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The Nordstrom store is pictured in Broomfield, Colorado, February 23, 2017.REUTERS/Rick Wilking Acquire Licensing RightsNov 21 (Reuters) - Nordstrom (JWN.N) missed Wall Street targets for third-quarter revenue on Tuesday as sticky inflation pressured consumer spending in the months leading up to the all-important holiday shopping season. "The consumer is phasing out their shopping ... they are shopping cheque to cheque," Jane Hali & Associates senior analyst Jessica Ramirez said. Nordstrom executives said in a post-earnings call that the active, beauty and accessories segments were leading sales growth. "They did not do as much discounting as expected, but that may have hurt the top-line sales ... especially at Nordstrom," said Morningstar analyst David Swartz. Best Buy and Kohl's had trimmed their annual sales expectations to account for difficult-to-predict consumer demand in an uncertain economy, but Nordstrom maintained its forecast.

Persons: Rick Wilking, Jane Hali, Jessica Ramirez, David Swartz, Nordstrom, Ananya Mariam Rajesh, Devika Organizations: Nordstrom, REUTERS, Associates, Thomson Locations: Broomfield , Colorado, Nordstrom, Bengaluru

The Gap logo is seen on the front of the company's store in Paris, France, July 1, 2021. If current gains hold, shares will have nearly doubled since late July after the former Mattel (MAT.O) executive was appointed to revive the once sought-after brand. Gap's third-quarter earnings release Thursday showed significant inventory destocking, even as its holiday-season forecast disappointed. However, Gap joined other retailers in sounding a cautious note on spending, heading into the all-important shopping season. Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Shinjini Ganguli and Sriraj KalluvilaOur Standards: The Thomson Reuters Trust Principles.

Persons: Sarah Meyssonnier, Richard Dickson, Dickson, David Swartz, Swartz, Katrina O'Connell, Gap, Ananya Mariam Rajesh, Shinjini Ganguli Organizations: REUTERS, Mattel, Gap's Old Navy, Morningstar, Navy, Walmart, Banana Republic, Thomson Locations: Paris, France, Bengaluru

LSEG Workspace, a financial news and data platform, calculated inventory turnover ratios of 30 major U.S. retailers for Reuters. "I am relatively pessimistic about the holiday season," said Gerald Storch, retail consultant and former Target vice chairman and ex-CEO of Hudson's Bay. Department stores' holiday season is "likely not going to be that strong," said David Swartz, a Morningstar analyst. Reuters Graphics Reuters GraphicsTo be sure, inventory turnover is not the only metric Wall Street investors use to judge retailers' inventory levels. Some are already slashing prices and dangling discounts to clear excess inventory before Black Friday, the start of holiday shopping season.

Persons: King, King of Prussia, Sarah Silbiger, Gerald Storch, Jeff Bornino, David Swartz, Ulta, pare, Jason Benowitz, Joseph Feldman, Jane Hali, Nordstrom, Brian Mulberry, Savyata Mishra, Ananya Mariam Rajesh, Richa Naidu, Siddharth Cavale, Aishwarya Venugopal, Rod Nickel Organizations: REUTERS, Dollar, Walmart, Reuters, North America, Kroger, Department, Morningstar, TJX Companies, Dick's Sporting, Reuters Graphics Reuters, Roosevelt, Telsey Advisory, Research, Associates, Nordstrom, Zacks Investment Management, Thomson Locations: King of, King, King of Prussia , Pennsylvania, U.S, Hudson's, North

☆ Nike shares jump on leaner inventory, better margins outlook
▼ + stars: | 2023-09-29 | by ( Savyata Mishra | ) www.reuters.com time to read: +2 min

People visit the Nike store at 5th Avenue during the holiday season in New York City, U.S., December 9, 2022. The company had turned to steep discounting to clear the excess inventory, which had weighed on its margins in the past few quarters. Nike on Thursday estimated a 100 basis point boost to current-quarter gross margin while maintaining its annual forecasts. The jump also lifted shares of Adidas, Puma and JD Sports (JD.L) between 5%-7%. Still, demand in North America remained under pressure, leading Nike to post a slight miss on first-quarter revenue.

