Virtua Weekly: Breaking News & Insights

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Here's what you need to know:

1. Ralph Lauren is increasing its presence in Canada through the launch of digital commerce and the opening of its inaugural luxury store.

拉尔夫·劳伦 announced that it is expanding in Canada with the launch of dedicated digital commerce and the first Ralph Lauren store in the country.

The store, which recently opened in Toronto’s Yorkdale Shopping Centre, is the first in a planned expansion in Canada, building on the Company’s existing wholesale and outlet presence in the region. Toronto represents one of the Company’s top 30 cities targeted for a comprehensive omni-channel ecosystem expansion globally.

Currently, Ralph Lauren has 12 outlet stores in Canada as well as a wholesale presence at key retailers, including Hudson’s Bay, Sporting Life and Harry Rosen. The Company plans to open a number of Ralph Lauren stores across the country in the coming years.

“Ralph Lauren’s ethos of timelessness and authenticity has inspired and connected with our Canadian consumers for decades, and we’re excited to bring a more holistic expression of our brand to Canada,” said Bob Ranftl, Regional Chief Executive Officer for North America at Ralph Lauren Corporation. “We look forward to serving our consumers throughout Canada with enhanced and elevated experiences that reflect our luxury lifestyle point of view.”?

The upcoming RalphLauren.ca website will showcase Ralph Lauren's complete range of renowned brands, such as Purple Label, Ralph Lauren Collection, Polo Ralph Lauren, Double RL, and Lauren. This will encompass a wide selection of apparel, accessories, footwear, and select Home items for Men, Women, and Children. The company intends to debut the English version of its Canadian digital commerce site on October 11, with potential plans to offer a French-language version for Quebec in the future.

1. NIKE, Inc. Reports Fiscal 2024 First Quarter Results

“Q1 offered proof of what NIKE can deliver when we connect great innovation, great storytelling and great marketplace experiences to consumers,” said John Donahoe, President & CEO, NIKE, Inc. “Moving forward, we are laser-focused on scaling these successes with greater consistency and speed as we continue to integrate and streamline our business. This is how we’ll extend our leadership position and drive growth over the long-term.”

• First quarter revenues were $12.9 billion, up 2% compared to prior year on a reported and currency-neutral basis.
• NIKE Direct revenues were $5.4 billion, up 6% compared to prior year on a reported and currency-neutral basis with growth across all geographies.
• NIKE Brand Digital sales increased 2 percent on a reported and currency-neutral basis.
• Wholesale revenues were $7.0 billion, flat compared to prior year on a reported basis and up 1% on a currency-neutral basis.
• Gross margin decreased 10 basis points to 44.2%
• Diluted earnings per share was $0.94 for the first quarter, up 1%.

• Inventories for NIKE, Inc. were $8.7 billion, down 10% compared to the prior year, primarily driven by a decrease in units, partially offset by product mix and higher product input costs.
• Cash and equivalents and short-term investments were $8.8 billion, down approximately $3.1 billion from last year, as cash generated by operations was more than offset by share repurchases, cash dividends and capital expenditures.?Matthew Friend, Executive Vice President & Chief Financial Officer, NIKE, Inc. said, “Our first- quarter results demonstrated the impact of staying on the offense over the past fiscal year. With a healthy marketplace and another quarter of brand and business momentum, we are strengthening our foundation for sustainable, profitable, long-term growth.”

1. Paul&Shark launches flagship store in London's Regent Street

Fashion brand Paul & Shark have marked its debut in the UK with the grand opening of its flagship store at 233 Regent Street, a prime retail location in the heart of London.

The new space embodies the brand's essence by blending tradition and innovation while maintaining a connection to humanity and nature. Paul&Shark's commitment to sustainability is central to this flagship store's design and construction. The brand stated that more than 80 percent of the store's materials are recycled, underscoring its dedication to responsible practices through the use of fabrics made from production waste.

Covering two floors and measuring 240 square meters, the store features ornate boiserie and strategically positioned light boxes in its design. The large front windows extend a warm welcome to those passing by, and digital elements are seamlessly integrated into the interior.

The opening of the flagship store in London is a key element of Paul&Shark's ambitious expansion plan to connect with a worldwide customer base. Alongside this flagship in the UK, the brand has plans to introduce several additional stores in diverse global locations. These upcoming openings include five in China, two in India, and new stores in the pipeline for Egypt, Iraq, and Ukraine.

Andrea Dini, CEO of Paul&Shark, said in a statement: “The opening of the flagship store at Regent Street in London marks another important step for the brand, it’s an operation I strongly believe in, both from a commercial and image point of view.

1. New Balance unveils new global concept in UK with Westfield Stratford opening

新百伦 has opened at London’s Westfield Stratford City megamall with a fresh retail concept “built to put people, not products, at the centre of the consumer experience.”

The space features some new thinking around the way the brand reaches certain consumers, especially those younger shoppers almost everyone wants to resonate with. It’s been “designed around central seating gestures” and aims to “encourage customers to convene, draw inspiration from each other, and find their authentic style”.

The company said the concept will include an edited assortment of merchandise as well as “visual storytelling to accompany select products, highlighting the makers and origins behind them, illuminating New Balance at the intersection of sport and culture.”?

Additionally, the product offer — whether footwear or apparel — will be curated “so both an elite athlete and a fashion influencer can each envision their next great moment, side by side.”

Ian Fitzpatrick, Senior Director of Global Brand Strategy and Operations at New Balance, emphasised that the store marks a significant progression in their approach to the retail environment. It showcases a more streamlined and targeted collection tailored for younger consumers. The space is designed to highlight stories that are most pertinent to their audience, aligning with their goal of introducing the brand to new audiences, possibly for the first time.

Alyson Hodkinson, General Manager of Westfield Stratford City, highlighted that the launch of the new flagship store is a significant achievement in the development of their sportswear and athleisure offerings. Their vision for Westfield Stratford City has consistently centred on creating a vibrant retail environment that resonates with their diverse community. The addition of New Balance underscores their dedication to delivering an outstanding shopping experience that directly aligns with the preferences and aspirations of their customers.

1. Peloton and Lululemon join forces for global apparel and content partnership

Peloton Interactive and lululemon have signed a five-year strategic deal that sees Peloton providing exclusive digital fitness content for lululemon, while the Canadian brand will become the primary athletic apparel partner to Peloton.

Both companies have announced their intent to connect with their worldwide member community in the US, Canada, the UK, Germany, and Australia by offering technical athletic apparel, real-life experiences, exclusive programming, and original content through their partnership. This collaboration aims to enhance brand awareness and broaden the reach of both companies.

In addition, a select number of Peloton Instructors, the biggest of whom have 1m-plus Instagram followers and enjoy celebrity status, will become lululemon Ambassadors as part of the partnership.

“We’re excited to collaborate with Peloton to connect with our highly engaged communities across North America and in markets around the world,” said Celeste Burgoyne, President, Americas and Global Guest Innovation, lululemon. “As a leader in technical athletic apparel, this partnership will create a powerful product offering for Peloton Members and fans. Our two companies share a vision to advance wellbeing through movement, and this partnership ensures our lululemon Studio Members will have access to the most expansive and dynamic offering of fitness content possible.”

“Our brands create transformational experiences, products, and content that build meaningful connections and unlock greater possibilities for our Members, anytime, anywhere,” said Dion Camp Sanders, Chief Emerging Business Officer at Peloton. “By bringing together the best in fitness content with the best in athletic apparel, we’ll give our communities one-of-a-kind experiences and special content that will inspire them to achieve their goals.”

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