Latest news with #retail
Yahoo
4 hours ago
- Business
- Yahoo
LZB Q1 Deep Dive: Retail Expansion and Supply Chain Initiatives Shape Outlook
Furniture company La-Z-Boy (NYSE:LZB) reported Q1 CY2025 results topping the market's revenue expectations , with sales up 3.1% year on year to $570.9 million. The company expects next quarter's revenue to be around $500 million, close to analysts' estimates. Its non-GAAP profit of $0.92 per share was 1.1% below analysts' consensus estimates. Is now the time to buy LZB? Find out in our full research report (it's free). Revenue: $570.9 million vs analyst estimates of $558.6 million (3.1% year-on-year growth, 2.2% beat) Adjusted EPS: $0.92 vs analyst expectations of $0.93 (1.1% miss) Revenue Guidance for Q2 CY2025 is $500 million at the midpoint, roughly in line with what analysts were expecting Operating Margin: 5.2%, down from 9.1% in the same quarter last year Market Capitalization: $1.56 billion La-Z-Boy's first quarter delivered sales growth amid a challenging consumer environment, with management highlighting the benefits of new store openings and acquisitions, particularly in the Retail segment. CEO Melinda Whittington credited the company's 'vertically integrated model and agile supply chain' for enabling continued growth despite persistent economic and industry volatility. Management noted that while company-owned store sales rose, same-store sales declined, reflecting broader consumer caution. The quarter's performance was further shaped by targeted pricing actions and swift operational responses to supply chain disruptions, including storm-related factory damage. CFO Taylor Luebke emphasized that improved sourcing and lower input costs helped offset tariff impacts and cost pressures. Looking forward, La-Z-Boy's outlook is anchored by ongoing expansion of its direct-to-consumer retail footprint and a multiyear project to redesign its distribution and home delivery network. Management anticipates that continued consumer uncertainty will weigh on near-term demand, particularly impacting the Joybird online channel, but expects long-term benefits from operational investments and a refreshed brand identity. Whittington described the upcoming distribution redesign as key to supporting growth, saying it will 'cut time out of the system and less miles on product as well.' The company remains focused on agility in responding to trade policy shifts and cost inflation while maintaining prudent investment in both new stores and supply chain capabilities. Management attributed the quarter's performance to retail network growth, improved supply chain execution, and targeted pricing actions to mitigate tariff and cost pressures. Retail network expansion: New store openings and acquisitions in the company-owned Retail segment drove growth, with 11 new stores and 7 acquisitions completed over the past year. Management emphasized that direct ownership allows La-Z-Boy to control the end-to-end consumer experience and collect valuable customer insights, supporting its Century Vision strategy. Supply chain agility: The company's predominantly U.S.-based manufacturing footprint and Mexican cut-and-sew facilities allowed it to minimize tariff exposure and maintain speed to market. Management cited its quick recovery from a storm-damaged Arkansas facility as evidence of operational resilience, with only a one-week production loss. Joybird channel divergence: While physical Joybird stores showed relative strength, online sales for this segment declined. Management attributed this to greater macroeconomic sensitivity among Joybird's younger, urban customer base and is adjusting store growth plans accordingly, with 3–4 new stores planned for the coming year. Margin management: Adjusted operating margins were supported by lower input costs and improved sourcing, but offset by higher fixed costs from new store openings and incremental tariff expenses. CFO Luebke noted that continued investment in distribution redesign is expected to provide further margin benefits over time. Brand strategy evolution: La-Z-Boy is set to launch a refreshed brand identity, with updated look and tone to increase relevance in digital channels. This is part of a broader effort to modernize the brand and reach new audiences, building on the success of its 'Long Live the Lazy' campaign. La-Z-Boy's outlook is shaped by a cautious consumer environment, continued investment in retail and supply chain, and efforts to manage industry-wide cost pressures. Distribution network overhaul: The multiyear redesign of La-Z-Boy's distribution and home delivery system is expected to drive efficiency gains, reduce warehouse overhead, and improve delivery times. Management believes this project is essential for reaching long-term double-digit wholesale margins and supporting a growing retail footprint. Tariff and trade policy management: The company is actively monitoring global trade developments and leveraging its U.S.-centric supply chain to mitigate new tariffs. Targeted, nominal pricing actions and inventory strategies are in place to offset cost impacts, but management remains cautious about potential effects on consumer demand. Retail expansion and brand refresh: Continued investment in new company-owned stores and the upcoming brand identity update are central to management's growth strategy. The ability to control the in-store experience and adapt marketing for digital audiences is seen as key to gaining share in a fragmented market, though higher fixed costs and cautious consumers may present near-term challenges. In the coming quarters, the StockStory team will be watching (1) the pace and effectiveness of La-Z-Boy's distribution network redesign, (2) ongoing performance of new and acquired company-owned stores, and (3) the impact of the brand refresh on customer engagement and sales trends. Additionally, developments in tariff policy and the trajectory of consumer demand will be pivotal in assessing the company's execution against its Century Vision strategy. La-Z-Boy currently trades at $38.19, down from $38.79 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
Yahoo
4 hours ago
- Business
- Yahoo
Is Dollar Tree a Buy, Sell, or Hold in 2025?
