Latest news with #HelenReid
Yahoo
2 days ago
- Business
- Yahoo
Adidas says tariffs will add $231 million to second-half costs
By Linda Pasquini and Helen Reid (Reuters) -Adidas said on Wednesday higher U.S. tariffs would add around 200 million euros ($231 million) to its costs in the second half, having impacted its second quarter results by "double-digit" millions of euros. Highlighting the impact of U.S. President Donald Trump's volatile trade policies, Adidas said uncertainty was holding it back from increasing its annual guidance despite reporting stronger than expected second-quarter profit. "We still do not know what the final tariffs in the U.S. will be," CEO Bjorn Gulden said in a statement. Another unknown is the indirect impact on consumer demand if the tariffs cause "major inflation", he added. Shares in Adidas were down 2.6% in premarket trade. The stock is already down 16% since the start of the year. The U.S. earlier this month announced a 20% levy on many Vietnamese exports and a 19% tariff on goods from Indonesia. Vietnam and Indonesia, Adidas' two biggest sourcing countries, made up 27% and 19% of the company's products respectively as of 2024. Like many other sportswear companies including Puma, Adidas has frontloaded product purchases into the U.S. to try and beat tariffs, driving its inventories up 16% to 5.26 billion euros at the end of June. Net sales, adjusted for currency swings, rose 2.2% to 5.95 billion euros ($6.9 billion) in the quarter, lower than analysts' average estimate of 6.2 billion euros, according to data compiled by LSEG. But quarterly operating profit reached 546 million euros, ahead of analysts' expectations for 520 million euros, a sign that Adidas is selling more products at full price. Adidas' gross margin increased by 0.9 percentage points to 51.7% in the quarter, as reduced discounting and lower product and freight costs mitigated the impacts from currencies and tariffs. Adidas is also having to contend with a stronger euro and weaker dollar, which hit sales by around 300 million euros in the quarter through June. ($1 = 0.8651 euros) Sign in to access your portfolio
Yahoo
6 days ago
- Business
- Yahoo
Puma inventory headache highlights tariff dilemma for retailers
By Helen Reid LONDON (Reuters) -Puma faces a dilemma in the United States: after rushing shipments from Asia to beat incoming tariffs, the German sportswear brand is now discounting to clear stock, while planning to raise prices this year to offset rising costs. These conflicting pressures reflect a broader challenge for retailers trying to make sure U.S. shelves are stocked for the crucial back-to-school and holiday seasons, while looking to pass on higher costs through price increases at a time when demand is softening. Puma, which warned on Thursday that it expects an annual loss, said it was cutting orders and plans to raise prices in the fourth quarter to soften the impact of tariffs, which it estimates will take 80 million euros ($93.78 million) off its annual gross profit. "Elevated inventory levels on our balance sheet are leading to lower full price realisation," Chief Financial Officer Markus Neubrand told journalists on Friday. "In response, we've adjusted our future orders to better match expected demand." At the end of the second quarter, Puma's inventories were up 18.3% in currency-adjusted terms compared with the previous year, hitting 2.151 billion euros. The increase was mostly driven by North America, Neubrand said. But North America was also Puma's weakest region last quarter, with sales down 9.1% in currency-adjusted terms. Puma now expects global sales to fall this year by at least 10%, further heightening the inventory problem. "The idea to front load imports into the U.S. was a sensible tactical position given uncertainty, but it does come with the risk of increased discounting in a weak market," said Adam Cochrane at Deutsche Bank Research. Puma's plan to reduce orders should help bring inventories down, but also reflects weaker demand from retailers, Cochrane added. Puma gets three-quarters of its revenue from wholesale, and sales through that channel fell 6.3% in the last quarter. Puma aims to bring inventory levels down and rely less on discounting, but Neubrand warned that this could take up to a year. The company does not break out U.S. figures, but the market accounts for around 20% of global sales. "Looking specifically at the U.S., the ability to push through price increases not only appears challenging in the context of higher inventories being up 18% ex-FX, but also given Puma's muted brand momentum in the region amid an increasingly competitive environment," said Felix Dennl, analyst at Metzler in Frankfurt. Even before tariffs, Puma was struggling, with products such as the relaunched Speedcat sneaker not selling as well as expected. CEO Arthur Hoeld, in charge since July 1, warned 2025 would be a "reset" year and 2026 a "transition", as he attempts a turnaround after predecessor Arne Freundt failed to revive sales. Puma's balancing act is one shared by all retailers in the U.S., where memories of record inventory pile-ups in 2022 in the wake of pandemic supply chain disruptions are still fresh. The glut that triggered deep discounting and dented profits is a situation retailers are anxious to avoid repeating. ($1 = 0.8531 euros)
