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Gulden said Adidas was still deciding what to do with its stock of unsold Yeezy footwear. One option could be for Adidas to donate proceeds from the sale of repurposed Yeezy stock to charity, Gulden said. REUTERS/Shannon Stapleton 1 2 3The split cost Adidas 600 million euros ($632 million) in sales in the fourth quarter of 2022, and Yeezy shoes would have brought in an estimated $1.2 billion in revenue this year. Inventories came in at just under 6 billion euros at the end of December, up 49% from the previous year, including 400 million euros of Yeezy products. That, along with $200 million of one-off costs, would bring Adidas to a $700 million loss this year.

☆ Walmart will derive more profit from services, ad sales in next 5 years -CFO
▼ + stars: | 2023-03-07 | by ( ) www.reuters.com time to read: +3 min

"Today, the vast majority of our overall profits are attributable to in-store brick-and-mortar in the U.S.," John David Rainey, Walmart's CFO, said at a Raymond James Conference. Services, such as fees Walmart collects from third-party sellers on Walmart.com, the cut it gets if Walmart fulfills those orders to shoppers and the dollars that advertisers spend through Walmart's growing retail media business, are the higher-margin, faster-growing parts of Walmart's business, Rainey said. Most recently, Amazon disclosed $11.6 billion in revenue from its ad business in the fourth quarter. The business has grown rapidly since then, with sales rising nearly 30% to $2.7 billion in its fiscal year ended Jan. 31. In the fourth quarter, ad sales rose 41% year-over-year, the company said last month.

☆ Target fends off holiday gloom with discounts, warns on 2023 earnings
▼ + stars: | 2023-02-28 | by ( Uday Sampath Kumar | ) www.reuters.com time to read: +2 min

The big-box retailer forecast full-year earnings of $7.75 to $8.75 per share, below analysts' estimates of $9.23, according to Refinitiv data. The company's comparable sales in the quarter ended in Jan. 28 rose 0.7%, while analysts had expected a 1.5% fall. Target in November had forecast fourth-quarter comparable sales to fall by about a low single-digit percentage, saying it was a witnessing a "precipitous decline" in discretionary demand. Excluding items, Target earned $1.89 per share in the fourth quarter, beating estimates of $1.40 per share. The company said it expects full-year comparable sales in a wide range from a low-single digit decline to a low-single digit increase.

NEW YORK, Feb 28 (Reuters) - Retailers have a new sweet spot: products that cost $3 to $5. Target said on Tuesday that it would be stocking its shelves with more products priced under $10 as the retailer tries to appeal to more cost-conscious consumers dealing with once-in-a-generation inflation. This comes a little more than a year after dollar store chain Dollar Tree (DLTR.O) said it would launch more discretionary products including seasonal items and apparel priced between the $3 and $5. Many, including high-income households, are buying more store-label brands as budgets stretch in the face of higher interest rates. Target said it plans to launch or expand more than 10 owned brands, adding thousands of new products.

REUTERS/Dado Ruvic/Illustration/File PhotoFeb 16 (Reuters) - Walmart Inc's (WMT.N) results on Tuesday will provide Wall Street with new details on what items American shoppers are buying as rising grocery prices squeeze their wallets. In December, Walmart CEO Doug McMillon said "we do not like" that some suppliers were hinting at raising prices further in 2023. He warned that Walmart would allocate space to private and tertiary brands if prices got too high. KitKat maker Nestle on Thursday said further price hikes were necessary to offset commodity costs. Still, Wall Street expects Walmart sales and revenue to rise in 2023 as its shipping and logistics costs moderate, even as labor expenses go up.

