Wayfair results decline, The Container Store, Macy's steadily rise
Wayfair, the leading U.S. home e-commerce platform, on Thursday reported a 10.4% year-over-year decline in second-quarter net income to $3.9 billion, below Wedbush (down 10%) and Wall Street estimates (down 8%).
Revenue in the U.S. market fell 15.2 percent from last year to $3.1 billion, while its international revenue rose 16.3 percent to $800 million.
Wayfair noted that its net customer base grew 19.6 percent to 31.1 million, but was down from 33.2 million active customers in the previous quarter.
In addition, the company's operating income fell 51.6 percent to $145.2 million and net income fell 52.4 percent to $130.4 million for the same period.
U.S. home furnishings chain The Container Store reported its first profitable first quarter in more than a decade this week as consumers' investment in home living grew (up during the flu pandemic) and became more interested in home organization (driven by Netflix shows).
The company's first-quarter net profit rose sharply from a year earlier to a profit of $17.7 million, up from a net loss of $16.7 million a year earlier.
The ContainerStore noted that after an industry slump last year that saw a large number of store closures due to the New Crown Pneumonia outbreak, the company's gross margin soared this year, thanks in large part to lower shipping costs as customers bought more products in the store - an increase of 800 basis points to 59.6 percent.
Net sales for the first quarter increased 61.7 percent year-over-year to $245.3 million, up 17.1 percent from 2019.
In the retail segment, net sales increased 64.1 percent to $228.7 million, and its custom closet sales grew 58.6 percent.
Macy's, which has begun to recover after being hit by the New Crown pneumonia outbreak, said Tuesday it will redeem the entire $1.3 billion principal amount of its 8.375% senior secured notes, which mature in 2025, on Aug. 17.
The notes will be redeemed at 100 percent of their principal amount, plus accrued and unpaid interest, a move that will trigger a pre-tax charge of about $185 million in the third quarter, Macy's said.
Macy's Chief Financial Officer Adrian Mitchell said in a statement that the early redemption puts Macy's "firmly on track" to be at or below its target debt ratio and in a better financial position by the end of the year.
Hasbro, a leading U.S. toy retailer, successfully minimized the impact of shipping disruptions such as port congestion, high rates and container shortages in the second quarter of the year.
"Our supply chain team has done a lot of work to add ports, add strategies and tactics, add new ocean carriers," Hasbro CEO Brian Goldner said Thursday during the company's second-quarter earnings call.
In addition, Hasbro did say that price increases will be implemented in the third quarter and will be fully realized by the fourth quarter to offset higher freight and commodity costs.
Ynon Kreiz, CEO of Mattel (Mattel), a leading U.S. toy retailer, noted Friday that "our supply chain is a competitive advantage."
Kreiz noted that the company's supply chain team has spent the last few years working to close factories, cut SKUs, work with third-party suppliers and "transform our supply chain as a whole into a true driver" of the company's top line.
As the U.S. back-to-school shopping season begins, Target announced it will introduce State Bags, the Brooklyn-based online bag brand, to its brick-and-mortar stores for easy shopping.
State Bags will launch an exclusive collection in 600 Target stores, covering everything from $50 backpacks to $20 lunchboxes and more.
The partnership marks the brand's first foray into a major national retail chain, State Bags said.
With the launch of the Target-exclusive collection, State Bags Inc. expects to double its year-over-year results for the 2021 back-to-school season.
According to the latest data released by the General Administration of Customs on August 7, 2021, China's exports of furniture and parts thereof amounted to 38.78 billion yuan in July 2021, with total exports from January to July amounting to 265.17 billion yuan, compared to 265.17 billion yuan from January to July last year.
Total exports from January to July this year, compared with the same period last year, an increase of 35.5%.
In July last year, China's exports of furniture and its parts were 39.21 billion yuan, down 430 million yuan in July this year, a decline of 1.1%.
June furniture and parts exports than in June last year also increased by 14%.
This is the first time this year, the export value of the month-on-month decline
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