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☆ Nike is shuffling executives and searching for its next 'breakthrough innovation' as unwanted Air Maxes and Air Jordans pile up
▼ + stars: | 2023-05-26 | by ( Matthew Kish | Danni Santana | ) www.businessinsider.com time to read: +5 min

Once-coveted Air Jordans and Air Maxes are now sitting on shelves, with some retro Jordans selling below retail on the secondary market. "Air Max is Becoming Air Min," reads the headline of a report this week from Williams Trading analyst Sam Poser, who downgraded Nike's stock to sell. While numerous analysts remain bullish on Nike, Poser is among those who say Nike needs to ramp up innovation. At its 2017 investor day, Nike announced the Air Max 270. "Nike has lost many senior people throughout the entire company with, now necessary, historical institutional knowledge of Nike," Poser wrote.

☆ Canada Goose sees upbeat annual sales as China recovery gains steam
▼ + stars: | 2023-05-18 | by ( Deborah Mary Sophia | ) www.reuters.com time to read: +2 min

Canada Goose, popular for its bright-red parkas and pricey puffer jackets, has about 18 retail stores in Mainland China - the highest number of outlets it has in any country. The company is also planning to double its store count worldwide over the next five years, from 51 permanent stores currently. Toronto, Ontario-based Canada Goose said it expects fiscal 2024 revenue between C$1.40 billion ($1.05 billion) and C$1.50 billion, while analysts were expecting C$1.33 billion, according to Refinitiv data. However, it forecast annual per-share profit in the range of C$1.20 to C$1.48, compared with estimates of C$1.46 per share. ($1 = 1.3372 Canadian dollars)Reporting by Deborah Sophia in Bengaluru; Editing by Krishna Chandra EluriOur Standards: The Thomson Reuters Trust Principles.

Discretionary products account for a major portion of the company's merchandise and it has been looking to increase the share of household essentials as sticky inflation and higher interest rates weigh on consumers' spending decisions. "American consumers continue to face difficult trade-off decisions as they juggle the wants and needs of their families ... The fear of a looming recession weighs heavily on many American families," Senior Target executive Christina Hennington said on a post-earnings call. Target projected adjusted profit between $1.30 and $1.70 per share, below estimates of $1.93 for the current quarter and forecast comparable sales to decline in the low-single digits. Target executives used the word "cautious" at least 13 times during the hour-long earnings call.

☆ These retailers are most at risk for a margin squeeze this earnings season thanks to cautious consumers, heavy promotions
▼ + stars: | 2023-05-16 | by ( Gabrielle Fonrouge | In Gabrielle-Fonrouge | ) www.cnbc.com time to read: +4 min

The price worries could suggest trouble for retailers that are relying on promotions to win over cost-conscious customers. Retailers that largely sell apparel, shoes or home goods are most likely to see squeezed margins due to promotions this earnings season, according to analysts and research. In a Thursday research note, UBS analysts reported softline promotions increased to 17% in April, a 2 percentage point jump year-over-year. Softline retailers are those that sell "soft" goods such as apparel. "This is likely a bad sign for Softline retailers' 1Q23 gross margins."

May 3 (Reuters) - Etsy Inc (ETSY.O) on Wednesday beat market expectations for quarterly revenue, benefiting from demand for products such as personalized gifts offered on its e-commerce platform as well as higher transaction fees, sending the company's shares up about 2% in extended trading. Net revenues rose 10.6% to $640.9 million in the quarter ended March 31, compared with analysts estimate of $622.1 million, as per Refinitiv IBES data. The company forecast second-quarter revenue between $590 million and $640 million, while analysts expected $625.4 million. Etsy's first-quarter adjusted EBITDA, a measure of profitability, came in at $170.3 million, while analysts on average were expecting $166.6 million. Reporting by Granth Vanaik in Bengaluru; Editing by Shailesh KuberOur Standards: The Thomson Reuters Trust Principles.