Younger shoppers snapping up its sweatshirts, knitwear and Polo line of products also drove results beat at luxury peer Ralph Lauren Corp (RL.N). "The Coach brand has done a lot of work to reposition itself as a premium brand that appeals to a younger consumer," Raymond James analyst Rick Patel said. "Tapestry appears to be executing better for its Coach brand than Capri is for Michael Kors," Patel added. Net revenue at Ralph Lauren rose 1% to $1.83 billion in the third quarter ended Dec. 31, beating estimates of $1.76 billion. Both Tapestry and Ralph Lauren took a hit in China due to a resurgence of COVID-19 infections, but demand is returning, the companies said.

☆ Michael Kors owner Capri cuts forecasts as demand slows, shares plunge 24%
▼ + stars: | 2023-02-08 | by ( Uday Sampath Kumar | ) www.reuters.com time to read: +2 min

Feb 8(Reuters) - Michael Kors owner Capri Holdings Ltd (CPRI.N) on Wednesday cut its annual profit forecast and provided a dour outlook for 2024, blaming a slowdown in demand from department stores for its luxury handbags and apparel and sending its shares tumbling 24%. Capri said third-quarter sales fell 6%, driven by a 20% fall in revenue from its wholesale channel, which includes department stores and other retailers. Revenue for Michael Kors, Capri's biggest brand, fell 4.5% to $777 million in the Americas during the third quarter. Capri, which also owns Jimmy Choo and Versace, cut its annual sales forecast to $5.56 billion, from $5.70 billion. Analysts expect earnings per share of $7.24 on revenue of $6.03 billion.

Feb 7 (Reuters) - Chipotle Mexican Grill Inc (CMG.N) missed quarterly comparable sales and profit expectations on Tuesday, as customers pulled back on expensive delivery orders and traffic stalled in December. Comparable sales at California-based Chipotle rose 5.6% in the fourth quarter ended Dec. 31, while analysts on average expected a 7.1% rise, according to Refinitiv IBES. Visits to Chipotle restaurants fell 10.2% in the fourth quarter, according to data from Placer.ai. Delivery transactions also tumbled 15% as in-store orders surged, and Chipotle restaurants "didn't see that pop" that they normally get in December around the holidays, Chief Financial Officer Jack Hartung said on the call. We think inflation will be reasonably tame," Hartung said, adding that the company had not yet decided whether to raise menu prices further in 2023.

[1/3] The logo of the Times Square Disney store is seen in Times Square, New York City, U.S. December 5, 2019. Peltz, a billionaire activist who operates via his Trian Partners hedge fund, called for Disney to cut costs and turn a profit at its Disney+ streaming business, which has been losing money despite expanding at a fast clip. Its shares sank last year as losses deepened in its streaming business, and the price is now less than half the stock's 2021 high. Disney, Trian said, had overpaid for the assets of 21st Century Fox and bid aggressively for pay-TV giant Sky PLC. Disney said Trian would file with the Securities and Exchange Commission on Thursday to elect Peltz for a board seat in opposition to the company's nominees.

☆ Factbox: The 10 biggest U.S. retail bankruptcies in 5 years
▼ + stars: | 2023-01-09 | by ( ) www.reuters.com time to read: +4 min

J.C. PenneyAssets: $7.99 billionLiabilities: $7.16 billionStores: 846After more than a century in business, the department store chain filed for bankruptcy protection in May 2020, weighed down by mounting debt. At the time, its bankruptcy was the biggest collapse of a U.S. retailer by assets since Kmart in 2002. It soon emerged from bankruptcy with much of its store base intact and $400 million in fresh financial aid. Tailored BrandsAssets: $2.48 billionLiabilities: $2.84 billionStores: Over 1,400The owner of tuxedo and business suit chain Men's Wearhouse filed for bankruptcy in August 2020. It emerged from bankruptcy just days short of a year since it filed for bankruptcy under a new name, Premier Brands.

