A Home Furnishing Store Shows How Retailers Can Win in the Age of Amazon

TERESA RIVAS | June 13, 2019

article image
Amazon.com (AMZN) has made retail a world of winners and losers. Today, at least, RH (RH) is winner.RH stock is soaring nearly 20% on Thursday, following the Restoration Hardware parent’s fiscal first-quarter earnings report. That’s good news for shares of the upscale home-furnishings firm, which are trying to get out of the red for the year, but it also highlights that there can still be success stories in the choppy world of retail.After the close Wednesday, RH said it earned $1.85 a share on revenue of $598.42 million, while analysts were looking for EPS of $1.53 on revenue of $583.7 million. For the full year, RH said it is “cautiously optimistic” that the momentum will continue, despite a difficult macro backdrop and ongoing tariff headwinds, thanks to the launch of new brands and its expanded product lineup. It is now forecasting EPS of $8.76 to $9.27, up from prior guidance of $8.05 to $8.69, and above the $8.32 average analyst estimate. The company expects revenue of $2.64 billion to $2.66 billion, up from $2.59 billion to $2.65 billion previously; consensus calls for revenue of $2.6 billion. RH was up 20.3% to $114.00 in recent trading.

Spotlight

Sports Authority

Sports Authority, headquartered in Denver, CO, is the one of the leading full-line sporting goods retailer in the United States, operating over 450 stores in 45 states. We have a rich history, dating back almost a century, of being an industry leader in providing a wide assortment of quality brand name products.

OTHER ARTICLES

Retail ,Wholesale Trade,Ecommerce,Retail,E-commerce,point of sale.

Article | February 10, 2020

Last July, a small group representing the giants of the tech industry gathered in the seat of US government, Washington DC. They probably didn’t want to be there. Congress had summoned their employers Apple, Facebook, Google, and Amazon to answer questions about the command they hold over the markets they operate in. On Amazon’s behalf, associate general counsel Nate Sutton spoke in defense of his employer’s role in US retail. Throughout, he argued that Amazon isn’t so powerful as to be able to control prices and stifle competition. Amazon, he pointed out, makes up less than 1% of retail globally. In the US, it accounts for around 4% of retail. In fact, Walmart is much larger than Amazon, he said. In terms of sales, Sutton is right. Walmart reported $510 billion in total sales across its US and international segments in the 2019 fiscal year, versus Amazon’s $233 billion in roughly the same period.

Read More

5 steps retailers can take to ensure business continuity

Article | February 10, 2020

Every industry has been affected by the COVID-19 pandemic, with governments implementing various measures in a bid to slow the spread of the virus. This means consumers have had to adapt their behaviour, which in turn is reflected within the economy. As many people are furloughed and many stores have had to implement temporary closures, data shows that people are buying less, which has had a direct impact on the retail industry.

Read More

How physical retail provides opportunities for consumer outreach

Article | February 10, 2020

As we come off another holiday season, it's worth taking a look at how the customer journey has changed, the role retail plays in the journey and what 2020 holds for innovative brands and retailers alike. Only a small minority of consumers these days are brand loyal according to a recent McKinsey report. Most consumers prefer to be in "shopping around" mode instead. Add to that the waning influence of TV advertising. Against this backdrop, it's clear that brand and retail marketers are challenged and need to change up their game. In a world in which TV advertising has lost much of its power, innovative retailers and brands have an opportunity to command consumers' attention through integrated marketing initiatives that include digital experiences and product sampling.

Read More

Walmart will cut store hours starting Sunday to give workers time to restock

Article | February 10, 2020

Walmart Inc., the biggest U.S. retailer, will cut its store operating hours starting Sunday to give its workers time to restock shelves as the coronavirus outbreak intensifies. The pandemic is prompting Americans to buy more groceries and other daily necessities, often emptying shelves in anticipation of an extended period of so-called social distancing or self-isolation. The number of confirmed Covid-19 cases globally has risen to almost 152,000, with deaths nearing 5,700. “I don’t think any of us have been through an experience like this,” Dacona Smith, Walmart’s U.S. executive vice president and chief operating officer, said in a statement, adding that the change is to ensure “associates are able to stock the products” that are in demand. Stores and neighborhood markets some operating as long as 24 hours a day will open from 6 a.m. to 11 p.m., while those with shorter hours will retain their existing schedules, the Bentonville, Ark.-based company said.

Read More

Spotlight

Sports Authority

Sports Authority, headquartered in Denver, CO, is the one of the leading full-line sporting goods retailer in the United States, operating over 450 stores in 45 states. We have a rich history, dating back almost a century, of being an industry leader in providing a wide assortment of quality brand name products.

Events