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Global RMG retailers worried over brand safety

World RMG retailers are the heart for a country’s economy. At this competitive world retailers are trying to boost up their business around the world. In its continuation for managing reputational challenges retailers are busy with their business by calculating profits and losses or by expanding or removing stores. But world RMG retailers of Bangladeshi apparel goods have just articulated agonize over the drop of brand items to the domestic market and wanted assistance from the clothing exporters to defend the value of the brands. Retailer’s lifts the topic frequently at the Buyers’ Forum meeting in the Dhaka as the products prepared for global retailers are being sold in the domestic market with the tags of the renowned brands.

Meeting representative stated that, in a meeting of the Buyers’ Forum in 4th May retailers supposed that the value of their brands are vulnerable as outflows is proceeding from some industries and left-over items are being prepared available in the domestic market in Bangladesh.They also assumed that a number of the producers which are not occupied with the overseas business were using fabricated labels in low class items and selling those in the domestic marketplace. The source informed, the seepage of brand products from the industry and fabricated labels were the major alarm for the retailers and they thought the concerns should be determined to shelter the value of the world brands.

Answering the call from the retailers, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has newly noticed a circular to its associates inquiring for superior removal of the left-overs so that no seepage occurs. According to this circular, to sustain good trade affiliation with the retailers, it is very vital that all industry holders spread out assistance to the retailers to resolution the topic.
As a regular division here we highlight recent tricks of world top retailers. So in its continuation here are ten fresh activities of world prominent retailers those who are sourcing from Bangladesh. Your any feedback please mail to me at farhan@textiletoday.com.bd

Walmart Q1 sales proceeds quiet by strong dollar, higher wages

Wal-Mart Stores Inc. has just released its fiscal first-quarter financial results before the markets opened. The retail giant had $1.03 in earnings per share (EPS) on $114.83 billion in revenue. That compared to Thomson Reuters consensus estimates of $1.04 in EPS on revenue of $116.30 billion. In the first quarter of last year, the retail giant posted EPS of $1.10 and $114.96 billion in revenue.

For the fiscal second quarter of 2016, Wal-Mart expects $1.06 to $1.18 in EPS and comparable sales to increase 1%. The consensus estimates for the period are $1.17 in EPS on $121.29 billion in revenue. In the United States, the company had growth in comparable store sales of 1.1% in the fiscal first quarter. This includes positive traffic for the second consecutive quarter. At the same time, e-commerce sales increased globally by roughly 17%.Wal-Mart paid $1.6 billion in dividends this quarter, versus $1.5 million in the same period of the previous year. The company also had $280 million in share repurchases in the first fiscal quarter of 2016, compared to $626 million last year.

H&M puts a national recruiting campaign into motion
H&M launched a national recruiting campaign called ‘Place of Possible,’ aimed at attracting applicants interested in entering the fashion industry. The measure supports the company’s rapid expansion, as H&M opens upwards of 61 stores this year. The campaign includes national advertising, including online, in-store displays, and billboards, as well as a college tour featuring an H&M Airstream. The campaign is geared at spreading awareness of the company’s competitive compensation, benefits and advancement opportunities. The company is trying to attract people from diverse backgrounds with an interest in entering the fashion industry.

Ads will spotlight the personal testimonies of 50 H&M employees, several of whom speak about advancing from entry-level positions to long-term careers. The company has a set of internal promotion policies that resulted in over 4,500 promotions in the United States in the last five years. Currently, 35 percent of employees in the corporate office began their careers as store sales associates. As the company expands this year, hiring will play a large role. Last year, H&M opened 62 new stores in the U.S., resulting in the creation of 2,800 new jobs.

J.C. Penney bisects Q1 loss, lifts up full year guidance
J.C. Penney Co. raised its guidance for a key sales measure while reporting a narrower loss in the first quarter than it had a year ago. The results offered some encouragement for investors worried about the company’s slow turnaround. Penney has been trying to recover from a disastrous reinvention pushed by former CEO Ron Johnson.
To drive sales, the company said it plans to launch an online business for the beauty brand Sephora on Penney’s website. The retailer has been expanding its exclusive Sephora shops, which have been key attractions. The company is also working to boost its online business with new services. In the first quarter, the retailer saw more customers choosing to buy online and ship to a store. That results in more trips and extra purchases when they visit the store, Penney officials said. On average, that customer will spend 20 percent more on additional merchandise at the time they visit the store. The home furnishings area is also a big opportunity. The company was pleased with results of its spring home catalog and plans an additional catalog later. It’s working with actress Eva Longoria on a new line of bedding.

Marks & Spencer earnings jump for first time in four years
Marks & Spencer has delivered its first increase in profits since 2011 as a result of the first signs of an upturn in fashion sales, strong food sales and is planning to hand back £150m to shareholders. The chain, which has been struggling with tough competition in its clothing business for years, unveiled full-year profits of £661m, up 6% on a year ago, and pointed to less discounting, better deals with suppliers and tight control of capital spending for the improvement. However, the annual profit is still well short of the £1bn reported in 1998 and 2008.
Marc Bolland, the chief executive who has been under acute pressure to provide evidence of a turnaround in the group’s fortunes, said he was very pleased with the performance. He said the company’s food business had enjoyed an ‘outstanding year in a difficult market’ and that M&S’s clothing and home wares division had significantly increased its profit margins even though sales of those ranges remained ‘below our expectations’. Total sales rose just 0.4% to £10.3bn. Clothing sales fell 2.5%, but that downturn was offset by a 3.4% rise in food sales.

