Reuters has reported that Walmart has been in talks to sell its unprofitable clothing brands Bonobos and Modcloth. In 2017 Walmart had acquired several clothing brands, including Bonobos and Modcloth in an effort to appeal to younger consumers and compete with Amazon. Last year they also acquired Eloquii to bring in plus-size consumer.
Walmart has been unable to turn all three brands around, and they are interested in cutting costs by first selling Bonobos and Modcloth. Modcloth will likely be sold this year, as reported by Reuters, but for the moment they will retain Bonobos.
Walmart is expecting a 1 billion dollar loss for their e-commerce division this year on revenue of between 21 and 22 billion dollars. Walmart shares were down a percent to 110 dollars and 71 cents this morning.