Latest news with #retailindustry
Daily Mail
6 days ago
- Business
- Daily Mail
Uproar as America's largest pharmacy chain shuts 270 stores... after closing 900 in just three years
The pharmacy retail industry is struggling. CVS, the chain with over 9,000 locations across the US, confirmed to that 270 locations would shutter this year. The closures, which the company initially announced in October 2024, have been underway in several states, with Alabama, New York, Maryland, and Missouri seeing the largest amount of closures. A concerned customer wrote on Reddit: 'Where will 540 pharmacists and 810 technicians go then?' CVS said it does not comment on which locations will close. But the plan is part of a years-long strategy to right-size the amount of pharmacy locations. In 2021, the company started shuttering 300 stores each year. CVS shuttered 900 US locations in three years. But it also opened over 100 new locations, including 30 inside of Target locations. 'We're focused on ensuring we have the right kinds of stores and the right number of stores in the right locations,' a CVS spokesperson told 'Even after the realignment work, 85 percent of people in the US will still live within 10 miles of a CVS Pharmacy,' the spokesperson added. 'And, while we're closing certain locations, we're also opening stores and pharmacies in areas where there's a need,' the spokesperson added. The changes come as pharmacy retailers face severe headwinds against their critical businesses. Upstart online brands — like Capsule and Blink Health — are attempting to eat into brick-and-mortar sales with more convenient delivery models. Even Amazon entered the pharmaceutical space, launching its medication delivery platform in 2020. 'Luckily I don't depend only on CVS,' one Redditor said about the company's decision to shutter stores while facing the increasing competition. Meanwhile, front-store retail sales, where customers grabbed toothpaste and Tylenol while raking in millions for pharmacies, have cooled. Shoppers have largely turned to lower-priced retailers while the US economy struggles with sticky inflation after the 2020 pandemic, retail experts have told These challenges have sent CVS competitors into tailspins. Several brands have launched mass closure events or declared bankruptcy. Walgreens has been pressing ahead with plans to shutter hundreds of stores. The pharmacy brand pledged to shutter 1,200 locations by 2027. Walgreens is also reportedly considering a $10 billion deal to sell itself to sell itself to private equity firm Sycamore Partners. 'Walgreens has been in a tailspin for a long period of time,' retail expert Neil Saunders, of Global Data, previously explained to the Daily Mail. 'Profitability and sales are under pressure, especially on the retail side of the business.' Meanwhile, Rite Aid has entered its second bankruptcy in two years. The company, struggling to compete with lower-cost models and lampooned by billions of dollars of debt from opioid settlements, said it would shutter all of its locations. 'This is going to cause a pharmacy desert in my neighborhood and prescription nightmare,' one worried customer wrote on Reddit. CVS has stepped in, purchasing pharmacy locations from Rite Aid. They're expected to take on the most customers, having bid on the prescription files of 625 Rite Aid pharmacies across fifteen states. CVS's closures come after a widespread 'retail apocalypse' last year saw major companies file for bankruptcy and brick-and-mortar stores close in their droves. Up until mid-December, US retailers shut 7,300 stores - up nearly 60 percent from 2023.
Yahoo
26-05-2025
- Business
- Yahoo
Jim Cramer Says Urban Outfitters (URBN) was 'Recognized as Fabulous'
We recently published a list of . In this article, we are going to take a look at where Urban Outfitters, Inc. (NASDAQ:URBN) stands against other stocks that Jim Cramer discusses. Urban Outfitters, Inc. (NASDAQ:URBN) was among the retailers that reported solid quarterly earnings and was highlighted by Cramer as he said: 'I want to highlight to you three retailers that reported excellent quarters in just the last couple of days, and only one was recognized as fabulous, that's Urban Outfitters. One's holding on with its fingertips, that's RL, Ralph Lauren. And then a third, TJX, that's getting sold off, yet presents, I think, now the best buying opportunity… They each have their own value proposition. Urban Outfitters is made up of its eponymous flagship store along with Anthropologie and Free People. They're all doing incredibly well. A frontline retail worker organizing apparel products in a store. Urban Outfitters (NASDAQ:URBN) offers a range of lifestyle products and services through multiple retail brands, selling fashion, accessories, home goods, beauty items, and wellness products targeted at various age groups. The company also operates a clothing rental service, restaurants, event spaces, and markets its own apparel lines. Overall, URBN ranks 11th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of URBN as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than URBN and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires Disclosure: None. This article is originally published at Insider Monkey. 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
Reuters
26-05-2025
- Business
- Reuters
South Africa's Pick n Pay annual loss narrows
JOHANNESBURG, May 26 (Reuters) - South African grocery retailer Pick n Pay (PIKJ.J), opens new tab on Monday reported a narrow loss before tax for the full year, with the recovery driven by a 1 billion rand ($56 million) trading loss reduction in its core business. Pick n Pay said its loss before tax and capital items reduced to 237 million rand in the 53 weeks ended March 2, from a loss of 1.4 billion rand the previous year. ($1 = 17.8016 rand)
Yahoo
24-05-2025
- Business
- Yahoo
Buckle Inc (BKE) Q1 2025 Earnings Call Highlights: Strong Women's Sales and Improved Margins ...
