The American fourth quarter in brief – Walmart, Crocs, Urban Outfitters
Latest filings from American fashion companies include:
U.S. retail giant Walmart, Inc hailed strong global holiday results, with total revenue for the three months ended Jan. 31 rising to $152.9 billion. 0.5% compared to last year. Walmart said the numbers were negatively impacted by $10.2 billion due to divestitures. Walmart US posted a 5.7% rise in net sales to $105.3 billion, with e-commerce sales growing 1% and 70% over a two-year period. Operating income remained stable at $5.2 billion. Walmart International’s net sales, meanwhile, were $27 billion in the quarter, down 22.6%, as sales were negatively impacted by $10.1 billion due to divestitures. . Operating income fell 13.7% to $0.8 million, and 12% at constant exchange rates. Consolidated net income attributable to Walmart, meanwhile, was $3.56 billion, compared to a consolidated net loss of $2.09 billion in the year-ago quarter.
For the full year, total revenue was $572.8 billion, up 2.4% from a year earlier, and was negatively impacted by 32, $7 billion related to divestments. Excluding currencies, total revenue would have increased by 1.6% to $568.2 billion. Walmart US net sales rose 6.3% from a year earlier to $393.2 billion, while Walmart International’s fell 16.8% to $101 billion, impacted negatively by approximately $32.6 billion related to disposals. Consolidated net income attributable to Walmart for the year was $13.67 billion, up from $3.51 billion a year earlier.
For fiscal 2023, Walmart expects consolidated net sales to increase approximately 3% in constant currency and consolidated operating income to increase approximately 3% in constant currency.
“A strong 2021 holiday season capped off a very successful year for our brand. We achieved incredible results with record revenues of $2.3 billion, revenue growth of 67% and an industry-leading operating margin of 30%,” said Andrew Rees, CEO of Crocs.
For the three months ended Dec. 31, Crocs reported revenue of $586.6 million, an increase of 42.6% over the same period last year, or 43.5% at constant changes. Direct-to-consumer (DTC), which includes retail and e-commerce, revenue increased 44.5% and wholesale revenue increased 40.3%. Net profit was $154.85 million, compared to $183.33 million the previous year, while gross margin of 63.4% and adjusted gross margin of 63.7% both increased by 770 basis points compared to the same period last year.
For the full year, Crocs reported record revenue of $2.31 billion, marking an increase of 66.9%, or 65.2% at constant currency, over 2020. Earnings net, meanwhile, rose to $725.69 million from $312.86 million the previous year. Gross margin of 61.4% increased 730 basis points from 54.1% last year. Adjusted gross margin of 61.6% increased by 700 basis points.
Crocs said it expects the Heydude acquisition to close in February and revenue growth for the Crocs brand, excluding Heydude, to exceed 20% for the full year 2022, compared to 2021. Heydude’s revenue is expected to be approximately $700-750 million, including the period before the acquisition closes, and $620-670 million on a reported basis. Gross margin is expected to include an additional $75 million in airfreight in the first half of 2022.
Urban Outfitters reported record fourth-quarter net sales of $1.33 billion for the three months ended Jan. 31, compared with $1.09 billion for the year-ago period. For the full year, total net sales were $4.55 billion, up from $3.45 billion a year earlier. Urban Outfitters said it believes the company’s total gross margin in the fourth quarter may deleverage more than expected, primarily due to higher-than-expected inbound transportation costs.
Meanwhile, Francis Pierrel joined the company as President of Urban Outfitters with brand responsibility for North America. Pierrel will report directly to Sheila Harrington, Global CEO of Urban Outfitters and the Free People Group. He joins Club Monaco where he served as CEO and previously served as President of Stores and E-Commerce for Ralph Lauren in North America. Pierrel has also held leadership positions in wholesale, retail and e-commerce at Lacoste and Diesel in the United States and Europe.
