As the NFL season gets underway, sports betting has reportedly become big business in the United States.
\nSince a Supreme Court ruling overturned a law that prevented state-sanctioned sportsbooks in 2018, over $220 billion has been wagered in the U.S. sports gambling industry, Bloomberg reported Friday (Sept. 6).
\nThe beneficiaries of this trend include mobile betting apps like FanDuel and DraftKings as well as betting kiosks at stadiums, according to the report.
\nMuch of the gambling is focused on NFL games, with the league\u2019s 2023 season accounting for an estimated $26.7 billion of the amount bet by Americans, the report said.
\nDespite the growing popularity of online sportsbooks and online gaming, the options for instant payouts remain relatively rare, according to the PYMNTS Intelligence report \u201cGeneration Instant: Gamers and Winning.\u201d
\nLess than half of gamers now have access to instant payments, even though 8 in 10 gamers prefer immediate access to their winnings, the report found.
\nAmong the gamers who are not expecting (or are not offered) instant payouts, 44% said they receive their winnings via cash, 17% said they receive non-instant digital payments and 11% collected their winnings in the form of a check, according to the report.
\nWhen instant distributions are available, 18% opt for immediate payouts, with 8% collecting their winnings in digital wallets and about 3% transferring their winnings to a bank account, per the report.
\nThe gaming sector is one of the leaders in offering instant payments, according to the PYMNTS Intelligence report \u201cMeeting the Demand for Instant Ad Hoc Payments.\u201d
\nGaming firms report that instant payment methods represent 37% of their ad hoc payment transactions, according to the report.
\nDraftKings reported in August that the number of new online sports betting and iGaming customers it gained during the second quarter increased nearly 80% compared to the same period in 2023.
\n\u201cWe very efficiently acquired many more new customers than we expected and saw continued healthy existing customer engagement in the second quarter,\u201d DraftKings CEO and co-founder Jason Robins said Aug. 2 during the company\u2019s quarterly earnings call.
\nThe post US Sports Gambling Industry Totals $220 Billion Since 2018 appeared first on PYMNTS.com.
\n", "content_text": "As the NFL season gets underway, sports betting has reportedly become big business in the United States.\nSince a Supreme Court ruling overturned a law that prevented state-sanctioned sportsbooks in 2018, over $220 billion has been wagered in the U.S. sports gambling industry, Bloomberg reported Friday (Sept. 6).\nThe beneficiaries of this trend include mobile betting apps like FanDuel and DraftKings as well as betting kiosks at stadiums, according to the report.\nMuch of the gambling is focused on NFL games, with the league\u2019s 2023 season accounting for an estimated $26.7 billion of the amount bet by Americans, the report said.\nDespite the growing popularity of online sportsbooks and online gaming, the options for instant payouts remain relatively rare, according to the PYMNTS Intelligence report \u201cGeneration Instant: Gamers and Winning.\u201d\nLess than half of gamers now have access to instant payments, even though 8 in 10 gamers prefer immediate access to their winnings, the report found.\nAmong the gamers who are not expecting (or are not offered) instant payouts, 44% said they receive their winnings via cash, 17% said they receive non-instant digital payments and 11% collected their winnings in the form of a check, according to the report.\nWhen instant distributions are available, 18% opt for immediate payouts, with 8% collecting their winnings in digital wallets and about 3% transferring their winnings to a bank account, per the report.\nThe gaming sector is one of the leaders in offering instant payments, according to the PYMNTS Intelligence report \u201cMeeting the Demand for Instant Ad Hoc Payments.\u201d\nGaming firms report that instant payment methods represent 37% of their ad hoc payment transactions, according to the report.\nDraftKings reported in August that the number of new online sports betting and iGaming customers it gained during the second quarter increased nearly 80% compared to the same period in 2023.\n\u201cWe very efficiently acquired many more new customers than we expected and saw continued healthy existing customer engagement in the second quarter,\u201d DraftKings CEO and co-founder Jason Robins said Aug. 2 during the company\u2019s quarterly earnings call.\nThe post US Sports Gambling Industry Totals $220 Billion Since 2018 appeared first on PYMNTS.com.", "date_published": "2024-09-06T13:40:00-04:00", "date_modified": "2024-09-06T13:40:00-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/09/sports-betting-gambling.jpg", "tags": [ "DraftKings", "Earnings", "entertainment", "FanDuel", "gambling", "Gaming", "News", "PYMNTS News", "Sports betting", "sportsbooks", "What's Hot" ] }, { "id": "https://www.pymnts.com/?p=2094914", "url": "https://www.pymnts.com/earnings/2024/rent-the-runway-charts-new-course-with-in-person-events-revamped-consumer-experience/", "title": "Rent the Runway Charts New Course With In-Person Events, Revamped Consumer Experience", "content_html": "Rent the Runway (RTR) is experiencing a pivotal moment as it redefines its growth trajectory through a blend of strategic innovations and operational improvements. Following its second-quarter earnings call Thursday (Sept. 5), the company, known for introducing Closet in the Cloud, is setting its sights on further expansion.
\n\u201cWhat you\u2019re seeing in our results is momentum,\u201d CEO\u00a0Jennifer Hyman said during the call.
\nSecond-quarter revenue increased 4.2%, to 78.9 million, up from $75.7 million for the same period last year. Hyman pointed to an enhanced customer experience, improved site performance and \u201cpalpable energy driving RTR\u201d through its Reserve business.
\n\u201cThe most momentum is in our special event reserve business,\u201d Hyman said.
\nOrders for this segment rose 10% in July and 20% in August, reflecting the effectiveness of recent improvements in customer experience and inventory management. Hyman noted new customer growth surged 50% year over year without any additional marketing expenditures, underscoring the impact of enhanced end-to-end customer experiences and optimized inventory.
\nThe company\u2019s ability to increase customer reengagement and loyalty has been pivotal in this upward trend.
\n\u201cWe are very optimistic in Reserve growth for the second half,\u201d she said. \u201cThe teams are focused on our end-to-end experience for Reserve. Until June, there was no dedicated focus team on Reserve and we had seen that business decline the past few years. Now we\u2019re having this be a tremendous new funnel of new customers into RTR.\u201d
\nActive subscribers fell 6%, from 137,566 to 129,073. Chief Financial Officer Sid Thacker, attributed the decline to a reduction in promotions.
\nRTR is leveraging a variety of strategies to fuel its growth, focusing on SEO improvements to drive organic traffic and enhance customer engagement.
\n\u201cOur improved site experience, combined with enhanced merchandising, is designed to set us up for success in the second half of the year,\u201d Hyman said. This effort includes a revamped approach to marketing and content, with a particular emphasis on timely and engaging campaigns. Monthly icon campaigns celebrating fashionable women and a renewed college ambassador program are central to this initiative.
\nA significant part of RTR\u2019s strategy involves reenergizing its in-person presence. Looking ahead, RTR is expanding its efforts with a Southeast roadshow and mobile tour this fall, targeting universities with strong Greek life and sports culture. This tour aims to capture the Generation Z audience and further boost market share.
\n\u201cIn real-life events, we\u2019ve seen hundreds of women standing around the block to get into events,\u201d Hyman said. \u201cReigniting everything around marketing will not only drive higher org traffic, but higher customer engagement.\u201d
\nHyman noted RTR\u2019s three priorities: expanding its Reserve business, increasing organic traffic and deepening customer relationships. Improvements in customer experience have helped attract former customers.
\n\u201cOver the past three years, we\u2019ve been heavily focused on cost and profitability,\u201d Hyman said. \u201cAnd now, we repositioned the entire accompany around growth. These actions give me the confidence that growth is coming for RTR. We have momentum across all different aspects of our business.\u201d
\nHyman believes RTR\u2019s growth stems from its product-market fit.
\n\u201cOne of our key goals is increasing organic traffic,\u201d she said. \u201cSEO is a component of it and the other component is making customers fall in love with you. Brand awareness and brand love for RTR is very high. I\u2019m really excited about the second half.\u201d
\nThe post Rent the Runway Charts New Course With In-Person Events, Revamped Consumer Experience appeared first on PYMNTS.com.
