These Three Retailers Are Doing It Right
Retail, one of today’s most troubled industries, makes headlines on a weekly basis. The crisis is so alarming that major news outlets have coined the epidemic of failing industry giants as the “Retail Apocalypse.” And yet, in such bleak circumstances, some retailers are not only surviving, but generally thriving.
Just as data shows slowing payment trends, stock market volatility, declining assets, and decreasing trade payables, it can also show an uptick in working capital, improving sales, and the construction of new stores -- indicators of a company in good health. Looking at several factors, rather than just one financial indicator like stock price or payment history, provides a more comprehensive evaluation of the overall health of a company. Looking at the retailers who are doing well in these unstable times provides financial professionals with valuable insight.
We’ve rounded up retailers across the major markets and highlighted which financial indicators place them on our list of those that are financially stable.
Foot Locker, Inc.
Foot Locker, Inc. is a giant in the athletic shoe business. The retailer’s brick and mortar store space increased by 60,000 square feet over the past year, and its first quarter held steady in the middle of a difficult retail environment, despite a recent fall in stock pricing.
Working capital tallied at $2.09 billion compared to $2.02 billion at the end of the same period last year, an increase of 3.27%. Though well below projected outcomes, sales for the quarter increased 0.7% from $1.99 billion to $2.00 billion. Current stock prices have fallen to around $45 per share, but other financial indicators still point to stability for the athletic apparel company.
Foot Locker Inc.’s FRISK® score is a 10, the highest score on the 1 (worst) to 10 (best) scale.
Bijou Brigitte modische Accessoires AG
German jewelry company Bijou Brigitte is known for its vast selection of costume and fashion jewelry. Opening 14 new stores in the past six months, Bijou Brigitte is a steadfast force in a volatile climate.
Profit and income continue to increase from one period to the next for Bijou Brigitte, with gross profit up 3.57% from €140.04 million to €145.03 million. Net income rose from €17.72 million to €19.53 million, an increase of over 10%. As is the pattern with retailers doing well, Bijou Brigitte boasts a high credit score and has a best possible 10 on the FRISK® scale.
WORKMAN CO., LTD.
This Japanese company operates franchises that sell work apparel, family apparel, and casual wear. Its first quarter was filled with good news.
First quarter sales increased by 6.39% from ¥10.95 billion to ¥11.65 billion. The gross profit margin of ¥4.11 billion was an increase of 9.77% over the ¥3.74 billion in the same period last year. Additionally, working capital saw an increase of 5.79% from ¥34.16 billion to ¥36.14 billion.
Just like the companies listed above., WORKMAN CO., LTD. has positive credit score. The company’s FRISK® score currently sits at a 10.
Public company financial data provides rich insight into patterns that determine a company’s propensity toward success or failure. For instance, Sears Holdings continues to make timely payments to its suppliers, but the company is closing doors left and right, which makes a closer look into other financial markers like net income and working capital necessary. Robust financial data and analysis helps credit professionals like you map out a blueprint so you can easily determine who to exclude from your portfolio and, equally as important, who to include in your portfolio.
CreditRiskMonitor is a financial news and analysis service designed to help professionals stay ahead of public company risk quickly, accurately and cost-effectively. More than 35% of the Fortune 1000, plus thousands more worldwide, rely on our commercial credit reporting and predictive risk analytics for assessing the financial stability of more than 56,000 global public companies.
At the core of CreditRiskMonitor’s service is its 96%-accurate FRISK® score, which is formulated to predict public company bankruptcy risk. One of four key components calculated in the FRISK® score is crowdsourced subscriber activity. This unique system tracks subscribers' patterns of research activity, capturing and aggregating the real-time concerns of what are essentially the key gatekeepers of corporate credit. Other features of CreditRiskMonitor’s service include timely news alerts, the Altman Z”-Score, agency ratings, financial ratios and trends. CreditRiskMonitor’s network of trade contributors provides more than $140 billion in trade data on their counterparties every month, giving them visibility into their biggest dollar risks.