Weekly fashion news: Puma's first-quarter sales fall nearly 4%, Shopify posts Q1 net loss of $273 million
Puma's first-quarter sales fall nearly 4 per cent
German sports brand Puma has released its first-quarter results, with sales falling 3.9 per cent to €2.1 billion and profits down 1.8 per cent to €900 million. By market, revenue in Europe, the Middle East and Africa fell 3.2 per cent to €856 million, the Americas fell 4.6 per cent to €790 million, and Asia-Pacific fell 4.1 per cent to €457 million.
By category, footwear sales increased by 3.1 per cent to 1.18 billion euros, apparel sales declined by 2.4 per cent to 608 million euros, and accessories sales decreased by 3.2 per cent to 313 million euros. At the time of writing, Puma shares were up 10.71 per cent to €50.12, with a current market capitalisation of around €7.5 billion.
Canadian e-commerce platform Shopify posts Q1 net loss of $273 million
Shopify, a Canadian e-commerce platform, has released its financial results for the first quarter of 2024. The company's revenues increased by 23% to $1.9 billion, while its net loss was $273 million, compared to a net profit of $68 million in the same period a year ago. GMV was up 23% to $60.9 billion, while gross margins were 51.4%.
Shopify anticipates a deceleration in revenue growth to its lowest level in two years in the second quarter, with analysts forecasting a 19.35% increase. This is attributed to a decline in consumer demand. Additionally, the company anticipates a low-to-mid-single-digit increase in operating expenses in the second quarter, up from a 4% decline in the first quarter. This is largely attributed to the sale of its logistics business to freight forwarder Flexport, among other factors.
Simon Property Group sells nearly 10 per cent stake in ABG
Simon Property Group has sold its nearly 10 per cent stake in ABG Group for $1.2 billion. David Simon, chairman and CEO of Simon Property Group, stated on a conference call that his investment in ABG had yielded a significant return of seven times net invested capital. Following the sale, ABG Group founders Jamie Salter and David Simon remain co-owners of joint ventures SPARC and JCPenney.
ABG Group owns numerous brands, including Reebok, Brooks Brothers and Barneys New York, with annual retail sales of approximately $29 billion. Founder Jamie Salter has stated that the company is currently valued at approximately $17 billion. Investors who have purchased Simon's shares, which were previously dumped, include LeonardGreen Partners, Jasper Ridge Partners and Tamesek Holdings.
Burberry announces temporary leave of absence for chief financial officer
Burberry has announced that Chief Financial Officer Kate Ferry will be taking a temporary leave of absence due to an unplanned operation. She is expected to return to her normal duties in June. Ms. Ferry joined the company last year, having previously served as CFO of BTalk Telecom Group Plc and McLaren Group. In addition, Kate Ferry currently serves as an independent non-executive director of Greggs Group.
According to Fashion Business Alert, Burberry shares have fallen by a cumulative 20 per cent since the start of the year and almost 56 per cent over the past 12 months, with a current market capitalisation of around £4bn, a three-year low. Furthermore, the pound is at a low level, and analysts believe Burberry is currently facing a potential takeover threat.
Kiko Milano announces first global brand ambassador
Italian beauty brand Kiko Milano has announced Emma Roberts as its first global brand ambassador. Ms. Roberts has 20.71 million followers on Instagram and is widely known for her roles in the hit horror show American Horror Story as well as Scream Queens.
LVMH's largest consumer private equity fund, L Catterton, has announced that it has reached a definitive agreement with the Percassi family, owners of Italian beauty brand Kiko Milano, to acquire a majority stake in the brand. This information was revealed by Fashion Business Alert. According to sources, the price of the deal is approximately €1.4 billion.
