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Tag: bath

  • Bed Bath & Beyond in crisis as turnaround plan fails

    Bed Bath & Beyond in crisis as turnaround plan fails

    US home goods retailer Bed Bath & Beyond is likely to file for bankruptcy protection as there is “substantial doubt about the company’s ability to continue” after sales floundered over Christmas-New Year.

    In a business update, the company said a turnaround plan initiated at the start of the third quarter with a refocus on merchandising and inventory control while strengthening its financial position had failed to deliver anticipated results.

    However, based on preliminary results for the quarter ending November 26, sales fell 33 per cent to US$1.259 billion reflecting lower customer traffic and reduced levels of inventory availability. A net loss of approximately $385.8 million was also registered.

    Sue Gove, president & CEO at Bed Bath & Beyond, said: “Despite more productive merchandise plans and improved execution, our financial performance was negatively impacted by inventory constraints as we partnered with our suppliers to navigate both micro- and macro-economic challenges.”

    She added the company subsequently leveraged the liquidity gained from the holiday season to immediately pursue higher-in-stock levels to support key vendors.

    “We continue to manage our financial position amidst a changing landscape and work with expert advisors as we consider all paths and strategic alternatives to accomplish our short- and long-term goals,” said Gove.

    Neil Saunders, MD at GlobalData, said the business has “burnt through” most of its liquidity and will need to raise further funds to continue operating.

    “Despite a desperate attempt to shore up finances and improve the customer experience, sales continue to slump and losses continue to mount. Put bluntly, the business is moving at rapid speed in the wrong direction with bankruptcy the most likely destination.”

    The company informed investors that it continues to consider all “strategic alternatives” including restructuring or refinancing its debt, selling assets, seeking additional equity capital and obtaining relief under the US Bankruptcy Code, though the measures may not be successful.

    According to Reuters, the company has interest payments on roughly $1.5 billion of bonds which are due February 1. It will likely be skipped to conserve cash triggering a 30-day grace period before the entity defaults.

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  • Victoria’s Secret, Bath & Body Works to be split into separate companies

    Victoria’s Secret, Bath & Body Works to be split into separate companies

    Lingerie retailer Victoria’s Secret and Bath & Body Works are to be demerged into two separately listed companies after parent L Brands opted not to sell the struggling apparel business.

    “Both Bath & Body Works and Victoria’s Secret are leaders in their respective markets and, as separate businesses, each will be ideally positioned to benefit from a sharpened focus on pursuing growth strategies best suited to each company’s customer base and strategic objectives,” said L Brands chair Sarah Nash.

    The board has been mulling the sale or spin-off of Victoria’s Secret for more than a year, a process that went into hiatus due to the Covid-19 pandemic. Talks were held with “multiple” potential buyers, the company said, is a process during which the company was advised by Goldman Sachs and JP Morgan.

    Neil Saunders, MD at GlobalData, described the decision as “telling”, suggesting that L Brands was not able to secure a bid that it considered compelling.

    “The divorce gives Victoria’s Secret no place to hide. Its numbers will no longer be flattered by the contribution of Bath & Body Works and its management team will be fully accountable to investors. Such accountability is no bad thing and will likely sharpen efforts to enact a genuine turnaround at the company.”

    In preliminary first-quarter results revealed along with the restructuring announcement, L Brands said it expects to record operating income of about US$570 million – $380 million from Bath & Body Works and $245 million from Victoria’s Secret.

    Nash said the company had made “significant progress in the turnaround of Victoria’s Secret business” during the past 10 months, implementing merchandise and marketing initiatives to drive top-line growth, and cutting costs, “which together have dramatically increased profitability”.

    Saunders was less bullish about the achievement saying there was “little evidence” on the surface to support claims the brand is on a pathway to recovery.

    “Last year, sales fell by 29.7 percent. Admittedly, this came against the backdrop of the pandemic, but the full-year performance was somewhat worse than that of the overall apparel market and considerably worse than rivals like Aerie. This is not to say that no progress has been made at Victoria’s Secret; however, the impact on the business has been negligible.

    “L Brands could be relying on the fact that as it enters its new fiscal year, growth rates will look very strong because they come up against soft comparatives from 2020,” he said. “However, this is a mathematical sleight of hand rather than a true indication of progress. Indeed, compared to 2019, sales will probably remain down.”

    He said creating two separate public companies makes sense given the current bull market and the move would likely create value for shareholders over time.

    “This is especially so for Bath & Body Works which, despite being the more successful of the two brands, is often overlooked and overshadowed by its less impressive sibling.”