☆ Everyone was wrong about how the pandemic would change shopping — here's how experts are betting on e-commerce now
▼ + stars: | 2023-04-19 | by ( Emma Cosgrove | ) www.businessinsider.com time to read: +5 min

The idea that e-commerce will keep growing forever, and betting on it will lead to an almost inevitable rising tide, didn't survive the pandemic. Public flame-outs of entire categories of startups, like ultra-fast deliveries and Amazon seller aggregators, have further demonstrated the boom-and-bust nature of pandemic e-commerce investing. Apple's recent moves to give consumers more online privacy has had ripples through the e-commerce ecosystem, leading investors to take a beat. E-commerce logistics — fulfillment and last-mile delivery — said Sloane is fairly well-saturated at this point, he said. For many retailers, the pandemic offered a harsh lesson in how integrated their stores and their websites weren't, she said.

☆ Levi Strauss tops quarterly revenue estimates, but higher costs hit margins
▼ + stars: | 2023-04-06 | by ( ) www.reuters.com time to read: +1 min

April 6 (Reuters) - Levi Strauss & Co (LEVI.N) on Thursday topped Wall Street estimates for quarterly revenue on resilient demand for jeans and non-denim styles, but maintained its annual forecast as the company turns cautious due to macroeconomic uncertainties. Shares of the San Francisco-based apparel maker fell more than 4% in premarket trade, as it also took a hit on margins in the quarter, owing to persistent cost pressures. The jeans maker's attempts to get rid of excessive inventory by offering higher discounts and promotions squeezed its profit margins. UBS analysts have noted that Levi's promotions were up 1,500 basis points in December. On an adjusted basis, Levi's earned 34 cents per share, beating estimates of 32 cents per share.

☆ Chewy and Petco earnings make it clear: Pet health care is their future
▼ + stars: | 2023-03-23 | by ( Gabrielle Fonrouge | ) www.cnbc.com time to read: +5 min

The retailers, which both released their quarterly earnings on Wednesday, began investing heavily into pet health when the pandemic-fueled pet boom saw 23 million American households welcome a new animal into their homes. The boom turned the overall pet market into a $123.6 billion dollar powerhouse in 2021, and it's expected to grow. Pet health care – and the high margins that come with it – is a crucial component to that overall market. It changed its name to Petco Health and Wellness Company in 2020. Pet adoptions surged during the pandemic, triggering a surge in demand for pet goods.

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.

March 20 (Reuters) - Nike is expected to report a rise in third-quarter revenue and grow its market share through 2023, helped by major rival Adidas' split with designer and rapper Kanye West that caused the German company to lose about $600 million in quarterly sales. Nike (NKE.N) is also expected to get a boost from higher sales of its Jordan Retros and some newer launches as the world's No. "There is an opportunity for Nike to pick more market from Adidas," said Jessica Ramirez, senior analyst at Jane Hali and Associates, adding that Adidas has not had as many bestsellers as Nike. Nike has also doubled down on its product lines such as the LeBron 20s and Nike Mercurial shoes, while also grabbing a bigger chunk of the growing China market. Still, Nike's margins are expected to be squeezed in the quarter as it continues to offer promotions and discounts to shed excess stock.

Feb 21 (Reuters) - TJX Cos Inc (TJX.N) is likely to see a strong growth in annual sales as inflation pushes bargain-hungry but brand-conscious customers to off-price retailers offering cheaper deals and promotions. A case in point is Nordstrom Inc (JWN.N), which cut its annual profit forecast after its off-price store chain Rack failed to attract people despite heavy discounting due to inventory mismanagement. Jessica Ramirez, analyst at Jane Hali and Associates, said TJX is in tune with what the customer is shopping for and are interested. "TJX is very strong with their assortment ... they have been able to bring a lot of good names into their product offerings," she said. Reporting by Ananya Mariam Rajesh and Aatrayee Chatterjee in Bengaluru; Editing by Arun KoyyurOur Standards: The Thomson Reuters Trust Principles.

☆ Tapestry lifts profit outlook as younger shoppers snap up Coach handbags
▼ + stars: | 2023-02-09 | by ( ) www.reuters.com time to read: +2 min

[1/2] A handbag is seen in a Kate Spade store, owned by Tapestry, Inc., in Manhattan, New York, U.S., November 19, 2021. Luxury peer Ralph Lauren Corp (RL.N) also beat expectations on strong demand from younger affluent shoppers. Meanwhile, Ralph Lauren said its brands gained market share in North America, even as its wholesale revenue decreased 2%. Net revenue at Ralph Lauren rose 1% to $1.83 billion in the third quarter ended Dec. 31, while analysts had expected $1.76 billion, according to Refinitiv IBES data. Tapestry forecast fiscal 2023 earnings of $3.70 to $3.75 per share, compared with its prior estimate of $3.60 to $3.70.

