Home outperformed Kohl’s overall business in the third quarter when earnings beat a Wall Street estimate but revenues fell short.

The ongoing expansion of the home business is one of several initiatives, including the growth of the Sephora business, that Kohl’s is counting on to propel operations in 2024, Tom Kingsbury, Kohl’s chief executive officer, said in a conference call.

Net income was $59 million, or 53 cents per diluted share, versus $97 million, or 82 cents per diluted share, in the year-previous quarter, the company reported.

Kohl’s beat a Yahoo Finance-published analyst average estimate of 35 cents per diluted share but fell short of a $3.91 billion revenue estimate.

Comparable store sales decreased 5.5% in the quarter year over year, the company stated, with digital comps particularly soft. Net sales in the quarter were $3.84 billion versus $4.05 billion in the year-before period. Operating income was $157 million versus $200 million in the year-past quarter.

In the conference call, Tom Kingsbury, Kohl’s chief executive officer, said the third quarter results reflected strong gross margin and expense management but ran up against softer-than-expected demand, some challenges related to weather and macro-economic pressure on consumers.

On the digital side, e-commerce sales slid 16.5% due in part to a decision the company made to eliminate online-only promotions in favor of omnichannel pricing across the enterprise. Kingsbury insisted that omnichannel pricing is the right strategy for Kohl’s even if it will hit digital sales short term. Store comps slipped 1% in the quarter, when back-to-school performance was solid, with higher than expected sales, but warmer weather in September into October across some regions hurt demand for fall merchandise.

“While I don’t like blaming weather for performance, the fall transition period has historically proven to be when Kohl’s apparel-intensive business is most sensitive to weather fluctuations,” Kingsbury said.

Moves to expand home, beauty, gifting and impulse should help “de-weather” Kohl’s business, Kingsbury noted.

He added, “I am pleased with our positive year-to-date store performance driven by strong growth in Sephora and, more recently, our home and gifting initiatives. In addition, we have furthered our efforts to simplify our value strategies, manage expenses tightly and reduce inventory by 13% at the end of the third quarter.”

Kingsbury indicated that the initiatives Kohl’s has launched or invigorated this year will bear fruit in 2024 but will take some time to gather momentum. Still, he said Kohl’s expects Sephora to be a $2 billion business by 2025. Then, the company expanded its upfront gifting presentation for the holidays with 50% new products. As part of a wider initiative to update store presentation, Kohl’s is adding fixtures to expand its impulse purchase assortment.

Home decor and associated product expansion fills a void in Kohl’s assortment and represents a category the company’s customers have shopped elsewhere, Kingsbury said. To make the most of the home opportunity, he maintained that Kohl’s has invested in the category merchandising operation and has formed new vendor relationships. In the third quarter, he said, Kohl’s began to flow new merchandise into stores with key segments including barware, wall art, glassware, ceramic home decor, botanicals and lighting. The company will further expand the home assortment as shoppers begin to recognize Kohl’s as a destination for a wider range of household goods, he said, referencing that the home business had outperformed the company in the quarter.

In announcing third-quarter results, Kingsbury said, “Our strategies to reposition Kohl’s for improved sales and earnings performance remain in the early stages. The work we have done in 2023 will continue to build momentum and set us up to be successful in 2024.”

Crate & Barrel has debuted a new flagship store in New York and everywhere else, creating and launching a virtual version online.

The immersive virtual store is a digital replica of the flagship, allowing customers to shop more than 450 products digitally and enjoy services such as swatch ordering, Crate & Barrel noted.

Crate & Barrel matched the assortment and services inside the store to the location, Crate & Barrel asserted, which features best-selling items across every home category in addition to artisan products inspired by the city’s creative community, including those from Smithey Cookware, Jono Pandolfi dinnerware and Apotheke.

