Today’s news in brief-18/4/24
Shein is among several retailers expressing interest in acquiring Topshop from Asos, according to reports. Asos has received continuous interest from various high-profile retailers, with Authentic Brands Group also showing interest. The potential sale of Topshop by Asos follows its widening losses and a decline in sales, partly attributed to planned discounting. Despite anticipating further sales declines, Asos remains optimistic about returning to growth in the final quarter of the fiscal year. The move to sell Topshop aims to bolster Asos’s financial position and reduce debts.
Adidas has revised its profit guidance for the year upwards following a robust performance in Q1. The sportswear giant reported a significant increase in Q1 profits to €336m, up from €60m the previous year. This growth was propelled by an 8% increase in currency-neutral revenues, reaching €5.45bn. The company’s gross margin also saw improvement, rising to 51.2%. As a result, Adidas anticipates mid- to high-single-digit revenue growth for 2024, with an operating profit projected to reach around €700m. However, unfavourable currency effects are expected to impact profitability.
Despite facing challenging trading conditions, Dunelm saw a 3% increase in sales for Q3, reaching £435m. Digital sales also rose, comprising 37% of total sales. The company expects its full-year profit before tax to align with market expectations. CEO Nick Wilkinson attributed this resilient performance to Dunelm’s comprehensive product offerings and effective retail strategies.
BP is enhancing its security measures by deploying body-worn cameras and the Auror retail crime intelligence platform across its network of 300 company-owned stores. This initiative follows a successful pilot in 2023, resulting in decreased incidents of verbal abuse. The Auror platform enables swift incident reporting and collaboration with law enforcement to address retail crime effectively. Reveal body cameras have already been deployed to 70 stores, with plans for further rollout.
Luxury group LVMH achieved a 3% revenue growth in Q1, reaching €20.7bn, despite an uncertain geopolitical and economic environment. Growth in European and US markets offset a 6% decline in demand in China. Sales in the fashion and leather goods division rose by 2%, while the watches and jewellery division experienced a decline. LVMH attributes the decline in the latter to challenges faced by Tiffany in the American market.
Harvey Nichols has appointed Julia Goddard, previously EMEA president of Alexander McQueen, as its new CEO. Goddard brings extensive experience in driving growth and retail excellence. Her appointment follows the resignation of former CEO Manju Malhotra. Goddard will work closely with the management board and aims to accelerate growth and strengthen Harvey Nichols’ position in the market.
