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Walmart (WMT) Adds Justice Brand, Boosts Fashion Assortment

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Walmart Inc. (WMT - Free Report) is focused on building an impressive fashion assortment with good quality, affordable and on-trend products. The omnichannel retailer revealed that popular tween brand — Justice — will now be available across 2,400 Walmart stores as well as on Walmart.com. The brand will offer over 140 items featuring tween fashion, bedding and bath, jewelry and accessories, backpacks, stationery and tech accessories. Well, the introduction of Justice comes right in time for the back-to-school shopping season, which was affected by the pandemic last year.

Justice’s starting range for athleisure separates like fashion leggings and graphic tees is $8. Tie dye sweatshirts and matching joggers start at $13, while oversized hoodies begin at $18. Customers also can shop for on-trend bedding sets, pillows, bathroom accessories and throws in the price range of $20-$40 from the brand. Going forward, new styles from Justice for different products will be introduced seasonally.

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In order to stay committed to providing impressive collection to customers, Walmart introduced more than1,000 national fashion brands in the last few years. Recently, management rolled out more national brands like Celebrity Pink, Champion, Kendall + Kylie, Madden Girl and Stride Rite to name a few. The company also re-launched private brands including Wonder Nation and George among others. Exclusive elevated brands namely ELOQUII Elements, Free Assembly and Scoop among others have been successfully launched by Walmart. The introduction of Justice brand will add another leaf to Walmart’s fashion assortment expansion journey.

What Else Should You Know?

The Zacks Rank #2 (Buy) company is gaining from its sturdy comparable store sales (comps) record, which in turn is driven by constant store-expansion efforts and splendid e-commerce performance. To this end, management has been undertaking efforts to enhance merchandise assortments. It is focusing on store remodeling to upgrade them with advanced in-store and digital innovations. The company remodeled 89 stores in the first quarter of fiscal 2022.

Walmart is gaining from its attractive pricing strategy, which helps it draw customers. The quarter under review marked Walmart’s 27th consecutive quarter of U.S. comp sales growth. U.S. comp sales, excluding fuel, increased 6% on the back of a 9.5% rise in ticket. Comp sales exceeded expectations, thanks to gains from stimulus.

Shares of Walmart have increased 7.1% in the past year compared with the industry’s growth of 6.5%.

Key Retail Picks

Target Corporation (TGT - Free Report) which sports a Zacks Rank #1 (Strong Buy), has a long-term earnings growth rate of 13.3%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Macy’s, Inc. (M - Free Report) , which sports a Zacks Rank #1, has a long-term earnings growth rate of 12%.

Dollar General Corporation (DG - Free Report) , which sports a Zacks Rank #1, has a long-term earnings growth rate of 11.3%.

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