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Walmart Boosts Its Fashion Game with Possible Bonobos Acquisition
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America’s largest retailer is seriously upping its fashion game. Wal-Mart Stores Inc. (WMT - Free Report) is reportedly in advanced talks to acquire popular men’s fashion retailer Bonobos, an up and coming brand based out of New York City.
This deal, if announced, would mark Walmart’s fourth online retail acquisition through its digital chief Marc Lore—Lore joined the company when Walmart bought Jet.com last year—in addition to women’s online retailer ModCloth, online shoe site ShoeBuy, and outdoor gear and apparel seller Moosejaw.
According to Recode, sources are saying both Walmart and Bonobos have agreed on a deal price, and that the transaction is in its final stages. The company generates between $100 million and $150 million in annual revenue, and was last valued at around $300 million, when it raised $55 million back in 2014.
Founded in 2007 by CEO Andy Dunn and Brian Spaly, Bonobos originally started out as an online-only shop that sold high-end dress pants designed to fit athletic men. The company then expanded, selling dress shirts, suits, and outerwear, with prices ranging from $98 for a dress shirt to $550 for a suit.
Bonobos also began selling its products through Nordstrom’s (JWN - Free Report) brick-and-mortar stores and e-commerce site, and the department store giant became an investor in the company in 2012. Bonobos has opened physical stores of its own as well, called “Guideshops,” and there are 30 locations across the U.S. Here, customers can get fitted, try on numerous different items, and place orders to be delivered to their homes.
Like with its other digital acquisitions, Walmart and Bonobos, as brands, make little sense together on the surface. But if you look further, you’ll see that Bonobos will likely greatly benefit from Walmart’s huge retail and distribution network, something that will help the company grow and expand. For Walmart, Bonobos gives the retailer that fashion edge, helping the company potentially reach different demographics.
Interested in Walmart’s rival with e-commerce rival Amazon (AMZN - Free Report) ? Check out this episode of Zacks Shopping for Stocks, where host Maddy Johnson discusses Walmart’s recent acquisition of Moosejaw.
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Walmart Boosts Its Fashion Game with Possible Bonobos Acquisition
America’s largest retailer is seriously upping its fashion game. Wal-Mart Stores Inc. (WMT - Free Report) is reportedly in advanced talks to acquire popular men’s fashion retailer Bonobos, an up and coming brand based out of New York City.
This deal, if announced, would mark Walmart’s fourth online retail acquisition through its digital chief Marc Lore—Lore joined the company when Walmart bought Jet.com last year—in addition to women’s online retailer ModCloth, online shoe site ShoeBuy, and outdoor gear and apparel seller Moosejaw.
According to Recode, sources are saying both Walmart and Bonobos have agreed on a deal price, and that the transaction is in its final stages. The company generates between $100 million and $150 million in annual revenue, and was last valued at around $300 million, when it raised $55 million back in 2014.
Founded in 2007 by CEO Andy Dunn and Brian Spaly, Bonobos originally started out as an online-only shop that sold high-end dress pants designed to fit athletic men. The company then expanded, selling dress shirts, suits, and outerwear, with prices ranging from $98 for a dress shirt to $550 for a suit.
Bonobos also began selling its products through Nordstrom’s (JWN - Free Report) brick-and-mortar stores and e-commerce site, and the department store giant became an investor in the company in 2012. Bonobos has opened physical stores of its own as well, called “Guideshops,” and there are 30 locations across the U.S. Here, customers can get fitted, try on numerous different items, and place orders to be delivered to their homes.
Like with its other digital acquisitions, Walmart and Bonobos, as brands, make little sense together on the surface. But if you look further, you’ll see that Bonobos will likely greatly benefit from Walmart’s huge retail and distribution network, something that will help the company grow and expand. For Walmart, Bonobos gives the retailer that fashion edge, helping the company potentially reach different demographics.
Interested in Walmart’s rival with e-commerce rival Amazon (AMZN - Free Report) ? Check out this episode of Zacks Shopping for Stocks, where host Maddy Johnson discusses Walmart’s recent acquisition of Moosejaw.
The Best & Worst of Zacks
Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>