Yahoo Finance SAP's Fashion Management App Ropes in Major Retail Clients
Less than a week before its fourth-quarter earnings release, some enterprising news pour in for enterprise application software provider SAP SE SAP, as the firm recently got selected by leading companies for its Fashion Management application. Its latest retail clients include Brooks Brothers, The Rockport Group and V.F. Corporation .
Launched in early 2014, SAP’s Fashion Management application has successfully integrated wholesale, retail and manufacturing processes for its clients within a single back-office software system. Two-century old renowned retailer Brook Brothers has selected SAP’s SAP Apparel and Footwear application, SAP Customer Relationship Management and SAP Customer Activity Repository applications. The retailer believes that these applications will significantly improve quality and personal service, help better management of inventory and financials, and provide meaningful insights on consumer behavior.
Leveraging the competence of its next-generation business suite SAP HANA platform, the latest edition of SAP Fashion Management will be hugely conducive toward improving the operational performance of apparel and footwear companies. Moreover, the latest edition of SAP Fashion Management incorporates manufacturing capabilities, thus adding to its commercial appeal. Other key benefits offered by the upgraded application include efficient planning of multi-channel material requirement and order allocation with an option for simulation.
SAP is gaining increasing popularity among fashion companies which are vertically integrated with multiple sales channels as it helps them operate through a singular unit. The company has already gained 25 big customers around the globe, with the latest additions only bolstering its client base. With cut-throat competition in the retail domain, we believe an increasing number of consumer and apparel companies will likely join the fashion management bandwagon to outshine peers; and this is expected to boost SAP’s profitability.
With fourth-quarter earnings season round the corner, SAP’s recently released preliminary results are sure to enhance investors’s euphoria. As per these results, the quarterly revenues are expected to rise 16% year over year to €6.35 billion ($6.95 billion), fueled by exceptional momentum in SAP’s core license business. Also, adjusted operating profit for the quarter is projected to rise 7% year over year to €2.28 billion ($2.5 billion). The preliminary results come ahead of SAP’s scheduled earnings release on Jan 22.
SAP currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the industry include ACI Worldwide, Inc. ACIW, Autodesk, Inc. ADSK and Avid Technology, Inc. AVID. All three stocks sport a Zacks Rank #1 (Strong Buy).
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