Latest news with #ThirdBridge
Time of India
4 days ago
- Business
- Time of India
Salesforce raises annual results forecast on strong cloud spending
Salesforce raised its revenue and adjusted profit forecasts for fiscal 2026 on Wednesday, as the enterprise software provider benefits from strong cloud spending while ramping up monetisation of its artificial intelligence agents. Cloud spending from major enterprises has remained resilient even amid global macroeconomic uncertainty over the past few months, as companies invest heavily in artificial intelligence to modernize their digital infrastructure. Shares of the company were up around 1.5% in extended trading. Higher cloud spending bodes well for Salesforce's efforts to ramp up monetization for its AI agent platform, Agentforce , as it bets big on agentic technology to spur adoption of its software offerings. The company said it closed over 8,000 deals since launching Agentforce, with half of them already paid. Its Data Cloud and AI annual recurring revenue has exceeded $1 billion. While Agentforce's monetization has underperformed investors' expectations, "experts have cited a multi-billion dollar revenue opportunity by the end of 2026, with the expectation that Agentforce will ultimately become Salesforce's largest revenue contributor," said Third Bridge analyst Charlie Miner. Salesforce bought data management platform Informatica for about $8 billion on Tuesday to bolster its data tools. The company's re-entry into big-ticket M&A after years on the sidelines sparks concerns about Salesforce's ability to return to double-digit growth without relying on acquisitions. "The acquisition of Informatica represents an attempt by the company to compensate for the slowing organic growth," said Gil Luria, analyst at D.A. Davidson. The company expects fiscal 2026 revenue to be between $41 billion and $41.3 billion, compared with its prior forecast range of $40.5 billion to $40.9 billion. It raised its full-year forecast for adjusted earnings per share to a range of $11.27 to $11.33, compared to its previous forecast of $11.09 to $11.17 per share. The company reported first-quarter revenue of $9.83 billion, beating estimates of $9.75 billion, according to data compiled by LSEG.
Yahoo
15-05-2025
- Business
- Yahoo
Travel industry outlook: Why United & Delta could come out on top
Airlines are dialing back expectations as macro concerns and safety incidents weigh on summer travel, with several major airlines revising and even pulling their full-year outlooks. In fact, international spending in the US is expected to decline $12.5 billion this year. Third Bridge global head of sector analysts Peter McNally joins Market Domination to break down what's ahead for major carriers and how they're adjusting capacity. To watch more expert insights and analysis on the latest market action, check out more Market Domination here. Airlines have been signaling caution with several pulling or revising their folio outlooks on macroeconomic uncertainty. International travel spending in the United States is expected to decline $12.5 billion in 2025. That's according to the World Travel and Tourism Council, adding on to demand worries. We know are these safety concerns, incidents in the past two weeks tied to air traffic control at Newark Airport has raised worries over the safety of flying. For more on what this all means for travel and major airlines, we have Third Bridge Global Head of Sector Analyst, Peter McNally here. Peter, it is good to see you as always. So start big picture, Peter, summer travel season, it's here. What's coming, Peter? What are your expectations? Well, I mean, the expectations across the board have been lowered, but they're still okay. You know, these safety issues have come up in the past and they've tended to be short-lived. Uh, I'm not really sure, you know, how long the uh, the issues in Newark are are going to go on, but United has been pretty emphatic that uh, it is safe to fly. Um, you know, that said, the the underlying demand for the industry is pretty healthy. I think airlines have been proactive in managing their capacity. Uh, so pricing just, you know, remains pretty good. Um, there's not like too many seats out there putting downward pressure at this point from from what we can see, and I think people are gearing up for a good summer. Well, talk to me about that because some of the sources I've talked to, Peter, have said the opposite. There are concerns about all of this trade war headlines hurting international travel, particularly to the United States, uh, which is obviously a potential headwind for some of these big airlines. Then you've also got the safety challenges and then if we can pull up our CPI numbers, you also have airline fairs coming down a touch. Which of those headwinds I just mentioned is the most concerning to you as we head into the summer? Well, I I think that the international travel is more impactful, let's say to a British Airways or a Lufthansa than it is for a Delta or United. Though those concerns more for Europeans coming here than it is for Americans going going to Europe where like that's 80% roughly of Delta's, you know, clients or the US traveler heading overseas. Um, and there really hasn't been a slowdown from anything we've seen out of the result on that yet. Um, but it is it is something that uh that that we're watching. Now, fairs, you know, coming off a bit, they're they're manageable, you know, at this point. Uh, I would also add that uh fuel prices coming down do offer a little margin relief for, you know, for these airlines that they they can offer a little bit of a discount um at this point, but they but they are taking some of the planned capacity out of the market.
