Size matters – as evidenced as brands and retailers continue to report robust 2021 financials, with the bigger players having successfully navigated supply snafus (albeit at a cost).
MARKETS
US retail sales were up 3.8% in January, the largest jump in 10 months (or since March 2021), per the Commerce Department.
Global retail spending grew 9.7% to $26.031 trillion in 2021, according to eMarketer’s Insider Intelligence report.
- In-store sales rebounded by 8.2% last year, to $21.094 trillion, more than was spent in 2019.
- Brick-and-mortar will grow between 2.6% and 3.4% to 2025.
- Physical retail sales ($702.17 billion) will top e-commerce ( $603.68 billion), despite a slower growth rate
A lack of workers in most developed nations is threatening to undermine the economic recovery as companies warn of a ‘critical hiring crisis’.
LUXURY
Kering (France) recorded record sales of $20 billion in 2021, as demand increased for luxury goods. Profits rose 35% year-on-year.
- Gucci saw sales jump 31% from a year earlier to US$11 billion, with profits reaching $4.2 billion, up 42% year-on-year.
Mytheresa (Germany), the online luxury platform, said Q4 sales hit $213 million, up 18.3% year-on-year.
- Profit in the same period was$90 million, up 27.4% year-on-year.
- Mytheresa forecasts sales for the 12 months to June 30 will be $800 million, 56% from the previous year.
- Full year profits are forecast to reach about $300, up 25% from 2020.
Hermès (France) said that sales from its leather-goods division took a hit because the retailer said it couldn’t keep up with demand.
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FINANCE
Walmart (USA) reported Q4 net profit of $3.6 billion, from a loss of $2.9 billion a year ago.
- Revenue rose 0.5% to $152.9 million.
- Supply chain costs were $400 million in higher-than-expected in Q4.
- Full year total revenue rose 2.4% to $572.8 billion. (negatively affected by divestiture costs)
Crocs (USA) reported annual revenue hit a record $2.3 billion, up 67% year-on-year. Q4 reached $586.6 million, up 42.6% year-on-year.
- Despite supply chain issues, operating income rose 219% with operating margin just under 30%.
- In Q1 2022, revenues are forecast t $605 to $630 million, up 31% to 37% over 2021
- Full year 2022 revenue growth for the Crocs brand, excluding HEYDUDE, is expected to exceed 20%.
JD Sports (UK) has raised profit guidance on the back of strong sales – the third increase in five months
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