Persons: Eduardo Munoz, Drake MacFarlane, David Swartz, Simeon Siegel, Piper Sandler, Abbie Zvejnieks, Savyata Mishra, Deborah Sophia, Sriraj Organizations: Nike, REUTERS, Science, Rivals, Adidas, Puma, Morningstar, BMO, JD Sports, Dick's Sporting, Thomson Locations: New York City, U.S, China, North America, Bengaluru

In the past year, clothing retailers have sought to clear excess stock that had piled up due to a shift in consumer demand to essentials from discretionary items like clothing. But with fourth-quarter temperatures expected to start off warm, according to weather tracking firm Weather Trends International, stores carrying winter styles and gear could find themselves loaded with inventory at the end of the season. European company Pepco Group (PCOP.WA) also noted that the landing of its autumn and winter clothing inventory had coincided with persistent record-warm weather in its core Central and Eastern European markets. In the United States, temperatures could rise by 2 to 12 degrees Fahrenheit on average in the October-December period compared with last year, according to Weather Trends International. Abercrombie & Fitch (ANF.N) also said there was strong demand for "seasonless products" in the second quarter, particularly in the men's category, as customers picked out year-round clothing items and styles.

Persons: Helena Helmersson, Andy Bond, Bill Kirk, Clodagh, David Swartz, Robert Woods, Kristen D'Arcy, Abercrombie, Simon Wolfson, Ananya Mariam Rajesh, James Davey, Helen Reid, Matthew Lewis Organizations: Reuters, Pepco, Amazon.com, REUTERS, Walmart, Dick's Sporting, Costco Wholesale, Morningstar Research, Vision Brands, Fitch, Thomson Locations: United States, Europe, Cos, Eastern, Grafton, Dublin, Ireland, outerwear, Bengaluru, London

[1/2] A jogger wearing Nike shoes runs along the Charles River in Cambridge, Massachusetts, U.S., March 18, 2019. Nike has also experienced competition from other sneaker brands, including Deckers' (DECK.N) Hoka, On Running (ONON.N) and French-owned sports retailer Salomon, as shoppers gravitate toward "performance" shoes. Nike CEO John Donahoe said the company would turn its attention to "prioritizing the everyday runner" and connecting with shoppers in more channels, including specialty running stores. The company posted total revenue of $12.94 billion in the quarter, missing analysts' estimates of $12.98 billion. Nike reported a profit of $1.45 billion, or 94 cents per share, beating estimates of 75 cents per share.

Persons: Charles, Brian Snyder, Matthew Friend, Friend, Jordan, Salomon, Dylan Dittrich, John Donahoe, David Swartz, Deborah Sophia, Katherine Masters, Shounak Dasgupta, Jamie Freed Organizations: Nike, REUTERS, Air, Jordan, Insights, Morningstar, Thomson Locations: Cambridge , Massachusetts, U.S, Kobe, Bengaluru, New York

☆ Adidas up 6% after trimming 2023 loss forecast on strong Yeezy inventory sales
▼ + stars: | 2023-07-25 | by ( Jenni Reid | ) www.cnbc.com time to read: +2 min

A fashion week guest seen wearing red Adidas yeezy shoes, outside paul and joe during London Fashion Week September 2022 on September 17, 2022 in London. German sportswear giant Adidas on Monday said it expects a significantly smaller operating loss for the year after recording better-than-expected early sales of its Yeezy stock, which it is offloading after cutting ties with collection creator Ye. The company also reported a slight outperformance in the underlying Adidas business and said it still expects underlying operating profit, excluding one-offs related to Yeezy and a wider ongoing strategic review, to roughly break even for the year. "If successful, potential future Yeezy drops would further improve the company's results," Adidas said in a statement, refering to further releases of existing inventory. That left the question of what the company would do with its existing Yeezy stock.