Jan 4 (Reuters) - Amazon.com Inc's (AMZN.O) layoffs will now stretch to more than 18,000 roles as part of a workforce reduction it previously disclosed, Chief Executive Andy Jassy said in a public staff note on Wednesday. The layoff decisions, which Amazon will communicate starting Jan. 18, will largely impact the company's e-commerce and human-resources organizations, he said. Amazon has more than 1.5 million workers including warehouse staff, making it America's second-largest private employer after Walmart Inc (WMT.N). It began letting staff go in November from its devices division, with a source telling Reuters at the time it was targeting 10,000 job cuts. In number, its layoffs now surpass the 11,000 job cuts at Facebook-parent Meta Platforms Inc (META.O) as well as reductions at other tech-industry peers.

U.S. shoppers spent $35.27 billion online overall during Cyber Week, the period from Thanksgiving through Cyber Monday. But the modest pickup trounced the paltry 2.9% increase in sales during China's Singles Day, an 11-day shopping festival ending November 11, hosted by Alibaba and other Chinese e-commerce firms. Originally, Singles Day was an unofficial Chinese holiday on Nov. 11 (11/11) to celebrate people who were not in relationships. These days, brands use Singles Day to clear inventory and experiment with new products. With the COVID-19 pandemic still raging in China, "it wont be fair to can compare" Singles Day with Cyber Week, Chernev said, as Americans are shopping with fewer restrictions.

The estimate from Adobe Analytics predicts an increase of up to 8.5% from a year earlier. Adobe Analytics measures e-commerce performance by analyzing purchases at 85% of the top 100 internet retailers in the United States. Both Adobe and MasterCard Spending Pulse are expected to release their updated Cyber Monday spending estimates on Tuesday. Americans have put off holiday shopping for weeks in the hopes of finding deeper post-Thanksgiving markdowns. Last year, Cyber Monday sales fell 1.4%, according to Adobe Analytics, as retailers kicked off holiday promotions early to avoid product shortages amid a global shipping crisis.

☆ Cyber Monday sales to touch up to $11.6 bln as shoppers go discount hunting
▼ + stars: | 2022-11-28 | by ( Uday Sampath Kumar | ) www.reuters.com time to read: +2 min

Adobe Analytics, which measures e-commerce by analyzing transactions at websites, has access to data covering purchases at 85% of the top 100 internet retailers in the United States. Cyber Monday sales fell 1.4% last year as retailers spread out promotional deals across weeks from as early as October to better manage inventories amid widespread product shortages. Walmart (WMT.N) and Best Buy websites also showed discounts worth hundreds of dollars on high-end laptops and televisions. Shoppers will find record discounts today for computers, peaking at 27% off listed price, while nearly all other categories, including apparel, toys and furniture, also have double-digit discounts, Adobe said. U.S. shoppers spent a record $9.12 billion online on Black Friday, according to Adobe Analytics.

☆ Cyber Monday set for record sales of $11.2 bln as shoppers wait for discounts
▼ + stars: | 2022-11-28 | by ( Uday Sampath Kumar | ) www.reuters.com time to read: +2 min

The Adobe Analytics report predicts spending on Cyber Monday to rise 5.2% as inflation-weary consumers have been putting off holiday shopping for weeks in the hopes of deep post-Thanksgiving markdowns. Cyber Monday sales fell 1.4% last year as retailers spread out promotional deals across weeks from as early as October to better manage inventories amid widespread product shortages. "With holiday promotions kicking off long before the Thanksgiving weekend, consumers have been shopping strategically for the season's best deals," said Mastercard Chief U.S. U.S. shoppers also spent a record $9.12 billion online on Black Friday, according to Adobe Analytics. However, with sporadic rain in some parts of the country, brick-and-mortar stores and malls saw thinner crowds than usual.

