Discount retailer Ross Stores forecast annual sales and profit below estimates on Tuesday, joining its larger peers in indicating a dip in consumer demand due to rising inflationary pressures.
Ross
U.S. consumer spending saw its first decline in nearly two years this January, with marked slumps in sales at furniture, clothing and electronic retailers. Forecasts warn of further drops, as tariff impositions and immigration crackdowns loom.
Ross Stores’ efforts to diversify its product assortment with varying price points to attract more customers fell short, as its core customer base, primarily consisting of lower-to-middle income households, scaled back on expenses.
“We believe a combination of unseasonable weather and heightened volatility in the macroeconomic and geopolitical environments has negatively impacted customer traffic,” said CEO Jim Conroy.
Peer TJX and retail giants such as Walmart, opens new tab and Target also provided bleak annual forecasts, as they expect consumer spending to be pressured by the impact of President Donald Trump‘s import tariffs.
Ross Stores expects fiscal 2025 comparable sales to be down 1% to up 2%. Analysts were expecting a rise of 2.9%, according to data compiled by LSEG.
The company forecast annual earnings per share in the range of $5.95 to $6.55, compared with expectations of $6.69 per share. Ross Stores expects first-quarter comparable sales to be down 3%, compared with a 3% gain a year ago, including some impact on goods in transit when the initial tariffs were first announced.
The company’s fourth-quarter sales fell 1.8% to $5.91 billion from the previous year. Analysts were expecting a 1.1% drop to $5.96 billion.It earned a profit of $1.79 per share in the reported quarter, compared with estimates of $1.66 per share.
Beware, UK retailers and brands aren’t doing enough to reduce the use of single-use plastic packaging, and consumers will vote with their purses if this goes on.
Image:Aquapak
New research shows 65% of UK consumers felt retail is falling short when it comes to cutting harmful plastic, with just 18% saying they are doing enough, according to sustainable packaging producer Aquapak.
The findings show that British shoppers want to see retailers take positive steps to reduce the impact of the packaging they use on the environment. Some 59% said they wanted to see the conventional plastic used in packaging replaced with an alternative material which can be recycled and doesn’t harm the environment.
Meanwhile, 57% said they should use more paper-based packaging which can go into kerbside recycling collections and 49% said that they should stop using traditional single-use plastic completely.
If such changes are not made, the findings suggest that consumers are happy to vote with their feet and purses.
Over the next 12 months, 56% of those surveyed said they will try and buy more products that do not use single-use plastic packaging, such as polyethylene bags. They are prepared to take even more extreme steps over the next three years, with 46% saying they will stop buying products that use single-use packaging and hard to recycle packaging altogether.
For retailers and brands facing environmental challenges throughout the supply chain, they should take heart from the fact that 32% of consumers said that they would be prepared to pay more for packaging which is 100% recyclable.Of these, 43% said they would pay 5% more.
Some 30% said they would pay more for clothing and accessories packaged in recyclable material, with 41% of these saying that would also be happy to pay 5% more.
Mark Lapping, chief executive of Aquapak, said: “We recognise that businesses have many challenges to deal with when it comes sustainability, whether it is carbon, water or biodiversity but it is important that they don’t just pay lip service to new technologies but opt for real change.
“The good news is that there is a commercially proven solution that will make their plastic packaging problems disappear. We have developed Hydropol which can be incorporated into paper to create planet-friendly wrappers for dry foods, snacks and confectionery, or used as film to make garment bags, providing an alternative to current packaging which is hard to recycle and inconvenient for consumers.”
Barbour International has collaborated with New York based lifestyle brand Saturdays NYC to create a three-piece capsule menswear collection for SS25.
The collection, made up of a lightweight wax jacket, a graphic sweatshirt and an oversized T-shirt, completes the Barbour International x Saturdays NYC collection available from 6 March through Barbour.com and selected stockists worldwide.
The collab link is inspired by Barbour International’s motorcycle heritage and Saturdays NYC’s city and surf roots. So the capsule collection “fuses both iconic brands seamlessly… present[ing] lasting quality through a modernised attitude”.
The key Lightweight Wax takes inspiration from Barbour’s original A7 jacket first introduced and created by Duncan Barbour in 1936, which became “synonymous amongst bikers back in the 1960s and 70s”. This reimagined style retains many of the original key details including the angled chest map pocket and robust functionality, we’re told. But it’s given a modern twist as it has been presented in a lighter-weight waxed cotton fabric. Finished with a dual branded logo and a shock-cord hem adjustment for more of a relaxed fit, this jacket is a synergy of both brands.
Featuring a checkered monochrome graphic the sweatshirt “adds a bold statement to a contemporary look” while the graphic T-shirt exhibits Saturdays NYC’s “illusional graphics, with a reference to Barbour International’s black and yellow colour scheme”.
Saturdays NYC said of the second-time collaboration: “Barbour International is a brand that has inspired us since we started designing and to continue this partnership is an exciting commitment to design and craftmanship.”
KMD Brands, owner of Rip Curl, Kathmandu, and Oboz, announced on Wednesday that Brent Scrimshaw will transition to the role of group chief executive officer and managing director, effective March 24.
Rip Curl
In his new role, Scrimshaw will work out of the Australia-headquartered company’s offices in Melbourne.
Outgoing KMD Brands CEO Michael Daly will step down March 25, and will remain on in a transitionary period with Scrimshaw until April 4. A sports apparel veteran, Scrimshaw has been a director of KMD Brands since 2017 and global CEO of marketing services company, Enero, since 2020. Before that, the executive had a 19-year career at Nike, serving as vice president, EMEA brand marketing and core category business, and vice president and chief executive of Western Europe.
“I’m energised by the opportunity that lies ahead as I step into the group CEO role,” said Scrimshaw.
“Having spent 30 years building brands around the world, I’m excited to enable a strategic focus on deepening our consumer connections through bold and innovative product, all while amplifying the unique identity of our iconic brands. I look forward to collaborating with our talented teams to unlock KMD Brands’ next phase of growth.”
Daly first announced his planned departure from KMD Brands in October last year. Less than one month later, former Rip Curl CEO Brooke Farris also stepped down from her role after three years leading iconic surfwear brand.