\n", "content_text": "Rent the Runway (RTR) is experiencing a pivotal moment as it redefines its growth trajectory through a blend of strategic innovations and operational improvements. Following its second-quarter earnings call Thursday (Sept. 5), the company, known for introducing Closet in the Cloud, is setting its sights on further expansion.\n\u201cWhat you\u2019re seeing in our results is momentum,\u201d CEO\u00a0Jennifer Hyman said during the call.\nSecond-quarter revenue increased 4.2%, to 78.9 million, up from $75.7 million for the same period last year. Hyman pointed to an enhanced customer experience, improved site performance and \u201cpalpable energy driving RTR\u201d through its Reserve business.\n\u201cThe most momentum is in our special event reserve business,\u201d Hyman said.\nOrders for this segment rose 10% in July and 20% in August, reflecting the effectiveness of recent improvements in customer experience and inventory management. Hyman noted new customer growth surged 50% year over year without any additional marketing expenditures, underscoring the impact of enhanced end-to-end customer experiences and optimized inventory.\nThe company\u2019s ability to increase customer reengagement and loyalty has been pivotal in this upward trend.\n\u201cWe are very optimistic in Reserve growth for the second half,\u201d she said. \u201cThe teams are focused on our end-to-end experience for Reserve. Until June, there was no dedicated focus team on Reserve and we had seen that business decline the past few years. Now we\u2019re having this be a tremendous new funnel of new customers into RTR.\u201d\nActive subscribers fell 6%, from 137,566 to 129,073. Chief Financial Officer Sid Thacker, attributed the decline to a reduction in promotions.\nRTR is leveraging a variety of strategies to fuel its growth, focusing on SEO improvements to drive organic traffic and enhance customer engagement.\n\u201cOur improved site experience, combined with enhanced merchandising, is designed to set us up for success in the second half of the year,\u201d Hyman said. This effort includes a revamped approach to marketing and content, with a particular emphasis on timely and engaging campaigns. Monthly icon campaigns celebrating fashionable women and a renewed college ambassador program are central to this initiative.\nA significant part of RTR\u2019s strategy involves reenergizing its in-person presence. Looking ahead, RTR is expanding its efforts with a Southeast roadshow and mobile tour this fall, targeting universities with strong Greek life and sports culture. This tour aims to capture the Generation Z audience and further boost market share.\n\u201cIn real-life events, we\u2019ve seen hundreds of women standing around the block to get into events,\u201d Hyman said. \u201cReigniting everything around marketing will not only drive higher org traffic, but higher customer engagement.\u201d\nHyman noted RTR\u2019s three priorities: expanding its Reserve business, increasing organic traffic and deepening customer relationships. Improvements in customer experience have helped attract former customers.\n\u201cOver the past three years, we\u2019ve been heavily focused on cost and profitability,\u201d Hyman said. \u201cAnd now, we repositioned the entire accompany around growth. These actions give me the confidence that growth is coming for RTR. We have momentum across all different aspects of our business.\u201d\nHyman believes RTR\u2019s growth stems from its product-market fit.\n\u201cOne of our key goals is increasing organic traffic,\u201d she said. \u201cSEO is a component of it and the other component is making customers fall in love with you. Brand awareness and brand love for RTR is very high. I\u2019m really excited about the second half.\u201d\nThe post Rent the Runway Charts New Course With In-Person Events, Revamped Consumer Experience appeared first on PYMNTS.com.", "date_published": "2024-09-05T21:24:26-04:00", "date_modified": "2024-09-05T21:24:26-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2022/12/Rent-the-Runway.jpg", "tags": [ "apparel", "closet in the cloud", "Earnings", "ecommerce", "fashion", "Jennifer Hyman", "News", "PYMNTS News", "Rent-The-Runway", "Retail", "subscription commerce", "subscriptions", "What's Hot" ] }, { "id": "https://www.pymnts.com/?p=2094710", "url": "https://www.pymnts.com/earnings/2024/five-below-refocuses-on-core-customers-amid-strategic-overhaul/", "title": "Five Below Refocuses on Core Customers Amid Strategic Overhaul", "content_html": "Five Below, the discount retailer that first opened its doors in 2002, is navigating a period of introspection and realignment.
\nFounded by David Schlessinger and Thomas Vellios, the company has aimed to be a go-to destination for preteens and teens by offering cheap products. Yet, recent financial results and market conditions have prompted a refocus on its core customer base.
\nVellios, who co-founded Five Below, acknowledged the company\u2019s recent challenges during the second-quarter earnings call.
\n\u201cOver the past few years, we lost some of that sharp focus on our core customers,\u201d Vellios said.
\nThe company had expanded rapidly \u2014 opening over 450 new stores and remodeling more than 750 locations since 2022 \u2014 while also broadening its product assortment. These efforts came during a challenging macro environment and seem to have diluted the core value proposition that initially set Five Below apart.
\n\u201cWe know the resulting issues are fixable,\u201d Vellios said. \u201cWork is already underway, and we are committed to an operational and strategic refocus of our business. Going forward, we are refocusing on our core customers. We are prioritizing initiatives that enhance value, improve the shopping experience, streamline our operations and ensure that we meet the evolving needs of our customers. Specifically, we need to regain our speed and intensity in identifying and bringing in key trend items into our stores that delight our customers. We need to deliver more wow and value, which, for Five Below, is the intersection of trend, quality and price.\u201d
\nSecond-quarter sales rose 9.4%, to $830 million, but comparable store sales fell 5.7%. The drop was attributed to a decrease in transaction volume despite positive store traffic. This discrepancy pointed to issues in conversion rates, suggesting that while customers were visiting, they were not purchasing as frequently or in the quantities expected.
\nKen Bull, interim CEO, president, and COO of Five Below, outlined a plan to address these issues, noting second-quarter results \u201cfell short of what we know this business is capable of delivering.\u201d
\nThe strategy includes simplifying the product lineup and emphasizing lower price points that have historically been popular among Five Below’s young shoppers. Bull emphasized that the company plans to \u201csignificantly reduce the breadth of our assortment\u201d and return to pre-pandemic levels. By concentrating on $5 and below price points and streamlining store operations, Five Below aims to enhance the shopping experience while delivering exceptional value.
\nBull explained how Five Below found itself in this position.
\n\u201cOver the past few years, we faced significant macro pressures, including stimulus-driven demand, supply chain disruptions, inflation and evolving customer preferences,\u201d he said. \u201cTo manage inflation\u2019s impact, we raised prices and expanded price points. We also overexpanded our assortments and pursued an ambitious Triple-Double vision to triple our store count by 2030 and double EPS by 2025.
\n\u201cIn hindsight, this timeline was too aggressive, creating immense pressure on the organization,\u201d he added. \u201cWe increased corporate overhead, raised retail prices, tightened store labor and faced added complexity from shrink mitigation efforts. To address these issues, we have a plan focusing on key areas across product, value and store experience.\u201d
\nBull also highlighted the importance of maintaining a fun and energizing store environment.
\n\u201cOur strategies to improve the product will only be successful if we deliver our customers a store experience that reflects our brand,\u201d he said.
\nTo achieve this, the company is reevaluating its store operating model to reduce complexity and optimize labor. This approach will help ensure that Five Below stores remain engaging and aligned with the expectations of its target audience.
\nSimilarly, Dollar Tree, the parent company of\u00a0Family Dollar, which operates more than 16,000 stores across the U.S. and Canada, is revamping its strategy with a focus on diversifying its product range and delivering more value to its core customers. The new initiative, now in 1,600 stores, introduces items priced between $1.50 and $7 without raising existing product prices.
\nDollar Tree plans to introduce more than 300 new items by year-end as part of its expanded multi-price assortment. This initiative is designed to meet the demand for more variety and value, aiming to boost store performance and customer engagement.
\nIn a press release accompanying the company\u2019s second-quarter results released Wednesday (Sept. 4), Dollar Tree Chairman and CEO Rick Dreiling noted early success, with stores featuring the new format seeing significant sales increases.
\n\u201cWe are encouraged by the continuous progress we are making,\u201d he said, emphasizing that this transformation is crucial for adapting to shifting consumer preferences and economic conditions. With many stores yet to be converted, the company anticipates continued growth.
\nOne of the key insights from Five Below\u2019s recent evaluation was the need to reinvigorate the sense of excitement and discovery that initially drew customers to Five Below.
\n\u201cWe just kind of lost our way a little bit based on the things that we were focused on post-pandemic,\u201d Bull said. The company plans to reintroduce elements of surprise and delight into the shopping experience, aiming to \u201cget the wow back\u201d into their assortment.
\nThe post Five Below Refocuses on Core Customers Amid Strategic Overhaul appeared first on PYMNTS.com.
\n", "content_text": "Five Below, the discount retailer that first opened its doors in 2002, is navigating a period of introspection and realignment.\nFounded by David Schlessinger and Thomas Vellios, the company has aimed to be a go-to destination for preteens and teens by offering cheap products. Yet, recent financial results and market conditions have prompted a refocus on its core customer base.\nVellios, who co-founded Five Below, acknowledged the company\u2019s recent challenges during the second-quarter earnings call.\n\u201cOver the past few years, we lost some of that sharp focus on our core customers,\u201d Vellios said.\nThe company had expanded rapidly \u2014 opening over 450 new stores and remodeling more than 750 locations since 2022 \u2014 while also broadening its product assortment. These efforts came during a challenging macro environment and seem to have diluted the core value proposition that initially set Five Below apart.\n\u201cWe know the resulting issues are fixable,\u201d Vellios said. \u201cWork is already underway, and we are committed to an operational and strategic refocus of our business. Going forward, we are refocusing on our core customers. We are prioritizing initiatives that enhance value, improve the shopping experience, streamline our operations and ensure that we meet the evolving needs of our customers. Specifically, we need to regain our speed and intensity in identifying and bringing in key trend items into our stores that delight our customers. We need to deliver more wow and value, which, for Five Below, is the intersection of trend, quality and price.\u201d\nSecond-quarter sales rose 9.4%, to $830 million, but comparable store sales fell 5.7%. The drop was attributed to a decrease in transaction volume despite positive store traffic. This discrepancy pointed to issues in conversion rates, suggesting that while customers were visiting, they were not purchasing as frequently or in the quantities expected.\nKen Bull, interim CEO, president, and COO of Five Below, outlined a plan to address these issues, noting second-quarter results \u201cfell short of what we know this business is capable of delivering.\u201d\nThe strategy includes simplifying the product lineup and emphasizing lower price points that have historically been popular among Five Below’s young shoppers. Bull emphasized that the company plans to \u201csignificantly reduce the breadth of our assortment\u201d and return to pre-pandemic levels. By concentrating on $5 and below price points and streamlining store operations, Five Below aims to enhance the shopping experience while delivering exceptional value.\nBull explained how Five Below found itself in this position.\n\u201cOver the past few years, we faced significant macro pressures, including stimulus-driven demand, supply chain disruptions, inflation and evolving customer preferences,\u201d he said. \u201cTo manage inflation\u2019s impact, we raised prices and expanded price points. We also overexpanded our assortments and pursued an ambitious Triple-Double vision to triple our store count by 2030 and double EPS by 2025.\n\u201cIn hindsight, this timeline was too aggressive, creating immense pressure on the organization,\u201d he added. \u201cWe increased corporate overhead, raised retail prices, tightened store labor and faced added complexity from shrink mitigation efforts. To address these issues, we have a plan focusing on key areas across product, value and store experience.\u201d\nBull also highlighted the importance of maintaining a fun and energizing store environment.\n\u201cOur strategies to improve the product will only be successful if we deliver our customers a store experience that reflects our brand,\u201d he said.\nTo achieve this, the company is reevaluating its store operating model to reduce complexity and optimize labor. This approach will help ensure that Five Below stores remain engaging and aligned with the expectations of its target audience.\nSimilarly, Dollar Tree, the parent company of\u00a0Family Dollar, which operates more than 16,000 stores across the U.S. and Canada, is revamping its strategy with a focus on diversifying its product range and delivering more value to its core customers. The new initiative, now in 1,600 stores, introduces items priced between $1.50 and $7 without raising existing product prices.\nDollar Tree plans to introduce more than 300 new items by year-end as part of its expanded multi-price assortment. This initiative is designed to meet the demand for more variety and value, aiming to boost store performance and customer engagement.\nIn a press release accompanying the company\u2019s second-quarter results released Wednesday (Sept. 4), Dollar Tree Chairman and CEO Rick Dreiling noted early success, with stores featuring the new format seeing significant sales increases.\n\u201cWe are encouraged by the continuous progress we are making,\u201d he said, emphasizing that this transformation is crucial for adapting to shifting consumer preferences and economic conditions. With many stores yet to be converted, the company anticipates continued growth.\nOne of the key insights from Five Below\u2019s recent evaluation was the need to reinvigorate the sense of excitement and discovery that initially drew customers to Five Below.\n\u201cWe just kind of lost our way a little bit based on the things that we were focused on post-pandemic,\u201d Bull said. The company plans to reintroduce elements of surprise and delight into the shopping experience, aiming to \u201cget the wow back\u201d into their assortment.\nThe post Five Below Refocuses on Core Customers Amid Strategic Overhaul appeared first on PYMNTS.com.", "date_published": "2024-09-05T16:04:00-04:00", "date_modified": "2024-09-05T16:04:00-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2023/08/five-below.jpg", "tags": [ "brick and mortar", "discount stores", "Earnings", "Five Below", "Ken Bull", "News", "PYMNTS News", "Retail", "Thomas Vellios", "value stores" ] }, { "id": "https://www.pymnts.com/?p=2081409", "url": "https://www.pymnts.com/earnings/2024/dollar-tree-navigates-retail-transformation-with-multi-price-strategy/", "title": "Dollar Tree Navigates Retail Transformation With Multi-Price Strategy", "content_html": "Family Dollar parent company Dollar Tree, which operates more than 16,000 stores across the U.S. and Canada, is navigating a significant transformation under Chairman and CEO Rick Dreiling.
