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As Walmart (WMT) Launches New Brands, Should You Buy Its Stock?
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Just one week after Walmart (WMT - Free Report) posted subdued fourth-quarter ecommerce sales, the big-box retail giant announced that it is set to launch multiple new apparel brands and an online mattress brand.
Stylish Announcements
In a move that Walmart hopes will help in its fight against rivals Target (TGT - Free Report) and ecommerce powerhouse Amazon (AMZN - Free Report) , the company will debut four new stylish fashion brands, both in stores and online, starting March 1. Walmart’s new “Time and Tru” line is geared towards all women, while “Terra & Sky” is designed for “plus women.”
The retailer is also set to sell its first kid-centric brand, “Wonder Nation,” and men’s-focused “George.” Walmart partnered with celebrity stylist Elizabeth Stewart to launch the new brands, with costs expected to range from less than $5 to $30.
“We listened to our customers and are proud to deliver apparel choices that meet at the intersection of everything they desire: on-trend styles, comfort and quality, all at unbeatable prices,” SVP of apparel at Walmart U.S., Deanah Baker, said in a statement. “These new brands are a thoughtful reflection of current trends and styles, while considering our customers’ busy, on-the-go lifestyles.”
Walmart is also reportedly ready to debut a new digital-only mattresses and bedding brand, Allswell. On top of that, the company announced plans to revamp its online home décor and furniture shopping portal to help customers with design tips. The experience, which is set to roll out over the next few weeks, will kick off the retailer’s larger redesign of Walmart.com.
Updated in-store signage with new photography is set to hit stores by March, with plans to upgrade whole apparel departments by fall 2018. Walmart also noted that it will remodel some stores to feature open floor plans and upgraded fitting rooms.
These moves come after Walmart’s online Q4 sales—which included the holiday period—grew by only 23% after racking up consecutive quarters of 50% growth. Walmart’s push into more off-priced, fashion-forward apparel and home décor seems to be aimed directly at Target, which became well-known for these offerings.
Target introduced new fashion lines for women and men last year. The retailer also introduced more home décor and furniture lines, as well as a home and lifestyle partnership with HGTV stars Chip & Joanna Gaines.
More Fundamentals
When looking at these moves, it seems investors might want to consider Walmart, especially when factoring in some of the company’s other fundamentals. Walmart is currently a Zacks Rank #2 (Buy) and sports a “B” grade for Value and an “A” for Growth in our Style Scores system, to help it earn an overall “A” VGM score.
Walmart is projected to see its current quarter earnings jump 13%, while its full year EPS figure is expected to climb nearly 12% to hit $4.94 per share. Investors might also be happy to note that Walmart has earned 12 earnings estimate revisions for its current fiscal year, with 100% agreement to the upside.
On top of that, shares of Walmart currently rest nearly 20% below their 52-week high. This means that the stock has plenty of room to climb before it faces the added burden of having to move into a new range.
Investors should not discount the possible long-term significance of Walmart’s new stylish push and revamped online sales portal. When paired with the recently acquired Jet.com and brands Bonobos, Modcloth, and Moosejaw—which are not sold through Walmart.com—Walmart seems to have further readied itself to grow in the crowded, shifting retail landscape.
Zacks Top 10 Stocks for 2018
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2018?
Last year's 2017 Zacks Top 10 Stocks portfolio produced double-digit winners, including FMC Corp. and VMware which racked up stellar gains of +67.9% and +61%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
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As Walmart (WMT) Launches New Brands, Should You Buy Its Stock?
Just one week after Walmart (WMT - Free Report) posted subdued fourth-quarter ecommerce sales, the big-box retail giant announced that it is set to launch multiple new apparel brands and an online mattress brand.
Stylish Announcements
In a move that Walmart hopes will help in its fight against rivals Target (TGT - Free Report) and ecommerce powerhouse Amazon (AMZN - Free Report) , the company will debut four new stylish fashion brands, both in stores and online, starting March 1. Walmart’s new “Time and Tru” line is geared towards all women, while “Terra & Sky” is designed for “plus women.”
The retailer is also set to sell its first kid-centric brand, “Wonder Nation,” and men’s-focused “George.” Walmart partnered with celebrity stylist Elizabeth Stewart to launch the new brands, with costs expected to range from less than $5 to $30.
“We listened to our customers and are proud to deliver apparel choices that meet at the intersection of everything they desire: on-trend styles, comfort and quality, all at unbeatable prices,” SVP of apparel at Walmart U.S., Deanah Baker, said in a statement. “These new brands are a thoughtful reflection of current trends and styles, while considering our customers’ busy, on-the-go lifestyles.”
Walmart is also reportedly ready to debut a new digital-only mattresses and bedding brand, Allswell. On top of that, the company announced plans to revamp its online home décor and furniture shopping portal to help customers with design tips. The experience, which is set to roll out over the next few weeks, will kick off the retailer’s larger redesign of Walmart.com.
Updated in-store signage with new photography is set to hit stores by March, with plans to upgrade whole apparel departments by fall 2018. Walmart also noted that it will remodel some stores to feature open floor plans and upgraded fitting rooms.
These moves come after Walmart’s online Q4 sales—which included the holiday period—grew by only 23% after racking up consecutive quarters of 50% growth. Walmart’s push into more off-priced, fashion-forward apparel and home décor seems to be aimed directly at Target, which became well-known for these offerings.
Target introduced new fashion lines for women and men last year. The retailer also introduced more home décor and furniture lines, as well as a home and lifestyle partnership with HGTV stars Chip & Joanna Gaines.
More Fundamentals
When looking at these moves, it seems investors might want to consider Walmart, especially when factoring in some of the company’s other fundamentals. Walmart is currently a Zacks Rank #2 (Buy) and sports a “B” grade for Value and an “A” for Growth in our Style Scores system, to help it earn an overall “A” VGM score.
Walmart is projected to see its current quarter earnings jump 13%, while its full year EPS figure is expected to climb nearly 12% to hit $4.94 per share. Investors might also be happy to note that Walmart has earned 12 earnings estimate revisions for its current fiscal year, with 100% agreement to the upside.
On top of that, shares of Walmart currently rest nearly 20% below their 52-week high. This means that the stock has plenty of room to climb before it faces the added burden of having to move into a new range.
Investors should not discount the possible long-term significance of Walmart’s new stylish push and revamped online sales portal. When paired with the recently acquired Jet.com and brands Bonobos, Modcloth, and Moosejaw—which are not sold through Walmart.com—Walmart seems to have further readied itself to grow in the crowded, shifting retail landscape.
Zacks Top 10 Stocks for 2018
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2018?
Last year's 2017 Zacks Top 10 Stocks portfolio produced double-digit winners, including FMC Corp. and VMware which racked up stellar gains of +67.9% and +61%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2018 today >>