☆ 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.

☆ Nike shares surge as inventory challenges start to abate, demand stays strong
▼ + stars: | 2022-12-21 | by ( ) www.reuters.com time to read: +2 min

At least 12 brokerages raised their price targets on the stock after Nike reported better-than-expected quarterly results on Tuesday, benefiting from higher discounts and strong demand in North America. While Nike's quarterly inventory declined about 3% from the prior quarter, margins fell 300 basis points due to higher promotions and discounts. Still, the decline was smaller than expected, according to analysts, thanks also to higher-priced product launches such as the LeBron 20s and Nike Mercurial shoes. "Nike offered promotions, but at the same time, they also pushed for new product without the promotion," said Jane Hali & Associates analyst Jessica Ramirez. Reporting by Aishwarya Venugopal and Deborah Sophia; Additional reporting Ananya Mariam Rajesh in Bengaluru; Editing by Maju SamuelOur Standards: The Thomson Reuters Trust Principles.

☆ Lululemon sees downbeat quarter as inflation-hit consumers turn cautious
▼ + stars: | 2022-12-08 | by ( Ananya Mariam Rajesh | ) www.reuters.com time to read: +2 min

Dec 8 (Reuters) - Lululemon Athletica Inc (LULU.O) on Thursday forecast holiday-quarter revenue and profit largely below analysts' estimates, as shoppers turn cautious about spending on higher-priced clothing amid decades-high inflation, sending its shares down 6%. "But ...I do still think that Lululemon is playing a very strong game with the consumer." Lululemon lifted its full-year revenue and profit forecasts and beat estimates for third-quarter results. The company forecast fourth-quarter revenue between $2.61 billion and $2.66 billion, compared to analysts' estimates of $2.65 billion, according to IBES data from Refinitiv. Lululemon sees current-quarter profit between $4.20 and $4.30 per share, while analysts estimate $4.30.

[1/3] Customers are seen inside the Express store in Broomfield, Colorado August 28, 2013. At risk are retailers' margins during the critical holiday shopping season and their efforts to be the go-to location for trendy fashions. Shopper demand has put a strain on apparel retailers throughout the year, boosting inventories and forcing retailers including Gap, Victoria's Secret and Kohl's, to slash prices. Deals since October and over Thanksgiving weekend were up in both frequency and discounting depth, including from clothing retailers, according to research from Jane Hali & Associates. Express' third-quarter margins are expected to fall to 29.7% from 33.22% a year earlier, according to analysts' estimates on Refinitiv.

Nov 29 (Reuters) - Deal-hungry Americans snapped up everything from toys to electronics during the five-day long Thanksgiving through Cyber Monday shopping bonanza lured by steep discounts, sales data showed. Online toy sales on Cyber Monday jumped nearly eight-fold compared to an average day in October 2022, according to Adobe. Electronics sales rose about five-fold, while sporting goods, appliances and books also saw increases over 400%. Reuters Graphics Reuters GraphicsCyber Monday sales rose 5.8%, said Adobe, which analyzes purchases at 85% of the top 100 internet retailers in the United States. Overall global online sales for the cyber week hit an all-time high of $281 billion, according to data from Salesforce (CRM.N), while U.S. online sales gained 9% to $68 billion.

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.

Reuters GraphicsMelissa Benhaim, a 32-year old publicist in Miami, started her holiday shopping slightly later than usual this year. A Saturday shopping day between Thanksgiving and Christmas this year gives shoppers extra time to hold out for better bargains. Holiday shopping is expected to slow broadly. Reuters GraphicsBut toy prices, even with discounts, are up about 2.4%, DataWeave found. Shoppers are paying $16.99 for the toy this year at Kohl's, after discounts, compared to $11.54 last year, according to DataWeave.

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