While overall inflation is starting to decline, food inflation remains high in most key markets – and is the biggest pressure on consumer budgets.
FINANCE
H&M (Sweden) reported Q1 sales rose 12% (3% in local currencies). Operating profits rose 70% for the quarter ended February 28. March sales rose 4% in local currencies.
Lululemon (Canada) reported Q4 revenue rose 30% to $2.771 billion. Net income fell 72% to $119.8 million, from $424.5 million a year ago.
- For the full year Lululemon’s net revenue increased 30% to $8.1 billion.
- Full year net income fell 12.3% to $854.8 million.
Torrid (USA) reported Q4 sales fell 5.5% to $301.2 million. Torrid reported a net loss of $3.8 million, an improvement from last year’s $22.8 million loss.
- Full year sales fell 0.7% to $1.288 billion.
- The retailer expects 2023 sales to remain flat, ranging from $1.265 billion to $1.320 billion.
Scotch & Soda (Netherlands) is being purchased by Bluestar Alliance (USA) from current owner Sun Capital, just a week after the Dutch brand filed for bankruptcy protection. Bluestar Alliance owns brands such as Bebe, Justice and Hurley.
Next (UK) announced that it has agreed to acquire Cath Kidston’s parent CK Acquisitions Ltd.from the administrators for consideration of $10.45 million.
Alibaba Group Holding (China) plans to split its business into 6 units and pursue public listings for 5 of them. These groups are Cloud Intelligence Group, Taobao Tmall Commerce Group, Local Service Group, Cainiao Smart Logistics, Global Digital Commerce Group and Digital Media and Entertainment Group.
- Each group will have its own CEO and board of directors.
- The goal is greater agility and unlock value, per Daniel Zhang, Alibaba CEO.
Bed Bath & Beyond (USA) reported preliminary Q4 sales fell 41% to approximately $1.2 billion.
It once again warned that it would fall into bankruptcy if it was unable to raise the remainder of the funds from its February $1 billion stock offering. The retailer said it had so far raised $360 million, repaid its loan defaults and made all interest payments for senior notes.
PODCAST
The Critical Role That Stores Play in Driving Sales – especially with Gen Z
Physical stores are suddenly getting renewed respect, but many brands still see e-commerce as the key to connecting with Gen Z and even younger Millennials.
But others argue that shopping is a social activity that is a fundamental part of most consumers’ lives. And that Gen Z and younger Millennials seek experiences, creating a huge opportunity for physical stores.
In this podcast Ian Scott, a leading retail consultant with over 20 years experience working with top brands including Lego, Coca-Cola, Estee Lauder, Dyson, P&G and many others, talks about reaching younger consumers in stores – and even malls.
You’ll Learn:
- The disconnect between what the experience retailers think consumers want and what consumers actually want.
- How to create an engaging retail experience – even if you’re not selling ‘celebrity’ products.
- Whether greater investment in new technology is the way forward retail?
RETAIL
Torrid (USA) is planning to open 30-40 new stores in the US this year. The plus size retailer said it expects to accelerate store openings in the coming years.
True Religion (USA) said it will expand into China in partnership with Aurorae Group (owns EVISU Group). The brand plans to open 65 freestanding stores and shop-in-shops by 2026, with a target of a total of 108 locations by 2028.
MARKETS
Germany’s most prominent leading indicator, the Ifo index, increased for the sixth month in a row, coming in at 93.3 in March from 91.1 in February. It was bolstered by lower fuel costs and the reopening of China.
The Conference Board measure of US consumer confidence strengthened in March, rising to 104.2, despite banking worries. The present situation index dropped from 153 to 151.1 while expectations rose from 70.4 to 73.0.
- Stronger consumer confidence is believed to reflect lower fuel prices, a tight labor market and rising wages.
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