Retailers continue to report strong sales and profits – have bullish forecasts for full year results, despite supply chain challenges.
FINANCE
The Very Group (UK), which owns Very. co.uk and Littlewoods.com, said revenue for the year ended July 3 rose 13% year-on-year to £1.5 billion with sales up in all categories from fashion and sport to home goods and toys.
- Pre-tax profit was up 68.8% year-on-year to £81.7 million.
- The group’s celebrity and designer clothing lines saw sales grow 69.5% in the year to July 3, including 25% growth of its line by actress Michelle Keegan.
VF Corp (USA) reported Q2 revenue from continuing operations increased 23% to $3.2 billion. The Outdoor segment sales rose 31%, while the Active segment saw sales increase 16%. Workwear was up 18%.
- Full year fiscal 2022 revenue is now expected to grow approximately 30% to $12.0 billion.
Hermes (France) reported Q3 revenue rose €2.37 billion, up 31.5% year-on-year and up 40.3% over 2019.
- Growth was driven by strong sales in Greater China, Malaysia, Thailand and Australia.
Zegna Group (Italy) reported a profit for H1 of €32.2 million, compared with a loss of €87.8 million in the same period last year.
- Revenue increased 49.9% to €603.3 million, driven by strong China sales.
Saks Fifth Avenue (USA) e-commerce business is preparing for an IPO.
JD Sports (UK) has purchased 80% of retailer Cosmos Sport (Greece) for an undisclosed fee, expanding its presence in European markets.
Spanx (USA) will sell a majority stake to private equity firm Blackstone (USA), valuing Spanx at $1.2 billion.
- Spanx founder Sara Blakely will serve as Executive Chairman after the acquisition is completed.
PODCAST
RETAIL
58% of US consumers plan to do at least some of their holiday shopping in physical stores, according to a Jones Lang Lasalle (JLL) survey. However the major e-commerce players will still be go-to places for most consumers.
Foot Locker (USA) launched LCKR by Foot Locker, a private label lifestyle apparel brand. The line merges sneaker and sport culture with a focus on style and comfort.
MARKETS
UK inflation is likely to rise ‘close to or even slightly above 5%’ early next year, Huw Pill, the Bank of England’s new chief economist, has warned.
UK retail sales fell 0.2% month-on-month in September, the fifth consecutive month of declines. Analysts question whether higher prices, lack of stock or simply that a surge in buying during the earlier months of the pandemic left consumers with little they needed or wanted now.
The Eurozone recovery is losing momentum with supply chain problems causing prices to hit 20-year highs, according to IHS Markit. While the region is still showing growth, the rate of growth is slowing down.
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