FINANCE

Wayfair is making a bold move to grab more consumer wallet-share, and compete with brick-and-mortar retailers.   Complementing its private label credit card, Wayfar is offering a financing option to consumers purchasing furniture and decor. Through a partnership with financial services company Affirm, Wayfair shoppers now have the flexibility to buy now and make monthly payments for their purchases — a move that extend financing options to a broader range of customers.  

Boot Barn’s second quarter performance rose slightly, meeting Wall Street estimates.    The western-influenced specialty retailer reported $134 million in revenue for the second quarter ending Sept. 24, 2016, a 3.3% increase from $129.7 million in the prior-year period. This jump also exceeded Wall Street’s estimate of $131.61 million. Boot Barn credited the increase to 13 new stores opened over the past 12 months, and a 1.8% increase in same-store sales. Two of those stores opened the chain during the second quarter.

GNC had higher expectations for its third quarter earnings.   The nutritional supplement retailer reported revenue of $628.0 million, a decrease of 8.1% compared with $683.4 million for third quarter 2016, ended Sept. 30, 2016. Similarly, GNC’s net income of $32.4 million dropped compared with $45.8 million in third quarter 2015.  

A rough summer season, and an adjusted fiscal year end, took a toll on Gymboree’s third quarter earnings.   The retailer’s net sales for the three months ended July 30, 2016, were $250.3 million, a decrease of 4% compared to $261.8 million for the three months ended August 1, 2015.   

Consumer confidence experienced an October surprise of sorts after reaching a nine-year high in September.   The index now stands at 98.6, down from 103.5 last month.  

Amid “sluggish retail conditions,” VF Corp.’s Under Armour division posted gains for the third quarter.   Under Armour’s net revenues increased 22% in third quarter 2016 ended Sept. 30, 2016, to $1.47 billion compared $1.20 billion for the same period last year. Net income increased 28% to $128 million, compared with $100 million for third quarter last year.  

Despite sales gains, Cabela’s experienced profit losses for the third quarter.   For the quarter ended Oct. 1, 2016, the outdoor retailer’s total revenue increased 7.6% to $996.5 million; revenue from retail store sales increased 8.1% to $688.6 million; Internet and catalog sales increased 3.6% to $167.4 million; and financial services revenue increased 8.8% to $134.5 million.   

Amid continued market share growth by Amazon and a rapidly changing digital environment, traditional retail profitability metrics are under siege and not sustainable.