Shares of Dollar Tree have rallied amid solid sales trends at the start of 2025. The company is selling off its struggling Family Dollar brand as part of a broader restructuring effort. An improving earnings growth outlook could be key for the stock to keep climbing. 10 stocks we like better than Dollar Tree › Dollar Tree (NASDAQ: DLTR) is making a lot of cents for its investors. The discount retailer is emerging as a compelling comeback story following a disappointing period in 2023 and 2024. Steady demand from bargain-hunting shoppers, alongside ongoing operating efficiency efforts, has driven an improved company outlook. Not surprisingly, the stock is up an impressive 30% year to date. The headline numbers are encouraging, but are they enough to sustain the stock price rally? More importantly, what should an investor do at this point? Let's examine whether shares of Dollar Tree are a buy, sell, or hold now. Dollar Tree stands out with a simple, value-driven business model in a crowded retail landscape where consumers have countless options. The company offers a large assortment of products, including household essentials, snacks, and seasonal items, nearly all priced at $1.25. This focus on low-cost convenience has attracted a loyal customer base, with the company now boasting more than 9,000 stores in the United States and Canada. However, its Family Dollar brand had been struggling with a broader merchandising approach featuring apparel and higher-priced items, dragging down companywide sales and profitability in recent years. In response, Dollar Tree announced the sale of its Family Dollar chain for $1 billion to a private equity group, with the deal expected to close in the coming months. The transaction comes at an ideal time amid uncertainties from proposed U.S. trade policy changes, providing the company with a significant cash infusion while streamlining core operations. Dollar Tree estimates that tariffs on imported goods from countries like China and Mexico could add $20 million in monthly costs. Fortunately, solid sales trends are helping mitigate short-term earnings pressure. In the first quarter (ended March 31), net revenue climbed 11.6% year over year, driven by a 5.4% increase in comparable sales and 148 new store openings. Management highlighted strong performance in discretionary merchandise categories, which saw a 4.6% annual sales increase, supporting operating margins and delivering adjusted earnings per share (EPS) of $1.26, up 2.4% from the prior year. Dollar Tree expects operating momentum to continue, guiding for full-year comparable sales growth of 3% to 5%. The EPS target of $5.15 to $5.65, at the midpoint, is slightly below 2024's $5.51 due to tariff costs and Family Dollar sale expenses, yet still reflects a sustainable foundation, addressing Wall Street concerns of deeper deterioration. Investors confident that Dollar Tree is just beginning its path toward more consistent, profitable growth have compelling reasons to buy or hold the stock for the long term. The stock's valuation also looks attractive, trading at a forward price-to-earnings (P/E) ratio of 18 -- well below the average of closer to 25 from 2020 through 2023 under more normalized conditions. By this measure, Dollar Tree stock could still be undervalued, even after its latest price surge. Selling off the unprofitable Family Dollar brand appears to have been a necessary strategic step for Dollar Tree, but the long-term success of the company's restructured profile remains far from certain. Dollar Tree faces intense competition in the discount retail space from larger rivals such as Dollar General and Walmart, all vying to capture increasing wallet share from budget-conscious consumers. Without a major digital strategy, Dollar Tree could fall further behind as e-commerce plays an increasingly important role in the convenience segment. Economic uncertainties also loom large. Should the trade war escalate, or U.S. unemployment rise sharply, Dollar Tree would face major headwinds against sales estimates, forcing a reset of expectations and possibly driving down the stock price. Investors who believe Dollar Tree will gradually lose market share and struggle to expand earnings may consider selling the stock or avoiding it for now. Dollar Tree as an investment isn't perfect, but I'm optimistic the company has planted the roots for a brighter future. The business should benefit from further evidence of comparable-sales growth over the next few quarters, with the bullish case centered on the potential for earnings to exceed expectations. Don't expect the stock to climb in a straight line higher, but I predict Dollar Tree will reward shareholders willing to stomach near-term volatility. Before you buy stock in Dollar Tree, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Dollar Tree wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $659,171!