Persons: paul, Ye, David Swartz Organizations: Adidas, London, Defamation League, Keeta Floyd Institute for Social Locations: London, €

At least seven analysts trimmed their fiscal 2024 expectations for Nike's earnings per share since the beginning of June and 10 slashed their price targets on the company's stock, ahead of its fourth-quarter results. "Coming into this current calendar year ... wholesale orders are weak at the moment," said Morningstar analyst David Swartz, adding that declines in these orders will have a negative impact on Nike. Reuters GraphicsTHE CONTEXTIn March, Nike warned of earnings pressure amid its attempts to get rid of excess inventory through heavy discounts. In May, retailer Foot Locker, which has touted its 'renewed' relationship with Nike, also flagged declining sales, particularly for fashion-oriented sneakers. Barclays analysts noted Nike could see "moderation, and potentially negative, wholesale channel growth" in the fourth quarter.

Persons: David Swartz, Jane Hali, Jessica Ramirez, Kanye, Ananya Mariam Rajesh, Krishna Chandra Organizations: Nike, Wall, Associates, Adidas, Jordan Retro, LeBron, Nike Brand, Barclays, Reuters, Refinitiv, Thomson Locations: United States, China, Bengaluru

☆ Nordstrom delivers surprise profit as inventory woes ease
▼ + stars: | 2023-05-31 | by ( Deborah Mary Sophia | ) www.reuters.com time to read: +2 min

May 31 (Reuters) - Nordstrom Inc (JWN.N) posted a surprise first-quarter profit on Wednesday as better inventory control and demand from wealthy shoppers helped the company defy an inflation-driven slump in retail spending, sending its shares up 7% after hours. While quarterly sales at Rack fell 11.9%, Nordstrom said trends improved later in the quarter and have continued into May. The company's inventories decreased 7.8% at quarter-end, while gross margin improved 110 basis points, partly due to easing cost pressures. Total quarterly revenue at Nordstrom fell about 11% to $3.18 billion, but surpassed analysts' average estimate of $3.12 billion, according to Refinitiv IBES data. Excluding items, it reported a per-share profit of 7 cents, compared with estimates for a loss of 13 cents.

Persons: they're, Erik Nordstrom, Nordstrom, It's, it's, Morningstar, David Swartz, Deborah Sophia, Devika Organizations: Nordstrom Inc, Abercrombie, Fitch, Target Corp, Home Depot Inc, Nordstrom, Thomson Locations: Bengaluru

Nike said its apparel inventory fell in the third quarter and expects to end fiscal 2023 with "healthy" inventory levels. Sales in Greater China fell about 8% even as the country eased pandemic-related restrictions, which is expected to benefit the company in the near term. Nike now expects reported revenue for the full year to increase in the high-single-digit range, compared with its previous forecast of growth in the mid single digits. In the fourth quarter, the company expects flat to low-single-digit revenue growth, compared with estimates of a 2.42% rise, according to IBES data from Refinitiv. Nike posted revenue of $12.39 billion in the third quarter beating estimates of $11.47 billion and reported a profit of 79 cents per share above estimates of 55 cents.

☆ Under Armour names Marriott veteran Linnartz as CEO to boost e-commerce
▼ + stars: | 2022-12-21 | by ( Ananya Mariam Rajesh | ) www.reuters.com time to read: +2 min

[1/2] Stephanie Linnartz, President of Marriott International speaks at the 2022 Milken Institute Global Conference in Beverly Hills, California, U.S., May 4, 2022. REUTERS/Mike BlakeDec 21 (Reuters) - Under Armour Inc (UAA.N) on Wednesday named veteran hotelier Stephanie Linnartz as its chief executive, betting that her experience in e-commerce and branding strategy will help revive sales at the apparel maker. Linnartz currently serves as president of Marriott International Inc (MAR.O) and has been with the hotel chain operator in various roles for the last 25 years. Interim CEO Colin Browne will resume his responsibilities as chief operating officer, Under Armour said in a statement. Linnartz will receive a base salary of $1.3 million per year and a one-time sign-on cash bonus of $375,000.

