A growing number of economists are saying that inflation in the U.S. and Europe has peaked (or will do so soon) – and could fall faster than expected, especially if consumer demand weakens.
FINANCE
Gap (USA) reported a Q1 loss of $162 million, compared to net income of $166 million a year ago. The decline was pinned on Old Navy, Gap’s biggest division, where net sales fell 19% to $1.8 billion.
- The company’s net revenue fell 13% to $3.48 billion, as both in-store and online sales declined.
- Operating loss was $197 million in the quarter, versus an operating profit of $240 million a year ago.
- Banana Republic reported net sales rose 24% to $482 million, same-store sales jumped 24% – driven by a return to work wear and occasion wear.
- Athleta’s net sales rose 4% to 4% to $360 million, while same-store sales fell 7%.
The company now expects fiscal 2022 revenue to decline in the low to mid-single digit range versus last year.
Lululemon (Canada) reported Q1 net revenue increased 32% to $1.6 billion, with direct-to-consumer sales accounting for 45% of sales.
- Net income rose 31% year-on-year to $190 million.
- The company now expects fiscal 2022 sales in a range of $7.61 billion to $7.71 billion, up from its prior forecast of $7.49 billion to $7.62 billion.
Lululemon has recently added a golf collection and plans to expand into the hiking category next.
Designer Brands (USA) reported Q1 net income rose 54% to $26.2 million. Net sales rose 18.1% to $830.5 million, beating analysts estimates. The company attributes its growth in net income to seizing more direct-to-consumer opportunities.
Levi’s (USA) told investors that it’s aiming for $9 billion to $10 billion in revenue by 2027, a 6-8 percent increase from current figures.
- The company wants to boost DTC to 55% of net revenue in the next 5 years.
PODCAST
How Multicultural Organizations Can Help Team Members Speak Up
One of the biggest challenges leaders face when managing multicultural organisations is getting everyone on the team to be engaged and to participate.
So how do we help our more introverted team members speak up – especially when English might not be their native language?
In this podcast episode Heather Hansen, Global Communication Consultant and author of “Unmuted: How to Show Up, Speak Up and Inspire Action” shares easy-to-implement tips for building team engagement.
In this episode you’ll learn:
- What leaders overlook when trying to build more participation from their multicultural teams.
- How CEOs and C Suite Leaders can encourage a culture of open listening.
- How to develop ‘unmuted’ leaders and organisations.
MARKETS
Inflation in the U.S. is now believed to have peaked at 8.6% in March. It is expected to peak in the UK in Q2 and in the Eurozone in Q3 and continue to fall through the end of 2023, say multiple analysts
YOU MIGHT HAVE MISSED THESE ARTICLES
Why Wholesale is Still Critical for Most Brands
Is Shein Unstoppable – and What Could Slow It Down?
Practical Reasons Why Mfgs Resist IIoT
Festivals are Big Opportunities for Merch Sales
Why DTC Brands are Heading to Malls
How Brands Can Ride the Wave as Retail Rebounds
Southeast Asia is the Newest Ecommerce Hotspot
Why Every Brand Needs an ‘Amazon Plan’
