November 24, 2024
Discounters saw single digit revenue gains, and profits have held up for most. However, margin pressure is intense. The sweet spot is in higher end, niche brands – as demonstrated by Amer Sports impressive growth in both revenue and net income.
FINANCE
Gap (USA) reported Q3 net sales rose 2% to $3.8 billion. Operating income rose 42% to $355 million. Gap brand sales rose 3%, Banana Republic fell 1%, Athleta rose 5%, and Old Navy sales were flat.
Walmart (USA) reported Q3 consolidated revenue rose 5.5% to $169.6 billion. Operating income rose 8.2% to $6.7 billion.
Amer Sport (Finland) reported Q3 sales rose 17% to $1.35 billion. Net income increased 257% to $56 million
Ross Stores (USA) reported Q3 revenue rose 4% to $5.1 billion. Net income rose 9.4% to $489 million. During the first nine months of the year, same-store sales were up 3%.
Target (USA) reported Q3 revenue rose 1.1% to $25.7 billion. Operating income fell 11.2% to $1.2 billion. Operating margin fell to 4.6%, from 5.2% a year ago.
Boohoo (UK) reported H1 sales fell 15% to £620 million ($787 billion). Pre-tax losses quadrupled to £147.3 million ($187 million), as did increased return rates and discounting activity to reduce inventory levels.
Asos (UK) has been accused of rewarding its chief executive for ‘spectacular failure’ after giving him a £300,000 ($381,000) pay rise even as the online fast-fashion retailer cut jobs and recorded widening losses. Asos’s shares have fallen 90% from their peak in the spring of 2021 and down 60% from June 2022 when José Antonio Ramos Calamonte was appointed CEO.
THIS MONTH
This month Prof. Calvin Wong, CEO of AidLab, talks about how AI could impact the apparel and textile industry. He shares some of the models his lab is working on that have practical application for industry.
Find out how AI will help make the industry more resilient – and become an important tool that supports people, instead of replacing them. Read more
PODCAST
When companies are looking to cut costs and customer service is typically the first department to get hit.
Yet customer service might be the key to growing your business – particularly in highly competitive markets.
In this episode Greg Rich, CEO of Vivantio, a company that uses automation to help companies leverage customer service to scale their business, talks about why service can be a powerful sales tool.
You’ll Learn
MARKETS
Output in the US economy rose to a 31-month high after the election of Donald Trump and his pledges of tax cuts, tariffs and deregulation.
Consumer confidence among UK households rose across the board in November, reversing the falls in sentiment recorded before the budget.
Opportunities & Offers
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