A design desk at Crate & Barrel Flatiron is an expansive feature of the store. It provides free design and trade services and more than 50 feet of tangible design inspiration, including swatches, hardware, fixtures and wood samples. The design desk operates across two floors and is staffed by up to 30 New York-based designers, equipped with extensive training and prepared for projects of all sizes across the city. 

Other features include registry services, monogramming, a botanical shop with an expanded assortment of dried botanicals for do-it-yourself arrangements or on-site styling by an expert and one-day delivery. In addition, the store offers home renovation products from bathroom vanities that are exclusive to the store as well as access to dinnerware and entertaining options for restaurant trade.

The store also offers the largest Crate & Kids location the company operates. The Crate & Kids occupies a shop within the shop at the new Flatiron flagship, with highly-specialized kid and baby products curated to address city parents’ needs, including toys, gear and wall decor only found at the flagship location, Crate & Barrel noted.

“This historic building embodies Crate & Barrel, blending classic and timeless design with a modern vision for a true flagship experience that feels right at home in the heart of New York City,” Sebastian Brauer, Crate & Barrel senior vp of product design, visual, said in announcing the flagship store opening. “We preserved the original neoclassical columns, brought in natural light with a modern staircase and a custom tile wall.”

Crate & Barrel CEO Janet Hayes added that the store represents the future of the Crate & Barrel brand.

“This flagship store embodies our commitment to inspiring and supporting customers at every step of their home shopping journey. As we continue to invest in our customer experience, we know the ability to experience our brand and services is essential to creating a home with purpose.”

As part of the store opening, Crate & Barrel is hosting the Flatiron Food & Design Festival onsite through December 19, an event that will include opportunities to meet company design and food partners such as Athena Calderone and Molly Baz. Shoppers can join design discussion panels, food demos, in-person monogramming and other programs. 

Walmart surpassed third-quarter Wall Street estimates as earnings and revenue gained while some product costs, including in general merchandise, moderated.

A MarketBeat-published analyst consensus estimate anticipated adjusted diluted earnings per share of $1.52 and revenues of $159.65 billion.

Comps gained 4.7% in the quarter year over year without the effect of fuel sales, according to Walmart. Net sales were $159.44 billion and net revenues, including memberships and other income were $160.8 billion versus $151.47 billion and $152.81 billion, respectively, in the year-earlier period. Operating income was $6.2 billion versus $2.7 billion in the year-prior quarter, when adjustments for one-time events pushed the figure up to $6 billion.

At Walmart U.S., comps gained 4.9% year over year in the quarter with transactions up 3.4% and average ticket up 1.5%. E-commerce contribution to comps was about 300 basis points. Net sales were up 4.4% to $109.4 billion as operating income slipped 2.2% to $50 million versus the year-before period.

At Sam’s Club, comps gained 3.8% year over year in the quarter with transactions up 4% and average ticket down 0.2%. E-commerce contribution to comps was 170 basis points. Net sales were up 2.8% to $22 billion as operating income advanced 5.5% to $600 million from the year-past period, Walmart reported.

Doug McMillon, Walmart president and CEO, speaking in a conference call, said “Across markets, the team did a nice job driving our seasonal events. Our in-stock and inventory levels are in good shape. We finished down 1.2% in inventory for the total company, including down 5% for Walmart U.S. Both our top line and adjusted EPS came in better then what we projected at the beginning of the quarter, but we could have done a better job on expenses.”

On the general merchandise side, McMillon said some costs are declining, which will give Walmart the opportunity to provide price rollbacks for the holiday season. He added 2024 might experience a deflationary period across many product categories, for which some general merchandise segments, as well as food segments such as dairy, chicken and seafood, have become less costly while prices on other categories, such as grocery and everyday needs, have been slower to drop. McMillon said the company welcomed some deflation as it would provide an opportunity to manage in such a way as to improve shopper satisfaction.

McMillon also pointed out the company’s e-commerce sales advanced 24% in Walmart U.S.,16% at Sam’s Club U.S. and 15% globally. Marketplace and its third-party sellers are an important part of Walmart’s plans to advance e-commerce and provide a wider selection, he maintained.

