Times have changed for startups. What worked before won’t work now.
- Series A and Series B funding is extremely tough.
- No exits. The best you get is to hire the people after the business goes under.
- M&A terms are much tougher. Investors don’t have any leverage.
Startups now have only one path: Build a real business – with real revenue and real customers, per Manu Kumar at K9 Ventures.
FINANCE
Crocs (USA) reported Q3 consolidated revenues rose 6.2% to $1,045.7 million. Operating income rose 3.7% to $273.9 million. Net income rose 4.7% to $177 million.
- Crocs expects Q4 revenue to decline approximately 1% to 4% compared to Q4 2022.
Next Plc (UK) has increased its full-year profit guidance for the fourth time in six months despite the warm weather putting off shoppers.
- Profit before tax has been raised £10 million ($12 million) to £885 million ($1.1 billion)
- Full-price sales rose 4% from August through October, £23 million ($28 million) ahead of its previous expectations.
Asos (UK) has warned sales will continue to fall by as much as 15% in the year ahead. The retailer’s delayed results revealed a near-£300 million ($371 million) annual loss.
VF Corp (USA) reported Q2 revenue fell 2% to $30 billion. North Face sales rose 19%, but sales for Vans fell 21%. The company’s operating revenue was $362.9 million compared to a loss last year. However net loss worsened to $450.7 million from $118.4 million a year ago.
Rocky Brands (USA) reported Q3 net sales fell 14.8% to $125.6 million. However, operating income increased 22.8% to $14.3 million and net income increased 20.0% to $6.8 million.
Etsy (USA) reported Q3 revenue rose 7% to $636.3 million. Net income was $87.9 million, compared to a net loss of $963.1 million a year ago.
Frasers Group (UK) has sold the Missguided brand and intellectual property rights to Shein for an undisclosed sum, just over a year after it bought the online fashion retailer.
PODCAST
The Secret to Building a Successful Brand Story
One of the biggest marketing tactics these days is to create a brand story.
But how do you do that when you are selling basics, commodities – or something you can’t even touch or feel, like services?
In this podcast Chauncy Zalkin, an expert in building brand stories for companies ranging from fashion to SaaS software and real estate, talks about uncovering your brand story.
You’ll Learn:
- How to discover the story within your brand.
- Why the way a brand makes people feel is the key to customer retention.
- The importance of focus – especially in a crowded, noisy market.
MARKET INSIGHTS
Music Tour Merch Becomes a Category
Consumers are spending literally billions of dollars to attend music tours. Despite economic headwinds, this year’s biggest tours set new records for revenue earned.
However it’s not only ticket sales that are making bank. The micro economies that have evolved around these events is driving sales of a wide range of products – including fashion!
From fan wear to occasion dressing, there are growing opportunities for savvy brands. Read more
FABRIC SOURCING
Garment suppliers make debut as next week’s Intertextile Shenzhen draws nearly 1,500 exhibitors
The apparel textile fair’s first-ever inclusion of key garment manufacturers is set to open a new avenue for buyers amidst positive forecasts for China’s clothing sector.
With the entire value chain now set to come together in the Greater Bay Area, exhibitors from 16 countries and regions will showcase a blend of innovational and traditional textiles for this sourcing season’s curtain call. Taking place from 6 – 8 November across Halls 9 – 12 (75,000 sqm gross) at Shenzhen World Exhibition and Convention Center, well-represented product categories include ladieswear, accessories, functional and sportswear, casualwear, suiting and shirting, denim, and more.
Meanwhile, under the categories Design and Trend, Market Information and Business Strategies, and Sustainability Issues, multiple fringe events will provide cutting-edge insights to fairgoers from across the apparel spectrum. Read more
MARKETS
German exports disappointed again and dropped by 2.4% month-on-month in September. Exports remain stuck in the twilight zone between recession and stagnation, per ING Banks.
The Bank of England has warned that the economy will be on the brink of recession and signalled it intends to keep interest rates high for an extended period to tackle stubborn inflationary pressures.
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