Macy’s Q4 earnings came in at $2.73 a share, 20 cents above the Street's expectations. Total sales were down by 2.4% but ahead of expectations. Courtney Reagan from CNBC spoke to Macy’s CEO Jeff Gennette for insights into the quarter's earnings. He reportedly said that the year ended better than expected but December saw a slowdown for a couple of reasons which included a fire accident in a distribution center and a shift in a promotional event. These events together took away 70 basis points for the comparable sales. Tourist sales, Gennette said, fell throughout the year and is expected to be further depressing in 2019. Looking ahead, Macy’s is forecasting a flat sales growth for the entire year and an EPS of $3.05-$3.25 against the Street's $3.27 consensus.
Digitally native beauty retailer E.L.F. Beauty has announced that it will be exiting brick-and-mortar, effectively closing all 22 of its stores. It will focus on expanding via national retailers and digital channels. The company announced its fourth quarter earnings results today, with net income coming in at $9.6 million, or 20 cents per share, down from $21.5 million, or 44 cents per share, in the year-ago period. Adjusted EPS came in at 30 cents, against the $21 cents consensus. Sales totaled $78.6 million, down by 3.7% from the year-ago period, and well below consensus estimates of $84.5 million.
Direct to Consumer lingerie company ThirdLove announced today that it has raised $55 Million in its latest funding round. Altogether, the company has raised a total of $68.6 Million since 2013, according to Crunchbase. “This new funding round allows us to continue delivering on ThirdLove’s mission to create a bra for everybody,” said Heidi Zak, co-founder of ThirdLove. “We are more dedicated than ever to giving all women the level of choice they deserve.” Among those who backed the latest funding round were Tim Armstrong, CEO of Oath & AOL (who himself recently made a big move in DTC) and Youtube CEO Susan Wojcicki.
Foot Locker Inc., announced its investment of $12.5 Million in online children’s apparel brand Rockets of Awesome. As part of the deal, Foot Locker’s Kids Foot Locker unit will create Rockets of Awesome shops inside its stores and make Rockets of Awesome products available on KidsFootLocker.com. Rockets of Awesome uses technology and data science to design and sell clothing for children sizes 3 to 12. It has raised a total of $49 Million in funding since 2016.
TV shopping channel, QVC UK, plans to include social commerce to its mix of media to what it says, creates a discovery-led shopping experience. The retailer has reportedly partnered with social commerce specialist Curalate to make visual content on social media shoppable. The move comes at a time when Amazon is moving the other way, adding live ’QVC’ style video to its website to allow some of its sellers to demonstrate their wares live.
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