“We had strong revenue growth across segments for the quarter, and we’re excited to get an early start to the holiday season,” McMillon said. “(From a) Thanksgiving meal that costs less than last year, to great prices on fashion, toys, electronics, and seasonal decorations, we’re here to help families from around the world make this a special time. Looking ahead, our inventory is in good shape, the teams are focused, and our associates are ready to serve our customers and members whenever and however they want to be served.”

Inflation continues to influence holiday shoppers who are budgeting higher for gifts and other seasonal purchases this year, according to a RetailMeNot survey.

Of the $932 consumers plan to spend, about $732 will be spent on gifts and $200 on themselves.

In the survey, electronics, at 83%, was the top category consumers intended to shop, followed by makeup & skincare, at 79%; toys and games, at 77%, clothing including shoes and accessories, at 77%; home appliances, including products such as slow cookers and grills, at 76%; travel including plane tickets, hotel rooms and luggage, at 75%; jewelry, at 75%, home improvement including drills, tool sets and gardening supplies at 72%; media to own including books, movies and video games, at 72%; home furniture, at 71%; sports and outdoor recreation, at 71%; and home goods and décor including tabletop, pillows, wall art and rugs, at 71%.

In addition, 79% of shoppers plan to purchase to participate in holiday gift shopping this year and 72% plan to shop holiday sales events from October to December.

Gifts for kids are the priority this year, but 52% of shoppers plan to do some self-gifting in 2023, up from 45% a year past, RetailMeNot maintained.

Broken down, gift-giving priorities are:

• Children or grandchildren at 59%
• Self at 52%
• Spouse/significant other at 47%
• Friends at 41%
• Parents or stepparents at 40%
• My siblings or step-siblings at 33%

As to increased self-shopping, the survey revealed that most consumers are choosing to self-gift as a way to not only take advantage of the great deals, at 54%, during this time of year but also to treat themselves, at 45% and boost their mood, at 41%. Then 30% will buy seasonal products, 13% will take advantage of time off work to shop, 13% will establish a self-gifting tradition, 13% will make a fresh start to the New Year and 11% will take advantage of purchased products or services.

When self-gifting, clothing is the top choice at 47%, followed by makeup and skincare at 30%, electronics at 24%, food and beverage at 24%, restaurants at 22%, household supplies at 19%, jewelry at 19%, home goods and décor at 17% and media to own at 17%.

In a career choice, the survey found that 60% of consumers plan to do their holiday shopping online, including browsing or purchasing, during work hours this season.

After Christmas, RetailMeNot indicated that 49% of consumers will shop during the post-Christmas shopping period to take advantage of clearance sales and discounts. Other reasons to shop after the 25th include shopping with fewer crowds in stores, at 27%; treating themselves/gifting themselves a present, at 25%; exchanging a gift they received or shopping with store credit from an exchange at 18%; and enjoying more free time to shop at 17%.

The top products shoppers are planning to purchase post-holidays include:

• Clothing at 37%
• Makeup and skincare at 21%
• Food and beverage at 21%
• Electronics at 20% 
• Gift cards at 20%
• Toys and games at 17%
• Restaurant gift cards or a meal at a restaurant they normally wouldn’t visit at 17%
• Home goods and décor at 16%
• Household supplies at 15%

The third quarter saw Wayfair top a Wall Street estimate on earnings as revenues came up a bit short.

Net loss was $163 million, or $1.40 per diluted share versus a net loss of $283 million, or $2.66 per diluted share, in the year-prior quarter. Adjusted for one-time events, net loss was $15 million, or 13 cents per diluted share, versus $224 million, or 2.11 per diluted share, in the year-previous period, the company reported. 

An analyst consensus estimate published by Yahoo Finance had Wayfair losing 48 cents per adjusted diluted share and revenues coming in at $2.98 billion.