\nDespite facing a challenging macroeconomic environment, the company is making strategic moves that could redefine its market position and appeal to a broader customer base. One of the most noteworthy initiatives is the rollout of Dollar Tree\u2019s multi-price format.
\nThis new strategy, which has been implemented in 1,600 stores, aims to diversify the product range with items priced between $1.50 and $7. The goal is not to raise prices on existing products, but to introduce new items at higher price points, in a bid to enhance the shopping experience and attract more customers.
\nIn a press release accompanying the company\u2019s second-quarter results released Wednesday (Sept. 4), Dreiling highlighted the early success of this initiative, noting that stores with the new format have experienced a substantial sales lift.
\n\u201cWe are encouraged by the continuous progress we are making in the transformation underway at Dollar Tree and Family Dollar,\u201d he said. \u201cThis transformation is seen as a key component of the company\u2019s strategy to adjust to changing consumer preferences and economic conditions. Customers are responding favorably to initiatives like our expanded multi-price offering and we are already seeing a meaningful sales lift at the 1,600 Dollar Tree stores that have been converted to our newest in-line multi-price format. With thousands of stores left to convert, we believe we are still in the very early innings of this rollout, with many years of runway left ahead of us.\u201d
\nConsolidated second-quarter net sales inched up 0.7%, to $7.37 billion. Same-store sales grew slightly (1.3%) at Dollar Tree due to higher traffic, and decreased (0.1%) at Family Dollar despite increased traffic, reflecting a drop in average ticket.
\nDollar Tree\u2019s commitment to expanding its multi-price assortment includes plans to introduce more than 300 new items by the end of the year.
\nThe expanded assortment is expected to boost store performance over time, with early results showing positive customer engagement and sales growth.
\nDollar Tree Chief Operatiing Officer Michael Creedon acknowledged the challenges of this transformation but expressed confidence in its potential. \u201cTransformations are rarely easy or linear,\u201d Creedon said during the earnings call. \u201cThat is especially true for a company as large as ours. But we believe deeply in the positive impact we\u2019re having in the areas we control.\u201d
\nDuring the fourth quarter of fiscal 2023, company officials launched a comprehensive store portfolio optimization review, which involved identifying stores for closure, relocation or re-bannering based on an evaluation of current market conditions and individual store performance. They identified approximately 970 underperforming Family Dollar stores, including some 600 stores to be closed in the first half of fiscal 2024, and around 370 stores to be closed at the end of each store\u2019s current lease term.
\nAs of Aug. 3, 2024, 655 stores identified under the portfolio optimization review closed, with 45 more scheduled to close during the remainder of fiscal 2024. The company adjusted its full-year fiscal 2024 consolidated net sales outlook range to $30.6 billion to $30.9 billion. It expects to deliver comparable store net sales growth in the low single digits for the enterprise and both the Dollar Tree and Family Dollar segments.
\n\u201cClearly, we are not pleased with our second-quarter results or having to revise our full-year outlook,\u201d Creedon said. \u201cBut this updated outlook reflects how the challenging macro environment continues to pressure our customers. We are strong believers in the inherent strength of Dollar Tree\u2019s differentiated business model and its long-term strategy of multi-price expansion and store growth acceleration. Today, we need to be sensitive and responsive to the needs of our customers and meet them where they are and how they are living.\u201d
\nOffering perspective on the multi-price strategy, Creedon said, \u201cTo give you a sense of how these stores are performing, costs for the 1,600 stores we\u2019ve converted were up 4.6% in the second quarter versus less than 0.5% at our other formats.\u201d In addition, \u201cOur Q1 conversions who had the benefit of the new multi-price format and assortment for all of Q2 did a 5.1% comp. Importantly, these in-line stores showed strength across the assortment with a 6.7% consumables comp and a 2.6% discretionary comp. Considering the vast majority of our new discretionary multi-price items won\u2019t be in these stores until later this year, we are very pleased with these early results.\u201d
\nThe post Dollar Tree Navigates Retail Transformation With Multi-Price Strategy appeared first on PYMNTS.com.
\n", "content_text": "Family Dollar parent company Dollar Tree, which operates more than 16,000 stores across the U.S. and Canada, is navigating a significant transformation under Chairman and CEO Rick Dreiling.\nDespite facing a challenging macroeconomic environment, the company is making strategic moves that could redefine its market position and appeal to a broader customer base. One of the most noteworthy initiatives is the rollout of Dollar Tree\u2019s multi-price format.\nThis new strategy, which has been implemented in 1,600 stores, aims to diversify the product range with items priced between $1.50 and $7. The goal is not to raise prices on existing products, but to introduce new items at higher price points, in a bid to enhance the shopping experience and attract more customers.\nIn a press release accompanying the company\u2019s second-quarter results released Wednesday (Sept. 4), Dreiling highlighted the early success of this initiative, noting that stores with the new format have experienced a substantial sales lift.\n\u201cWe are encouraged by the continuous progress we are making in the transformation underway at Dollar Tree and Family Dollar,\u201d he said. \u201cThis transformation is seen as a key component of the company\u2019s strategy to adjust to changing consumer preferences and economic conditions. Customers are responding favorably to initiatives like our expanded multi-price offering and we are already seeing a meaningful sales lift at the 1,600 Dollar Tree stores that have been converted to our newest in-line multi-price format. With thousands of stores left to convert, we believe we are still in the very early innings of this rollout, with many years of runway left ahead of us.\u201d\nConsolidated second-quarter net sales inched up 0.7%, to $7.37 billion. Same-store sales grew slightly (1.3%) at Dollar Tree due to higher traffic, and decreased (0.1%) at Family Dollar despite increased traffic, reflecting a drop in average ticket.\nDollar Tree\u2019s commitment to expanding its multi-price assortment includes plans to introduce more than 300 new items by the end of the year.\nThe expanded assortment is expected to boost store performance over time, with early results showing positive customer engagement and sales growth.\nDollar Tree Chief Operatiing Officer Michael Creedon acknowledged the challenges of this transformation but expressed confidence in its potential. \u201cTransformations are rarely easy or linear,\u201d Creedon said during the earnings call. \u201cThat is especially true for a company as large as ours. But we believe deeply in the positive impact we\u2019re having in the areas we control.\u201d\nDuring the fourth quarter of fiscal 2023, company officials launched a comprehensive store portfolio optimization review, which involved identifying stores for closure, relocation or re-bannering based on an evaluation of current market conditions and individual store performance. They identified approximately 970 underperforming Family Dollar stores, including some 600 stores to be closed in the first half of fiscal 2024, and around 370 stores to be closed at the end of each store\u2019s current lease term.\nAs of Aug. 3, 2024, 655 stores identified under the portfolio optimization review closed, with 45 more scheduled to close during the remainder of fiscal 2024. The company adjusted its full-year fiscal 2024 consolidated net sales outlook range to $30.6 billion to $30.9 billion. It expects to deliver comparable store net sales growth in the low single digits for the enterprise and both the Dollar Tree and Family Dollar segments.\n\u201cClearly, we are not pleased with our second-quarter results or having to revise our full-year outlook,\u201d Creedon said. \u201cBut this updated outlook reflects how the challenging macro environment continues to pressure our customers. We are strong believers in the inherent strength of Dollar Tree\u2019s differentiated business model and its long-term strategy of multi-price expansion and store growth acceleration. Today, we need to be sensitive and responsive to the needs of our customers and meet them where they are and how they are living.\u201d\nOffering perspective on the multi-price strategy, Creedon said, \u201cTo give you a sense of how these stores are performing, costs for the 1,600 stores we\u2019ve converted were up 4.6% in the second quarter versus less than 0.5% at our other formats.\u201d In addition, \u201cOur Q1 conversions who had the benefit of the new multi-price format and assortment for all of Q2 did a 5.1% comp. Importantly, these in-line stores showed strength across the assortment with a 6.7% consumables comp and a 2.6% discretionary comp. Considering the vast majority of our new discretionary multi-price items won\u2019t be in these stores until later this year, we are very pleased with these early results.\u201d\nThe post Dollar Tree Navigates Retail Transformation With Multi-Price Strategy appeared first on PYMNTS.com.", "date_published": "2024-09-04T16:38:03-04:00", "date_modified": "2024-09-04T16:38:03-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2022/05/Dollar-Tree.jpg", "tags": [ "dollar stores", "Dollar Tree", "Earnings", "Family Dollar", "News", "pricing", "PYMNTS News", "Retail" ] }, { "id": "https://www.pymnts.com/?p=2081354", "url": "https://www.pymnts.com/earnings/2024/dicks-sporting-goods-credits-omnichannel-consumer-experience-for-q2-sales-bump/", "title": "Dick\u2019s Sporting Goods Credits Omnichannel Consumer Experience for Q2 Sales Bump", "content_html": "Dick\u2019s Sporting Goods is aiming to reshape the sporting retail landscape with new strategies highlighted by the rollout of its experiential\u00a0House of Sport\u00a0stores and Field House concepts.