After weeks of passing up early Black Friday deals from Walmart, Target and Amazon, Uribe is on the hunt for a Nintendo Switch and video games for her daughter, Tupperware for her kitchen and a vacuum cleaner. Checking off items from the holiday list is "just cheaper" on Black Friday, plus, "it's our favorite day of the year, so we just wait," Uribe said. Uribe joins millions of shoppers who waited for what they hope might be the deepest discounts of the holiday season on Black Friday, despite an industry-wide push by retailers to get shoppers to buy holiday items starting in October. The waiting game by shoppers has forced retailers to offer steep discounts on items, which may pinch profit margins in the fourth quarter. Americans, especially from low-income households, are expected to pull back on their holiday shopping this year as inflation and higher energy prices pinch their spending power.

☆ Best Buy forecasts smaller drop in sales ahead of holiday season
▼ + stars: | 2022-11-22 | by ( Uday Sampath Kumar | ) www.reuters.com time to read: +2 min

Nov 22 (Reuters) - Best Buy Co Inc (BBY.N) on Tuesday forecast a smaller drop in annual sales than it had previously estimated, saying it was confident that a ramp up in deals and discounts will bring in more inflation-weary customers during the holiday season. Best Buy expects full-year comparable sales to fall about 10%, compared with a previous forecast of a decrease of about 11%. "Best Buy may be better positioned for the holiday season than other retailers," said Jason Benowitz, senior portfolio manager at Roosevelt Investment Group. "We expect modest growth in consumer holiday spend this year and believe many companies hold too much inventory relative to demand, while Best Buy appears to have rightsized its holdings ahead of the season," Benowitz added. However, heavier discounts will take a toll on holiday-quarter profit margins, Best Buy warned.

☆ Target warns of dour holiday sales, shares plunge 15%
▼ + stars: | 2022-11-16 | by ( Uday Sampath Kumar | ) www.reuters.com time to read: +2 min

Shares of the big-box retailer fell more than 15% in premarket trading after it also said that its third-quarter profit had halved. In contrast, Walmart, which dedicates most of its shelf space to groceries and other daily essentials, raised its full-year sales and profit forecast on Tuesday. However, the top U.S. retailer warned that its customers could slow spending, especially in general merchandise categories, in the holiday quarter. FedEx (FDX.N) and Amazon (AMZN.O) have also warned of a slump in holiday season demand in recent weeks, while overall U.S. holiday sales are expected to rise at a slower pace this year, according to an industry trade group. On an adjusted basis, Target's profit was $1.54 per share for the quarter ended Oct. 29, missing analysts' expectations of $2.13.

Amid persistent inflation, investors have been nervously eyeing how consumer spending pans out during the crucial holiday season, when retailers make more than a third of their annual profits. The world's largest retailer by sales forecast holiday quarter U.S. same-store sales, excluding fuel, to increase about 3%, below estimates of a 3.4% increase. The company's comments follow those of FedEx and Amazon, which have also warned of muted holiday season demand in recent weeks. Home improvement chain Home Depot (HD.N) on Tuesday left its annual forecasts unchanged, adding to holiday season concerns amid a slowing housing market. read moreFor the full-year, Walmart forecast net sales to rise 5.5%, above its previous forecast of a 4.5% increase.

Nov 14 (Reuters) - Walmart (WMT.N) and Target (TGT.N) results this week are likely to show that major retailers are heading for a turbulent holiday season as rampant inflation has made everything from toothpaste to Christmas sweaters more expensive for shoppers. "We have our expectations set really low, it's a difficult environment," said Bill Smead, chief investment officer of Smead Capital Management, which owns Target shares worth more than $200 million. Smead said recent warnings around demand from FedEx and Amazon did not bode well for retailers this season. The economic slowdown has led to expectations of a more muted holiday shopping season with everyone from Amazon to Walmart kick-starting holiday deals early to clear excess merchandise. However, Walmart and Target's scale and ability to undercut smaller retailers on price may still help them fare better than others as they attract more cost-conscious consumers looking to do their Christmas shopping on a budget, analysts said.

