On March 4, French skiing and winter sport equipment specialist Rossignol officially entered the trail running sector by launching the Vezor 4 shoes. Designed for athletes, with soles produced in collaboration with Michelin, the Vezor are priced at €180. They will be presented to the market at various trail running events during the year, as well as at Rossignol partner stores in mountain resorts, where running enthusiasts will be able to try them out. Rossignol has also launched the Venosk model (€140), whose main asset is being suitable for everyday training on all types of terrain, alongside a range of T-shirts, polos, sweaters and shorts.
The Vezor are named after a small village by the Vercors massif in France – Rossignol
To establish its new position in the trail running sector, Rossignol has introduced a diverse team of athletes with a range of skills, led by Maxime Grenot, ultra-trail runner and creator of the ALPI Running training app. The team is aiming to win as many races as possible, but will also provide feedback to Rossignol about its new shoes and apparel products for the spring/summer season.
Highly competitive sector
Rossignol, which primarily specialises in skiing and winter sport equipment, has now set its sights on a market, trail running, that has 20 million practitioners worldwide and two million in France, according to the International Trail Running Association. The sector is highly competitive, but Rossignol intends to fight on an equal footing against Scandinavian and US industry leaders through cutting-edge technology and a French aesthetic. “We are shifting from being a winter sports brand to a mountain sports brand,” said Vincent Wauters, CEO of the Rossignol group. On select price-points, Rossignol is competing directly with names like Salomon and Hoka.
Vincent Wauters, CEO of the Rossignol group – Rossignol
Rossignol embarked on a diversification strategy three years ago, and Wauters believes it makes a lot of sense. “Winter sports enthusiasts turn to trail running in summer,” he said. After extensive testing in the Montebelluna factory in Italy, Rossignol has produced tens of thousands of units of the Vezor shoes, and is eagerly expecting the feedback of the trail running community. Within three years, the brand is hoping that spring-summer products will account for 15% of its revenue.
Trail running products staving off market threats
Diversifying its assortment is a way for Rossignol to anticipate the mountain environment’s transformation caused by climate change. The environment is still relatively well-preserved at high altitude, but the transformation is noticeable lower down. Higher temperatures have caused demand for Nordic skiing products to drop in the last two winters, negatively affecting the results for the group and its brands: Rossignol, Look, Lange, Dynastar, Kerma, and Risport. For next winter, the group is expecting to top again the €331 million revenue mark, its pre-pandemic record, given that weather forecasts are encouraging.
There are 20 million trail running practitioners worldwide – Rossignol
Another threat facing the group is market uncertainty in the USA, which accounts for a third of its revenue, while Canada accounts for 10% and France for 20%. A tax on aluminium could, for example, severely impact the business. Again, trail running products are an interesting alternative.
For the time being, the Rossignol brand is busy both diversifying and consolidating its market position. After opening a new store in the Marais district in Paris in January, Rossignol is also working to revamp its Saint-Germain store, and is planning to develop dedicated retail areas in partner stores within two to three years.
Nike Inc. shares tumbled on Friday, sending the sportswear company’s market value below $100 billion for the first time since the depths of the Covid-19 pandemic after its earnings report signaled that revenue and profitability will remain under pressure.
Reuters
Its shares slid as much as 9.3% to hit the lowest level since March 2020. Friday’s drop erased roughly $9 billion in value, giving the company a market capitalization of $97 billion. Nike’s shares have now declined in the session after earnings for six straight quarters. The stock is down more than 60% from a record high in November 2021, when the company’s market value stood around $281 billion.
Nike predicted further declines in revenue and profitability in the current quarter due to an ongoing merchandise reset that it says is necessary to revive growth. The company, which has manufacturing locations in both China and Mexico, said its outlook also reflects the estimated impact from newly implemented tariffs on imports from the countries.
The fiscal third-quarter report was the latest in a string of disappointing updates from Nike, which has been grappling with a sales slump that began under previous Chief Executive Officer John Donahoe.
Still, some on Wall Street continue to have confidence that CEO Elliott Hill, a longtime Nike executive who came out of retirement to take the top role in October, is the right leader to guide the company back to growth.
“He’s eyes wide open and understands how much lifting is required,” said Kevin McCarthy, a portfolio manager for the Neuberger Berman Connected Consumer ETF, while holds Nike shares. “There’s a very real turnaround with a smart architect at the top, but it’s a tanker ship and it’s going to take time to move it around.”
British sportswear and fashion group Frasers Group has increased its stake in online fashion retailer ASOS to 25.13% from 24.21%, a stock exchange filing showed on Friday.
Asos
With the latest stake purchase, Mike Ashley‘s Frasers Group has now consolidated its position as the second-largest shareholder in ASOS, behind Denmark-based fashion firm Bestseller A/S, according to LSEG data.
Bestseller, owned by Danish billionaire Anders Holch Povlsen, had raised its stake in ASOS on Thursday to 28% from 27.1% through a subsidiary called Aktieselskabet.
Under UK acquisition rules, when an investor acquires a 30% or more stake in a company, it initiates a compulsory requirement to extend an offer to the rest of the shareholders.
CoverGirl parent Coty said on Friday it would sell its 20% stake in reality TV star Kim Kardashian‘s beauty brand to her clothing line, Skims, consolidating the two businesses under a single brand.
Kim Kardashian
Coty, which acquired a stake in Kardashian’s beauty business, Skkn, in 2021, said it would use the proceeds from the sale to reduce debt and invest in innovations across its broader brand portfolio. The New York-based lipstick maker has been struggling to lift sales, owing to muted spending from cost-conscious consumers amid rising inflationary woes.
Last month, Coty cut its annual profit forecast and posted a surprise drop in quarterly revenue, joining its larger peer Estee Lauder in taking a hit on sales from weakness in Asia travel retail business.
Anna von Bayern, CEO of Kylie Cosmetics and leader of Kim Kardashian’s beauty business at Coty also said the company would continue to work with Kylie Cosmetics brand.
In 2023, Kim Kardashian was said to be in talks with Coty to buy back a minority stake in her beauty firm as part of an effort to expand Skkn’s beauty categories.
Coty did not provide the purchasing price of the stake and did not immediately respond to Reuters request for comment.