\nThe company plans to operate 75 to 100 House of Sport locations by 2027, marking a significant expansion.
\nDuring the company\u2019s second-quarter earnings call Wednesday (Sept. 4), President and CEO\u00a0Lauren Hobart\u00a0said she is pleased with the firm\u2019s financial results, and excited about its future trajectory.
\n\u201cWith House of Sport, we are redefining sports retail,\u201d she told analysts and investors. \u201cWe delivered a very strong second quarter. Powered by our compelling omnichannel athlete experience, differentiated product assortment, best-in-class teammate experience and our ability to create deep engagement with the DICK\u2019S brand, we are driving sustained top-line momentum and gaining market share.\u201d
\nDick\u2019s second-quarter net sales rose 7.8%, to $3.47 billion, while comparable sales increased 4.5%. As a result, company officials raised their full-year 2024 guidance for comparable sales growth to a range of 2.5% to 3.5%, up from 2% to 3% previously. Additionally, second-quarter net income jumped 48%, to $362 million.
\nCurrently, there are 14 House of Sport stores (with six more to open by the end of the year) that offer expansive, interactive environments. Many House of Sport locations feature amenities like climbing walls, sporting cages, golf simulators and fitness equipment, allowing customers to try out products in a dynamic, hands-on environment.
\nThese stores also host events and offer expert services, catering to a consumer shift toward immersive, community-focused shopping experiences. While eCommerce serves those seeking convenience, shoppers are drawn to physical stores that offer engaging, lifestyle-aligned activities.
\nThe strategy is paying off, as landlords are reporting unprecedented interest and increased mall traffic in areas housing these stores, according to the company.
\n\u201cWe continue to be really pleased with how our House of Sport stores are performing,\u201d Hobart noted. \u201cThe things that get us very excited are athletes are travelling farther, visiting more frequently, and their dwell time is increasing. When we open a House of Sport, mall owners are telling us they are seeing increased traffic. It\u2019s giving us access to some of the best malls and shopping centers in the country.\u201d
\nIn addition to its physical store innovations, Dick\u2019s is heavily investing in its digital platforms. The company\u2019s eCommerce site and mobile app have seen significant engagement, with 6 million unique users interacting through its GameChanger\u00a0app in the second quarter alone \u2014 an 11% increase from the previous year.
\n\u201cWe continue to make the digital experience better for our athletes (customers),\u201d Hobart said. \u201cIt allows us to connect with our athletes beyond the traditional shopping experience. They are some of our most valuable customers.\u201d
\nInspired by House of Sport, Dick\u2019s Field House stores will comprise 50,000 square feet and offer a similar elevated assortment, service model, premium experiences, and enhanced visual expressions. Dick\u2019s, which had 11 Field House stores at the end of 2023, plans to add 15 more this year.
\n\u201cWe\u2019re emerging as the dominant player in the sporting goods landscape,\u201d Hobart said. \u201cWe had 4.5% comp sales growth on top of 2% growth last year. Our long-term strategies are working. We have been focused on several key strategic pillars: differentiated products with high demand; enhanced service in our stores and website and making sure we get products into the hands of consumers sooner. It\u2019s been a reinvention of our entire portfolio. Product itself is a key tailwind for us. Overall, we saw this past quarter’s growth across all income demographics. Our engagement with our customers is as high as it\u2019s ever been, which is a credit to our store experiences, and our top-of-mind awareness is great.\u201d
\nThe post Dick\u2019s Sporting Goods Credits Omnichannel Consumer Experience for Q2 Sales Bump appeared first on PYMNTS.com.
\n", "content_text": "Dick\u2019s Sporting Goods is aiming to reshape the sporting retail landscape with new strategies highlighted by the rollout of its experiential\u00a0House of Sport\u00a0stores and Field House concepts.\nThe company plans to operate 75 to 100 House of Sport locations by 2027, marking a significant expansion.\nDuring the company\u2019s second-quarter earnings call Wednesday (Sept. 4), President and CEO\u00a0Lauren Hobart\u00a0said she is pleased with the firm\u2019s financial results, and excited about its future trajectory.\n\u201cWith House of Sport, we are redefining sports retail,\u201d she told analysts and investors. \u201cWe delivered a very strong second quarter. Powered by our compelling omnichannel athlete experience, differentiated product assortment, best-in-class teammate experience and our ability to create deep engagement with the DICK\u2019S brand, we are driving sustained top-line momentum and gaining market share.\u201d\nDick\u2019s second-quarter net sales rose 7.8%, to $3.47 billion, while comparable sales increased 4.5%. As a result, company officials raised their full-year 2024 guidance for comparable sales growth to a range of 2.5% to 3.5%, up from 2% to 3% previously. Additionally, second-quarter net income jumped 48%, to $362 million.\nCurrently, there are 14 House of Sport stores (with six more to open by the end of the year) that offer expansive, interactive environments. Many House of Sport locations feature amenities like climbing walls, sporting cages, golf simulators and fitness equipment, allowing customers to try out products in a dynamic, hands-on environment.\nThese stores also host events and offer expert services, catering to a consumer shift toward immersive, community-focused shopping experiences. While eCommerce serves those seeking convenience, shoppers are drawn to physical stores that offer engaging, lifestyle-aligned activities.\nThe strategy is paying off, as landlords are reporting unprecedented interest and increased mall traffic in areas housing these stores, according to the company.\n\u201cWe continue to be really pleased with how our House of Sport stores are performing,\u201d Hobart noted. \u201cThe things that get us very excited are athletes are travelling farther, visiting more frequently, and their dwell time is increasing. When we open a House of Sport, mall owners are telling us they are seeing increased traffic. It\u2019s giving us access to some of the best malls and shopping centers in the country.\u201d\nIn addition to its physical store innovations, Dick\u2019s is heavily investing in its digital platforms. The company\u2019s eCommerce site and mobile app have seen significant engagement, with 6 million unique users interacting through its GameChanger\u00a0app in the second quarter alone \u2014 an 11% increase from the previous year.\n\u201cWe continue to make the digital experience better for our athletes (customers),\u201d Hobart said. \u201cIt allows us to connect with our athletes beyond the traditional shopping experience. They are some of our most valuable customers.\u201d\nInspired by House of Sport, Dick\u2019s Field House stores will comprise 50,000 square feet and offer a similar elevated assortment, service model, premium experiences, and enhanced visual expressions. Dick\u2019s, which had 11 Field House stores at the end of 2023, plans to add 15 more this year.\n\u201cWe\u2019re emerging as the dominant player in the sporting goods landscape,\u201d Hobart said. \u201cWe had 4.5% comp sales growth on top of 2% growth last year. Our long-term strategies are working. We have been focused on several key strategic pillars: differentiated products with high demand; enhanced service in our stores and website and making sure we get products into the hands of consumers sooner. It\u2019s been a reinvention of our entire portfolio. Product itself is a key tailwind for us. Overall, we saw this past quarter’s growth across all income demographics. Our engagement with our customers is as high as it\u2019s ever been, which is a credit to our store experiences, and our top-of-mind awareness is great.\u201d\nThe post Dick\u2019s Sporting Goods Credits Omnichannel Consumer Experience for Q2 Sales Bump appeared first on PYMNTS.com.", "date_published": "2024-09-04T15:23:00-04:00", "date_modified": "2024-09-04T15:23:00-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/09/Dicks-Sporting-Goods-omnichannel.png", "tags": [ "brick and mortar", "Dick's Sporting Goods", "Earnings", "News", "omnichannel", "PYMNTS News", "Retail" ] }, { "id": "https://www.pymnts.com/?p=2078542", "url": "https://www.pymnts.com/earnings/2024/ceo-peloton-struggles-to-shift-consumer-perception-despite-rebranding/", "title": "Peloton\u2019s Rebranding Falls Short in Changing Consumer Perception, Says CEO", "content_html": "Despite Peloton\u2019s rebranding effort launched in May 2023, executives acknowledged in the latest earnings call that the company\u2019s expanded offerings and new identity have yet to fully resonate with consumers.
\nDuring last week\u2019s fourth-quarter earnings call, Interim Co-CEO Karen Boone addressed this topic.
\n\u201cI\u2019d say there are still a lot of people who think about us as a bike and/or cardio company,\u201d Boone said. \u201cWe have 16 modalities, but not everyone knows all the modalities we have. We\u2019re really excited about Tread and Running, but also the content, the experiences, and run clubs and social features that we\u2019re thinking about. We\u2019re really bullish on strength. There\u2019s so much of a movement toward strength. I think people understand the science behind it and why it\u2019s important. It is the No. 2 modality for us, but I still think there’s a lot of people who come for the cardio and then understand the strength.\u201d
\nPeloton\u2019s rebranding efforts focused on shifting its image from a niche in-home bike company to a comprehensive fitness provider for all levels and locations. Alongside the brand refresh, Peloton introduced new app membership tiers: a free option with over 50 classes, an App One tier at $12.99 per month for extensive access, and an App+ tier at $24 per month for full library access and exclusive content.
\n\u201cWe\u2019re not yet known for strength,\u201d Boone told investors. \u201cI think you\u2019ll see with the beta tests we\u2019re having, with other things we\u2019re planning to make sure that\u2019s better understood and more well known. I think you\u2019ll see that as more of a white space for us in the future with new members and even kind of going deeper with our existing members. And then, I think there\u2019s more we can do just with broadening beyond just fitness over time.\u201d
\nPeloton\u2019s paid connected fitness subscriptions decreased by 75,000 to 2.98 million in the fourth quarter, despite some gains from retail channels. The company also experienced a significant drop in paid app subscriptions, which fell by 59,000, ending the quarter with 615,000.