☆ Sports-Teams may look beyond crypto after FTX collapse, say industry experts
▼ + stars: | 2022-11-14 | by ( Shrivathsa Sridhar | ) www.reuters.com time to read: +3 min

Nov 14 (Reuters) - Sports teams and businesses may shy away from long-term deals with crypto firms to minimise their risks after troubled crypto exchange FTX filed for U.S. bankruptcy protection last week, industry experts told Reuters on Monday. "I think crypto will be at the bottom of prospect lists for quite some time. Until that industry stabilises and has better oversight and controls -- if it happens -- then maybe it might be a viable partner." "As it relates to increasing sponsorship revenue, teams/leagues are always looking for new opportunities, but what's happening with FTX is a wake-up call." Singapore-based crypto exchange Crypto.com said on Monday it had moved about $1 billion to FTX over the course of a year, but most of it was recovered and exposure at the time of FTX's collapse was less than $10 million.

[1/4] A signage is seen in the offices of Tapestry, Inc., in Manhattan, New York, U.S., November 19, 2021. Accessible luxury brands such as Michael Kors and Ralph Lauren are likely to feel a bigger pinch than higher-priced brands, as their young core customer base looks for deals at the lower end of the fashion spectrum. Ralph Lauren said its holiday quarter revenue would be hit by slowing demand in North America and Europe, where soaring energy costs are also pinching consumer wallets. Tapestry and Ralph Lauren also warned a stronger dollar would hit their earnings. Ralph Lauren shares, which have lost almost a quarter of their value this year, rose about 5% in premarket trading after the company beat second-quarter sales and profit expectations.

☆ Kohl's CEO Gass to leave for top job at Levi Strauss
▼ + stars: | 2022-11-08 | by ( Uday Sampath Kumar | ) www.reuters.com time to read: +2 min

Nov 8 (Reuters) - Kohl's Corp (KSS.N) Chief Executive Michelle Gass will step down and take the helm at Levi Strauss & Co (LEVI.N) amid renewed calls from activist investors for management and board reshuffles at the struggling department store chain. Gass came under renewed pressure from hedge funds Macellum Advisors and Ancora Holdings after Kohl's decided in July to remain independent after exploring a sale. The former Starbucks (SBUX.O) executive, who became Kohl's CEO in 2018, will leave in December to become president at Levi's early next year before taking over from long-time boss Chip Bergh within 18 months. At Levi's, Gass faces the challenge of helping the denim maker navigate out of an inflationary environment that has caused a slump in discretionary spending and hit earnings. Kohl's said Tom Kingsbury, a director nominated by Macellum and Ancora last year, will serve as interim CEO from Dec. 2.

☆ Adidas ends Ye deal over hate speech, costing rapper his billionaire status
▼ + stars: | 2022-10-27 | by ( Uday Sampath Kumar | ) www.reuters.com time to read: +4 min

Adidas put the tie-up, which has produced several hot-selling Yeezy branded sneakers, under review this month. "Adidas does not tolerate antisemitism and any other sort of hate speech," the German company said on Tuesday. Forbes magazine said the end of the deal meant Ye's net worth shrank to $400 million. The magazine had valued his share of the Adidas partnership at $1.5 billion. On Tuesday, Gap, which had ended its partnership with Ye in September, said it was taking immediate steps to remove Yeezy Gap products from its stores and that it had shut down YeezyGap.com.

[1/3] The logo for Google LLC is seen at the Google Store Chelsea in Manhattan, New York City, New York, U.S., November 17, 2021. A strong dollar has hurt the overseas profits of large firms, while soaring inflation has prompted interest rate hikes and companies to raise product prices, even as consumers have been forced to cut spending. Google's results bode ill for Facebook parent Meta Platforms (META.O), which is especially reliant on advertising and reports results on Wednesday. Last week, its smaller rival Snap Inc (SNAP.N) forecast no revenue growth for the holiday quarter, setting off warning bells in the social media industry. Shares in Spotify (SPOT.N), which also warned on slow advertising growth, slid 4%.

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