Tag: Supply

Is American Eagle’s Supply Chain Business a Hidden Gem for Investors?

American Eagle (AEO 0.85%) is a staple in malls, with its namesake brand along with the fast-growing Aerie brand. These two businesses are the main driving force at the company, but not the only divisions worth keeping an eye on. American Eagle’s purchase of Quiet Logistics has pushed it into the distribution business as well. Is that working out?

What really matters

Before we answer that question, it is important to stress that American Eagle and Aerie are far more important divisions. American Eagle has 867 stores and Aerie 297. In fact, even the relatively tiny Todd Snyder business, with just 11 stores, is probably more impactful than the Quote Platform.

A person in a warehouse working on the fulfillment of online orders.

Image source: Getty Images.

It shouldn’t be too shocking that a retailer’s top and bottom lines would be driven by its retail brands. Indeed, American Eagle had a touch over $1 billion in revenue in the first quarter. American Eagle is the larger brand, producing roughly $670 million in sales, with Aerie at about $360 million (Todd Snyder isn’t broken out).

That said, the big trend to watch here is the general decline in the American Eagle brand as the company looks to “right-size” that operation while it also seeks to grow Aerie. American Eagle’s sales fell roughly 2% year over year in the quarter, while Aerie’s sales increased by about 10%.

On the bottom line, American Eagle posted earnings of $0.09 per share in the first quarter, down from $0.16 in the first quarter of 2022. There are a number of moving parts, but two key issues in the quarter were increasing costs and a one-time impairment charge for the company’s investment in Quiet Platform. They are connected issues.

A work in progress

In 2021, American Eagle bought Quiet Logistics, which is basically the foundation for its

Peruvian designers offer blueprint for sustainable supply chain

Having full control of the value chain was not part of the initial plans, says Skyum. During the brand’s infancy they met and worked with other suppliers, however, they were not able to offer the level of transparency or traceability they were going for, she says. “We discovered in the process that when we have more control and direct access to our value chain, we would also be able to both document and be in charge and decide on how things were supposed to be run.” 

The advantage of artisanship

Peru’s rich artisanal heritage and culture is shaping the identity of local brands. Knitwear brand Escvdo, which launched in 2013, has worked with artisans across Peru for over 10 years and now works with more than 300 in the country. 

“The project since the beginning was to preserve these traditional techniques of textile development and [create] additional work in the whole country. It’s part of our identity and cultural heritage,” says founder Chiara Macchiavello. Macchiavello has since developed a web of workshops within Peru to help train and upskill local artisans. She worked alongside Misión Huascarán, one of the biggest non-profit organisations in the region, to launch the project, Knitting Hope, which now works with over 170 artisans giving them access to workshops as well as training sessions. 

Macchiavello’s team of artisans receive 30-40 per cent in advance payment, she says. Retailers are asked to pay 30 per cent upfront, something Macchiavello has negotiated into her retail partnerships. “It’s adding to our sustainability [efforts]. We cannot expect people in extreme poverty and in rural areas [to] produce and not get anything in advance,” Macchiavello says. “It’s a different mindset and very difficult to make retailers understand, but some of them actually surprisingly have aligned to it and have been able

Walmart Outlines Growth Strategy, Unveils Next Generation Supply Chain at 2023 Investment Community Meeting

TAMPA, Fla., April 4, 2023 — Walmart Inc. (NYSE: WMT) is kicking off its two-day 2023 Investment Community meeting, where leadership will highlight how the company is investing to strengthen its business through its people and an unparalleled, next generation supply chain network of stores, clubs, and fulfillment centers and driving future global growth opportunities across its omnichannel ecosystem and high value initiatives. The company is also reiterating its first quarter and full-year guidance for fiscal year 2024.

“We are in a unique position to serve our customers and members however they want to shop, which will fuel continued growth,” said Doug McMillon, Walmart president and chief executive officer. “As we grow, we will improve our operating margin through productivity advancements and our category and business mix, and drive returns through operating margin expansion and capital prioritization.”

A People-Led, Tech-Powered Omnichannel Retailer

As part of the meeting, the company is highlighting its purpose, unique culture and the importance of its associates and unveiling its plan for a new more connected and automated supply chain which will improve the experience for its customers and associates and simultaneously increase productivity.

Through its extensive work, Walmart is reengineering its supply chain to fulfill customer needs with a more intelligent and connected omnichannel network that is enabled by greater use of data, more intelligent software and automation. The outcome improves in-stock, inventory accuracy and flow whether customers shop in stores, pickup, or have a delivery.

Walmart showcased its supply chain innovation Tuesday at its Brooksville, Fla., regional distribution center, as one piece of how the company is building a scaled system of supply chain capabilities that uses a combination of data, software and robotics. Through automation and state-of-the-art technology, the company illustrated how the increased item storage allows the distribution center to provide a

Canada’s transportation supply chains are near breaking point

Susannah Pierce and Murad Al-Katib: 100 days after task force identified crisis, businesses are still waiting for action from Ottawa

Article content

Just over a hundred days have now passed since the Supply Chain Task Force’s independent report to the federal government indicated that “Canada’s transportation supply chain is nearing its breaking point.” And even though task forces are typically established to urgently address a problem in need of a solution, Canadian businesses are still waiting on concrete action to improve the transportation infrastructure and supply chains that serve as a cornerstone of our economy.

Advertisement 2

STEER Announces a Proposed Transaction for an $18 Million Direct Investment Involving its Digital Restaurant Supply Business (B2B Marketplace)

TORONTO–(BUSINESS WIRE)–STEER Technologies Inc. (“STEER” or the “Company”) (TSXV: STER) (OTCQX: STEEF), an integrated ESG technology platform, is pleased to announce that on January 16, 2023 it entered into a non-binding term sheet (the “Term Sheet”) contemplating the sale (the “Proposed Transaction”) of approximately 37.5% of its digital restaurant supply business (the “Restaurant Supply Business”), which is currently indirectly held through STEER’s wholly-owned subsidiary Food Hwy Canada Inc. (“Food Hwy”), to a syndicate of strategic investors (the “Investor Group”) at a post-money valuation of approximately $48 million.

The Proposed Transaction will be structured by rolling out the Restaurant Supply Business, currently a division of Food Hwy, into a separate newly-formed company (“Newco”) valued at approximately $48 million post-transaction. The Term Sheet contemplates that STEER, Food Hwy and the Investor Group will negotiate and enter into definitive agreements in respect of the Proposed Transaction, pursuant to which it is anticipated that the Investor Group will invest a total of $18 million in cash as part of the Proposed Transaction, with $6 million expected to be received by Food Hwy and $12 million expected to be injected directly into Newco to assist with scaling up operations and growth in regards to the Restaurant Supply Business. Following the completion of the Proposed Transaction, STEER is expected to indirectly retain approximately 62.5% ownership of Newco. It is intended that the $6 million in proceeds that is expected to be received by Food Hwy in connection with the Proposed Transaction will be applied by STEER and Food Hwy to further grow and develop their Subscription-Based and On-Demand service offerings.

It is anticipated that a portion of the financing will come from certain members of the Restaurant Supply