Inside | Real news, curated by real humans
Inside Retail

Inside Retail (May 1st, 2017)

Barnes & Noble Inc. (BKS) has announced yet another new CEO – its fifth in four years – to try to turn around the ailing book retailer. Demos Parneros is being promoted after a short stint as chief operating officer, a job he held since last November. Barnes & Noble has lost recent CEOs for various reasons, from retirement to an ousting that the board felt wasn’t a good fit. Barnes & Noble’s last quarterly report revealed same-store sales declined more than 8 percent from a year prior, with its e-book and Nook businesses losing money. Parneros said his main focus will be fostering a unique shopping experience that will bring shoppers back into the stores, perhaps by expanding a prototype it has of a store with an attached restaurant serving alcohol. – WSJ

  • Email gray
  • Permalink gray

Retail bankruptcies weighed on Under Armour’s (UA) bottom line, according to its latest quarterly results. “North American revenue declined 1 percent as new distribution was more than offset by the absence of business lost to bankruptcies in 2016,” the Baltimore-based company said. Under Armour reported a loss of 1 cent per share, better than the Street view of a loss of 4 cents per share. It was the first quarterly loss since Under Armour went public in 2006 as a wave of bankruptcies, including Sports Authority, which sells a substantial amount of Under Armour products, reverberated throughout the industry. Revenue was $1.12 billion, just above the average analyst estimate of $1.11 billion. Still, Under Armour’s revenue from apparel rose 7 percent thanks to gains in golf, team sports and training. – MARKETWATCH 

  • Email gray
  • Permalink gray

GoPro Inc.’s (GRPO) quarterly results beat analyst expectations April 27, although investors are still cautious about the company’s direction. The camera company reported a loss of 44 cents per share, better than the 45 cents per share the Street was expecting and the first positive report in several quarters. Revenue was up 19 percent to $218.6 million. GoPro is trying to streamline its costs, in part by eliminating 270 jobs and by shedding its entertainment business. The company has $207.7 million in inventory, which is enough to carry through the second quarter according to its revenue guidance. Some analysts are concerned that the inventory, which weighed the company in 2015, is too high. GoPro shares are up 2.6 percent year to date, and down 36.1 percent the past year. – TECHCRUNCH

  • Email gray
  • Permalink gray

Kit and Ace, a startup founded by Lululemon Athletica founder Chip Wilson and his family, is closing all its stores in the U.S., U.K, and Australia. Now the Canada-based retailer’s focus will be on selling in Canadian showrooms and online. “We recognize the traditional world of brick-and-mortar retailing is changing, which is why we’re shifting strategies,” Wilson said in a statement. Kit and Ace sells apparel made from “technical cashmere” blend that can be washed and is more durable than other cashmere. It had about 60 stores at its peak and now has about 40. The closures will leave it with 10 locations. – RETAIL DIVE

  • Email gray
  • Permalink gray

Amid a wave of store closures by many retailers this year, Greats Brand Inc. is opening more locations. The online sneaker retailer has targeted short-term leases at bargain prices as an opportunity to grow it's physical presence in locations about the size of a coffee shop. The leases range from about three months to a year. “Given the store closures and changes in the industry, this is the best route for us,” Greats Brand Inc. Greats, based in Brooklyn, manufactures the majority of its products, mostly sneakers priced from about $50 to $200, in Italy then sells them primarily online. – WSJ

  • Email gray
  • Permalink gray

Tommy Hilfiger has a launched an app targeting European markets in partnership with PredictSpring, a mobile commerce company. The app allows shoppers in 17 countries to buy looks directly from its Instagram feed. “The functionality and ease-of-use of its new mobile app offers a unique way for customers to connect with the brand,” PredictSpring CEO Nitin Mangtani said in a statement. Consumers will also connect with Tommy Hilfiger’s brand ambassador Gigi Hadid via the app, which will feature a loyalty program and allow for in-store scanning to check product availability or for ordering. “Consumers are spending most of their time on their mobile devices, and mobile apps provide an instant, direct-to-consumer shopping experience,” Mangtani said. – CHAIN STORE AGE

  • Email gray
  • Permalink gray

Subscribe to Inside Retail