This week, Just Style has seen a number of key apparel brands and retailers sharing financial updates, including Asos, Adidas and Superdry. We’ve also heard strategy updates from British retailer Marks and Spencer (M&S) as well as budget chain Primark.
Sales of Yeezy stock generate €150m in revenue for Adidas
Adidas reported that its latest Yeezy drop generated revenues of around €150m and an operating profit of around €50m in Q1 2024
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The sportswear giant expects the sale of the remaining Yeezy inventory during the remainder of the year to occur on average at cost which it believes would result in additional sales of around €200m and no further profit contribution during the remaining of the year.
Adidas terminated its Yeezy partnership with rapper Kanye West in October 2022 due to claims of antisemitism.
Asos shares mixed H1 results
UK online retailer Asos shared a mixed set of results for the first half of the year, as sales fell despite its turnaround plans.
Europe came out as the strongest region for Asos, despite sales slipping by 11% due to inflation while sales in the UK declined by 15.9%.
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By GlobalDataAsos reported a 18% like-for-like sales decrease on an adjusted basis in H1 and said it still anticipates sales to decrease by as much as 15% over the full year.
GlobalData’s Pippa Stephens noted that the company’s H1 declines were seen across all of Asos’ market, with the worst being the US and the rest of the world where revenue dropped 25% and 36% respectively.
Third party brands strategy pays off at M&S
Nishi Mahajan, director of Third-Party Brands at M&S, shared insights into how the iconic British retailer is not just meeting, but exceeding expectations by thinking outside the box and delivering precisely what consumers want through third-party brand partnerships.
Under its ‘Never the Same Again’ agenda, M&S announced in 2020 that guest brands would be introduced online and in larger stores in a bid to broaden its appeal and grow online sales.
GlobalData’s apparel company database shows that both total revenue and net income have increased at Marks and Spencer in the years since the strategy launched.
Primark cuts prices of kidswear
UK retailer Primark announced this week that is is slashing prices on selected kidswear holiday essentials assuring no compromise on quality, in a bid to support families amidst a still higher cost-of-living.
The retailer explained this move applies to the price points of selected summer essentials and aims to help families make their money go further as they start planning their summer wardrobes.
Commenting on the move, Pippa Stephens, GlobalData senior apparel analyst said: “Primark’s decision to lower the price of hundreds of childrenswear products will help it continue to drive sales amid economic pressures. Family shoppers have been some of the most impacted by inflationary challenges, and with childrenswear being particularly essential, due to the rate at which children grow out of items, these cost reductions will bolster shopper perceptions and loyalty.”
Superdry announces plans to delist from London Stock Market
British clothing brand Superdry announced this week that it had decided against a takeover offer and instead plans to delist from the London Stock Exchange while raising equity as part of a major restructuring plan to protect stakeholders’ interests and get the company on a “stable financial footing.”
A look at GlobalData’s apparel company database shows how net income and revenue have fared in recent years at the retailer.
Superdry has cautioned that it could go bust if it doesn’t execute a comprehensive restructuring plan – a formal procedure under the Companies Act for companies in financial difficulties – which it hopes will deliver its “new, more financially sustainable, target operating model.”
At the beginning of this year, the retailer reported a 23.5% fall in H1 group revenue, which it attributed to a “challenging consumer retail market”. The brand also said it was impacted by unseasonable weather and “underperformance” in its wholesale segment.
