under Armour is struggling because the company is choosing not to pivot toward the yoga pants and casual-wear trend as much as its rivals.

“We are going to continue to get louder as a brand,” Plank said Thursday. “About telling people what … and why this brand is so special. Everything we build does something.”

Beyond Nike and Adidas, though, Under Armour faces heightened competition from “resurgent 1990s brands that appeal to a broader customer base and resonate better with women,” Telsey Advisory Group analyst Cristina Fernandez said.

Under Armour also recently lost its North American president, Jason LaRose, with COO Patrik Frisk filling the position until a replacement is found.

Apparel sales were up 1% during the first quarter, while footwear sales grew 8% thanks to a strong running business, Under Armour said. Accessories revenues were down 11% due to Under Armour selling less backpacks and bags than anticipated.

Under Armour said its inventories dropped 24%, to $875 million. It said its gross margin grew by 100 basis points, to 45.2%.

Under Armour said in a separate press release Thursday that it has adjusted its year-earlier financial results to reflect changes in how it accounts for some corporate expenses. Costs related to its headquarters and supply-chain upgrades will now be excluded from its operating segments. As a result, Under Armour said it has revised its targets for these segments to reflect the changes.


Company: cnbc, Activity: cnbc, Date: 2019-05-02  Authors: lauren thomas
Keywords: news, cnbc, companies, soar, beat, quarter, sales, earnings, analysts, grew, armour, shares, revenues, north, profit, million, nike, grow, higher, outlook


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One of the most valuable malls in America is getting a makeover

The real estate investment trust also owns Westfield Century City in Los Angeles, and Westfield World Trade Center in New York. Unibail-Rodamco, Europe’s largest commercial landlord, bought mall owner Westfield last year. American shopping malls tend to be “much more enclosed” and “a little bit like bunkers,” he added. And there are estimated to be about 1,100 malls across America, arguably too many. Green Street has estimated there are currently almost 800 vacant anchor spaces at U.S. shopping


The real estate investment trust also owns Westfield Century City in Los Angeles, and Westfield World Trade Center in New York. Unibail-Rodamco, Europe’s largest commercial landlord, bought mall owner Westfield last year. American shopping malls tend to be “much more enclosed” and “a little bit like bunkers,” he added. And there are estimated to be about 1,100 malls across America, arguably too many. Green Street has estimated there are currently almost 800 vacant anchor spaces at U.S. shopping
One of the most valuable malls in America is getting a makeover Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-30  Authors: lauren thomas
Keywords: news, cnbc, companies, mall, valuable, unibailrodamcowestfields, makeover, malls, shopping, centers, westfield, stores, america, getting, space, green, street


One of the most valuable malls in America is getting a makeover

Shoppers walk through the Westfield Garden State Plaza mall in Paramus, N.J. Emile Wamsteker | Bloomberg | Getty Images

One of the most valuable malls in America is about to get a total makeover, further signaling how bricks-and-mortar retail is evolving to include places to work, workout and even live — not just buy clothes. Unibail-Rodamco-Westfield’s Garden State Plaza mall in Paramus, New Jersey — considered one of the top 10 shopping malls in the U.S. based on sales — is being renovated to include office space, a residential area, more food options, a space for gym operators and yoga studios, a hotel and an open green space for the surrounding community to use. This mall sees more than 200 million visitors per year and is considered one of the more productive assets in Unibail-Rodamco-Westfield’s portfolio of 92 centers, across a dozen countries, today. The real estate investment trust also owns Westfield Century City in Los Angeles, and Westfield World Trade Center in New York. Unibail-Rodamco, Europe’s largest commercial landlord, bought mall owner Westfield last year.

