Consumers continue to spend, despite rising inflation.
FINANCE
Boohoo’s (UK) a growing number of investors have bet against (shorted) the online retailer as consumers begin to return to high street shopping. Shares in Boohoo have hit their lowest level in more than three years.
- Rival Missguided is also facing financial pressure.
Frasers Group (UK) saw six-month profits jump 70.3% year-on-year, buoyed by the strong reopening of stores after lockdown, its new Flannels stores and online growth.
- Profits reached £143.7 million in the half year to October 24.
- Revenues surged 27.6% to £2.34 billion.
- Strongest performance was in the group’s premium lifestyle brands where sales rose by 33.6% to £427.9 million.
Stitch Fix (USA) reported net revenue rose 19% year-on-year to $581 million for Q1 fiscal 2022 ending October 30. The company had a net loss of $1.8 million.
- Active clients: Active clients of 4,180,000, up 11% year-on-year.
- Net revenue per active client reached $524, up 12% year-on-year.
- Forecasted net revenue for Q2 (ending Jan 29, 2022) is $505-$520 million, 0-3% year-on-year growth.
Lululemon (Canada) reported Q3 net revenue increased 30% to $1.5 billion.
- Comparable store sales increased 32%.
- Income from operations increased 26% to $257.9 million.
- Direct to consumer net revenue was 40.4% of total net revenue, down from 42.8% a year ago.
- Q4 net revenue is forecast to be in the range of $2.12 billion to $2.16 billion.
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Rent the Runway (USA) reported a Q3 net loss of $87.8 million, almost double its net loss of $44.3 million a year ago. Losses were attributed to one time charges from its October IPO.
- Q3 revenue increased 66% year-on-year to $59 million.
- The company had 116,833 active subscribers at the end of Q3, up 78% from 2020, but 23% below pre-Covid figures.
- Q4 revenue is forecast to be in the range of $62.8 million to $63.3 million.
Dr Martens (UK) will raise prices by £10 a pair (to £159 a pair) next summer, citing increases in the price of raw materials and transport.
- The company reported a 16% rise in sales to £370 million in the six months to September 30.
- Pretax profits increased by 46% to £61.3 million.
Quiz (UK) reported six month revenues reached £36 million, twice as high as a year earlier as renewed demand for ‘occasion and dress products’ surged.
- The company reported a £1.3 million loss during the period compared with a profit of £10.6 million last year.
Torrid (USA) reported Q3 net sales rose 13% year-on-year to $306.2 million. Sales were up 19% over 2019.
- The retailer attributed a $58.9 million net loss, from last year’s $4.3 million net income, to IPO-related tax expense.
- Same-store sales rose 14% year-on-year and 18% from 2019.
MARKETS
US consumer prices increased at the fastest pace in nearly 40 years in November. This did not seem to deter consumers from spending.
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