In a signal that we might finally be seeing the back of the pandemic, Peloton (USA) the at home fitness darling of 2020 and early 2021 revenue grew just 6% over last year, missing targets, and sales for its bikes and treadmills also fell 17% annually. It cut its annual revenue forecast by up to $1 billion.
People might opt to work from home, but prefer to workout elsewhere.
RETAIL
Uniqlo (Japan) opened a global flagship store in Beijing this week, a key step in its aggressive expansion strategy in China that aims to open 100 stores a year. Currently, Uniqlo has 850 stores in China.
Psycho Bunny (USA), the digital native menswear brand, is targeting at least 16 new store openings this year, part of the brand’s ongoing brick-and-mortar expansion.
Francesca’s (USA) is rolling out its tween brand Franki as a standalone brand with its own website.
Matchesfashion (UK), an online luxury retailer, has sounded the alarm over its ability to operate in its current form after being battered by Covid.
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FINANCE
Hanesbrands (USA) announced Q3 net sales rose 6% year-on-year from continuing operations to $1.79 billion. Excluding PPE, net sales rose 18% year-on-year.
- Global Champion brand sales increase more than 33% year-on-year and 20% over third- quarter 2019
- U.S. Innerwear sales increase 12% year-on-year , excluding PPE, and 25% over third-quarter 2019
Ralph Lauren (USA) reported Q2 2022 net revenue rose 26% year-on-year to $1.5 billion, but was down 11.8% from 2019. Net income reached $193 million, up from a loss of $39.1 million a year ago.
- Europe and North America showed strong growth.
- Wholesale rose 31.4% year-on-year to $569 million, but fell from $688.8 million in 2019.
- The brand is expected to open 90 new stores this year.
Centric Brands (USA) and WHP Global (USA) have teamed up to buy the Joe’s Jeans brand, previously owned by Sequential Brands group. The U.S. Bankruptcy Court for the District Of Delaware has approved the sale for $48.5 million in cash and assumed liabilities, according to court documents.
Next (UK) surpassed analyst expectations with a 17% rise in Q3 sales compared to 2019 pre-pandemic levels.
- The retailer maintained its sales guidance at 10% growth for Q4, with full-year profit before tax at £800 million, a 6.9% year-on-year increase.
- Next warned of problems ahead including diminishing demand, rising inflation and supply chain issues.
- Debt has also fallen by 45.2% over the period to £610 million.
Peak Sport Products (China) has raised nearly 1.5 billion yuan ($232 million) in a strategic investment led by CR Capital Management, as the company has reportedly planned an initial public offering on a domestic stock exchange.
Allbirds (USA) hit the ground running when it made its stock market debut this week, with its shares rising by as much as 95% in New York.
Lululemon (Canada) is being chided for having claimed nearly $1 million of furlough cash during the pandemic, despite outperforming analysts’ profit forecast – and predicting exceed expectations for full year 2021.
MARKETS
UK business confidence fell in October 43% (from 46% in September), but was still at its second-highest level since the start of the pandemic, according to the latest Lloyds Bank Business Barometer.
- Despite supply chain challenges, rising energy costs and staff shortages, firms’ own annual trading outlook was down by only one point to 42%.
The U.S. Federal Reserve said it will begin scaling back its massive $120 billion monthly bond-buying programme this month, a critical milestone for a US economy that is recovering from the pandemic and contending with surging inflation.
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