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $891,722!* Now, it's worth noting Stock Advisor's total average return is 995% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Dan Victor has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Walmart. The Motley Fool has a disclosure policy. Is Dollar Tree a Buy, Sell, or Hold in 2025? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 hours ago
- Business
- Yahoo
Beyond Yoga Puts Lululemon and Athleta on Notice With Bigger Store Format
Beyond Yoga is stepping out, cutting the ribbon on a bigger store concept in Greenwich, Conn., on Friday and preparing an assortment that really lives up to its name. It's Beyond Yoga's first brick-and-mortar store on the East Coast and a big moment for the brand, which Levi Strauss & Co. bought in 2021 and which is now being prepped for a growth spurt that would put it into direct competition with Lululemon and Athleta at scale. More from WWD Revenue Rises at Lululemon in Q1, CEO Calvin McDonald Bullish Despite Cautious U.S. Consumer Why TikTok Can't Stop Talking About Lululemon's 2-in-1 Dress and Its Styling Frenzy With Shoes: The $148 Debate, Explained Authentic Brands Group Is Buying Dockers for $311 Million Leading the way is Nancy Green, who oversaw Athleta as it grew from 39 to 175 stores and has been putting that experience to work since becoming Beyond Yoga's chief executive officer last year. Green has been using her own particular blend of art and science to set the brand up for its next step. The arrival in Greenwich, for instance, is no accident. The company knows from its e-commerce business that the greater New York area is its largest market and used that data to guide it to the wealthy enclave. 'There's a big intuitive piece to this too,' Green told WWD. 'There's the data on where the bulk of our customer fans are currently, and then there's intuition. Does that make sense? Does that feel right? Because you can go into a market and there's multiple places you could open. We're opening in Boston [this year] and we can see where that customer bubble is in the Boston area. And there's multiple choices where we could go. We're going to Seaport because we stand there, we watch, we see our customer walking the streets. 'The other piece that's important is, Does the space feel right? That's also intuitive,' she said. 'Maybe it's not the right location or you need to wait for the right location. We're not going to go in just because the data shows us that that's probably where we should be.' Both sides of Green's brain aligned on the Greenwich store, a 2,760-foot-space that also has room to hold events and tap into that 'wellness-forward lifestyle' customer the brand targets. 'It's gorgeous,' Green said. 'Light oak floors, very natural elements and a lot of wood, a lot of very organic shapes, curves. The main reason for the larger format is that the line is expanding quite a bit. We needed a larger space to showcase the breadth of the assortment and to really just show the best expression of the brand. We're also [planning to use] these new spaces as community hubs, whether it's fitness events that we do in the store, community events, whatever is right for that store. We create very strong local partnerships with various studios.' The store comes with a new logo and is at the vanguard of a bigger rollout — both in retail and in terms of Beyond Yoga's assortment, which all includes or ties back to its signature Spacedye fabric. While the 20-year-old business has long had workout-ready gear and dresses, the collection has been growing rapidly lately. Puffer jackets were added last year. In August, the assortment reaches out more with wide-leg bottoms, vegan leather, sweaters, cashmere wool blends, varsity-inspired prep looks, styles for the trail and more. Beyond Yoga is done tiptoeing and is going even further beyond yoga with more looks that work from the studio to work to the street to the airport and everywhere else. 'First and foremost, we are a lifestyle brand that serves an active woman and man's lifestyle,' Green said. 