Total third quarter net revenue of $2.94 billion was up 3.7% year over year as net revenue from the United States came in at $2.57 billion, up 5.4% from the year-earlier period, Wayfair stated. Loss from operations was $152 million versus a loss from operations of $372 million in the year-before quarter.

“Wayfair is now in a place where we can drive profitability while simultaneously investing for growth,” said Niraj Shah Wayfair CEO, co-founder and co-chairman. “Q3 is one more proof point of exactly that. Today we’re reporting positive adjusted EBITDA of $100 million, a second consecutive quarter of positive free cash flow and nearly four percent year-over-year revenue growth driven by strength in orders. We also saw steady improvement in our active customer metric, which is well on its way to positive year-over-year growth.”

Shah added, “We executed further in the third quarter to produce consistent profitability, with adjusted EBITDA now positive on a trailing 12 month basis, while also driving demonstrable market share growth, as evidenced by our gains on customers and orders. Even with a turbulent macro, we remain committed to our profitability goals in good times and bad. We will continue to drive peerless focus and execution into 2024 and beyond, as we push every day to be the number one shopping destination for the home.”

The TJX Cos. has shut down the e-commerce component of the HomeGoods website.

The homegoods.com homepage now directs consumers to shop for home decor at TJX’s tjmaxx.com or marshalls.com operations.

According to its latest quarterly filing with the United States Securities and Exchange Commission, homegoods.com represented less than 1% of HomeGoods sales for the second quarter of the current fiscal year. In TJX’s second quarter 10-Q filing with the SEC, TJX reported that HomeGoods sales were $2.01 billion in the period.

Homegoods.com includes a link to new stores, where it lists recently opened locations and stores opening by mid-November in Ohio, Florida, Texas, Connecticut, Virginia, Utah, Washington, Mississippi and Georgia.

TJX representatives did not respond at press time to requests for comment by HomePage News.

Despite a shaky economy, the International Council of Shopping Centers anticipates 3.8% higher sales this holiday season versus 2022.

In their holiday shopping, 87% of survey respondents said they expect to visit brick-and-mortar stores and three-quarters plan to make a purchase online and have the items shipped to them. The survey found that 41% of expected expenditure is likely to happen at a physical store, 42% online, and 17% on click-and-collect.

Consumers anticipate consolidating their purchasing across fewer retailers in the 2023 holidays. According to the survey, they plan to purchase from an average of 2.4 different types of retailers versus 3.4 in 2022. Discount department stores remain the most popular shopping destination for 63% of shoppers, but 34% will also patronize traditional department stores and 22% will check out electronics stores. Most consumers plan to pay for holiday purchases with a debit card, at 63%, or a credit card, at 50%, although 48% expect to shell out at least some cash and 14% to use buy now, pay later options.

As usual, gift cards are the most popular holiday shopper choice, with 63% of respondents expecting to purchase, followed by apparel and footwear at 56%, and toys and games at 49%. In addition, 45% of consumers plan to purchase food, such as pre-packaged baskets and alcohol, while electronics and experiential purchases came in at 41% and 22%, respectively.

ICSC noted that it expects a 7.6% year-over-year advance in 2023 food and beverages sales, leading to total sales of $1.6 trillion.

As retailers roll out seasonal assortments and deals earlier in the season, 79% of survey respondents planned to start shopping for the holidays earlier than they had in the past, with one-in-four having started making purchases in August or earlier. Of the consumers who planned to shop earlier for the holidays, 51% did so to tap early promotions.

“We expect a positive holiday shopping season this year as consumers continue to spend in spite of economic headwinds,” said ICSC president and CEO Tom McGee in announcing the survey findings. “This year’s forecast shows the industry is balancing itself out after rapid growth over the last few years, setting retailers up for another successful holiday season. This year will continue the trend of consumers starting their holiday shopping earlier and spreading it out throughout the season. While landmark holiday milestones like Black Friday and Thanksgiving Weekend remain important, it’s equally important for retailers to capture consumer interest throughout the season. Offering competitive promotions, free and reliable shipping and seamless omnichannel experiences throughout the holidays is a key part of that.”