☆ Nike beats estimates boosted by discounts, promotions; shares surge
▼ + stars: | 2022-12-21 | by ( Ananya Mariam Rajesh | ) www.reuters.com time to read: +3 min

Shares in the world's largest sportswear maker surged 13% in after-market trading. Steeper discounts and increased promotions to reduce excess inventory through the quarter helped the Beaverton, Oregon-based company boost sales and attract recession-wary customers. Nike posted a profit of 85 cents per share in the second quarter ended November, topping an average estimate of 64 cents, according to Refinitiv data. Swartz said the China business was showing signs of improvement since the Chinese government had relaxed curbs. Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Anil D'Silva, Sayantani Ghosh and Rashmi AichOur Standards: The Thomson Reuters Trust Principles.

☆ Nike results boosted by discounts, promotions; shares surge
▼ + stars: | 2022-12-20 | by ( Ananya Mariam Rajesh | ) www.reuters.com time to read: +2 min

Shares in the world's largest sportswear maker surged 13% in after-market trading. Steeper discounts and increased promotions to reduce excess inventory through the quarter helped the Beaverton, Oregon-based company boost sales and attract recession-wary customers. A profit of 85 cents per share for the second quarter ended November topped estimates of 64 cents, per Refinitiv data. Gross margins decreased 300 basis points to 42.9%, while net income for the reported quarter was flat on a year-over-year basis. Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Anil D'SilvaOur Standards: The Thomson Reuters Trust Principles.

☆ Adidas considered its relationship with Kanye West a risk as early as 2018, new reports show. Here's the nine-year timeline of Adidas and Yeezy's turbulent partnership.
▼ + stars: | 2022-11-29 | by ( Matthew Kish | Danni Santana | ) www.businessinsider.com time to read: +5 min

Adidas announced an endorsement deal with Kanye West in November 2013. By 2019, Adidas sales of his Yeezy brand eclipsed $1 billion annually. Across the company, sales were flat. But that same month, Adidas announced a partnership with Kanye West, the polarizing musician and fashion designer, now known as Ye. Despite the turbulence, Adidas Yeezy sales continued to grow.

☆ Adidas employees raised concerns about Ye's conduct for years, report says
▼ + stars: | 2022-11-27 | by ( Ashley Capoot | ) www.cnbc.com time to read: +2 min

The presentation included a number of mitigation strategies that included cutting ties with the Yeezy creator, the report said. During one meeting in September of this year, the report said, Ye accused Adidas executives of stealing his designs and showed them a clip of an adult video. A month later, Adidas announced that it is investigating accusations made by staff relating to Ye's conduct after an anonymous letter alleged years of abuse. Some of them had raised concerns about Ye to leaders and human resources at Adidas as far back as 2018. "It is currently not clear whether the accusations made in an anonymous letter are true," Adidas said in a statement Thursday.

☆ Fear is mounting that slumping retail earnings may fall lower still
▼ + stars: | 2022-11-17 | by ( Bob Pisani | ) www.cnbc.com time to read: +3 min

Another leg down for retail earnings? But it doesn't negate the main story for retailers this year: earnings estimates have been coming down hard since the summer. Beginning in June and July, analysts began aggressively cutting retail earnings estimates for the all-important holiday season. The assumption: the Fed's aggressive rate hikes would, by the end of the year, significantly slow consumer spending and likely start a recession. Indeed, yesterday's retail sales numbers were strong, and other recent reports by Mastercard also indicate the consumer is strong.

☆ Kanye West's Turbulent 9-Year History With Adidas
▼ + stars: | 2022-11-09 | by ( Matthew Kish | Danni Santana | ) www.businessinsider.com time to read: +4 min

Adidas announced an endorsement deal with Kanye West in November 2013. By 2019, Adidas sales of his Yeezy brand eclipsed $1 billion annually. In November 2013, Adidas sales in North America, the most critical territory for sportswear sales, were down 1% for the year. But that same month, Adidas announced a partnership with Kanye West, the polarizing musician and fashion designer, now known as Ye. Despite the turbulence, Adidas Yeezy sales continued to grow.

