Virtua Weekly: Breaking News & Insights
Welcome back to Virtua Weekly, where we break down the biggest stories emerging from inside Virtua and also the sports, fashion & outdoor industries each week!
Here's what you need to know:
In 2013, 阿迪达斯 initiated its partnership with Kanye West, a period when the sportswear giant was still in close competition with rival Nike. Back then, Adidas generated 19 billion euros in revenue, trailing behind Nike's $25 billion, but not nearly as far as the $20 billion gap that presently separates the two companies.
Fast forward a decade, and Adidas' net sales have increased less than $5 billion with the brand now anticipating its first annual loss in thirty years. Additionally, the Yeezy partnership has come to an end, leaving Adidas with excess inventory to manage, and a?promise to donate a significant amount of the proceeds to charity.
Despite finding a way to move forward with its controversial Yeezy merchandise, Adidas exhibits signs of a brand that has lost its direction. The breakdown of a partnership with renowned singer Beyoncé earlier this year resulted from a significant decline in sales of the Ivy Park line, with sales falling by over 50%.
Additionally, the company completed the sale of its Reebok brand in 2022 due to prolonged underperformance. Furthermore, Adidas made an early change in leadership, replacing chief executive Kasper Rorsted. Adding to the challenges, the company's sales in 2022 are lower than they were four years ago.
Nike surpasses Adidas in revenue across all regions, but the most significant disparity lies in North America. In this region, the gap between the two companies is a substantial $12 billion, which exceeds the revenue difference in all other regions combined. Approaching the region with a very European-centric point of view could be an explanation as to why the the group has struggled in North America.
2023 Second Quarter Facts
? Sales increase to € 2,121 million (+11.1% currency-adjusted (ca) / +5.9% reported / Q2 2022: € 2,002 million), driven by strong growth in EMEA and APAC, including Greater China.
? Gross profit margin declines to 44.8% (Q2 2022: 46.5%), mainly due to currencies, sourcing costs and promotions.
? Operating expenses (OPEX) increase by 6.6% to € 843 million (Q2 2022: € 791 million), mainly due to DTC growth and higher marketing expenses.
? Operating result (EBIT) declines by 21.2% to € 115 million (Q2 2022: € 146 million), resulting in an EBIT margin of 5.4% (Q2 2022: 7.3%), mainly due to lower gross profit margin.
? Net income down by 34.7% to € 55 million (Q2 2022: € 84 million).
? Inventory up 8.1% to € 2,146 million (June 30, 2022: € 1,984 million); back to normalised levels.
Arne Freundt, Chief Executive Officer of PUMA SE:
"On the back of our Q2 results, we are perfectly on track to achieve our full-year outlook in the transition year 2023. PUMA continued to grow by double-digits, demonstrating continued strong brand momentum, despite the volatile environment. As the best partner for Wholesale, we worked together with our retailers through elevated inventory levels in the market and successfully normalized our own inventory levels as planned."
"Our strategic priorities Brand Elevation, winning in the U.S. and China are key for PUMA’s future growth trajectory. We are making good progress on all levels and with the announcement of new leaderships for Global Marketing and Mainland China, we have put the required organizational foundation in place."
领英推荐
The last few turbulent years have seen major changes in the fashion retail landscape. But more change is to come and this could see a shake-up at the top of the sector.
A new report from Retail Week and Bloomreach , which forecasts that Frasers Group will be in top spot by 2026. The leap from third to number one spot will come on the back of a “five-year compound annual growth rate (CAGR) of 9.2% attributed to its premium elevation strategy and lucrative acquisitions”.
The company's strategic acquisitions, including Missguided and I Saw it First, along with the expansion of its FLANNELS chain, have played a pivotal role in its success. Moreover, to attract Gen Z consumers, the flagship store on Oxford Street has been rebranded as Flannels X. The company's strong presence in the sports sector, stemming from its roots as Sports Direct, remains crucial. Building robust partnerships with major brands like Nike has been instrumental in bolstering its sports business.
" Deckers Brands begins fiscal year 2024 in a position of strength, accelerating towards our outlook for the full year, which has been raised to reflect HOKA brand momentum," said Dave Powers, President and Chief Executive Officer. "We remain dedicated to delivering results in alignment with our strategic focus to grow DTC and build our presence within international markets. Combined with our disciplined brand marketplace management and nimble operating model,?this approach underscores our confidence to achieve our increased full-year outlook and drive long-term success for our brands."
First??Quarter Fiscal 2024 Financial Review (Compared to the Same Period Last Year)
First??Quarter Fiscal 2024 Brand Summary (Compared to the Same Period Last Year)
With the Paris 2024 Olympic and Paralympic Games set to begin exactly a year from now, LVMH has become a Premium Partner of this global event, which resonates with the Group’s mission, ‘The Art of Crafting Dreams’, echoing the vision of Paris 2024. This exceptional partnership will enable the artisans across the LVMH Group to contribute their creativity, exceptional know-how and unique sense of French art de vivre to the organization of this unmatched celebration of high-level sports.
Paris 2024 will entrust several essential roles to artisans from the LVMH Group. These include the design of the Olympic and Paralympic medals by?Chaumet.
Mo?t Hennessy wines and spirits Maisons will provide their exceptional products as part of hospitality programs during the Olympic and Paralympic Games and will help ensure a superb quality experience for guests.
SEPHORA ?will be a partner for the Olympic Torch Relay, proposing activations for the public all along the relay route, as well as at Group locations along the itinerary and at stops.
The partnership continues the active support that LVMH and its Maisons have for many years provided for high-level sports and the most prestigious international competitions.