In detailing how technologies including augmented reality are improving its search and other online functions, Amazon is tacitly acknowledging that consumers need help getting what they want from the endless aisle and is seeking to provide it.

As its assortment has grown, Amazon noted in a blog post, the company has worked to bolster product search to aid shoppers. Of course, it offers shortcuts such as recent and trending searches that might interest a given consumer. Amazon also pointed out that it has made improvements to autocomplete suggestions, spelling corrections and prompts for related searches.

Amazon emphasized that it continues trying new search features and upgrading existing functions to find better ways to help consumers across the shopping task.

Recent ways Amazon has improved search and discovery, the company maintained, include:

• Visualizing Products on Tables and Countertops. To help in making purchase decisions on home items from sofas to espresso makers, Amazon has extended its View in Your Room feature, which virtually places an item in an image of the consumer’s domestic space. The new mobile feature uses augmented reality to, effectively, place search items on a tabletop or counter surface to see how it fits in terms of space and style. Users can move an item from one surface to another to better evaluate how it might fit in the home.
• Image and Text Search. Complex search scenarios that come into play when consumers don’t know exactly what they’re trying to find, as in a replacement part for a home appliance that the person can’t name. To help, Amazon is giving shoppers the ability to tap the camera icon in the search bar and snap a picture so that its visual search algorithms can look for the best possible matches across the company’s vast selection. A new function recently added is a visual search tool that enables shoppers to add text to visual search queries to help narrow and complete searches.
• Discovering Popular Products with Sales Trend Information. Amazon has begun publishing sales trend data – such as, for example, “10K+ bought in the past month” – as part of search results and on product detail pages, so shoppers have an indication of a product’s recent popularity. 
• Searching with the Sharing Feature on Mobile. Shoppers who find a product in an email, on social media or elsewhere online can tap the Share button, choose the Amazon Shopping app and click Find Products on Amazon. When that’s done, the shopper is taken to the Amazon Shopping app to find similar products.
• Easing Previous Purchase Reorders. When it recognizes that shoppers are searching for a previously purchased item, Amazon will present the product at the top of search results with the date of the last purchase. In cases when it’s a frequent reorder, Amazon will also show a thumbnail image of the item in the search bar, making it easy to immediately click through to the product detail page and complete a purchase.

In addition, Amazon recently announced a new AI-powered feature that provides a short paragraph right on product detail pages highlighting item features and customer sentiment frequently mentioned across written reviews to help shoppers determine at a glance what others think about a given product.

Social media platform TikTok has launched the TikTok Shop in the United States as a new way for people to find and shop for products on the app.

TikTok Shop will bring shoppable videos and TikTok Live streams directly to users’ For You feeds, giving brands, merchants and creators the tools to sell directly through shoppable content on the TikTok app. TikTok Shop combines community, creativity and commerce to create a seamless shopping experience for customers based on their interests, said the company.

TikTok Shop offers:

• In-Feed Video and TikTok Live Shopping: Tagged products can be shopped directly from videos or Lives in the For You feed.
• Product Showcase: Consumers can browse product tiles, read reviews and purchase directly from a brand’s profile. Businesses can curate custom product collections directly on their profile pages.
• Shop Tab: Businesses can display their products on a product marketplace where customers can easily search and discover promotions. Recommendations are showcased via product listings and shoppable content and customers can manage orders, all within a single tab.
• Affiliate Program: Creators can connect with sellers through commission-based product marketing opportunities.
• Shop Ads: TikTok Shop Ads bring more opportunities for sellers to promote their TikTok Shops for consumers’ discovery.
• Fulfilled by TikTok: A new logistics solution lets merchants focus on their products while TikTok Shop stores, picks, packs and ships sellers’ products to customers.
• Secure Checkout: TikTok works with trusted third party payment platforms to faciltate transactions in a quick, secure checkout process. All TikTok protected US user data is stored in US and managed by USDS.

