December 07, 2024
Just a week past Black Friday and a growing number of retailers are already warning that Q4 sales could be weaker than expected.
For the holiday quarter, American Eagle Outfitters (USA) sees revenue down 4%, below estimates, which includes “a roughly $85 million impact from the combination of the retail calendar shift and one less selling week.”
Why? The holiday season is one week shorter this year, with Black Friday falling on November 29th (it was Nov. 24th last year).
Hmm… Does fewer shopping days mean that people will spend less? Or will they purchase everything on their list anyway, and perhaps rely more on e-commerce?
FINANCE
Lululemon (Canada) reported Q3 net revenue rose 9% to $2.4 billion. Same-store sales were up 4%. Income from operations increased 45% to $490.7 million. Same-store sales fell 2% in the Americas, but rose 25% in international markets.
Five Below (USA) reported Q3 net sales rose 14.6% to $843.7 million. Same-store sales increased 0.6%. Operating loss was $0.6 million compared to operating income of $16.1 million a year ago. Net income fell to $1.7 million from $14.6 million a year ago. The retailer opened 82 new stores in Q3.
American Eagle Outfitters (USA) reported Q3 net revenue fell 1% to $1.3 billion. Same-store sales rose 3%. Operating income fell 15% to $106 million. Operating margin shrank to 8.2% from 9.6% a year earlier. Net income fell 17.5% to $80 million.
Foot Locker (USA) reported Q3 sales fell 1.4% to $1,958 million, however same-store sales rose 2.4%. Net loss was $33 million, compared with net income of $28 million a year ago, impacted by a $38 million impairment charge.
Citi Trends (USA) reported Q3 sales fell 0.3% to $179.1 million. Same-store sales rose 5.7%. Net loss rose to $7.2 million from $3.9 million a year ago.
Victoria’s Secret (USA) reported Q3 sales rose 7% to $1.347 billion. Same-store sales rose 3%. Net loss was reduced to $56 million, from $71 million a year ago. Operating loss was $47 million.
Dollar Tree (USA) reported Q3 sales increased 3.5% to $7.6 billion. Operating income rose 14% to $343 million. The retailer has opened 567 new stores this year.
THIS MONTH
This month Jennifer Patton, Sourcing Director, Coppel Dept Store, talks about how Coppel built a wildly successful retail business by solving one fundamental problem for customers.
She also discusses the strategic sourcing model the company uses to source innovative products across a vast range of categories. Read more
PODCAST
The years of companies staffing up as they sprinted towards what they believed was going to be years of strong growth – have reversed course.
That’s led to an increasing number of layoffs during the past two years with a sharp focus on downsizing headquarters and R&D departments – in other words mid-career or late-career white collar jobs.
So what can you do when you find yourself on the ‘other side of the desk’? Where do you start when you haven’t looked for a job since you left school? And what opportunities are there for older people in an age that seems to be fixated on youth?
In the podcast Richard Tiggs, CEO of Arete Executive discusses how senior execs can find their next role.
You’ll Learn
– Where to look for ‘hidden’ opportunities
– How to position yourself as a ‘must hire’ executive
– Why more companies are open to hiring older talent
MARKETS
Unemployment in the US rose unexpectedly to 4.2% in November, which paves the way for the Federal Reserve to cut interest rates before Christmas.
Germany’s industrial production shrank 1.% in October, fuelling fears of a winter recession in Europe’s biggest economy, per ING Bank. Analysts had predicted a 1.2% rise.
The European Central Bank (ECB) looks to be weighing whether to cut rates by 25bp or by 50bp at this week’s meeting.
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