Predictions last year that the Fed’s rate hikes would push the U.S. into a recession by this time have not been realized.
- Q3 GDP growth exceeded forecasters’ expectations.
- GDP growth was largely due to a 4% surge in consumer spending, also the largest since the last three months of 2021.
- The job market still favors workers, which has continued to push up wages.
FINANCE
Amazon (USA) reported Q3 revenue grew 13% to $143.1 billion. Profits more than trebled, to $9.9 billion. Amazon said spending at its online stores had grown by 6%.
Hermes (France) reported Q3 sales rose 15.6% to €3.36 billion. This is a sharp slowdown from the 27.5% growth in Q2 and the 23% growth in Q1.
Puma (Germany) reported Q3 sales rose 6% to € 2,311 million. Net income fell 9.6% to € 132 million. Inventory levels are down 20% from a year ago.
Mavi (Turkey) reported H1 consolidated revenue rose 104% to $300 million. Net profit rose 62% to $40.4 million.
Fast Retailing (Japan) reported total sales rose 20% to 2.7 trillion yen ($18.1 billion) for the year ended August 2023. Sales at its overseas Uniqlo business reached 1.4 trillion yen, exceeding 50% of overall sales for the first time. Operating profit came in at 381 billion yen, up 28%.
- Net profit rose 8% to a record 296 billion yen for the full year, a turnaround from the July forecast of lower profits. This was mainly due to higher Uniqlo sales in China.
Ermenegildo Zegna (Italy) reported Q3 revenue rose 20.8% to 431 million euros ($457.85 million). The company saw double-digit growth in all geographic regions.
Skechers (USA) reported Q3 sales rose 8% to $2 billion, a new record high. International sales increased 9%, representing approximately 61% of total sales, while domestic sales increased 7%. Earnings from operations rose 64% to $213.2 million.
PODCAST
SEO Mistakes that Cost Companies Money
The early days of e-commerce was all about key words and being top ranked in Google searches.
As dynamic new marketing options were rolled out, SEO found itself out of sight, out of mind.
However online marketing experts are now saying that by overlooking this core part of the digital ecosystem, companies could be leaving money on the table.
In this podcast Jules White, founder of Success Hub, talks about how a few SEO tweaks can get your brand in front of people who are searching for what you are selling.
You’ll learn:
- The critical reason why everyone should get the SEO right for their website.
- Key areas that sites need to optimize for better search results.
- What companies misunderstand about how to optimize their website in a competitive market.
MARKET INSIGHTS
Why Fortune Might Be Favoring Mainstream Brands
Luxury’s reign as retail’s ‘golden child’ looks to be losing its shine.
The market conditions that are taking the wind out of luxury brands’ sails might be the silver lining in the dark clouds that have hung over most of the retail industry this year.
That could open up a window of opportunity for mainstream and mass market brands to pick up market share – particularly from consumers who previously shopped ‘affordable luxury’. Read more
Intimate Apparel Trends | AW 2024-25
The top Intimate Apparel directions for Autumn/Winter 2024-25
MARKETS
UK interest rates will remain at 5.25% when the Bank of England’s monetary policy committee meets next Thursday, according to latest forecasts.
After two relatively steady months, the Michigan Consumer Sentiment Index fell in October to 63.8, down from September’s 67.9.
- Consumer expectations of inflation could prompt the Federal Reserve to keep interest rates high.
The widely held view amongst economists surveyed by Bloomberg is that the US Federal Reserve will leave interest rates unchanged at 5.25-5.50% for the second consecutive meeting despite 3Q GDP growth coming in hot, the jobs market remaining tight and inflation remaining well above the 2% target.
Consumer spending pushed the U.S. GDP up 4.9% in the third quarter, per the Bureau of Economic Analysis. However data is showing that real incomes are falling, which means weaker consumer spending ahead, per ING Bank.
Spanish GDP grew 0.3% quarter-on-quarter in the third quarter, according to figures released this morning by Spain’s statistical service INE. This is a cooling off from the first half of the year. Still, the nation’s economy is considered to be more buoyant than the rest of the eurozone, per ING Bank.
Best Selling Fabric Directions for AW 2024-25
New fabric developments are giving brands an opportunity to elevate their collections – and create apparel that consumers want to buy!
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