Business Insider
13-07-2025
- Business
- Business Insider
Some of Walmart's garment orders from Bangladesh on hold, Reuters says
Some suppliers to Walmart (WMT) have delayed or put on hold some orders from manufacturers in Bangladesh due to U.S. President Donald Trump's threat of a 35% tariff, Helen Reid and Siddharth Cavale of Reuters reports, citing three factory owners and correspondence from a supplier. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
Business of Fashion
03-07-2025
- Business
- Business of Fashion
France fines retailer Shein 40 million euros for misleading discounts
France's antitrust agency said on Thursday it had fined China-founded fast-fashion retailer Shein 40 million euros ($47.17 million) for alleged deceptive business practices including misleading discounts, following a nearly year-long probe. The agency, in charge of consumer protection as well as competition, said Infinite Style E-Commerce Co Ltd, which handles sales for the Shein brand, had misled customers about discounts, and that the company had accepted the fine. Under French regulations, the reference price for any discount is the lowest one given by a retailer during the 30 days preceding the offer. Shein infringed that rule by not taking into account previous offers, and sometimes increasing the price before applying a discount, the agency said. It said its investigation showed the company 'deceived consumers about the authenticity of discounts they could benefit from.' The probe, conducted across thousands of products on Shein's French site between October 1, 2022 and August 31, 2023, found 57 percent of advertised deals were not, in fact, offering a lower price; 19 percent had less of a discount than advertised; and 11 percent were in fact price increases. In a statement, Shein said the antitrust agency had informed Infinite Style E-commerce Co Ltd (ISEL) of breaches related to reference price and environmental regulations in March last year, and ISEL had taken corrective action within the following two months. 'This means that all identified issues were addressed more than a year ago,' Shein said, adding that ISEL was committed to complying with French regulations. By Makini Brice, Helen Reid; Editors: Charlotte Van Campenhout, Susan Fenton, Bernadette Baum Learn more: Shein to File Confidentially for Hong Kong IPO, Sources Say Shein aims to submit the filing confidentially as soon as this week, a source familiar with the matter told Reuters. A second source said the filing was expected to be made by Monday.
Yahoo
01-07-2025
- Business
- Yahoo
Billionaire H&M founding family speeds up share purchases
By Helen Reid and Greta Rosen Fondahn LONDON/STOCKHOLM (Reuters) -The billionaire Persson family has picked up the pace of share purchases in the H&M fashion empire it founded, regulatory filings showed on Tuesday, potentially boosting speculation the company may eventually be taken private. The family's Ramsbury Invest holding company, primarily owned by Sweden's richest man Stefan Persson, bought 42.75 million H&M shares in the first half of this year, according to the Swedish financial regulator, with the most recent transaction on Monday. That is a faster pace so far than in 2024, when Ramsbury Invest purchased 56.85 million shares over the year as a whole, and in 2023, when the family bought 55.65 million shares. "As the family owns more shares they have a higher dividend to reinvest which would support increased share purchases," said Deutsche Bank analyst Adam Cochrane, who expects the family to take H&M private by 2030. The Persson family and its related companies owned more than 64% of H&M's shares at the end of May, according to the company's website. H&M referred Reuters' questions about the share purchases to a spokesperson for Ramsbury Invest, who declined to comment on the stake-building or on the possibility of the company being taken private. "I think they will, in due time, take it private - the question is, is it now, or in ten or 20 years?" said Peter Magnusson, portfolio manager at Cicero Fonder in Stockholm. The family would likely need to find external financing or partners to buy the whole company, Magnusson added. H&M's market value is around 187 billion Swedish crowns ($19.7 billion). Investment bankers expect more publicly-listed retailers to go private, since U.S. President Donald Trump's tariffs have dented share prices and driven market volatility. H&M's share price is down 9% since the start of this year. H&M was founded by Erling Persson in 1947, and his son Stefan took over as CEO in 1982, staying in the role for 27 years before handing over to his son Karl-Johan Persson in 2009. In 2020, H&M got its first chief executive from outside the family, with Karl-Johan becoming chair. ($1 = 9.4806 Swedish crowns) Sign in to access your portfolio