Columbia sportswear company
Columbia Sportswear had a record fourth quarter net sales of US$1.13 billion for the period ended December 31, up 23% from a year ago. Net profit increased 64% to $157 million from $95.8 million last time, while gross margin increased 160 basis points to 52.2% from 50.6% for the comparable period in 2020. Gross margin expansion was primarily due to lower direct-to-consumer (DTC) promotional levels, strong retail performance driving higher wholesale product margins and a mix of sales channels. favorable selling, partially offset by higher inbound transportation costs and year-over-year variations in inventory provisioning activity.
For the full year, net sales rose 25% from a year ago to $3.13 billion, while net profit jumped 228% to $354.1 million. dollars, up from $108 million last time. Gross margin increased by 270 basis points to 51.6%.
Chairman and CEO Tim Boyle said, “The fourth quarter and full year financial results were exceptional. During the quarter, robust consumer demand led to results that significantly exceeded our financial outlook thanks to the outperformance of DTC and a very favorable full-price selling environment, which benefited gross margin.
For the full year 2022, net sales are expected to increase 16-18% to $3.63-3.69 billion, while net profit is expected to be between $359-379 million. Gross margin is expected to contract by around 160 basis points to around 50%.
Skechers said fourth-quarter sales rose 24.4% to $1.65 billion for the three months ended Dec. 31, following a 9.8% increase in domestic sales and a 34% increase in international sales. At constant exchange rates, the company’s total sales increased by 24.5%. Net income was $402.4 million and included a tax benefit of $346.8 million resulting from an intra-entity transfer of certain intellectual property rights, partially offset by $15 million related to the settlement of several disputes. That compares to a net profit of $53.3 million the previous year. Gross margin was 48.6%, down 30 basis points, mainly due to higher transportation costs.
Full-year sales increased 36.7%, reflecting a 33.4% increase in domestic sales and a 39% increase in international sales, with the largest contribution coming from growth in trade in big international. At constant exchange rates, total sales increased by 33.7%. Gross margin increased 170 basis points to 49.3%, while net profit was $741.5 million, compared to $98.6 million a year earlier.
For the first quarter of 2022, Skechers estimates it will achieve sales of between $1.68 billion and $1.73 billion, while for fiscal year 2022 sales are expected to be between $7 and $7.2 billion.
HanesBrands said net sales from continuing operations for the fourth quarter ended Jan. 1 were $1.75 billion, an increase of $63 million, or 4%, including 10% growth for Champion. brand sales worldwide. Excluding $28 million in sales of personal protective equipment (PPE) and $45 million in sales of a 53rd week in the prior period, and a $9 million foreign exchange headwind in the current period, net sales increased $146 million, or 9%, from the prior period. last year. Loungewear sales were up 3% year-on-year, excluding PPE, driven by point-of-sale growth across all channels. Activewear sales, meanwhile, were up $46 million, or 11%, from a year earlier, driven by strong trends at the outlets of its activewear brands. For the fourth quarter of 2021, GAAP gross margin of 38.1% increased 3,220 basis points from a year ago. On a GAAP basis, income from continuing operations was $68 million, compared to a loss from continuing operations of $292 million in the prior year period.
Looking ahead, for the first quarter of 2022, Hanes currently expects net sales from continuing operations of approximately $1.51 billion to $1.57 billion. For fiscal year 2022, net sales are expected to be between $7 billion and $7.15 billion.
The company also raised its full potential financial targets for 2024 and announced plans to sell its U.S. Sheer Hosiery business.
Levi Strauss & Co
Levi Strauss & Co (LS&Co) reported net revenue of $1.7 billion for the three months ended Nov. 28, marking a 22% increase over the prior year period and a 7% increase compared to the fourth quarter of 2019. Net income was $153 million with adjusted net income of $170 million, compared to $81 million a year ago and $108 million in the fourth quarter before -pandemic. CEO Chip Bergh said the company’s strong brand equity has helped it retain its pricing power, while diversification across product categories has led to its strong finish in 2021.