TikTok is also offering more services with partner integrations:

• Commerce Platform Partners: TikTok offers merchants the tools to connect directly from their commerce platforms. Shopify merchants can manage their TikTok Shop directly from Shopify through the TikTok for Shopify App. TikTok also offers direct integrations with WooCommerce, Salesforce Commerce Cloud, BigCommerce and Magento. Merchants may also integrate with connector apps such as AfterShip, Silk, SKUIQ, CED Commerce and ShoppeDance.
• Multi-Channel Partners: For merchants running omni-channel businesses, TikTok is partnering with multi-channel platforms including Channel Advisor, Feedonomics, Productsup, Pipe17, GoDataFeed, SellerCloud, Linnworks, ChannelEngine, ShoppingFeed and Cymbio.
• Additional Apps & Services: Creators and sellers can also choose from apps such as Zendesk, Gorgias and 1440 for customer service; Printful, Printify and NovaTomato for print-on-demand merchandise; Yotpo for reviews; and shipping with WeeBee, Flowspace and Easyship.

From discovery to purchase, TikTok is committed to providing a safe and secure environment that allows their community to shop with confidence, the company said. All product listings must adhere to TikTok Shop policies and community guidelines or they will be removed.

Merchants and sellers can sign up for TikTok Shop today at https://seller-us-accounts.tiktok.com/account/register.

Despite a slowing economy, retail sales rose in August as parents shopped for school supplies and other goods even as inflation continued and interest rates remained high, according to the National Retail Federation.

In citing figures from the United States Census Bureau, NRF stated that retail sales in August were up 0.6% from July and 2.5% year over year as compared to a gain of 0.5% month over month and 2.6% year over year in July.

NRF’s calculation of retail sales excludes automobile dealers, gasoline stations and restaurants to focus on core retail. In August, retail sales gained 0.1% seasonally adjusted from July and 3.3% unadjusted year over year as NRF calculates them. In July, core retail sales advanced 0.7% month over month and 3.3% year over year.

NRF’s retail sales were up 3.2% unadjusted year over year on a three-month moving average as of August and up 3.8% for the first eight months of 2023.

By channel, the results were:

• General merchandise stores up 0.3% month over month seasonally adjusted and 3% unadjusted year over year
• Furniture and home furnishings stores down 1% month over month seasonally adjusted and 7.6% unadjusted year over year.
• Building materials and garden supply stores up 0.1% month over month seasonally adjusted but down 3.8% unadjusted year over year
• Health and personal care stores up 0.5% month over month seasonally adjusted and 7.8% unadjusted year over year
• Grocery and beverage stores up 0.4% month over month seasonally adjusted and 2.8% unadjusted year over year
• Electronics and appliance stores up 0.7% month over month seasonally adjusted but down 1.6% unadjusted year over year
• Sporting goods stores down 1.6% month over month seasonally adjusted and 1.6% unadjusted year over year
• Clothing and clothing accessory stores up 0.9% month over month seasonally adjusted and 3.6% unadjusted year over year
• Online and other non-store sales unchanged month over month seasonally adjusted but up 7.6% unadjusted year over year

“August retail sales show that consumers remain steadfast in the face of continued inflation and higher interest rates,” NRF president and CEO Matthew Shay said in announcing the sales numbers. “Consumers are focused on household priorities, as evident by spending this back-to-school season. Entering the fall, we expect moderate growth to continue despite uncertainties like the direction of inflation and interest rates as well as a potential government shutdown.”

NRF chief economist Jack Kleinhenz added, “NRF’s numbers show the pace of retail growth cooled from July but that even as they continue to be selective and price sensitive. Households have the capacity to spend, but momentum is slowing, in part because savings built up during the pandemic are running lower and credit costs are rising. Consumer spending growth has slowed, but there is little hint of any sudden collapse.”