Today’s news in brief-16/5/24
Natura and Co is considering separating from Avon after experiencing a significant increase in losses during the first quarter. The group’s net loss rose by 43.3% to BRL934.9m (£143.6m), compared to BRL652m (£100m) the previous year, while sales declined by 5.7% to BRL6.1bn (£937m). Avon International’s sales fell by 13.1% to BRL1.3bn (£214m). Despite year-on-year productivity improvements at Avon, reduced representative activity and weaker promotional execution contributed to these losses.
Zalando has appointed Nina Graf-Vlachy as the new general manager for Sports, starting in August 2024. This newly created role aims to strengthen the company’s approach to the Sports category. Graf-Vlachy, formerly with Puma and BCG, will report to Martin Rost, Zalando’s senior vice president of Customer Propositions. Her appointment follows David Schröder’s entry as co-CEO.
Miniso reported a 26% revenue increase to $515.7m (£406.9m) in the first quarter ending March 31, driven by its worldwide expansion. The company opened 217 new stores in the quarter, nearly tripling the number from the same period last year, bringing the total to 6,630 stores globally. This included 109 new overseas stores, up from 16 in the previous year. Gross profits rose 39.1% to $223.9m (£176.6m), with operating profits increasing by 29.1% to $102.9m (£81.2m).
Watches of Switzerland reported a 4% increase in group revenues to £380m for the 13 weeks ending April 30. While US sales rose 6% to £846m, UK and Europe sales dropped 5% to £846m, influenced by macroeconomic conditions and reduced tourist spending due to the absence of VAT-free shopping. The company expects FY25 adjusted EBITDA growth of 0.2-0.6%.
Mytheresa reported a 17.6% increase in net sales to €233.9m (£200.6m) for the third quarter ending March 31, with Gross Merchandise Value (GMV) rising 14.7% to €252.2m (£216.3m). Gross profit increased by 12% to €101.6m (£87.1m), and adjusted EBITDA reached €9.2m (£7.8m). Operating loss narrowed to €1.8m (£1.5m) from €6.4m (£5.4m) the previous year. The luxury retailer launched exclusive capsule collections and held special customer events across Europe, the US, and Asia.
Superdrug announced plans to open 25 new stores in 2024 as part of its 60th anniversary celebrations, along with extending seven existing stores and refitting 60 others. The expansion is expected to create over 500 jobs across the UK. Recent store upgrades include doubling the size of the Craigavon store and expanding the Lakeside Thurrock store. Upcoming significant openings include large stores in Cardiff, Bluewater Shopping Centre, and Westfield Stratford City. Superdrug’s investment in bricks-and-mortar retail aims to enhance the shopping experience, reflecting its commitment to the high street and local communities. The retailer reported strong performance figures, with a 17% revenue increase in 2022 and a 71.7% rise in profit before tax.