\nWhile company officials are \u201clooking at all of the pricing across the business,\u201d Boone said, \u201cthere are no plans right now to increase our subscription price. On the hardware pricing front, it\u2019s easier to think about what we might do in certain markets, especially where the penetration of third parties such as international is more significant. There are certain markets where we\u2019re entirely third-party distributors.
\n\u201cAnd so, the margins there need to be a little bit higher to support those,\u201d Boone added. \u201cLooking at the unit economics across all products and across all channels, right now, the subscription margins are quite good. It\u2019s the hardware margins that are a little more challenged. It doesn\u2019t mean that we won\u2019t ever entertain a subscription price increase, but it\u2019s not something that we\u2019re planning for any time in the immediate future.\u201d
\nDuring the fourth-quarter earnings call, Interim Co-CEO Chris Bruzzo said things like strength, Tread and efforts to become more focused in marketing \u201cwhere we build up demand before we try to deliver it via promotions, all these things are made possible because we\u2019re putting the company on solid financial footing. We said in our remarks we\u2019re planting the seeds here for growth. And some of these seeds will take some time.\u201d
\nBruzzo agreed with Boone\u2019s take on brand perception.
\n\u201cWe\u2019ve got to change that perception that it\u2019s only about the bike, that it\u2019s actually also about strength,\u201d he said. \u201cIn fact, strength is our second most popular way of exercising with Peloton. It\u2019s also about running, and we\u2019re doing some very cool stuff around Pace Targets and running content. We\u2019re very excited about those things, and we think they create lots of white space for Peloton, but it will take time to develop.\u201d
\nThe post Peloton\u2019s Rebranding Falls Short in Changing Consumer Perception, Says CEO appeared first on PYMNTS.com.
\n", "content_text": "Despite Peloton\u2019s rebranding effort launched in May 2023, executives acknowledged in the latest earnings call that the company\u2019s expanded offerings and new identity have yet to fully resonate with consumers.\nDuring last week\u2019s fourth-quarter earnings call, Interim Co-CEO Karen Boone addressed this topic.\n\u201cI\u2019d say there are still a lot of people who think about us as a bike and/or cardio company,\u201d Boone said. \u201cWe have 16 modalities, but not everyone knows all the modalities we have. We\u2019re really excited about Tread and Running, but also the content, the experiences, and run clubs and social features that we\u2019re thinking about. We\u2019re really bullish on strength. There\u2019s so much of a movement toward strength. I think people understand the science behind it and why it\u2019s important. It is the No. 2 modality for us, but I still think there’s a lot of people who come for the cardio and then understand the strength.\u201d\nShifting Focus\nPeloton\u2019s rebranding efforts focused on shifting its image from a niche in-home bike company to a comprehensive fitness provider for all levels and locations. Alongside the brand refresh, Peloton introduced new app membership tiers: a free option with over 50 classes, an App One tier at $12.99 per month for extensive access, and an App+ tier at $24 per month for full library access and exclusive content.\n\u201cWe\u2019re not yet known for strength,\u201d Boone told investors. \u201cI think you\u2019ll see with the beta tests we\u2019re having, with other things we\u2019re planning to make sure that\u2019s better understood and more well known. I think you\u2019ll see that as more of a white space for us in the future with new members and even kind of going deeper with our existing members. And then, I think there\u2019s more we can do just with broadening beyond just fitness over time.\u201d\nPeloton\u2019s paid connected fitness subscriptions decreased by 75,000 to 2.98 million in the fourth quarter, despite some gains from retail channels. The company also experienced a significant drop in paid app subscriptions, which fell by 59,000, ending the quarter with 615,000.\nWhile company officials are \u201clooking at all of the pricing across the business,\u201d Boone said, \u201cthere are no plans right now to increase our subscription price. On the hardware pricing front, it\u2019s easier to think about what we might do in certain markets, especially where the penetration of third parties such as international is more significant. There are certain markets where we\u2019re entirely third-party distributors.\n\u201cAnd so, the margins there need to be a little bit higher to support those,\u201d Boone added. \u201cLooking at the unit economics across all products and across all channels, right now, the subscription margins are quite good. It\u2019s the hardware margins that are a little more challenged. It doesn\u2019t mean that we won\u2019t ever entertain a subscription price increase, but it\u2019s not something that we\u2019re planning for any time in the immediate future.\u201d\nMoving Forward\nDuring the fourth-quarter earnings call, Interim Co-CEO Chris Bruzzo said things like strength, Tread and efforts to become more focused in marketing \u201cwhere we build up demand before we try to deliver it via promotions, all these things are made possible because we\u2019re putting the company on solid financial footing. We said in our remarks we\u2019re planting the seeds here for growth. And some of these seeds will take some time.\u201d\nBruzzo agreed with Boone\u2019s take on brand perception.\n\u201cWe\u2019ve got to change that perception that it\u2019s only about the bike, that it\u2019s actually also about strength,\u201d he said. \u201cIn fact, strength is our second most popular way of exercising with Peloton. It\u2019s also about running, and we\u2019re doing some very cool stuff around Pace Targets and running content. We\u2019re very excited about those things, and we think they create lots of white space for Peloton, but it will take time to develop.\u201d\nThe post Peloton\u2019s Rebranding Falls Short in Changing Consumer Perception, Says CEO appeared first on PYMNTS.com.", "date_published": "2024-08-30T17:59:04-04:00", "date_modified": "2024-09-01T21:13:04-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2023/02/Peloton.jpg", "tags": [ "advertising", "Chris Bruzzo", "Earnings", "ecommerce", "exercise", "Featured News", "Karen Boone", "marketing", "News", "Peloton", "PYMNTS News", "subscription commerce", "subscriptions" ] }, { "id": "https://www.pymnts.com/?p=2078523", "url": "https://www.pymnts.com/earnings/2024/gaps-brand-turnaround-in-motion-as-lululemon-hits-new-highs-in-global-sales/", "title": "Gap\u2019s Brand Turnaround in Motion as Lululemon Hits New Highs in Global Sales", "content_html": "As the retail sector faces a complex mix of opportunities and challenges, Gap and Lululemon are charting distinct courses in their recent earnings reports. While Gap focuses on revitalizing its core brands during ongoing operational hurdles, Lululemon is capitalizing on international growth and stellar performance in athleisure.
\nUnder CEO Richard Dickson, Gap has shown resilience in its efforts to rejuvenate its brand portfolio. The company reported a 5% increase in second-quarter net sales to $3.7 billion, driven by a 4% rise in store sales and a 7% boost in online sales, the latter representing 33% of total net sales.
\n\u201cIn comparison to where we were only one year ago, we are in a stronger position across key metrics that matter \u2014 including net sales, margins, and our cash position \u2013 and we are making consistent progress in the reinvigoration of our brands,\u201d Dickson said during the company\u2019s second-quarter earnings call Thursday (Aug. 29).
\nIts recent results show that Gap\u2019s strategic focus on revitalizing its core brands, particularly Old Navy, Gap, Banana Republic and Athleta. Old Navy posted a 5% increase in comparable sales, marking four consecutive quarters of growth. Gap\u2019s comparable sales rose 3%, reflecting five quarters of market share gains, while Banana Republic saw flat comparable sales as it works on brand repositioning. However, Athleta experienced a 4% decline in comparable sales due to lapping previous heavy discounting.
\n\u201cWe remain focused on driving relevance and revenue by executing on our brand reinvigoration playbook,\u201d Dickson said. \u201cWe are building stronger brand identities, supported by trend-right products, amplified through more compelling storytelling with an innovative media mix that is translating to greater cultural relevance. We are working to provide our customers with a more engaging omnichannel experience and aim to execute with excellence. Each brand is at a different point in the process and I\u2019m encouraged by the improvements we are driving across the portfolio.\u201d
\nGap\u2019s approach centers on enhancing brand relevance and consumer engagement through refreshed marketing strategies and trend-focused product assortments. The company has been making strides in creating more compelling storytelling and improving omnichannel experiences.
\nDickson highlighted successful initiatives such as the \u201cLinen Moves\u201d campaign, which has boosted linen sales significantly. The focus on creative campaigns and collaborations, including the D\u00d4EN and Madhappy partnerships, underscores Gap\u2019s commitment to reinvigorating its brand presence.
\n\u201cWe are encouraged to see more stability across our men\u2019s business with improved depth of wardrobe and a more distinctive style,\u201d Dickson said. \u201cWe are working to win in women\u2019s with better assortment planning, a focus on key items, and improved fit. There is still significant work to be done, but we are continuing to perform while we transform Banana Republic men\u2019s and women\u2019s.\u201d
\nDickson became Gap\u2019s CEO one year ago, something he referenced as he looked forward.
\n\u201cLast August, in my first remarks to you as CEO, I told you that I was intent on leading an exciting new chapter for Gap, one that celebrates our past as we pioneer an extraordinary future,\u201d he said. \u201cThe potential of our brand portfolio was clear to me, as was the need to reposition the company for sustainable, profitable growth.\u201d
\nConversely, Lululemon is riding a different trajectory.
\nWhile the athleisure giant reported a 7% increase in net revenue, reaching $2.4 billion, coupled with a 2% rise in comparable sales, international sales stole the spotlight as they soared 29%.
\nDuring the company\u2019s second-quarter earnings call on Thursday (Aug. 29), CEO Calvin McDonald attributed this growth to the company\u2019s successful expansion efforts, particularly in China, where sales rose 37%.
\nAs comparable sales decreased 3% within the Americas, international comparable sales increased 19%. Lululemon\u2019s international success underscores a high demand for its products outside North America. The company\u2019s international revenue growth aligns with its strategic objective to quadruple its international revenue by 2026. In particular, the performance in China reflects Lululemon\u2019s effective omnichannel distribution and localized approach, including community-focused events like the Summer Sweat Games.
