Wal-Mart Stores Inc.’s back-to- basics approach is boosting its apparel business.
The retailer’s U.S. division posted the first full year of positive comp sales in apparel in seven years in 2012. Wal-Mart U.S. chief executive officer Bill Simon said the growth was the result of a new apparel strategy focused more on basics and essentials that was put in place more than a year ago.
“This quarter, we posted low-single digit positive comps driven by the improved quality of our offering,” he said.
Jewelry posted the best comps of the year during the holiday season.
The improved results in apparel and jewelry came despite softer overall sales in the fourth quarter ended Jan. 26 that continued into the start of February. On Thursday, Wal-Mart reported that net income in the quarter rose 8.6 percent to $5.61 billion, or $1.67 a diluted share, from $5.16 billion, or $1.50, in the comparable 2011 period. Revenues rose 3.9 percent, to $127.92 billion from $123.17 billion. Same-store sales were at the low end of Wal-Mart’s guidance, up 1 percent in U.S. stores, lower than the 1.5 percent increase registered in the year-ago quarter.
For the full fiscal year, net income rose 8.3 percent to $17 billion, or $5.02 a diluted share, from $15.7 billion, or $4.52. Revenues increased 5 percent to $469.16 billion from $446.95 billion.
Wal-Mart’s gains in the fourth quarter were aided by a lower than expected effective tax rate. Wal-Mart president and ceo Mike Duke said the company’s goals include strengthening the U.S. business, improving International’s returns, greater efficiency through disciplined capital allocation, investing in global e-commerce and, in a reference to the retailer’s alleged corruption scandal in Mexico and possibly other foreign markets, continuing to strengthen Wal-Mart’s compliance organization.
Compliance, according to Duke, is “non-negotiable.” He said the retailer’s compliance programs “significantly improved around the world in fiscal 2013. We’ve spent thousands of hours and millions of dollars with compliance experts on anticorruption support and training,” he said.
The retailer said same-store sales are expected to be flat for the first quarter compared with a 2.6 percent increase in last year’s first quarter.
“February sales started slower than planned, due in large part to the delay in income tax refunds,” Simon said in a prerecorded earnings call.
Wal-Mart expects EPS for fiscal 2014 to range between $5.20 and $5.40.
@chanel and @pharrell dropped what’s being dubbed as the world’s most exclusive sneakers yesterday. The Adidas Originals NMD Hu, which Williams designed in collaboration with Chanel and @adidasoriginals, has a waiting list of over 120K people who pre-registered online at chanelatcolette.fr –– and only 500 pairs are on sale. The singer predicted the resale value of the shoes could reach $40K. Read the full interview on WWD.com. Link in bio. #wwdfashion (📷: Dominique Maître)
@imanshumpert is diving deeper into his creative endeavors and relaunching his clothing line, Post 90s, and is helping to raise money for the hurricane victims in St. Maarten with a jersey he’s designed with his brother. The Cleveland Cavaliers player talked to WWD about kneeling during the national anthem, working with fashion brands and how he wants to be more than an @nba player. Read the interview on WWD.com #wwdfashion (📷: George Chinese)
Not only does #TheProfit return to CNBC tonight, but @marcuslemonis has launched @shopmarcus, a new shopping and lifestyle retail experience in Aspen and Chicago, with more locations to come. The retail stores offer in-store stylists and a variety of contemporary womenswear selections.
“It’s life, I’m going to face it,” @mingxi11 sighed. “I fell, but you know, I think the most important thing is that I get back up. I had the love, the help from my sister — the girl next to me Gizele [Oliveira] — she’s so nice. When I went backstage everybody was trying to comfort me like ‘Oh Ming, it’s OK.’ I’m really, really touched. I think it’s them who gave me the courage to go back on stage for the finale,” Xi told WWD of her fall at the @victoriassecret fashion show. (📷: David Fisher) #wwdfashion #vsfashionshow #victoriassecret
@louisvuitton tapped @therealpeterlindbergh for its latest city-centric photo book, which is part of a series called Fashion Eye. The primarily black and white book captures the spirit of Berlin in 57 images shot between 1989 and 2019. “Berlin is an inspiration for me, more than a city. I mean @millajovovich is simply Berlin!” said Lindbergh. #wwdfashion
“You know, I think audiences expect a certain performance so I have to deliver to them what they’re expecting to a certain degree. But I’m also a different actor and a different person, I have my own spin on the character,” says @noahegalvin of his takeover of the leading role in “Dear Evan Hansen” following the departure of @bensplatt, who originated the role. Read WWD’s interview with the 23-year-old actor on WWD.com #wwdeye (📷: @jilliansollazzo)
For pre-fall 2018, @etro created richly-colored wonderland, using tapestries, textiles and wallpapers from the Eastern world at large. The line featured floral and graphic prints and jacquard motifs, like this two-piece look featured here. #wwdfashion (📷: Giovanna Pavesi)
@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
“I just wanted to create this fully rounded character, but I do think what excited me most was just the opportunity to give a group of people representation that I feel needs it. I like to do characters in projects that stand for something and Karolina definitely does, so that was really exciting to me,” @ginnygardner says of her new role in @hulu’s “The Runaways.” Gardner plays Karolina Dean, a queer superhero, which is a rarity for @marvel. Read more about Gardner’s character on WWD.com #wwdeye (📷: @dandoperalski)