Walmart (NYSE:WMT) is selling its apparel brand Bonobos to WHP Global and fashion apparel retailer Express (NYSE:EXPR) for $75 million. The deal price reflects a steep discount, as Walmart acquired Bonobos for $310 million in 2017.
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Per the terms of the deal, WHP will buy the Bonobos brand for $50 million. Meanwhile, Express will acquire Bonobos’s operating assets and related liabilities for $25 million.
Notably, the world’s largest retailer scooped up several apparel and fashion brands, including Bonobos, to expand its online business. However, most of its acquisitions to expand its offerings flopped as Walmart sold them at a discount.
Before the sale of Bonobos, Walmart offloaded outdoor retailer Moosejaw to Dick’s Sporting Goods (NYSE:DKS). Earlier, it sold the women’s clothing company ModCloth.
Notably, Walmart is focusing on driving efficiency and accelerating growth. Apart from selling and exiting non-core businesses and brands, the company recently closed its four stores in Chicago. Walmart stated that the Chicago stores have not been profitable.
Through its supply chain innovation, Walmart expects to achieve unit cost improvements. The retailer expects an improvement of about 20% in its unit cost averages, which will cushion its bottom line.
While the company focuses on improving efficiency and accelerating its growth, let’s check what analysts recommend for Walmart stock.
Is Walmart Stock a Buy or Sell?
Wall Street is bullish about WMT stock. Walmart has a Strong Buy consensus rating on TipRanks based on 24 Buy and six Hold recommendations. Analysts’ average price target of $164.70 implies 10.17% upside potential.
