15 Fashion Companies Boosting Capital Expenditures
1. Michael Kors Holdings
2018 PLANNED CAPEX: $250 MILLION 2017 CAPEX: $120 MILLION
CHANGE: 108%
• The majority of Michael Kors' planned expenditures relate to its retail and e-commerce operations, although it is also spending to enhance its distribution and information systems infrastructure and corporate offices and on new shops-in-shop.
2. Ralph Lauren Corp.
2018 PLANNED CAPEX: $275 MILLION 2017 CAPEX: $162 MILLION
CHANGE: 70%
• Ralph Lauren said in public filings that this year it is spending “primarily on consumer-facing initiatives that have demonstrated a proof of concept and healthy rates of return, including our global store fleet and digital ecosystem.”
3. Target Corp.
2018 PLANNED CAPEX: $3.5 BILLION 2017 CAPEX: $2.53 BILLION
CHANGE: 38% Target is ramping up spending to accelerate store remodels, roll out more small-format doors and to support its supply chain.
4. Macy’s Inc.
2018 PLANNED CAPEX: $1.05 BILLION 2017 CAPEX: $760 MILLION
CHANGE: 38% This year, Macy's capital expenditures will support the growth of its Backstage and Bluemercury concepts, the expansion of store pick-up options, and other store, digital and technological enhancements.
5. The TJX Cos. Inc.
2018 PLANNED CAPEX: $1.4 BILLION 2017 CAPEX: $1.06 BILLION
CHANGE: 32%
• The parent of T.J. Maxx and Marshalls has $800 million earmarked for its offices and distribution centers this year, $400 million for store renovations and another $200 million for new stores.
6. Ross Stores Inc.
2018 PLANNED CAPEX: $475 MILLION 2017 CAPEX: $371 MILLION
CHANGE: 28%
• Off-pricer Ross is planning to spend on new Ross and DD's Discounts stores, relocations, information technology and other areas.
7. PVH Corp.
2018 PLANNED CAPEX: $450 MILLION 2017 CAPEX: $358 MILLION
CHANGE: 26%
• The corporate parent of
Calvin Klein and Tommy Hilfiger attributed some of its spending increase this year to the timing of certain expenditures, but it is also upgrading its supply chain and logistics systems, its digital commerce platforms and renovating and expanding its offices in New York and Amsterdam.
8. Abercrombie & Fitch Co.
• 2018 PLANNED CAPEX: $130 MILLION
2017 CAPEX: $107 MILLION CHANGE: 21% Abercrombie said in public flings that its capital expenditures this year would be “prioritized toward store updates and new stores, as well as direct-to-consumer and omnichannel investments, information technology and other projects.”
9. Tiffany & Co.
2018 PLANNED CAPEX: $280 MILLION 2017 CAPEX: $239 MILLION
CHANGE: 17%
• Tiffany & Co.'s new chief executive officer Alessandro Bogliolo told analysts at the outset of the year that he is pursuing an “evolution” of the brand and would “increase the required investment spending to achieve the sustainable sales and earnings growth that I believe Tiffany is capable of.”
10. Nordstrom Inc.
2018 PLANNED CAPEX: $740 MILLION 2017 CAPEX: $667 MILLION
CHANGE: 11%
• Nordstrom, which gave its spending forecast excluding deferred property incentives, is spending on its New York women's flagship set to open in 2019, as well as the build out of an additional West Coast fulfillment center.
11. Walmart Stores Inc.
2018 PLANNED CAPEX: $11 BILLION 2017 CAPEX: $10.05 BILLION
CHANGE: 9%
• Spending priorities at the world's largest retailer include store remodels and digital experiences in the U.S., new stores and fulfillment internationally and “enhanced supply chain capabilities” in its e-commerce business.
12. Gap Inc.
2018 PLANNED CAPEX: $800 MILLION 2017 CAPEX: $731 MILLION
CHANGE: 9%
• The corporate parent of Gap, Old Navy and Banana Republic is focusing its spending on what it described in a filing as “transformative infrastructure investments to support its omnichannel and digital strategies.”
13. American Eagle Outfitters Inc.
2018 PLANNED CAPEX: $180 TO $190 MILLION
2017 CAPEX: $169 MILLION CHANGE: 7 TO 12%
•
The specialty retailer said capital expenditures this year will be tied to “the continued support of our expansion efforts, stores, information technology upgrades to support growth and investments in e-commerce.”
14. L Brands Inc.
2018 PLANNED CAPEX: $750 MILLION 2017 CAPEX: $707 MILLION
CHANGE: 6%
• The specialty retail pioneer is struggling to reimagine its Victoria's Secret chain but is charging ahead this year, devoting the majority of its spending to new stores and improvements to existing stores.
15. Tailored Brands Inc.
2018 PLANNED CAPEX: $100 MILLION 2017 CAPEX: $95 MILLION
CHANGE: 5%
• Tailored Brands is spending this year to open three stores and relocate eight doors while also refreshing additional locations and investing in computer systems and distribution facilities improvements.