Alibaba and JD.com for the first time did not reveal GMV growth figures for Singles Day, implying that this year the shopping extravaganza was nothing to brag about.
FINANCE
Marks & Spencer (UK) said sales rose 8.8% to £5.6bn in the six months to 1 October but underlying pre-tax profits sank 23.7% to £205.5m. The company’s profits were pulled down by its Ocado online grocery joint venture that fell into the red, as well as holding off passing on cost increases to customers.
- M&S said it was currently trading well, with clothing sales up 4.2%.
- The retailer warned of ‘gathering storm’ with 2023 likely to be more challenging.
Ralph Lauren (USA) reported Q2 net income rose 5% to $1.6 billion. Net sales in Asia rose 17% to $316 million, despite a weaker economy in China. Net income fell 21.7% to $151 million, from $193 million a year ago. Q2 inventory was up 36% compared with last year.
Matchesfashion (UK) warned that in the year to July sales could fall 9.1%. The online luxury retailer said it was at risk of failing to meet its financial obligations in January and may have to turn to discounting.
Warby Parker (USA) reported Q3 revenue rose 8.3% year-on-year to $148.8 million. Losses narrowed to $23.8 million, a 74% improvement over last year.
Tapestry Inc (USA) has lowered its fiscal 2023 revenue forecast to $6.5 billion to $6.6 billion, down from the prior outlook of around $6.9 billion. The company cited weak spending in China as the key obstacle.
What executives are saying, market insights, financial performance – all in our INSIDE FINANCE November report. Read more
RETAIL INSIGHTS
The Charm that Drove Crocs’ Rebound
From blazingly hot to suddenly not, Crocs (USA) managed to do what few brands can achieve, rebounding back to being a ‘cult brand’ – for the second time.
While most brands look to big initiatives to help them turn the tide, Crocs saw an opportunity in something so simple that many would have overlooked it.
Trims and embellishment can turn a simple item (even one that’s fallen from favor) into a must buy. Crocs has proven it. Read More
RETAIL
Nordstrom Rack (USA) is opening five new stores before year end. The retailer has plans to add three more stores in California next year, as well as three more stores in the Pacific Northwest. The stores range in size from 25,000 to 31,000-sq.ft.
Target (USA) is rolling out new larger format stores that will stand at around 150,000 square feet, which would make it roughly 20,000 square feet larger than its average store. This is a shift from its previous focus, which was towards smaller format stores in urban areas.
Primark (UK) has vowed to not raise prices further as customers struggle with the rising cost of living.
Saks Fifth Avenue’s (USA) most recent Saks Luxury Pulse survey of luxury shoppers said 76% of luxury shoppers expect to spend the same or more this holiday season than they did last year. The survey also showed a continued migration back to shopping in stores, but want retailers who offer delivery and pick up options.
- 61%respondents say they will shop for new holiday attire, up significantly from 45% last year.
- 50% of respondents said they plan to attend and/or host a holiday party.
What executives are saying, market insights, store openings, new retail properties – all in our FASHION RETAIL November report. Read more
PODCAST
Earbud that are Revolutionizing Audio Technology
Meet Shea Gerhart, founder and CEO of Buderflys, groundbreaking new earbuds that you can literally wear all day – and even sleep in.
Buderflys are disrupting the earbuds market – by offering an alternative to those often uncomfortable molded plastic earbuds.
Shea realized that while comfort was critical, people also wanted outstanding audio quality. So she designed Buderflys to include state-of-the-art sound (we’re talking music industry professional quality) – and equipped them with Productivity AI Based Hardware. (they’re a must-buy, seriously!)
While Buderflys are currently selling so fast that suppliers can’t keep up with the demand, the road from concept to commercial success was a rollercoaster ride of high highs – and low lows.
You’ll Learn:
- The most challenging part of taking Buderflys from concept to market – and how she overcame this.
- The biggest lesson she learned launching a successful startup.
- What led Shea to develop Buderflys and how she came to disrupting the earbuds sector.
MARKET
Meta (USA) announced that it is cutting 11,000 jobs after a disastrous collapse in revenue.
TikTok (China) has reduced its worldwide revenue targets for 2022 by at least $2 billion.
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