The shift to occasion-based apparel “will last a considerable amount of time measured in years, not in months or seasons.” – Richard Hayne, CEO, Urban Outfitters during the Q2 earnings call.
FINANCE
PVH Corp (USA) reported Q2 revenue fell 8% year-on-year to $2.1 billion. Net income fell 36.6% to $115.3 million.
- Wholesale fell 11%, Tommy Hilfiger down 5%, Calvin Klein fell 1% and Heritage Brands dropped 44%.
- The company is focusing on its PVH+ plan – a five-year strategy that is focused on Calvin Klein and Tommy Hilfiger and relies on digital sales growth.
- PVH has lowered its 2022 guidance with revenues expected to decline 4% to 3% year-on-year.
- The company said it will cut 10% of its global staff.
Burlington (USA) said Q2 total sales fell 10% year-on-year to $1.98 billion. Net income fell 88% to $12 million. Same-store sales fell 17%.
- The company attributed the quarter’s poor performance to higher costs and greater challenges sourcing products. Other off-price retailers, including Ross Stores and TJX, seemed to manage the same challenges more successfully.
Lululemon (Canada) said Q2 total revenue increased 29% year-on-year to $1.9 billion. This followed 32% growth shown in Q1.
- Net income rose 38.9% year-on-year to $289 million.
- Direct-to-consumer revenue increased 30% to $775.4 million and accounted for 41.5% of total net revenue.
Chico’s FAS (USA) reported Q2 net sales rose 18% to $ $558.7 million. Net income rose 60% to $42 million.
Express (USA) said Q2 net income fell 33.5% to $7.04 million. Net sales rose 1.6% to $464.9 million.
- The retailer said that “modern tailoring” in men’s and women’s continued their resurgence.
PODCAST
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LEADERSHIP
3 Key Steps to Building Your Personal ‘Leadership Brand’
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MARKET
The British pound plunged to a fresh two-year low against the dollar amid the aggressive approach to raising rates being taken by the US Federal Reserve.
Eurozone consumer price inflation surged to a record high of 9.1% in August amid warnings that interest rates will need to reach 3% to contain Europe’s energy crisis.
In the U.S., The Conference Board’s Consumer Confidence Index increased in August to 103.2, up from 95.3 in July. The increase followed three months of consecutive declines.
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