\nLululemon saw notable revenue growth in various merchandise categories during the second quarter, with women\u2019s products increasing by 6%, men\u2019s by 11% and accessories by 7%. Internationally, the company achieved a 29% rise in revenue, bolstered by a 34% increase in Mainland China (37% in constant currency) and a 24% growth in the Rest of World segment.
\n\u201cWe continued to see strength in our international markets as the lululemon brand resonates with guests around the world,\u201d McDonald said. \u201cGrowing our business outside of North America remains one of our largest opportunities, and we remain on track to quadruple international revenue from 2021 levels by the end of 2026.\u201d
\nMcDonald noted a slowdown in women\u2019s, saying the most significant factor was a product plan that \u201cintroduced less newness across core and seasonal styles. By newness, I\u2019m referring to the seasonal updates we bring into the assortment, typically expressed as color, print, patterns and silhouettes. As we have learned more, it’s become clear to us that this reduced newness, which is below our historical levels and stems from earlier product decisions, has impacted conversion rates given the fewer new options available to our female guests. While this reduction was seen across our women\u2019s assortment, it had a more pronounced impact in bottoms and in our online channel. The newness that we had performed well. We simply did not have enough to inspire her to purchase.\u201d
\nThe post Gap\u2019s Brand Turnaround in Motion as Lululemon Hits New Highs in Global Sales appeared first on PYMNTS.com.
\n", "content_text": "As the retail sector faces a complex mix of opportunities and challenges, Gap and Lululemon are charting distinct courses in their recent earnings reports. While Gap focuses on revitalizing its core brands during ongoing operational hurdles, Lululemon is capitalizing on international growth and stellar performance in athleisure.\nGap\u2019s Brand Refresh\nUnder CEO Richard Dickson, Gap has shown resilience in its efforts to rejuvenate its brand portfolio. The company reported a 5% increase in second-quarter net sales to $3.7 billion, driven by a 4% rise in store sales and a 7% boost in online sales, the latter representing 33% of total net sales.\n\u201cIn comparison to where we were only one year ago, we are in a stronger position across key metrics that matter \u2014 including net sales, margins, and our cash position \u2013 and we are making consistent progress in the reinvigoration of our brands,\u201d Dickson said during the company\u2019s second-quarter earnings call Thursday (Aug. 29).\nIts recent results show that Gap\u2019s strategic focus on revitalizing its core brands, particularly Old Navy, Gap, Banana Republic and Athleta. Old Navy posted a 5% increase in comparable sales, marking four consecutive quarters of growth. Gap\u2019s comparable sales rose 3%, reflecting five quarters of market share gains, while Banana Republic saw flat comparable sales as it works on brand repositioning. However, Athleta experienced a 4% decline in comparable sales due to lapping previous heavy discounting.\n\u201cWe remain focused on driving relevance and revenue by executing on our brand reinvigoration playbook,\u201d Dickson said. \u201cWe are building stronger brand identities, supported by trend-right products, amplified through more compelling storytelling with an innovative media mix that is translating to greater cultural relevance. We are working to provide our customers with a more engaging omnichannel experience and aim to execute with excellence. Each brand is at a different point in the process and I\u2019m encouraged by the improvements we are driving across the portfolio.\u201d\nA Focus on Consumer Engagement\nGap\u2019s approach centers on enhancing brand relevance and consumer engagement through refreshed marketing strategies and trend-focused product assortments. The company has been making strides in creating more compelling storytelling and improving omnichannel experiences.\nDickson highlighted successful initiatives such as the \u201cLinen Moves\u201d campaign, which has boosted linen sales significantly. The focus on creative campaigns and collaborations, including the D\u00d4EN and Madhappy partnerships, underscores Gap\u2019s commitment to reinvigorating its brand presence.\n\u201cWe are encouraged to see more stability across our men\u2019s business with improved depth of wardrobe and a more distinctive style,\u201d Dickson said. \u201cWe are working to win in women\u2019s with better assortment planning, a focus on key items, and improved fit. There is still significant work to be done, but we are continuing to perform while we transform Banana Republic men\u2019s and women\u2019s.\u201d\nDickson became Gap\u2019s CEO one year ago, something he referenced as he looked forward.\n\u201cLast August, in my first remarks to you as CEO, I told you that I was intent on leading an exciting new chapter for Gap, one that celebrates our past as we pioneer an extraordinary future,\u201d he said. \u201cThe potential of our brand portfolio was clear to me, as was the need to reposition the company for sustainable, profitable growth.\u201d\nLululemon Sales Up Globally as Domestic Totals Dip\nConversely, Lululemon is riding a different trajectory.\nWhile the athleisure giant reported a 7% increase in net revenue, reaching $2.4 billion, coupled with a 2% rise in comparable sales, international sales stole the spotlight as they soared 29%.\nDuring the company\u2019s second-quarter earnings call on Thursday (Aug. 29), CEO Calvin McDonald attributed this growth to the company\u2019s successful expansion efforts, particularly in China, where sales rose 37%.\nAs comparable sales decreased 3% within the Americas, international comparable sales increased 19%. Lululemon\u2019s international success underscores a high demand for its products outside North America. The company\u2019s international revenue growth aligns with its strategic objective to quadruple its international revenue by 2026. In particular, the performance in China reflects Lululemon\u2019s effective omnichannel distribution and localized approach, including community-focused events like the Summer Sweat Games.\nLululemon saw notable revenue growth in various merchandise categories during the second quarter, with women\u2019s products increasing by 6%, men\u2019s by 11% and accessories by 7%. Internationally, the company achieved a 29% rise in revenue, bolstered by a 34% increase in Mainland China (37% in constant currency) and a 24% growth in the Rest of World segment.\n\u201cWe continued to see strength in our international markets as the lululemon brand resonates with guests around the world,\u201d McDonald said. \u201cGrowing our business outside of North America remains one of our largest opportunities, and we remain on track to quadruple international revenue from 2021 levels by the end of 2026.\u201d\nMcDonald noted a slowdown in women\u2019s, saying the most significant factor was a product plan that \u201cintroduced less newness across core and seasonal styles. By newness, I\u2019m referring to the seasonal updates we bring into the assortment, typically expressed as color, print, patterns and silhouettes. As we have learned more, it’s become clear to us that this reduced newness, which is below our historical levels and stems from earlier product decisions, has impacted conversion rates given the fewer new options available to our female guests. While this reduction was seen across our women\u2019s assortment, it had a more pronounced impact in bottoms and in our online channel. The newness that we had performed well. We simply did not have enough to inspire her to purchase.\u201d\nThe post Gap\u2019s Brand Turnaround in Motion as Lululemon Hits New Highs in Global Sales appeared first on PYMNTS.com.", "date_published": "2024-08-30T17:30:38-04:00", "date_modified": "2024-08-30T17:30:38-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2023/03/Lululemon.jpg", "tags": [ "apparel", "athleisure", "Athleta", "Banana Republic", "Consumer Engagement", "Consumer Spending", "Earnings", "fashion", "gap", "lululemon", "News", "Old Navy", "PYMNTS News", "Retail" ] }, { "id": "https://www.pymnts.com/?p=2077884", "url": "https://www.pymnts.com/earnings/2024/kohls-burlington-five-below-and-dollar-general-pivot-as-consumers-seek-deals/", "title": "Kohl\u2019s, Burlington, Five Below and Dollar General Pivot as Consumers Seek Deals", "content_html": "The financial results for four major retailers \u2014 Kohl’s, Burlington Stores, Dollar General\u00a0and Five Below \u2014 in the second quarter of 2024 highlighted a range of performances and strategic responses. From growth and resilience to challenges and adjustments, their fiscal performances provide insights into how they are navigating the evolving retail environment.\u00a0
\nKohl\u2019s endured a challenging second quarter as its net sales decreased 4.2% and comparable sales sank 5.1%.
\nTom Kingsbury, Kohl\u2019s CEO, told investors and analysts company officials \u201chave taken significant action\u201d to reposition the company for future growth.
\nHowever, \u201cour efforts have yet to fully yield the intended outcome due in part to a continued challenging consumer environment and softness in our core business. During the second quarter, our customers exhibited more discretion in their spending, which pressured our sales even as customers transacted more frequently. This overshadowed strong performance in our key growth areas, including Sephora, home decor, gifting, and impulse. In spite of this, we continued to execute well operationally, enabling us to deliver a 13% increase in earnings driven by gross margin expansion and strong inventory and expense management.\u201d
\nKohl\u2019s beauty sector led the way for the second quarter. Sephora at Kohl\u2019s achieved notable success with total beauty sales increasing approximately 45%.
\nAdditionally, Kohl\u2019s launched its partnership with Babies \u201cR\u201d Us, opening more than 100 baby shops in August with plans to complete 200 by September. This initiative includes baby gear, furniture, accessories, and a new maternity brand, Motherhood. The Babies \u201cR\u201d Us registry will launch in Q3, aiming to enhance offerings for young families and potentially boost sales in infant and newborn apparel.\u00a0
\nLooking forward, Kingsbury said company officials will \u201ccapitalize on new opportunities such as our partnership with Babies \u201cR\u201d Us and expect to continue to benefit from our key growth areas. Our conviction in our strategy remains strong and our operating discipline, solid cash flow generation, and healthy balance sheet will continue to support us as we work to return Kohl\u2019s to growth.\u201d
\nMeanwhile, Burlington Stores, an off-price retailer known for its high-quality branded apparel and home merchandise, reported strong second-quarter results. The company experienced a 5% increase in comparable store sales and a 13% rise in total sales, exceeding expectations.
\nCEO Michael O\u2019Sullivan was pleased with the results, stating: \u201cThis strong performance was driven by the ahead of plan sales, as well as a significant increase in gross margin, and faster than expected progress in our supply chain efficiency initiatives.\u201d
\nOff-price retail offers branded apparel, footwear, accessories, home and other merchandise at significantly lower prices than other retailers. They achieve this by taking advantage of disruptions and cancellations\u00a0in the supply chain for this merchandise.