Yahoo
14-05-2025
- Business
- Yahoo
Burberry plans 1,700 job cuts as revenue sinks
This story was originally published on Fashion Dive. To receive daily news and insights, subscribe to our free daily Fashion Dive newsletter. Burberry said it could cut up to 1,700 jobs after revenue fell 17% to 2.5 billion pounds, or about $3.3 billion, for the year ended March 29, according to preliminary results released Wednesday. The company announced the layoffs as part of an organizational change designed to improve profitability, which will also include a reduction in operating expenses and 'increased efficiency of spend in procurement and real estate,' per the release. Adjusted operating profit plunged 94% to 26 million pounds for the year, while retail revenue dipped 13% and wholesale revenue dropped 37%. Despite Burberry's losses, its revenue beat analyst consensus which boosted shares by more than 17% following the news. The rally suggested the market was impressed by the early success of the company's strategic Burberry Forward plan, first outlined in November. Comparable store sales for the second half of the year declined 5% compared to a 20% decline in H1. Burberry also said it accelerated its pace to restore scarcity and address inventory overhang, resulting in a gross inventory decline of 9% by the end of March, ahead of guidance. CEO Joshua Schulman, who joined Burberry in July, said in the release that despite a challenging first half of the year, the company has moved 'at pace' to improve its performance. 'The continued resilience of our outerwear and scarf categories reaffirms my belief that we have the most opportunity where we have the most authenticity,' Schulman said. 'While we are operating against a difficult macroeconomic backdrop and are still in the early stages of our turnaround, I am more optimistic than ever that Burberry's best days are ahead and that we will deliver sustainable profitable growth over time.' Burberry's renewed focus on heritage staples, including its iconic trench and checked coats, has helped it move away from short-lived fashion trends and reinforced its brand identity, according to Yanmei Tang, an analyst at Third Bridge. She said this shift appeals to loyal and traditional customers and may also help cushion the company against luxury market downturns. However, Tang cautioned that Burberry still faced hurdles. 'Our experts note that in categories like leather goods and footwear, Burberry struggles to compete with more established luxury players such as Louis Vuitton and Hermès,' Tang said in emailed comments. 'Burberry's signature trench coat, while an undisputed icon, poses a business challenge. As a lifetime product, it naturally limits the frequency of repeat purchases — unlike trend-driven items that bring customers back season after season.' Creative director Daniel Lee could potentially be another wildcard for the company, said Tang. 'Industry watchers suggest that while Lee is known for his sharp luxury aesthetic, he has yet to fully align his creative vision with Burberry's heritage DNA,' she said. 'There's ongoing speculation about the impact his potential departure could have — some believe it could cause short-term instability, though Burberry's strength in traditional products may help absorb such shocks.' Recommended Reading Apparel, luxury spending fell in the beginning of 2025: report
Yahoo
14-05-2025
- Business
- Yahoo
Burberry is cutting 1,700 jobs as its turnaround plan starts slowly reaping results
Burberry showed promise of recovering from the struggling luxury market. But now, Britain's marquee trench coat maker will have to lick its wounds a little longer amid the slow burn of its turnaround plan. On Wednesday, the London-based company reported a 12% decline in sales in the year to March 29, marginally higher than analyst expectations of 13%. Meanwhile, its operating profit was £26 million for the same period against £418 million the previous fiscal year, reflecting the dire state of its business. 'While we are operating against a difficult macroeconomic backdrop and are still in the early stages of our turnaround, I am more optimistic than ever that Burberry's best days are ahead and that we will deliver sustainable profitable growth over time,' CEO Joshua Schulman said in a statement. Burberry is a few months into its cost-savings drive announced in November, aimed at 'course correcting' and improving the brand's performance. The primary strategy of the turnaround plan has been to lean more into Burberry's forte, which includes outerwear like trench coats and scarves. As the company announced its full-year earnings, Burberry also said it plans to slash 18% of its workforce, or 1,700 roles, to streamline costs. The British company said the so-called 'Burberry Forward' plan was already beginning to recharge the brand, although a weak