'So we think about what are the things that they do? What do they need? Well, it starts with the activities that they do.' With the Greenwich opening, Beyond Yoga has eight doors and is expanding to 14 by the end of the year. Earlier this year Green said the brand could have 'at least 200 stores' over time. 'This is our 2.0 in stores,' Green said of the Greenwich location. 'This is a new concept. We are going to test it and we are going to nail it. We have to iterate and tweak some things as we learn and then we nail it and then we scale it. So test, iterate, nail it and scale it.' Best of WWD Macy's Is Closing 66 Stores in 2025 — Here's the List, Live Updates Inside the Demise of Lord & Taylor COVID-19 Spikes Elevate Retail Concerns Sign in to access your portfolio
Forbes
8 hours ago
- Business
- Forbes
The Real Reason Target Is Failing While Walmart Prospers
The Real Reason Target is Failing While Walmart Prospers The history of modern retail is often the history of the people who founded the companies that became household names. As such, you might say that many legendary, successful brands have souls or a set of basic principles that somehow outlast their founders. It also follows that there is often a price to pay when companies lose or sell their souls or stray from their principles. For example, Ray Kroc gets credit for growing McDonald's into a global phenomenon but it was the founders—McDonald brothers Richard and Maurice—who came up with the Golden Arches design and whose obsession with operational efficiency remains the North Star of the company's management today. When McDonald's tried to introduce salads and gourmet sandwiches in the early 2000s, customers balked and the stock price cratered. It took three years of getting back to its principles for the price to recover. Target, the struggling discount department store, is the latest example of a brand that has lost its soul. The principal behind the 1962 launch was co-founder Douglas Dayton, grandson of the founder of Dayton's, a popular up-scale chain of department stores in the Midwest. Target began as a discount store that aimed to 'combine the best of the fashion world with the best of the discount world.' The logo represented 'hitting the mark'—the quality/value sweet spot. The approach worked so well that by the 1990s customers had conferred on it the Frenchified sobriquet 'Tar-jay' which, according to one industry observer, signaled, 'It's cheap but attractive, it's common but somehow chic, it feels easy and guilt-free.' In 1995, to compete with Walmart's growing fleet of supercenters, Target began adding grocery sections to its big box stores. The case could be made that it was the moment the company began to stray from its roots. Target had no DNA in the food business. Grocery stores operate on the thinnest of margins and chic or attractive has nothing to do with marketing commodities like eggs and bread. Target was trying to be Walmart and Target at the same time. Walmart—also launched in 1962—began as a general merchandise discount store in rural Arkansas, at the time possibly the least-chic place in America. The company's motto: "Everyday Low Prices,' or 'Always.' The first Walmart Supercenter opened in 1988 and included the now-ubiquitous full-scale grocery section. Walmart, which is today still significantly owned by descendants of founder Sam Walton, did not try to be Target by, for example, up-scaling its general merchandise. Instead, it built its grocery business into a juggernaut of sales—nearly 60% of its 2025 revenue of $681 billion. Although general merchandise is where Walmart generates the bulk of its profits, the grocery aisles drive foot traffic. Examples of consumer-facing companies that have lost their way abound. As we noted last year, Starbucks founder Howard Schultz came out of retirement twice—in 2008 and again in 2022—to rescue the company after it had drifted away from its community-centric marketing and store culture. You also don't have to look far to find examples of companies that have managed to nurture a good idea or business model for the long term. In many cases, what helps sustain a brand are significant shareholders who are members of the founding family, as in the case of Walmart. Target shares are widely-held, mostly by institutional investors, and there apparently are no Dayton descendants around to influence how the company is run who keep it true to its heritage.
Yahoo
8 hours ago
- Business
- Yahoo
Walmart vs. The TJX Companies: Which Retailer Has the Edge in 2025?
