Today’s news in brief- 22/12/23
Nike has announced a cost-saving plan of $2bn over the next three years and revised down its sales forecast. This move has led to an over 11% drop in the company’s stock price during after-hours trading. The company anticipates a pre-tax charge of $400-450m in the current quarter due to severance costs. Nike attributes this decision to weakening customer demand, particularly in Europe and China. Executives noted a performance split in Q2, with strong showings during major holidays like Black Friday in North America and Singles Day in China, but weaker performance during other periods. Matthew Friend, CFO, emphasised the significance of innovation in a competitive and promotional market.
ScS shareholders have approved the £99m takeover by Italian firm Poltronesofà. The deal, subject to court sanction, is expected to become effective on January 30, 2024. Poltronesofà sees strategic and financial value in the acquisition, marking its entry into the UK sofa market as part of its pan-European expansion. The company, established in 1995, is a leading sofa retailer in Italy and Europe with 167 stores in Italy, 106 in France, and 27 across Europe.
UK retail sales experienced a 1.3% increase in November 2023. Non-food store sales volumes rose by 2.3%, attributed to earlier Black Friday sales and increased discounting. However, non-food store sales volumes remain 2.7% below pre-pandemic levels. Within non-food, household goods store sales increased by 3.5%, department stores by 2.3%, and clothing stores by 1.3%. Food store sales volumes rose by 0.8%, with specialist food stores and alcohol/tobacco stores reporting significant increases.
