The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
Mall staples Gap Inc. and Nordstrom Inc. tumbled after reporting disappointing results, adding to a series of worrisome retail earnings and renewing concerns over the global supply chain crisis.
Gap chief executive officer Sonia Syngal cited “acute supply chain headwinds” that left the chain unable to capitalise on elevated customers demand. Nordstrom faced similar challenges, with its stores short of key items such as women’s shoes and apparel.
The issues underscored the challenges retailers face in what is proving to be a tricky holiday shopping season. Some stores have started stocking extra inventory and encouraging customers to shop early to avoid issues with expected stock shortages. Retail chains are also grappling with rising costs, a tight labour market and ongoing challenges from the Covid-19 pandemic.
Gap shares fell 17 percent as of 5:55 p.m. Tuesday after regular trading in New York, while Nordstrom plunged 23 percent. Mall-based peer Abercrombie & Fitch Co., which reported results prior to the market open, fell 13 percent Tuesday. Urban Outfitters Inc. slipped 9 percent after its earnings report.
ADVERTISEMENT
Companies are largely being judged on how they’re dealing with supply-chain pressures and higher costs. Some, including Walmart Inc. and Target Corp., have managed to keep shelves well-stocked, but still have been punished by investors for not passing along all the new expenses to customers.
Not every retailer has stumbled. Macy’s Inc. soared last week after raising its forecast and topping estimates, while rival Dillard’s Inc. also won praise for its success in navigating the snarled supply chain.
By Richard Clough
The American retailer has taken a minority stake in Topshop and the three other brands Asos acquired out of administration in February. The deal paves the way for a wider strategic partnership.
Antitrust enforcers said Tapestry’s acquisition of Capri would raise prices on handbags and accessories in the affordable luxury sector, harming consumers.
As a push to maximise sales of its popular Samba model starts to weigh on its desirability, the German sportswear giant is betting on other retro sneaker styles to tap surging demand for the 1980s ‘Terrace’ look. But fashion cycles come and go, cautions Andrea Felsted.
The rental platform saw its stock soar last week after predicting it would hit a key profitability metric this year. A new marketing push and more robust inventory are the key to unlocking elusive growth, CEO Jenn Hyman tells BoF.
Nordstrom, Tod’s and L’Occitane are all pushing for privatisation. Ultimately, their fate will not be determined by whether they are under the scrutiny of public investors.