“What people are asking from the mall is much more,” than what it was just four years ago, Unibail-Rodamco-Westield’s U.S. president Jean-Marie Tritant said. “People want convenience … to be able to socialize.” American shopping malls tend to be “much more enclosed” and “a little bit like bunkers,” he added. “Now we need to connect them to the local environment.” Mall owners across the country realize consumers’ preferences are changing. More people are turning to the internet to buy apparel and furniture. And when they do venture out to shop, they want to stumble across unique experiences and good food. That’s as retailers left and right are shutting hundreds of stores, big and small, forcing mall owners to get creative with the empty spaces or risk their properties becoming irrelevant. More than 6,000 store closures have already been announced by U.S. retailers in 2019, topping all of 2018. And there are estimated to be about 1,100 malls across America, arguably too many. “Hundreds of store closures — particularly of large department stores — are accelerating the transformation of malls, forcing landlords to re-tenant an unusually large portion of their centers,” commercial real estate services firm Green Street Advisors’ analyst Daniel Busch said. “A center’s ability to attract good tenants is being tested more than ever.” Green Street has estimated there are currently almost 800 vacant anchor spaces at U.S. shopping malls.


Company: cnbc, Activity: cnbc, Date: 2019-04-30  Authors: lauren thomas
Keywords: news, cnbc, companies, mall, valuable, unibailrodamcowestfields, makeover, malls, shopping, centers, westfield, stores, america, getting, space, green, street


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Lululemon CEO: The word ‘athleisure’ doesn’t define who we are

So what does its new CEO think of the term? “I don’t cringe at it, but I don’t think it represents who we are,” Lululemon CEO Calvin McDonald told CNBC’s Sara Eisen Thursday morning. He joined Lululemon from LVMH-owned Sephora last year, after Laurent Potdevin was ousted from the CEO role amid misconduct allegations. Lululemon is going to start selling skin-care products this summer, for example, and it plans to start making its own sneakers. Lululemon shares have surged more than 82% over the p


So what does its new CEO think of the term? “I don’t cringe at it, but I don’t think it represents who we are,” Lululemon CEO Calvin McDonald told CNBC’s Sara Eisen Thursday morning. He joined Lululemon from LVMH-owned Sephora last year, after Laurent Potdevin was ousted from the CEO role amid misconduct allegations. Lululemon is going to start selling skin-care products this summer, for example, and it plans to start making its own sneakers. Lululemon shares have surged more than 82% over the p
Lululemon CEO: The word ‘athleisure’ doesn’t define who we are Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-25  Authors: lauren thomas
Keywords: news, cnbc, companies, mcdonald, going, meeting, lululemon, growth, start, doesnt, brand, investments, athleisure, define, ceo, think, word


Lululemon CEO: The word 'athleisure' doesn't define who we are

Lululemon often gets credited with fueling the so-called athleisure movement in the U.S., as many women don its famous leggings and tops to wear not only to the gym but around town.

So what does its new CEO think of the term?

“I don’t cringe at it, but I don’t think it represents who we are,” Lululemon CEO Calvin McDonald told CNBC’s Sara Eisen Thursday morning.

The yoga-pants maker on Wednesday held its first analyst meeting in five years, laying out a growth plan where it’s targeting annual sales gains of a low-teens percentage rate through 2023. The meeting also marked McDonald’s official debut on Wall Street. He joined Lululemon from LVMH-owned Sephora last year, after Laurent Potdevin was ousted from the CEO role amid misconduct allegations.

Lululemon’s growth strategy includes greater investments in its men’s business, opening more — and bigger — stores both in the U.S. and overseas, and branching into new product categories. Lululemon is going to start selling skin-care products this summer, for example, and it plans to start making its own sneakers.

With these new investments still ahead of it, McDonald said the best is yet to come.

“We are a 20-year-old brand that is showing the best days are still ahead of us,” McDonald said. “Our guest loyalty is above almost any brand I’ve ever seen. … 92% of [our customers] continue to shop us year in and year out.”

He added, “We view Lululemon as an experiential brand versus a lifestyle brand. We are going to test and learn.”

Lululemon shares have surged more than 82% over the past 12 months, compared with the 1.5% growth of the S&P 500 Retail ETF (XRT).


Company: cnbc, Activity: cnbc, Date: 2019-04-25  Authors: lauren thomas
Keywords: news, cnbc, companies, mcdonald, going, meeting, lululemon, growth, start, doesnt, brand, investments, athleisure, define, ceo, think, word


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