Net Income: $35.2 million or $0.70 per share, compared to $34.8 million or $0.69 per share in the prior year. Net Sales: Increased 3.7% to $272.1 million from $262.5 million in the prior year. Comparable Store Sales: Increased 3% year-over-year. Online Sales: Increased 4.5% to $46.4 million. Gross Margin: 46.7%, up 70 basis points from 46% in the prior year. Selling, General and Administrative Expenses: 30.7% of net sales, up from 29.8% in the prior year. Operating Margin: 16%, compared to 16.2% in the prior year. Inventory: $132.4 million, up 1.3% year-over-year. Total Cash and Investments: $320 million. Capital Expenditures: $11.4 million for the quarter. Store Count: Ended the quarter with 439 retail stores, down from 440 stores in the prior year. Women's Merchandise Sales: Increased 10.5%, representing approximately 50% of sales. Men's Merchandise Sales: Decreased 2.5%, representing approximately 50% of sales. Accessory Sales: Increased 3.5% year-over-year. Footwear Sales: Decreased 7% year-over-year. Private Label Sales: Represented 47.5% of sales, up from 46% in the prior year. Warning! GuruFocus has detected 2 Warning Sign with BKE. Release Date: May 23, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Net income for the first quarter increased to $35.2 million, up from $34.8 million in the previous year. Net sales for the quarter rose by 3.7% to $272.1 million compared to the prior year. Comparable store sales increased by 3%, and online sales grew by 4.5% to $46.4 million. Gross margin improved to 46.7%, a 70 basis point increase from the previous year. Women's merchandise sales saw a significant increase of 10.5%, driven by strong performance in the denim category. Selling, general, and administrative expenses increased to 30.7% of net sales, up from 29.8% in the previous year. Men's merchandise sales declined by 2.5% compared to the prior year. Footwear sales decreased by about 7% for the quarter. Operating margin slightly decreased to 16% from 16.2% in the previous year. SG&A expenses were elevated due to increases in incentive compensation, health insurance costs, and equity compensation expenses. Q: Could you elaborate on the impact of China tariffs on your gross margin for the upcoming quarters? Additionally, what caused the significant increase in operating lease assets on the balance sheet? A: We have managed to work with vendors to mitigate cost increases, with some vendors maintaining stable costs and others experiencing low to mid-single digit increases. The increase in operating lease assets is due to new stores and remodels over the past 12 months, which are recognized as both assets and liabilities on the balance sheet. - Adam Akerson, VP-Finance, Corporate Controller and Thomas Heacock, CFO Q: What drove the improvement in merchandise margin this quarter, and how did you achieve leverage in occupancy costs? A: The merchandise margin improvement was driven by increased private label sales and strong regular price selling. We achieved a 60 basis point increase in merchandise margin. Occupancy cost leverage was achieved as total sales growth outpaced the 3.5% increase in total occupancy costs, resulting in a 10 basis point leverage. - Thomas Heacock, CFO and Adam Akerson, VP-Finance, Corporate Controller Q: How are you addressing tariffs for private labels, given their exposure to China? A: We are working closely with vendors to source from other countries while maintaining strong relationships with key vendors. This strategy helps us manage costs and maintain our product offerings. - Thomas Heacock, CFO Q: Can you explain the factors contributing to the increase in SG&A expenses and potential for future leverage? A: SG&A expenses increased due to higher payroll costs, incentive compensation, equity compensation, and health insurance costs. Store payroll was flat as a percentage of sales, and future leverage will depend on continued sales growth. - Thomas Heacock, CFO Q: What are the key drivers behind the strong performance in the women's business and the sequential improvement in the men's business? A: The women's business saw a 10.5% increase in merchandise sales, driven by strong denim sales and a balanced assortment of other categories. The men's business showed sequential improvement, with positive year-over-year sales in April, supported by strong sell-throughs in key categories. - Adam Akerson, VP-Finance, Corporate Controller For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Bloomberg
22-05-2025
- Business
- Bloomberg
Ross Stores Falls After Pulling Guidance Due to Tariff Blindspot
Discount retailer Ross Stores Inc. fell after pulling its full-year profit outlook due to heightened uncertainty caused by tariffs. 'There are simply too many unknown variables that are limiting our visibility into the second half of the fiscal year,' Chief Executive Officer James Conroy said on a call with analysts Thursday. More than half of the chain's inventory originates in China.