☆ Kanye West's unsold Yeezy merchandise: Where will it all go?
▼ + stars: | 2022-10-27 | by ( Parija Kavilanz | ) edition.cnn.com time to read: +4 min

New York CNNBusiness —Yeezy merchandise has no place to go. So where will the mounting glut of Yeezy products — sneakers, sweatshirts, sweatpants, jackets, T-shirts, bags — wind up? Morningstar analyst David Swartz said Gap will probably have to destroy or otherwise dispose of — perhaps through donations — its unsold Yeezy merchandise. Environmental impactThe options for dealing with unsold Yeezy gear pose big challenges. “Exporting it looks to be the last and final best solution to make Yeezy products disappear,” said Flickinger.

☆ Adidas expects to lose $246 million in profit this year after cutting ties with Kanye West
▼ + stars: | 2022-10-26 | by ( Grace Dean | ) www.businessinsider.com time to read: +3 min

Adidas expects to lose $246 million in profit by the end of the year after cutting ties with Ye. Baird estimates Yeezy generated $1.7 billion in annual revenues for Adidas, or 8% of its 2021 total. Forbes estimates that the loss of the partnership would tank Ye's net worth by around $1.5 billion. The company reported net profit of 1.49 billion euros ($1.5 billion) in 2021. Forbes estimates that the loss of the partnership would tank Ye's net worth down from $1.9 billion to $400 million.

☆ Adidas just yanked its deal with Kanye West. Here's how much of a hit his net worth might take.
▼ + stars: | 2022-10-25 | by ( Samantha Delouya | ) www.businessinsider.com time to read: +3 min

Now that Adidas yanked its deal, experts expect West's fortune to take a hit of hundreds of millions of dollars. One analyst warns West won't be able to restart his shoe brand so easily because Adidas owns Yeezy's designs. Now that the deal is terminated, experts estimate West's net worth will take a massive hit. Forbes estimates that ending the partnership with Adidas whacks West's fortune down to $400 million from $1.5 billion. Still, Swartz said restarting the shoe brand will be challenging for West as Adidas legally owns Yeezy's designs.

☆ Talent agency CAA drops Ye, as film studio MRC ditches documentary because of his antisemitic remarks
▼ + stars: | 2022-10-24 | by ( Jessica Golden | ) www.cnbc.com time to read: +3 min

Kanye West attends the Givenchy Womenswear Spring/Summer 2023 show as part of Paris Fashion Week on October 02, 2022 in Paris, France. Major Hollywood talent agency CAA on Monday dropped Ye, also known as Kanye West, as the rapper and business mogul faces intensifying criticism over his recent antisemitic remarks. The film studio MRC also said it was dropping a documentary about the artist. The moves come as athletic apparel maker Adidas faces growing calls to end its relationship with Ye. At least three legal organizations have written letters to the German company to cut ties with Ye due to his recent antisemitic comments.

☆ Anti-Defamation League urges Adidas to sever ties with Ye's Yeezy
▼ + stars: | 2022-10-20 | by ( Jessica Golden | ) www.cnbc.com time to read: +3 min

The Anti-Defamation League is urging Adidas to sever ties with Ye, calling out his recent hateful comments in a letter to Adidas CEO Kasper Rorsted and Chair Thomas Rabe. In the interim, though, the retailer said it would "continue to co-manage the current product" from Ye's Yeezy brand, according to an Oct. 6 statement. In recent days, Ye's comments have escalated to include threatening and hateful comments about Jewish people. The ADL complied a list of what it deemed harmful recent comments by Ye. Morningstar analyst David Swartz estimates Yeezy sales for Adidas to be around $2 billion annually, potentially making up 10% of Adidas's total sales.

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