SAN FRANCISCO — Stitch Fix (NASDAQ: SFIX) has reported a net revenue of $490.4 million, an increase of 10 percent year-over-year, for the first quarter of fiscal year 2021, which ended Oct. 31. The online personal styling service reports that new clients have grown dramatically during the pandemic. The company has nearly 3.8 million active clients, an increase of 347,000, or 10 percent year-over-year, and 241,000 new clients quarter-over-quarter. The company reported a slight decrease of 4 percent year-over-year of net revenue per active client, which totals $467. “This quarter we are proud to have achieved several multi-year highs, including our highest sequential client addition on record,” says Katrina Lake, founder and CEO. According to the company’s shareholder letter, it aims to deliver between 20 percent and 25 percent growth for the full fiscal year. The company delivers clothing personalization services to clients through a combination of data science and human judgement. Since its founding in 2011, the company has helped millions of people discover and purchase apparel, shoes and accessories curated by Stitch Fix stylists and algorithms.
HOUSTON — Francesca’s, the Houston-based apparel and accessories chain for women, has filed for Chapter 11 bankruptcy and will close an additional 97 stores across the country, according to documents filed in the U.S. Bankruptcy Court for the District of Delaware. Francesca’s had previously announced in mid-November that it would be closing 140 stores, or roughly 20 percent of its total count, and possibly pursuing a Chapter 11 bankruptcy declaration. According to CNBC, Francesca’s has received a buyout offer from Los Angeles-based TerraMar Capital and hopes to close a sale by late January.
DALLAS — RETS Associates, a California-based company that specializes in matching real estate companies with qualified talent, has opened a new office in Dallas. The firm has tapped Chase Fryhover as director of the new office, which is located at 5420 Lyndon B. Johnson Freeway in the Galleria area. Fryhover will focus on recruiting for entry to mid-level positions in the Dallas market. RETS Associates also has offices in Charlotte, Chicago, Denver and Phoenix.
PLANO, TEXAS — At Home Group Inc. (NYSE: HOME) reported a 47.5 percent increase in net sales for its third fiscal quarter that ended on Oct. 24 relative to its fiscal third quarter in 2019. At Home has now achieved 21.5 percent growth in net sales on a year-to-date basis. The Plano-based home improvement retailer also reported $47.1 million in net income for its third quarter, a substantial increase from the $14.6 million net loss posted in the third quarter of 2019. The company currently operates 219 stores in 40 states. In a call with shareholders, At Home CEO Lee Bird noted the company was currently enjoying its lowest leverage ratio since going public. In addition, Bird said that At Home’s “real estate opportunities are only getting stronger,” and that the company had “the potential to grow our store base nearly three times larger.” At Home’s stock price opened at $18.86 per share on Thursday, Dec. 3, up from $8.24 per share a year ago.
SAN FRANCISCO — On Tuesday, Dec. 1, San Francisco-based Airbnb filed an updated S-1 with the U.S. Securities and Exchange Commission ahead of its planned initial public offering (IPO) filing on Dec. 9. The home-rental platform, along with some shareholders, plans to offer 51.9 million shares at $44 to $50 in its IPO, creating a valuation of up to $35 billion, an $4 billion increase from its private valuation of $31 billion. The 13-year-old company has experienced growth since its founding with gross booking value (GBV) topping $38 billion in 2019, representing a 29 percent growth from $29.4 billion in 2018. However, during the first nine months of 2020, Airbnb was impacted by the global COVID-19 pandemic with GBV falling to $18 billion, down 39 percent year over year, and $2.5 billion in revenue, down 32 percent year over year. Through the combination of consolidating its workforce and a surge in rentals, the company has begun to see a 1 percent uptick in bookings between second- and third-quarter 2020, resulting $1.3 billion in third-quarter revenue, down 18 percent from the same period in 2019. Morgan Stanley, Goldman Sachs Group, Allen & Co., Bank of America Corp., Barclays Plc and Citigroup …