\n\u201cWe remain confident in the outlook for our business for the balance of fiscal 2024,\u201d O\u2019Sullivan said. \u201cBased on our year-to-date performance, we are increasing our margin and earnings guidance for the full year, despite some incremental cost pressure from ocean freight. That said, there are some risks, so we are planning our business cautiously, and maintaining our comparable store sales guidance of 0% to 2% growth for the second half.\u201d
\nFor Dollar General CEO Todd Vasos, the company\u2019s second-quarter performance fell short. Despite increases of 4.2% in net sales, driven by new store openings and a rise in same-store sales, which grew 0.5%, the company\u2019s operating profit fell 20.6%, to $550 million.
\n\u201cWe made important progress on our Back to Basics plan in the second quarter,\u201d Vasos said. \u201cHowever, despite advancing several of our operational goals and driving positive traffic growth, we are not satisfied with our financial results, including top-line results below our expectations for the quarter.\u201d
\nWhile he partially attributed softer sales trends to \u201ca core customer who feels financially constrained,\u201d Vasos explained, \u201cwe know the importance of controlling what we can control. With the evolving retail and consumer landscape in mind, we are taking decisive action to further enhance our value and convenience offering, as well as the in-store experience for our associates and customers.\u201d
\nVasos expressed confident about the company\u2019s future, saying: \u201cDollar General has a long history of serving customers in a variety of macroeconomic environments, and we believe the actions we are taking will allow us to further strengthen our position and build on our Back to Basics progress, as we seek to deliver sustainable growth and long-term shareholder value.\u201d
\nPart of the Back to Basics plan refocuses strategy on fundamental improvements to enhance customer experience and operational efficiency. Dollar General has made strides in addressing supply chain issues, but aims for further improvements. The retailer plans to enhance its distribution network with timely deliveries, better inventory management\u00a0and reduced reliance on temporary warehouses to cut costs and increase sales. Additionally, Dollar General will increase discounts and streamline its product assortment to attract shoppers and enhance turnover.
\nFive Below\u2019s second quarter was mixed as net sales increased 9.4% to $830.1 million, while comparable sales fell 5.7%. The company expanded its footprint by opening 62 new stores, ending the quarter with 1,667 locations across 43 states, reflecting an 18.5% increase in store count from the previous year.
\nKen Bull, interim CEO, president and COO of Five Below, told investors that economy pressures had weakened the latest results.
\n\u201cOur second quarter results fell short of what we know this business is capable of delivering. Our response to the macro pressures of the last few years and the evolving consumer environment has required even greater execution, compelling and differentiated assortments and focus on the customer,\u201d he said.\u00a0
\nBut Bull believes the issues can be fixed: \u201cWe are refocused on delivering an edited assortment that leads with value and newness to wow our core pre-teen and teen customer, maximizing each of our worlds and offering a fun store experience that reflects our brand. … I am confident in the core appeal of Five Below, the underlying strength of our business model, the talent of the teams across the company, and our ability to reinforce our destination appeal and improve our results.\u201d
\nFive Below Founder and Executive Chairman Thomas G. Vellios told investors and analysts the company is focused on its core customers.
\n\u201cWe are prioritizing initiatives that enhance value, improve the shopping experience, streamline our operations, and ensure that we meet the evolving needs of our customers,\u201d he said. \u201cSpecifically, we need to regain our speed and intensity in identifying and bringing in key trend items into our stores that delight our customers. We need to deliver more wow and value, which, for Five Below, is the intersection of trend, quality, and price.\u201d\u00a0
\nThe post Kohl\u2019s, Burlington, Five Below and Dollar General Pivot as Consumers Seek Deals appeared first on PYMNTS.com.
\n", "content_text": "The financial results for four major retailers \u2014 Kohl’s, Burlington Stores, Dollar General\u00a0and Five Below \u2014 in the second quarter of 2024 highlighted a range of performances and strategic responses. From growth and resilience to challenges and adjustments, their fiscal performances provide insights into how they are navigating the evolving retail environment.\u00a0\nKohl\u2019s Repositions to Stop Sales Drop\nKohl\u2019s endured a challenging second quarter as its net sales decreased 4.2% and comparable sales sank 5.1%. \nTom Kingsbury, Kohl\u2019s CEO, told investors and analysts company officials \u201chave taken significant action\u201d to reposition the company for future growth.\nHowever, \u201cour efforts have yet to fully yield the intended outcome due in part to a continued challenging consumer environment and softness in our core business. During the second quarter, our customers exhibited more discretion in their spending, which pressured our sales even as customers transacted more frequently. This overshadowed strong performance in our key growth areas, including Sephora, home decor, gifting, and impulse. In spite of this, we continued to execute well operationally, enabling us to deliver a 13% increase in earnings driven by gross margin expansion and strong inventory and expense management.\u201d\nKohl\u2019s beauty sector led the way for the second quarter. Sephora at Kohl\u2019s achieved notable success with total beauty sales increasing approximately 45%. \nAdditionally, Kohl\u2019s launched its partnership with Babies \u201cR\u201d Us, opening more than 100 baby shops in August with plans to complete 200 by September. This initiative includes baby gear, furniture, accessories, and a new maternity brand, Motherhood. The Babies \u201cR\u201d Us registry will launch in Q3, aiming to enhance offerings for young families and potentially boost sales in infant and newborn apparel.\u00a0\nLooking forward, Kingsbury said company officials will \u201ccapitalize on new opportunities such as our partnership with Babies \u201cR\u201d Us and expect to continue to benefit from our key growth areas. Our conviction in our strategy remains strong and our operating discipline, solid cash flow generation, and healthy balance sheet will continue to support us as we work to return Kohl\u2019s to growth.\u201d\nBurlington Leverages Supply Chain Efficiencies\nMeanwhile, Burlington Stores, an off-price retailer known for its high-quality branded apparel and home merchandise, reported strong second-quarter results. The company experienced a 5% increase in comparable store sales and a 13% rise in total sales, exceeding expectations.\nCEO Michael O\u2019Sullivan was pleased with the results, stating: \u201cThis strong performance was driven by the ahead of plan sales, as well as a significant increase in gross margin, and faster than expected progress in our supply chain efficiency initiatives.\u201d\nOff-price retail offers branded apparel, footwear, accessories, home and other merchandise at significantly lower prices than other retailers. They achieve this by taking advantage of disruptions and cancellations\u00a0in the supply chain for this merchandise.\n\u201cWe remain confident in the outlook for our business for the balance of fiscal 2024,\u201d O\u2019Sullivan said. \u201cBased on our year-to-date performance, we are increasing our margin and earnings guidance for the full year, despite some incremental cost pressure from ocean freight. That said, there are some risks, so we are planning our business cautiously, and maintaining our comparable store sales guidance of 0% to 2% growth for the second half.\u201d\nDollar General Sees Consumers Pull Back\nFor Dollar General CEO Todd Vasos, the company\u2019s second-quarter performance fell short. Despite increases of 4.2% in net sales, driven by new store openings and a rise in same-store sales, which grew 0.5%, the company\u2019s operating profit fell 20.6%, to $550 million.\n\u201cWe made important progress on our Back to Basics plan in the second quarter,\u201d Vasos said. \u201cHowever, despite advancing several of our operational goals and driving positive traffic growth, we are not satisfied with our financial results, including top-line results below our expectations for the quarter.\u201d\nWhile he partially attributed softer sales trends to \u201ca core customer who feels financially constrained,\u201d Vasos explained, \u201cwe know the importance of controlling what we can control. With the evolving retail and consumer landscape in mind, we are taking decisive action to further enhance our value and convenience offering, as well as the in-store experience for our associates and customers.\u201d\nVasos expressed confident about the company\u2019s future, saying: \u201cDollar General has a long history of serving customers in a variety of macroeconomic environments, and we believe the actions we are taking will allow us to further strengthen our position and build on our Back to Basics progress, as we seek to deliver sustainable growth and long-term shareholder value.\u201d\nPart of the Back to Basics plan refocuses strategy on fundamental improvements to enhance customer experience and operational efficiency. Dollar General has made strides in addressing supply chain issues, but aims for further improvements. The retailer plans to enhance its distribution network with timely deliveries, better inventory management\u00a0and reduced reliance on temporary warehouses to cut costs and increase sales. Additionally, Dollar General will increase discounts and streamline its product assortment to attract shoppers and enhance turnover.\nFive Below Pares Down Inventory to Focus on Gen Alpha\nFive Below\u2019s second quarter was mixed as net sales increased 9.4% to $830.1 million, while comparable sales fell 5.7%. The company expanded its footprint by opening 62 new stores, ending the quarter with 1,667 locations across 43 states, reflecting an 18.5% increase in store count from the previous year. \nKen Bull, interim CEO, president and COO of Five Below, told investors that economy pressures had weakened the latest results.\n\u201cOur second quarter results fell short of what we know this business is capable of delivering. Our response to the macro pressures of the last few years and the evolving consumer environment has required even greater execution, compelling and differentiated assortments and focus on the customer,\u201d he said.\u00a0\nBut Bull believes the issues can be fixed: \u201cWe are refocused on delivering an edited assortment that leads with value and newness to wow our core pre-teen and teen customer, maximizing each of our worlds and offering a fun store experience that reflects our brand. … I am confident in the core appeal of Five Below, the underlying strength of our business model, the talent of the teams across the company, and our ability to reinforce our destination appeal and improve our results.\u201d\nFive Below Founder and Executive Chairman Thomas G. Vellios told investors and analysts the company is focused on its core customers.\n\u201cWe are prioritizing initiatives that enhance value, improve the shopping experience, streamline our operations, and ensure that we meet the evolving needs of our customers,\u201d he said. \u201cSpecifically, we need to regain our speed and intensity in identifying and bringing in key trend items into our stores that delight our customers. We need to deliver more wow and value, which, for Five Below, is the intersection of trend, quality, and price.\u201d\u00a0\nThe post Kohl\u2019s, Burlington, Five Below and Dollar General Pivot as Consumers Seek Deals appeared first on PYMNTS.com.", "date_published": "2024-08-29T17:59:52-04:00", "date_modified": "2024-08-29T17:59:52-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2023/03/Kohls-retail.jpg", "tags": [ "Burlington Stores", "Dollar General", "Earnings", "Five Below", "Kohl\u2019s", "News", "PYMNTS News", "Retail", "shopping", "value stores" ] }, { "id": "https://www.pymnts.com/?p=2070645", "url": "https://www.pymnts.com/earnings/2024/chewy-sees-promise-vet-clinics-payoff-from-app-investments/", "title": "Chewy Sees Promise in Vet Clinics and Payoff From App Investments", "content_html": "Chewy said its investment in veterinary clinics is helping it attract new customers.
