It’s been another week with far more retail news than there is time in the day. Below, we break down some things you may have missed during the week, and what we’re still thinking about.
From The Container Store plotting a reverse stock split to Birkenstock’s revenue growing nearly 20% in its third quarter, here’s our closeout for the week.
What you may have missed
Pacsun hires new CFO
Teen apparel retailer Pacsun has hired Aina Konold as its next chief financial officer. Konold started earlier this week, according to a post on the executive’s LinkedIn profile.
Konold previously served as CFO of BowFlex, Inc., which filed for bankruptcy in March. Konold also spent about 20 years at Gap Inc. and Old Navy, holding several financial roles, including vice president of finance and strategy at Gap, Inc., according to LinkedIn.
“With Aina’s wealth of experience and extensive background in retail, digital, and international expansion, we are confident she will be a valuable addition to our team and a key driver in shaping Pacsun’s future,” Pacsun CEO Brieane Olson said in a separate LinkedIn post.
The Container Store plots reverse stock split
The Container Store plans to undergo a 1-for-15 reverse stock split after the company’s board and stockholders approved the move, per an SEC filing. The financial maneuver, which will convert every 15 shares of common stock to one share, will go into effect on Tuesday at 5 p.m. ET.
Rather than handing out fractional shares as a result of the split, Container Store stockholders who are left with a fraction of a share are entitled to a cash payment equal to the value of that fraction as of the stock’s closing price on Tuesday.
Abercrombie & Fitch Co. killed it in Q2
Abercrombie & Fitch Co. on Wednesday reported “record” Q2 net sales of $1.1 billion, up 21% year over year. Its namesake brand was up 26%, while Hollister brands saw an increase of 17%, according to a company press release. Comparable sales were up 18%, and net income was up over 130% to $135.4 million.
The company increased its full-year outlook to net sales growth of between 12% and 13%, but CEO Fran Horowitz mentioned that it continues “to operate in an increasingly uncertain environment.”
“Our team continued to execute at a very high level in the second quarter, resulting in better than expected sales growth and profitability,” Horowitz said in a statement. “The strength of our brand portfolio and improvements we’ve made in global capabilities resulted in broad-based growth across regions, brands and channels.”
Retail Therapy
Hello Kitty celebrates her birthday with Build-A-Bear
Build-A-Bear is helping ring in Hello Kitty’s 50th anniversary. The stuffed animal retailer announced a new workshop concept in collaboration with Sanrio, the parent company of Hello Kitty and Friends. The Build-A-Bear x Hello Kitty and Friends Workshop, which is located at the Westfield Century City mall in Los Angeles, is expected to open in time for the brand’s anniversary in November.
Build-A-Bear also introduced a make-your-own plush in honor of Hello Kitty’s anniversary. The plush features a festive dress, silver shoes and a bow. Other characters within Build-A-Bear’s Sanrio collection include Kuromi, Cinnamoroll, My Melody and Tuxedosam, and are available to shop online.
Gibson releases limited-edition guitars honoring Johnny Cash and Rosanne Cash
Gibson is offering two limited-edition acoustic guitars honoring music icons Johnny Cash and Rosanne Cash. In a Tuesday announcement, the company said its Johnny Cash SJ-200 model guitar is a modern, handmade version of the man in black’s signature late 1950s-era guitar of the same model.
The SJ-200’s features include a vintage cherry sunburst finish, Johnny Cash’s name inlaid in mother of pearl on the fretboard and a pickguard designed by the artist himself. It comes with a guitar case and retails for $14,999 on Gibson’s website.
Rosanne Cash’s J-185 guitar features include a mahogany neck with a rosewood fretboard with mother-of-pearl parallelogram inlays. It also has an under saddle pickup and preamp system, making it ready for the stage or studio. The J-185 is selling for $5,299 online. Both guitars are made in Bozeman, Montana, and are being offered in limited-edition runs of 100 instruments each.
What we’re still thinking about
19%
That’s how much Birkenstock’s revenue grew in the third quarter compared to the same period last year, reaching 565 million euros (about $625 million as of press time). The footwear retailer saw double-digit revenue growth across all of its markets: Americas (up 16%); Europe (up 20%); and Asia Pacific, Middle East and Africa (up 36%).
But Birkenstock’s gross profit margin was down 220 basis points to 59.5%, from 61.7% last year, largely due to the company’s capacity expansion (which drove a 120-basis-point decline) and its shift from DTC to wholesale (which drove a 100-basis-point decline), CFO Erik Massmann said on a call with analysts.
Birkenstock reaffirmed its full-year financial guidance on Thursday, expecting revenue growth of about 19%, with gross profit margin expected to be about 60%.
$500M
That’s how much of E.l.f. Beauty’s outstanding common stock the company is authorized to repurchase, according to a Tuesday announcement.
“This share repurchase authorization reflects confidence in our strategy and the long-term potential we see for e.l.f. Beauty,” Tarang Amin, E.l.f. Beauty’s CEO, said in a statement. “We have a track record of delivering consistent, category-leading sales and market share growth and are excited about the whitespace we see for e.l.f. Beauty across cosmetics, skin care and international.”
What we’re watching
How Target responds to natural disasters
In the wake of Hurricane Beryl’s destructive impact on the Gulf Coast last month, Target this week touted its natural disaster preparedness, response efforts and organizational partnerships.
Ahead of Beryl, Target says it began working with employees in communities that would be affected 10 days before the hurricane made landfall. Advanced planning enabled Target to provide stores with critical inventory — more than 500 pallets of water and more than 100 pallets of batteries and flashlights, the retailer said.
Target on Tuesday also highlighted partnerships with a variety of organizations, including the American Red Cross; the Footprint Project, a nonprofit organization that mobilizes solar power for communities in crisis; Team Rubicon, a veteran-led disaster response organization; Feeding America and others.
Planning efforts often start ahead of potential disasters at the retailer’s Corporate Command Center in Minneapolis. From there, Target monitors potential issues around the clock that may affect the retailer’s customers, employees or supply chain in communities where the company does business.