NEW YORK CITY AND MAHWAH, N.J. — Premium Apparel LLC, an affiliate of New York City-based private equity firm Sycamore Partners, has entered into an agreement to purchase multiple clothing brands from Mahwah-based Ascena Retail Group (OTCMKTS: ASNAQ) for $540 million. The apparel and footwear brands in question include Ann Taylor, LOFT, Lane Bryant and Lou & Grey. Under the terms of the deal, which is expected to close by mid-December, Premium Apparel will acquire the brands on a cash-free and debt-free basis. Premium Apparel did not specify how many of brick-and-mortar stores will be affected by the transaction, but the new ownership did say that it remains committed to retaining a “substantial portion” of stores and employees affiliated with these brands. “Ann Taylor, LOFT, Lane Bryant and Lou & Grey are well-known brands, each with passionate associates and loyal customers,” says Stefan Kaluzny, managing director of Sycamore Partners. “These brands have significant potential, and we are excited about the opportunity to partner with Ascena’s talented team to continue delivering new and relevant experiences for customers.” Ascena Retail Group, which operated about 1,500 stores throughout the country as of late August, filed for Chapter 11 bankruptcy in July. In September, …
WASHINGTON, D.C. — CoStar Group has entered into an agreement to acquire Homesnap Inc. for $250 million. Homesnap is an online and mobile software platform designed for real estate agents. According to CoStar, more than 300,000 real estate agents use the app an average of 30 times per month. Andy Florance, founder and president of CoStar, says the Washington, D.C.-based data firm will expand Homesnap’s residential platform to commercial brokers. Homesnap, also based in D.C., employs about 150 people. The transaction is expected to close by the end of the year. CoStar expects the acquisition to quadruple the number of users on its platform from 100,000 to 400,000 members. The sale will also nearly double the number of property listings from 1.4 million to more than 2.6 million.
Dick’s Sporting Goods Reports 23.2 Percent Third-Quarter Sales Increase, Announces Leadership Change
PITTSBURGH — Dick’s Sporting Goods (NYSE: DKS) reported a 23.2 percent increase in same-store sales for its fiscal third quarter that ended on Oct. 31, the company’s best performance in same-store sales since going public nearly two decades ago. In addition, the Pittsburgh-based retailer saw its e-commerce sales rise by 95 percent relative to the third quarter of 2019, ending the period with roughly $1.1 billion in cash. Net income for the third quarter stood at approximately $177 million, a healthy 67 percent increase from the $57.5 million in net income reported in the third quarter of last year. Dick’s Sporting Goods also announced that as of Feb. 1, 2021, chairman and CEO Edward Stack will assume the role of executive chairman. Lauren Hobart will be the new president and CEO under the long-term succession plan. The company’s stock price opened at $58.74 per share on Tuesday, up from $40.41 per share a year ago.
WESTLAKE VILLAGE, CALIF. — Musical instrument retailer Guitar Center has filed for Chapter 11 bankruptcy protection with the U.S. Bankruptcy Court for the Eastern District of Virginia. The Westlake Village-based company did not announce plans to close any of its 297 stores, but it has retained A&G Real Estate Partners to explore opportunities for its real estate portfolio. In court filings, Guitar Center cited its business of instrument purchases, rentals, repairs and music lessons suffered amid the upheaval stemming from government-mandated shutdowns in response to the COVID-19 pandemic, according to The New York Times. Approximately 75 percent of its stores were shuttered at one point in the spring. Additionally, the company cited its “significant debt burden” in the court filings. In addition to Guitar Center stores, the company operates four sister brands: Music & Arts, Musician’s Friend, Woodwind & Brasswind and AVDG. Music & Arts, a Maryland-based chain that Guitar Center acquired in 2005, operates 200 stores and 300 affiliate locations that provide band and orchestra instruments and equipment for sale or rentals. Musician’s Friend, which Guitar Center acquired in 1999, is a direct marketer of musical instruments. Likewise Woodwind & Brasswind is a catalogue musical instrument merchant with a …
NEW YORK CITY — Private equity firm Regis Group and funds managed by Los Angeles-based Ares Management Corp. (NYSE: ARES) have formed Haven Capital, an entity that will specialize in the origination of ground leases for high-quality assets across the country. Structured as a joint venture between the two firms, Haven Capital aims to capitalize on ground-lease investments in the top 50 U.S. markets with an initial capacity of $1 billion. Company founders cited the attractiveness of ground leases in separating land and buildings while reducing equity requirements and total costs of capital as a major incentive behind the formation of Haven Capital. Joe Shanley, a former vice president at SL Green, will lead the company.