\nThe online pet product retailer released quarterly earnings Wednesday (Aug. 28) showing net sales increasing nearly 3% to $2.86 billion in the second quarter.
\nCEO Sumit Singh told analysts during an earnings call that the company\u2019s vet care clinics, two of which have opened this quarter, are helping drive sales.
\n\u201cWith each additional week and month of operations across our clinic footprint, we are steadily accumulating data to prove out our initial thesis around Chewy Vet Care,\u201d he said. \u201cAlthough it is early, the leading indicators are promising. First, Chewy Vet Care is serving as an acquisition funnel with the proportion of net new customers acquired through our clinics, exceeding our expectation.\u201d
\nIn addition, clinic engagement is accelerating the company\u2019s net sales per active customer metrics, bolstered by spending on veterinary services and \u201cstrong cross-category shopping behavior,\u201d Singh said.
\nMany customers are \u201cdeepening their commitment to the Chewy ecosystem\u201d by buying food or placing orders from the company\u2019s pharmacy for the first time, he said. Chewy is also seeing a \u201chighly positive\u201d impact on visits to its website after clinic appointments.
\n\u201cChewy has seen highly positive, early pet parent interest in Chewy Vet Care,\u201d Mita Malhotra, president of Chewy Health, told PYMNTS earlier this year. \u201cThrough our research, we found that customers viewed opening veterinary clinics as a natural extension of the types of services that we should be providing and of what they expect from Chewy.\u201d
\nSingh said last year that shifts in consumer behavior offer an opportunity for Chewy to stake its position as a leader in the online pet products world. Pet owners are now prioritizing consumables and health products over traditional hard goods.
\nAlso Wednesday, Chewy management addressed the company\u2019s efforts to strengthen customer engagement through its mobile app. Singh said during the call that the company is seeing some early indications that its app redesign efforts are paying off.
\n\u201cUnique customers who placed orders through our app increased by approximately 13% year over year, with overall mobile app orders increasing approximately 15% year over year,\u201d he said. \u201cWe observed both higher units per order and better retention when customers download and use the Chewy app.\u201d
\nThe post Chewy Sees Promise in Vet Clinics and Payoff From App Investments appeared first on PYMNTS.com.
\n", "content_text": "Chewy said its investment in veterinary clinics is helping it attract new customers.\nThe online pet product retailer released quarterly earnings Wednesday (Aug. 28) showing net sales increasing nearly 3% to $2.86 billion in the second quarter.\nCEO Sumit Singh told analysts during an earnings call that the company\u2019s vet care clinics, two of which have opened this quarter, are helping drive sales.\n\u201cWith each additional week and month of operations across our clinic footprint, we are steadily accumulating data to prove out our initial thesis around Chewy Vet Care,\u201d he said. \u201cAlthough it is early, the leading indicators are promising. First, Chewy Vet Care is serving as an acquisition funnel with the proportion of net new customers acquired through our clinics, exceeding our expectation.\u201d\nIn addition, clinic engagement is accelerating the company\u2019s net sales per active customer metrics, bolstered by spending on veterinary services and \u201cstrong cross-category shopping behavior,\u201d Singh said.\nMany customers are \u201cdeepening their commitment to the Chewy ecosystem\u201d by buying food or placing orders from the company\u2019s pharmacy for the first time, he said. Chewy is also seeing a \u201chighly positive\u201d impact on visits to its website after clinic appointments.\n\u201cChewy has seen highly positive, early pet parent interest in Chewy Vet Care,\u201d Mita Malhotra, president of Chewy Health, told PYMNTS earlier this year. \u201cThrough our research, we found that customers viewed opening veterinary clinics as a natural extension of the types of services that we should be providing and of what they expect from Chewy.\u201d\nSingh said last year that shifts in consumer behavior offer an opportunity for Chewy to stake its position as a leader in the online pet products world. Pet owners are now prioritizing consumables and health products over traditional hard goods.\nAlso Wednesday, Chewy management addressed the company\u2019s efforts to strengthen customer engagement through its mobile app. Singh said during the call that the company is seeing some early indications that its app redesign efforts are paying off.\n\u201cUnique customers who placed orders through our app increased by approximately 13% year over year, with overall mobile app orders increasing approximately 15% year over year,\u201d he said. \u201cWe observed both higher units per order and better retention when customers download and use the Chewy app.\u201d\nThe post Chewy Sees Promise in Vet Clinics and Payoff From App Investments appeared first on PYMNTS.com.", "date_published": "2024-08-28T15:21:35-04:00", "date_modified": "2024-08-28T15:21:35-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/05/Chewy.jpg", "tags": [ "Chewy", "Earnings", "ecommerce", "Mobile Applications", "News", "Pets", "PYMNTS News", "Retail", "Revenue", "What's Hot" ] }, { "id": "https://www.pymnts.com/?p=2062789", "url": "https://www.pymnts.com/earnings/2024/bill-says-financial-operations-platform-helps-businesses-navigate-uncertain-environment/", "title": "BILL Says Financial Operations Platform Helps Businesses Navigate Uncertain Environment", "content_html": "Small and medium-sized businesses (SMBs) are adopting financial operations platforms to improve their visibility and control of cash flow as they deal with an uncertain economic environment, BILL CEO Ren\u00e9 Lacerte said Thursday (Aug. 22).
\nSpeaking during the company\u2019s quarterly earnings call, Lacerte said BILL, a financial operations platform for SMBs, is growing its own business by helping SMBs manage theirs.
\n\u201cThis scale is a direct reflection of the incredible value delivered to SMBs through our products and services,\u201d Lacerte said, pointing to BILL\u2019s latest results. \u201cWe turn the financial back-office complexity that drains SMBs of time and money into simple automated tools that provide visibility and control. We empower SMBs to run better businesses.\u201d
\nDuring the fiscal year ended June 30, BILL saw its total revenue rise 22% and the number of businesses on its platform increase from 461,000 to 474,600, according to a presentation released in conjunction with the call.
\nSMBs are adopting a purpose-built financial operations platform to replace paper-based processes, automate financial operations, make and receive payments, manage budgets and cash flow, and gain insight, visibility and control, according to the presentation.
\nThis platform helps them gain visibility into cash flow and real-time financial status so that they can more easily make informed decisions, per the presentation.
\nBILL continues to expand and refine its offerings to meet this need. During the past fiscal year, the company launched its integrated platform that incorporates its accounts payable (AP) and spend and expense management solutions; added a data and analytics layer to the platform to give businesses a comprehensive view of their cash flow; and leveraged artificial intelligence (AI) throughout the platform to simplify and personalize the user experience it provides, Lacerte said during the call.
\n\u201cIn addition, we redesigned our mobile app from the ground up to leverage our evolving platform, making sure our customers can increasingly operate their business whether in the office or on the go,\u201d Lacerte said.
\nBILL also works with accounting firms to help them provide value to their clients, and with financial institutions and software companies to provide them with embedded solutions for their customers, Lacerte said.
\n\u201cThe core of our ecosystem strategy is about expanding our reach and serving SMBs where they want to do business,\u201d he added.
\nThe post BILL Says Financial Operations Platform Helps Businesses Navigate Uncertain Environment appeared first on PYMNTS.com.
\n", "content_text": "Small and medium-sized businesses (SMBs) are adopting financial operations platforms to improve their visibility and control of cash flow as they deal with an uncertain economic environment, BILL CEO Ren\u00e9 Lacerte said Thursday (Aug. 22).\nSpeaking during the company\u2019s quarterly earnings call, Lacerte said BILL, a financial operations platform for SMBs, is growing its own business by helping SMBs manage theirs.\n\u201cThis scale is a direct reflection of the incredible value delivered to SMBs through our products and services,\u201d Lacerte said, pointing to BILL\u2019s latest results. \u201cWe turn the financial back-office complexity that drains SMBs of time and money into simple automated tools that provide visibility and control. We empower SMBs to run better businesses.\u201d\nDuring the fiscal year ended June 30, BILL saw its total revenue rise 22% and the number of businesses on its platform increase from 461,000 to 474,600, according to a presentation released in conjunction with the call.\nSMBs are adopting a purpose-built financial operations platform to replace paper-based processes, automate financial operations, make and receive payments, manage budgets and cash flow, and gain insight, visibility and control, according to the presentation.\nThis platform helps them gain visibility into cash flow and real-time financial status so that they can more easily make informed decisions, per the presentation.\nBILL continues to expand and refine its offerings to meet this need. During the past fiscal year, the company launched its integrated platform that incorporates its accounts payable (AP) and spend and expense management solutions; added a data and analytics layer to the platform to give businesses a comprehensive view of their cash flow; and leveraged artificial intelligence (AI) throughout the platform to simplify and personalize the user experience it provides, Lacerte said during the call.\n\u201cIn addition, we redesigned our mobile app from the ground up to leverage our evolving platform, making sure our customers can increasingly operate their business whether in the office or on the go,\u201d Lacerte said.\nBILL also works with accounting firms to help them provide value to their clients, and with financial institutions and software companies to provide them with embedded solutions for their customers, Lacerte said.\n\u201cThe core of our ecosystem strategy is about expanding our reach and serving SMBs where they want to do business,\u201d he added.\nThe post BILL Says Financial Operations Platform Helps Businesses Navigate Uncertain Environment appeared first on PYMNTS.com.", "date_published": "2024-08-22T21:18:05-04:00", "date_modified": "2024-08-25T21:58:12-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/08/BILL-earnings.jpg", "tags": [ "AI", "artificial intelligence", "B2B", "B2B Payments", "bill", "commercial payments", "data analytics", "Earnings", "financial operations platform", "News", "PYMNTS News", "Rene\u0301 Lacerte", "small business", "SMBs", "What's Hot", "What's Hot In B2B" ] } ] }