As consumers prioritize value in today's cost-conscious retail environment, two retail leaders — Walmart Inc. WMT and The TJX Companies, Inc. TJX — have emerged as top contenders for investor attention. WMT leverages its massive scale and low-price strategy to dominate everyday essentials, while TJX excels in the off-price retail segment, offering well-known brands at significant discounts through stores like T.J. Maxx and Marshalls. The key question for investors is: which stock delivers stronger value right now?Both companies are performing well in a cautious consumer environment, but they operate with very different playbooks. Walmart is investing heavily in technology, logistics, and high-margin initiatives like advertising and memberships to drive growth. The TJX Companies, meanwhile, thrives on agility and treasure-hunt shopping experiences, supported by a global footprint and lean operations. Let's break down how WMT and TJX stack up across key areas like business fundamentals, growth outlook, valuation and earnings potential — and what it means for investors in 2025. Walmart is delivering steady growth in 2025, driven by its massive retail footprint and ongoing investments in digital innovation. Its successful omnichannel strategy — combining physical stores with a fast-growing e-commerce platform — is helping the company attract consistent traffic across channels. With diversified revenue streams that include brick-and-mortar sales, online shopping, advertising, and memberships, Walmart has built a resilient and scalable business model that is well-positioned for long-term is gaining momentum from high-margin growth drivers like Walmart Connect, its retail media advertising platform, and Walmart+, its paid membership program. In the first quarter of fiscal 2026, advertising revenues surged 50%, while membership income rose 14.8%. These results highlight Walmart's effective shift toward tech-driven, higher-margin services that boost both profitability and customer retention.A key driver of Walmart's ongoing success is its advanced omnichannel strategy. The company continues to invest heavily in data analytics, digital infrastructure, and in-store enhancements to create a seamless shopping experience across both physical and online platforms. In the fiscal first quarter, global e-commerce sales grew 22%, fueled by strong demand for store-fulfilled pickup and delivery options. Backing this growth is Walmart's enhanced last-mile delivery network, which is on track to offer same-day delivery to 95% of U.S. households — a major advantage in today's speed-focused retail has entered 2025 on strong footing, but management has cautioned about potential headwinds ahead, particularly from tariffs and broader economic uncertainty. In addition, currency fluctuations may impact performance across international markets. Still, WMT's expanding e-commerce presence, compelling value proposition and rising contributions from high-margin areas offer a solid buffer against short-term volatility and help support long-term growth. The TJX Companies has consistently proven its ability to execute in challenging environments. The company's strength lies in its flexible sourcing, quick inventory turns and international diversification. It is not just about offering low prices — it is about offering premium brands at a discount, a model that continues to resonate with shoppers seeking value and variety. The company's off-price retail model continues to resonate with a broad customer base, as seen in the steady rise in customer transactions and comparable store sales. In the first quarter of fiscal 2026, TJX's comparable store sales rose 3%, led by higher customer traffic across both apparel and home categories. Growth was consistent across all divisions, including Marmaxx and HomeGoods in the United States, as well as TJX Canada and TJX International, reinforcing the company's strong value TJX Companies continues to build on this momentum through global expansion and digital growth initiatives. It ended the quarter with 5,121 stores, adding 36 new locations during the period. The company is also enhancing its e-commerce presence to capture additional market share as more consumers shop online. Internationally, TJX is growing its TK Maxx banner in Europe and Australia and plans to enter Spain in fiscal 2027. Strategic investments in Grupo Axo in Mexico and Brands For Less in the Middle East are opening new growth avenues in promising global markets.A key advantage for TJX is its flexible supply chain and healthy inventory position, with total inventory up 15% year over year. This ensures a steady flow of fresh merchandise and supports its treasure-hunt shopping appeal. While near-term challenges like higher payroll costs, tariff pressures, and currency fluctuations may weigh on margins, The TJX Companies is taking proactive steps to mitigate these risks. The Zacks Consensus Estimate for Walmart's fiscal 2026 earnings per share (EPS) has been steady at $2.59 over the last 30 days, suggesting year-over-year growth of 3.2%. In contrast, the EPS estimate for The TJX Companies' fiscal 2026 has moved down by a penny to $4.46, indicating year-over-year growth of 4.7%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) Over the past 12 months, Walmart stock has delivered an impressive 39.8% return, significantly outpacing the broader S&P 500 Index, which rose 9.5% during the same period. Meanwhile, The TJX Companies has recorded 11% growth in its stock price. Image Source: Zacks Investment Research From a valuation standpoint, Walmart currently trades at a forward price-to-earnings (P/E) ratio of 35.10x. Meanwhile, The TJX Companies trades at a more modest forward P/E of 26.42x. Image Source: Zacks Investment Research Both Walmart and The TJX Companies are well-positioned to benefit from today's value-driven retail environment. While TJX continues to perform well with its off-price model, global store expansion, and solid customer traffic, Walmart's broader revenue streams — including advertising, memberships, and e-commerce — provide stronger earnings visibility and higher-margin growth. With a more consistent EPS outlook, superior stock performance and ongoing investments in digital transformation, Walmart emerges as the more attractive retail stock heading into the second half of and Walmart currently carry a Zacks Rank #3 (Hold) each. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The TJX Companies, Inc. (TJX) : Free Stock Analysis Report Walmart Inc. (WMT) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
