A basket of stocks favored by retail traders (tracked by Goldman Sachs) has fallen 32% in 2022 – more than double the S&P 500’s loss. Traders who entered the market during last year’s market frenzy have lost all of the gains they made, according to Morgan Stanley.
FINANCE
Tapestry (USA) reported net income rose 33.8% to $122.7 million, for Q3 (ended April 12). Sales rose 13% to $1.43 billion.
- Coach’s sales rose 11% to $1.07 billion.
- Kate Spade sales rose 19% to $301.5 million
- Stuart Weitzman sales rose 11% to $63.6 million.
- N. American sales increased 22%, offsetting low double-digit declines in China.
JD Sports Fashion (UK) has reported a 5% rise in like-for-like sales in the current quarter, and expects pre-tax profits to hit £940 million (US$1,153 million) for the previous quarter ended Jan. 29.
ThredUp (USA) losses widened to $20.7 million in the quarter ended Mar. 31, a from loss of $16.2 million a year ago.
- Revenue rose 31% to $72.7 million. Orders reached 1.6 million, up 45%.
- The resale platform had 1.7 million active buyers in the quarter, up 33% year-on-year.
- The company has continued to invest heavily in distribution and processing centers – increasing its capacity 150% by this summer.
Allbirds (USA) reported Q1 net revenue increased 26% year-on-year to $62.8 million and increased 49% compared to the first quarter of 2020.
- Q1 net loss reached $21.9 million from $13.5 million a year ago, despite gross profit increasing 26% to $32.6 million.
- Increased marketing efficiency in its digital channels helped the brand reduce marketing expenses as a percent of sales this quarter.
Dillard’s (USA) reported Q1 sales rose 22% year-on-year to $1.6 billion. Same-store sales were up 23%.
- Net income rose 59% to $251.1 million.
- Retail margins increased to 47.3% of sales, a record high, from 42.6% a year ago.
PODCAST
A New Organizational Model for Speed and Agility
It’s not just remote working or employee resignations or digitization – companies are also realising that their entire corporate structure might no longer serve them as well as it used to.
With this in mind, what might the new organisational best practices look like?
Jay Goldman is CEO of Sensei Labs and New York Times bestselling author of The Decoded Company. He is a recognised expert on the future of work and on ‘enterprise orchestration’ and has spoken at TEDx, Harvard, Google, Twitter and NASA.
In this episode, Jay talks about:
- Why most digital transformations fail.
- How ‘enterprise orchestration’ can help companies align people, processes and technology.
- Why you need to know your own employees better than you know your customers.
RETAIL
US general merchandise unit sales in April were 7% lower than a year ago, creating a 1% decline in sales revenue, according to The NPD Group.
Mango (Spain) has strong expansion plans for the U.S. market, starting with its new 23,000 sq. ft flagship on New York’s Fifth Avenue – its second largest international store.
- Plans to open approximately 30 U.S. stores during the next three years, as well as grow ecommerce.
- Aims to make the US one of its top five markets.
Superdry (UK) has reported soaring in-store sales after the lifting of Covid restrictions, but a sharp fall in online sales.
Allbirds (USA) has signed wholesale deals with Zalando (Germany) and Public Lands (USA), joining a growing group of digital native brands that realize pure DTC has become an uphill battle.
- Physical retail channel sales grew 129% in Q1, and were the company’s biggest driver of growth, the company said during an earnings call.
LEGAL
Nike (USA) is seeking to ramp up a trademark fight with sneaker resale marketplace StockX, asking a New York federal judge to allow it to tack on more claims in the retail giant’s lawsuit accusing StockX of selling non fungible tokens that display Nike’s sneaker designs without permission.
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