first half of the year dragged its overall performance lower. By the 2027 financial year, Burberry expects to save £60 million. While Burberry's better-than-expected results inject some hope into its performance, the company faces numerous challenges—some shared by other luxury players and others unique. Analysts have highlighted the indirect impact of U.S. tariff tensions on consumer confidence and appetite for luxury goods. The broader luxury sector has been concerned about flagging consumer confidence over the last two years, which has only recently shown signs of rebounding. Burberry's business in Asia Pacific, which contributes 44% of its revenue, has been struggling from the luxury slowdown. Meanwhile, the U.S. clocked in a stronger performance in the third quarter, when investors seemed encouraged that luxury may have finally turned a corner. The fourth quarter, although better than expected, saw sales in the Americas contract by 4%. For its part, Burberry's strategy of doubling down on core-product campaigns could help strengthen the brand's allure once again, but it may not be able to single-handedly lift sales. 'Burberry's signature trench coat, while an undisputed icon, poses a business challenge. As a lifetime product, it naturally limits the frequency of repeat purchases—unlike trend-driven items that bring customers back season after season,' Yanmei Tang, an analyst at Third Bridge, wrote in a note Wednesday. Separately, Burberry's 'elevated' pricing strategy also backfired at a time when shoppers were tightening their purse strings. Schulman admitted the brand had strayed from its path and become 'inconsistent' with what it stood for. Not long after Schulman took over in July, the company lost its spot on the U.K.'s benchmark FTSE 100 Index. The turnaround plan may take a while to reap results, but Deutsche Bank analysts led by Adam Cochrane wrote that they 'like the Burberry story' and see Burberry 'showing further progress.' This story was originally featured on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Guardian
29-04-2025
- Business
- The Guardian
Adidas warns Trump tariffs will put up US shoe prices
Adidas has said the price of its popular trainers including Samba and Campus models is likely to rise as a result of Donald Trump's tariffs. The German group said the uncertainty around US import tariffs had prevented it from raising its outlook for sales and profit this year despite reporting strong first-quarter results. 'Since we currently cannot produce almost any of our products in the US, these higher tariffs will eventually cause higher costs for all our products for the US market,' said Adidas's chief executive, Bjørn Gulden. 'Given the uncertainty around the negotiations between the US and the different exporting countries, we do not know what the final tariffs will be.' Fashion brands, and especially sports shoe producers such as Adidas, will be hit by the introduction of tariffs as the bulk of their products are made in countries including Vietnam, Indonesia and China. Known for its trademark three-stripe logo, Adidas's Samba trainers retail for about £70 in the UK. The company said it was exposed to 'currently very high tariffs' even though it had already reduced exports from China to the US as a result of the introduction of tariffs on goods made in all other countries of origin. Gulden said: 'Cost increases due to higher tariffs will eventually cause price increases, not only in our sector, but it is currently impossible to quantify these or to conclude what impact this could have on the consumer demand for our products.' While Adidas has diversified its supply chain, it may face steeper challenges when raising its prices than some of its competitors, according to analysts. 'Our analysis suggests the brand operates in a tighter price elasticity environment, particularly in its core footwear lines like the Superstar or Gazelle,' said Yanmei Tang, an analyst at Third Bridge. 'With potential tariffs pushing production costs higher, Adidas lacks the same headroom as competitors such as Nike or Hoka, whose consumers are more accustomed to premium pricing.' Earlier in April, Adidas reported a 17% rise in total sales for the first quarter of the year, while sales and profit beat expectations. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion Its operating profit between January and March jumped 82% year on year to €610m (£519m) thanks to strong sales of its lifestyle products, including new animal and floral print versions of its Samba trainers, the model worn by the former prime minister Rishi Sunak among others. Gulden is credited with turning around Adidas since the brand cut ties with Kanye West in 2022, scrapping its lucrative Yeezy line of sneakers. The group confirmed on Tuesday that it had sold the remainder of its Yeezy stock at the end of 2024.
