How Next Built One of Retail’s Most Profitable Models
Disciplined inventory control, a capital-light platform and margin-first retailing are
Earnings
Adidas (Germany) reported Q4 sales rose 24% to €5.96 million ($6.2 million). For the full year revenue rose 11% to 23.7 million euros ($24.7 million). Operating profit rose to €1.34 billion ($1.4 billion) for 2024, up from €268 million ($277 million) in 2023.
Puma (Germany) reported Q4 sales rose 9.8% to € 2,289 million ($2,380 million). Preliminary full-year sales grew 4.4% to € 8,817 million ($9,170 million). EBIT was flat year-on-year, while net income fell to € 282 million ($293 million) from € 305 million ($317 million) a year ago.
Primark (UK) reported Q1 2025 total sales rose 2% over the 16 weeks to Jan. 4, helped by new store openings. However, like-for-like sales fell 1.9% during the quarter. This is the first time same-store sales have fallen since the pandemic lockdowns, as the company said its low-income shoppers had been hit by economic worries. The group said it was now targeting “low-single digit” sales growth in 2025 for Primark, having previously forecast “mid single digit” growth.
Burberry (UK) reported Q3 sales fell 7% to £659 million ($830 million). Same-store sales fell 4%, with APAC sales down 9%, EMEIA (-2) and Americas (+4%). Burberry recorded a 4% drop in sales over the Christmas quarter, but expects to recover from losses made in the first half of its financial year after a strong performance in the US.
Markets
Disciplined inventory control, a capital-light platform and margin-first retailing are
Brands wrapped up 2025 with stronger-than-expected earnings. However there are
Higher oil and energy costs are expected to squeeze discretionary
A fragile revenue recovery is facing pressure from tariffs, higher
In uncertain markets, heritage brands are rediscovering that reputation, craft,
Asia and South America are driving retail expansion, but success