Week in Review

March 12, 2022

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Week in Review | Mar. 13, 2022

Retail in key markets remained strong in January and February. March could see softer sales as consumer confidence weakens in the face of inflation and geopolitical events.

FINANCE

Express (USA) reported Q4 net sales rose 38% year-on-year to $594.9 million. Net income reached $7.6 million, from a $53.3 million loss last year.

E-commerce grew 33% year-on-year and is expected to reach $1 billion by 2024.
The company plans to open more of its smaller Express Edit stores in high-traffic locations, with product assortments tailored to neighborhoods.

Marks & Spencer (UK) has bought a stake in The Sports Edit (UK), which stocks clothing from Adidas and Nike, as well as Free People Movement.

Stitch Fix (USA) reported Q2 net revenue rose 3% year-on-year to $517 million. Revenue per active client rose 18% to a record $549.

Freestyle sales rose 29%.
Net loss widened to $31 million from $21 million a year ago.
Stitch Fix lowered its revenue guidance for the year.

Rihanna (USA) is believed to be working with advisers on an IPO that could value her Savage X Fenty lingerie company at $3 billion or more.

PODCAST

Green Energy is the Future. Here’s What It Could Look Like

The dual goals of cleaning up the environment and potentially lowering energy prices has put renewable energy in the spotlight.

But can we really harness enough wind, solar, hydro and other green energy sources to replace fossil fuels? And if so, what will it take to achieve this?

In this podcast Carolina Torres, Executive Director of Energy Industry Transformation at Cognite, shares an insider’s view of:

What she sees as the biggest barrier to renewables going mass market.
A key difference between fossil fuels and renewable energy.
Why we need to take a totally new approach to how we analyze data.
What might be coming next for the energy sector.

🎧 Listen to the podcast

RETAIL

Kohl’s (USA) plans to transition from a department store to a lifestyle concept, execs said during an investor’s call.

Open 100 small format stores tailored to local markets.
Expand active and athleisure merchandise.
Grow Sephora footprint from 200 to 850 by next year targeting $2 billion in sales.
Leveraging third-party data.

Target (USA) is looking to add 250 more Ulta beauty shop-in-shops this year.

Fabletics (USA) will open 30 new stores this year, bringing its international brick-and-mortar store count to 100+.

MARKETS

US apparel store sales were up 37.6% year-on-year in January and 34.3% from 2019. Department store sales rose 26.3% year-on-year and 3.4% from 2019, according to Mastercard Spending Pulse.

The Visa U.S. Spending Momentum Index (SMI) was 109.3 in February (seasonally adjusted), up from 102.4 in January. (when the Visa SMI rises above 100, the consumer spending momentum is strengthening)

A key driver was consumers returning to offices (even if part time) and shopping for smart casual apparel.
The fastest growth was in consumers aged 65+.

UK non-food retail sales rose 6.7% in February, despite falling consumer confidence, according to the British Retail Consortium.

Clothing and footwear categories witnessed the highest growth, most double digits in February as restrictions were lifted and consumers re-stocked wardrobes, according to KPMG.

US inflation surged again last month to a new 40-year high of 7.9%, propelled by surging costs for gas, food and housing.

Even before the war further accelerated price increases, robust consumer spending, solid pay raises and persistent supply shortages had sent US consumer inflation soaring.
Economists predict inflation will keep rising – in the short term – reaching well above 8% in March.
Analysts expect inflation to peak in March, retreating to around 3% by year-end.
For most Americans, inflation is running ahead of recent pay raises, which rose 4.5% in Q4 2021.