    Meanwhile, L Brands said CEO Andrew Meslow would continue to hold his position and take the helm of Bath & Body Works after the spin-off. Victoria’s Secret CEO Martin Waters will continue to lead the new standalone business.

    Meslow said he expected L Brands to deliver a record first-quarter earnings result, driven by an exceptional performance at Bath & Body Works and a “significant improvement” at Victoria’s Secret. Final results will be revealed on May 19.

    L Brands operates 2681 company-operated specialty stores in the US, Canada, and greater China, has a further 700 franchised locations worldwide, and sells online.

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  • Hard Rock Bedding and Bath range planned

    Hard Rock Bedding and Bath range planned

    Restaurant and accommodation chain Hard Rock International is to partner with textiles firm Sobel Westex to produce a manchester range.

    The Hard Rock at Home collaboration is intended to give music fans around the globe the opportunity to fine-tune their living spaces with home goods inspired by music – including bedding, bath textiles, window treatments and beach towels.

    The Hard Rock at Home collection features luxurious bedding, including comforters, sheet sets, throws and decorative accent pillows with a variety of designs. Through the collection, fans can add country, rock and alternative music touches, as well as hip hop trends and pop accents.

    “We are excited to collaborate with Sobel Westex to bring these trendy bedding, bath and beach products to consumers worldwide,” said director of licensing for Hard Rock International Mark Linduski. “This fresh, unique collection of musically-inspired, designer textiles will appeal to customers of virtually every age range, music genre and lifestyle while aiding in our strategic initiative to expand retail distribution of the Hard Rock brand outside of our own retail properties.”

    The designer textile collection will debut at the New York City Spring Textile Market from March 18 through March 21, before launching to consumers this autumn.

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  • Lush opens Tokyo tech-concept store

    Lush opens Tokyo tech-concept store

    After opening two concept stores in Milan and Berlin earlier in the year, British cosmetics retailer Lush has opened a third global concept store in Tokyo. While the Italian and German locations opened with a focus on packaging-free cosmetics, the Japanese retail outlet, which kicked off trade on November 22, will specialise in selling Lush’s bath bombs.

    Located in Harajuku, the tech-focused store will promote Lush’s best-selling bath bombs, as well as those new editions, and those known to be seasonal.

    Across two floors, Lush will also add limited-edition bath bombs sold exclusively in the new shop.

    Inspired by Japanese culture, the bath products reflect the style of the district’s Harajuku fashionistas “with their vivid colours and imaginative outfits to mythical creatures such as nine-tailed foxes,” according to a press release from Lush.

    Under the umbrella of Lush Labs, the new Tokyo store will serve as a retail experiment for future Lush stores, by incorporating online and offline retail experiences in the same setting.

    In doing so, consumers will enter a store void of signing and pricing, and even sinks typically used to demonstrate the product.

    Instead, shoppers will be encourage to shop online via the Lush Labs app, and view demonstrations and products digitally, as well as gaining ingredient detail, simply by scanning the naked bath bombs directly from their phone. In this vein, packaging is done away with too.

    “With Lush’s long term commitment to removing packaging from cosmetics, the Lush Lens feature uses the phone’s camera and Artificial Intelligence to support the customer in shopping packaging-free with ease and ensures they get all the important product information they require in a fun and environmentally-conscious way,” said Lush in a statement.

    Lush is increasingly experimenting its online retail in the offline world and will use “community feedback” from the Harajuku store as a source of research and ultimately reason to open more across the globe.

    “Customers are being invited into the R&D process once again, only this time to feedback on the retail experience as a whole, rather than just the product,” concluded Lush.

    “Each comment, reaction and critique sent back will help shape the future of the shop and each area of innovation launching within it.”

     

     

  • Israeli brand Sabon expands to Singapore

    Israeli brand Sabon expands to Singapore

    Israel-based bath and body brand Sabon has opened its first Southeast Asia flagship boutique, in Singapore.

    Located in Takashimaya in the Ngee Ann City shopping centre, the store carries a full range of products for the body, face and the home.

    Soaps handmade from fresh herbs, fruit peels and rose petals are included in the range.

    The boutique features an experiential ‘Wishing Fountain’ where customers are invited to freshen up, make wishes, and “dive into an experience of sound and sense, texture, and scent”.

    Staying true to the brand’s philosophy, the store’s interior is decorated with natural products and materials such as whole wood and stone.

    Founded in 1997 in Tel Aviv, Sabon now has 180 stores globally.

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