Bed Bath & Beyond’s Q4 finishes strong
After three quarters of missing analyst estimates, Bed Bath & Beyond’s fourth quarter ended on a high note, and beat expectations.
For the quarter ended February 25, 2017, the specialty retailer reported net sales of approximately $3.5 billion, an increase of about 3.4% from approximately $3.4 billion reported in the fiscal 2015 fourth quarter. The chain’s quarterly earnings of $1.84 per share declined by a marginal 0.5% year over year, but still beat analyst estimates of $1.77.
Consolidated comparable sales in the fiscal 2016 fourth quarter increased by approximately 0.4%, compared with a 1.7% lift in last year's fiscal fourth quarter. Comparable sales from customer-facing digital channels grew in excess of 20%, while comparable sales from stores declined in the low single-digit percentage range during the fiscal 2016 fourth quarter.
During the fourth quarter, Bed Bath & Beyond repurchased approximately $171 million of its common stock, representing approximately 4.1 million shares, under its existing $2.5 billion share repurchase program. As of February 25, 2017, the program had a remaining balance of approximately $1.7 billion, and is expected to be completed sometime in fiscal 2020, the chain reported.
For 2016, the retailer reported net sales of approximately $12.2 billion, an increase of about 0.9% from $12.1 billion in fiscal 2015.
Comparable sales for the fiscal full year decreased by approximately 0.6% for the year compared with an increase of about 1.0% in fiscal 2015. Comparable sales from customer-facing digital channels grew in excess of 20% while comparable sales from stores declined in the low single-digit percentage range for the fiscal full year.
"During fiscal 2016, we made significant investments to evolve our company and advance our mission to be trusted by our customers as the expert for the home and 'heart-related' life events by continuing to build and deliver a strong foundation of differentiated products, services and solutions for customers, while driving operational excellence,” said Steven Temares, CEO and member of the Board of Directors of Bed Bath & Beyond.
As a reflection of the long-term health of the business, and commitment to creating shareholder value, the company's Board of Directors declared an increase in the quarterly dividend to $.15 per share. The increased quarterly dividend is payable on July 18, 2017 to shareholders of record at the close of business on June 16, 2017.
Despite ending the fourth quarter and year on a high note, Bed Bath & Beyond is modeling a decline in net earnings per diluted share in the percentage range of low-single digits to 10% for fiscal 2017.
Zumiez sees net sales, comps climb in March
Zumiez’snet and same-store sales were on the rise in March.
The teen retailer’s total net sales for the five-week period ended April 1, 2017, increased 4.3% to $71.7 million, compared to $68.8 million for the five-week period ended April 2, 2016.
Meanwhile, same-store sales increased 1.1% for the period, compared to a 7.8% decline for the five weeks ended Apr 2, 2016.
Analysts continue to monitor the chain’s performance, and expect Zumiez’s focus on omnichannel growth, authentic lifestyle positioning and commitment to customer service position bode well, according to Zacks.
Despite these gains, the chain projects a loss of between 17 and 21 cents per share for the first quarter, a factor that has prompted analysts surveyed by Zacks to lower earnings estimates for fiscal 2017 by 11.3% to $1.02 per share.
Luxury retailer taps Bergdorf Goodman exec to lead brand growth
Coach Inc. has tapped a 26-year fashion veteran to lead the company as its expands its brand portfolio.
Joshua Schulman has been named president and CEO of the Coach brand, effective June 5. In this newly created role, Schulman will be responsible for all aspects of the brand globally, reporting directly to Victor Luis, CEO of Coach, Inc. This new leadership structure follows the 2015 acquisition of Stuart Weitzman, and is an important step in Coach, Inc.’s evolution as a customer-focused, multi-brand organization, the retailer said.
His appointment will be key in helping the retailer add more brands to its portfolio, a move that will also strategically position Coach Inc. as a luxury goods group, according to The Business of Fashion.
Previously, Schulman served as president, Bergdorf Goodman and NMG International, for the Neiman Marcus Group. Schulman joined Neiman Marcus Group in 2012 and assumed additional responsibility for NMG International with the acquisition of MyTheresa.com in 2014. From 2007 until 2012, Mr. Schulman was CEO of Jimmy Choo, Ltd.
Prior to Jimmy Choo, Schulman served in senior executive roles at global retail and luxury brands, including managing director, international strategic alliances, Gap, Inc., executive VP, worldwide merchandising and wholesale, Yves Saint Laurent, as well as worldwide director, women’s ready-to-wear, Gucci.
“I’ve known Josh for many years and had always hoped to attract him to Coach. He lives and breathes our industry and brings a unique blend of brand building and broad retail experience to the company, making him the ideal person for this newly created role” said Luis. “I couldn’t be more excited to have Josh lead the Coach brand.”
The company also announced that Ian Bickley, will be promoted to the new role of president, global business development and strategic alliances for Coach, Inc., effective July 2. Bickley, who is currently president, international group for the Coach brand, will be responsible for strategic partnerships across brands.
Bickley will oversee the company’s global real estate development and will partner with the brand presidents in leading strategic distributor relationships, licensing partnerships and collaborations. He will also be a key leader in the further development of Coach, Inc.’s multi-brand strategy.
Bickley will continue to report directly to Luis.
Finally, Andre Cohen, currently president, North America and global marketing for the Coach brand, will be leaving the company at the end of June to return to Asia with his family. Cohen, who has been with Coach since 2008, was instrumental in Coach’s development in Asia and has been spearheading the execution of the brand’s transformation strategy in the North American market over the last two years, the retailer reported.