Gap teams up with Zalando to sell products.
European e-tailerZalando began selling Gap clothing and accessories. The partnership extends Gap’s online reach to regions where it currently does not have a web presence, including Germany, and marks the brand’s first foray into multibrand retailing in Europe. Zalando’s Gap assortment includes the American retailer’s current collection of men’s and women’s denim, women’s chambray dresses, loungewear and activewear, as well as maternity, children’s and baby.
Gap will be available to all 14 European countries the Berlin-based retailer ships product, with the exception for the U.K., where it launched its first international store in 1987. Since its U.K. debut, Gap has continued to grow its footprint throughout Europe with 190 company-operated stores and 33 franchise locations.

Puma’s first quarter profits shocked by currency
Puma reported first quarter 2015 financial results with growth across all regions, despite a lowered gross profit margin due to foreign currency impacts. Sales were up by 4.4% currency-adjusted to € 821 million, with growth mainly driven by footwear. The sales in the EMEA region rose by 0.2% currency-adjusted to € 342 million. In the Americas, sales grew 5.6% currency-adjusted to €289 million, with both North America and Latin America developing positively. Asia/Pacific sales increased 10.9% currency-adjusted to €191 million with strong performance in China and India supported by the improved footwear business.

Footwear sales increased by 7.8% currency adjusted to €378 million. This was driven by a higher demand for running, training, and fitness products, and the successful launch of the Puma Ignite in mid-February. Despite increased sales, the gross profit margin fell from 48.5% to 46.9% in the first quarter due to foreign currency impact. The footwear gross profit margin declined from 44.1% to 42.9%.

Walmart to Open 115 Stores in China
Retail behemoth Walmart plans to open 115 new stores in China by 2017, adding to its roughly 400 stores there. In its annual report released, Walmart said its three priorities for upping shareholder value are growth, which tops the list, followed by leverage and returns.
‘Our aim is to become an integral part of China’s economy,’ said chief executive Doug McMillonat during a news conference in Beijing, according to BBC. The move to expand comes as China’s growth continues to falter. The country’s economic growth slowed to 7.4% in 2014 its weakest in 24 years—compared to 7.7% in 2013. Walmart further said in February that its net sales in China fell 0.7% in the fourth quarter, down from the year prior. The retailer closed 29 stores in China in fiscal 2014 because of poor performance and the company said it will close more and focus on its fast-growing online grocery market.

Adidas Q1 revenues grow 17%
Adidas AG has recently reported first quarter 2015 financial results that confirm the company is restoring the luster to its brands beyond its home turf in Europe. Revenues grew 17 percent to € 4.083 billion in the period from € 3.480 billion in the first quarter of 2014. Currency translation effects had a positive impact on sales given the weak euro. Revenues increased 9 percent on a currency-neutral basis, driven by an 11 percent increase at Adidas and 9 percent growth at Reebok. Growth was strong in Adidas Originals, Adidas NEO and training. Reebok’s growth was driven by double-digit gains in the training and studio categories as well as mid-single-digit sales growth in Classics. Revenues at Taylor Made-Adidas Golf decreased 9 percent currency-neutral, mainly due to sales declines in the metal woods and irons categories, which more than offset a double-digit increase in golf apparel.


By region, the combined sales of the Adidas and Reebok brands grew in all markets on a currency neutral basis except for Russia. Revenues in Western Europe, which represents 27 percent of total sales, down from 29 percent a year ago, increased 11%. Sales in North America (15 percent of total sales in the period) increased 7 percent on high-single-digit sales growth at Adidas. Revenues in Greater China (15 percent of the total, up from 12 percent last year) grew 21 percent reflecting double-digit top-line growth at Adidas and Reebok.

Target recurring 55 leases to landlords
Target Canada is preparing to auction off dozens of store leases as its court-supervised windup continues. The U.S. retailer announced in January it would shut all 133 of its Canadian stores, only two years after its highly anticipated launch north of the border.
The discount retailer said underwhelming sales figures indicated its Canadian locations would not be profitable for several years. In March, Target struck a deal to sell 11 properties to Oxford Properties Corp. and Ivanhoe Cambridge for $138 million before taxes.
Sandler says it’s possible that a number of other landlords will decide to buy back their properties during the upcoming auction. But no bidders came forward for 55 other properties by the deadline for next week’s auction and they have been returned to their landlords. Target is also terminating its lease agreements for 19 other facilities — a combination of offices and warehouses.

American Apparel places 9% dunk in Q1 net sales
Net sales for the first quarter ending March 31, 2015 slipped 9 per cent over the prior year first quarter at American Apparel, Inc., a manufacturer, distributor and retailer of branded fashion basic apparel. American Apparel informed by a press release that first quarter of 2015 net sales dipped 9 per cent to $124.3 million from $137.1 million for the same period in 2014. Excluding the year over year impact from foreign exchange and stores closed in 2014, net sales declined 4 per cent from a year earlier quarter, according to the company press release.
First quarter of 2015 comparable store sales witnessed de-growth of 5 per cent, flat from the same quarter in 2014. Negatively impacting comparable store sales was a strategic initiative to reduce inventory levels by accelerating the sale of slow-moving merchandise in the retail stores, the company stated. Gross profit for the reporting quarter plunged 34 per cent to $47.5 million from $72 million in the corresponding period of the previous year. American Apparel attributed the decline to discounts given to reduce inventory levels by accelerating the sale of slow-moving inventory, foreign exchange impact and lower retail sales. Gross profit,

Net loss for the first quarter of 2015 rose a massive 380 per cent to $26.4 million or $0.15 per share as against net loss of $5.5 million, or $0.05 per share for the first quarter of 2014. As of March 31, 2015, it had $20.9 million in cash, $35.1 million outstanding on its asset-backed revolving credit facility and $11.2 million of availability for additional borrowing under the facility. As of May 6, 2015, American Apparel had $5.2 million of availability for additional borrowings under the facility.

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