📈Abercrombie & Fitch Co. sets a record

Significantly outperforming the broader apparel market

Hey, Retailist community! 🌟 As the weekend approaches, there's a wave of excitement in the e-commerce, retail, and Direct-to-Consumer (DTC) worlds. This week has been packed with news, new trends, and exciting innovations in our industry. With plenty of information available, are you ready to dive into the most fascinating stories that have emerged? Let’s explore these developments and see what they mean for us!

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In the news: Top headlines this week

Abercrombie & Fitch Co. sets a record with billion-dollar Q1. Abercrombie & Fitch Co. achieved a record-breaking billion-dollar revenue in Q1, significantly outperforming the broader apparel market and expanding its market share substantially. The company attributes this success to strong assortments, effective marketing, and excellent customer experience, which have secured customer loyalty and attracted new shoppers. Consequently, Abercrombie & Fitch has upgraded its full-year net sales growth estimate to about 10%, with an expected operating margin of 14%. [Retail Dive]

Giant Food Stores in D.C. Ban Big Bags as a Way To Reduce Theft in Stores. Giant Food Stores in the D.C. area have implemented a new policy banning large bags to reduce theft. Customers are prohibited from bringing bags larger than 14 inches by 14 inches by 6 inches into the store, with non-compliant customers being denied entry. This measure is in response to unprecedented theft levels, aiming to ensure safety and profitability while maintaining product availability and a convenient shopping experience. [Retail Wire]

Foot Locker stock surges 13% as turnaround shows signs of life. Foot Locker's stock surged 13% as its turnaround efforts began to show positive results. The company reported a smaller-than-expected decline in comparable sales of 1.8% for its fiscal first quarter, beating analysts' expectations of a 3.1% drop. Foot Locker reaffirmed its fiscal year guidance, projecting sales to range from a 1% decline to a 1% gain, better than the anticipated 0.6% decline. The company reported adjusted earnings per share of 22 cents, surpassing the expected 12 cents, with revenue matching expectations at $1.88 billion. However, net income fell to $8 million, or 9 cents per share, from $36 million, or 38 cents per share, a year earlier. [CNBC]

Petco names new chief stores officer as COO exits. Petco has named a new chief stores officer and made changes to its executive leadership team after eliminating the chief merchandising and supply chain officer role. This restructuring follows the departure of previous CEO Ron Coughlin and a significant Q4 net loss, leading to a downgrade of Petco's credit rating by S&P Global Ratings. Interim CEO Mike Mohan aims to accelerate retail initiatives and restore profitability, with analysts noting the positive impact of key appointments. [Retail Dive]

Birkenstock boosts annual forecasts on full-price selling, firm demand. Birkenstock raised its annual revenue and core profit forecasts due to strong demand and full-price selling of its cork-based sandals and newer closed-toe styles, resulting in a 10% premarket share increase. Despite a general trend of inventory reduction, most wholesale retailers continue to stock Birkenstock products. The company has expanded its direct-to-consumer (DTC) channel, achieving over 30% growth in second-quarter DTC revenue and a 19.2% increase in wholesale revenue. Notably, closed-toe footwear now accounts for more than a quarter of Birkenstock's total second-quarter revenue, up from the high teens a year earlier. [Reuters]

Walgreens announces price cuts on 1,300 items amid ongoing consumer spending fatigue. Walgreens announced price cuts on 1,300 items as part of its "summer of savings" initiative, responding to U.S. consumers' spending fatigue and elevated inflation. The pharmacy chain aims to alleviate financial strain for customers by lowering prices on everyday essentials, a practice it has maintained since October 2023. Tracey D. Brown, Walgreens' EVP and Chief Customer Officer, emphasized the company's commitment to supporting customers amid the challenging retail environment noted in their March quarterly earnings announcement. [CNBC]

Amazon Fresh Is the Newest Retailer To Slash Prices for Inflation-Conscious Consumers. Amazon Fresh is the latest retailer to reduce prices to help inflation-conscious consumers, following the lead of Target and Walmart. The company plans to cut prices on around 4,000 products by up to 30%, with discounts changing weekly and available both in-store and online. This initiative includes items from national brands as well as Amazon's own store brands, aiming to provide competitive pricing and savings for customers. [Retail Wire]

American Eagle misses quarterly sales estimates on cautious consumer spending. American Eagle Outfitters missed Wall Street estimates for quarterly revenue due to cautious consumer spending and persistent inflation affecting demand for its full-price apparel and accessories. Shares fell over 8% in after-hours trading as the company maintained its fiscal 2024 forecasts. Despite a 240 basis point increase in quarterly gross margin from lower product and transportation costs, the company is experiencing uneven demand as consumers adjust to higher living costs. [Reuters]

Why TJX and Ross Are on Track for Continued Growth. Off-price retailers like TJX Companies and Ross are experiencing continued growth and capturing market share from traditional department stores. This growth is driven not only by consumers seeking value amid inflation but also by the increasing trendiness of these discount stores, especially among younger shoppers. They offer trusted brands at lower prices and stay on-trend, attracting more brand collaborations. In contrast, department stores like Macy's and Kohl's are losing market share due to their inability to adapt as quickly to changing consumer preferences. [Retail Wire]

Job Board: This week’s Top Openings in DTC, RetailTech, and more

Want to submit a role to our talent board? Email [email protected].

  • Chief of Staff - Retail Sales (Needham, MA) SharkNinja - more here

  • Director of Business Management (Arlington, VA) Remitly - more here

  • ASIC Physical Design Engineer, Proto (Remote) Block - more here

  • Sr Category Manager (Plantation, FL) Chewy - more here

  • Account Executive (Boston, MA) Mirakl - more here

  • Head of Tax - NYC (New York, NY) Rokt - more here

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