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Australia’s Myer’s profit slumps; shares tank on bleak outlook

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Australian department store owner Myer on Wednesday posted lower interim earnings, citing logistical challenges at a distribution centre in Victoria and strategic review costs, while painting a gloomy outlook due to weak economic conditions.

Myer

The firm, which finalised the purchase of the apparel brands portfolio from rival Premier Investments, opens new tab in January, said the sales for the first five weeks in the second half of the fiscal year were already down by 2.6%.

Shares in Sydney dropped 10.5% to A$0.68 and hit their lowest since June 24, 2024.

Total sales at the retailer were A$1.83 billion ($1.16 billion), with comparable sales up just a touch below 1%. This reflects the closure of Brisbane and Werribee stores coupled with other closures.
The retailer posted net profit after tax of A$42.4 million for the 26 weeks ended January 25, an 18.5% decrease from the previous year.

“Distribution centre issues certainly didn’t help matters either, but for Myer’s profit to start looking healthier next time around the company will be hoping for brighter retail conditions to emerge,” said Tim Waterer, an analyst at KCM Trade.

The results come after Myer’s January warnings of sluggish sales and earnings during the major festive periods of Black Friday, Christmas and Boxing Day.

A measure of Australian business activity dropped to its lowest since the pandemic last November due to tough trading conditions in both manufacturing and retail sectors, suggesting the local economy had not picked up from a time when households struggled with rising costs of living.
Myer had updated the market regarding the construction of a national distribution centre in Victoria during 2021, which went live in August 2024.

“The site has experienced implementation issues and is not yet operating as designed,” the firm flagged.

“If I was a shareholder, I’d be demanding more clarity as to what constitutes ‘operational issues’ given (if the matter is warehousing, technology, system or infrastructure),” said Jesse Moors, portfolio manager at Spatium Capital.

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Space NK commits to largest store outside London with Bullring space

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Premium beauty retailer Space NK is to open at Birmingham’s Bullring, with the brand committing to its largest store outside of London at the Hammerson-operated destination.

To be located on the mall’s Upper Level East, adjacent to AllSaints, Coach, and Dr Martens, the 5,500 sq ft store is set to open this summer as its regional flagship.

There will be a dedicated consultation area for make-up and skincare, with ‘play tables’ for customers to sit independently or with a member of the team to explore the store’s wide selection of beauty brands.

Andy Lightfoot, CEO of Space NK, said: “Our Birmingham community has been very vocal in its wish for us to return, [opening] our biggest store outside of London [it will] be our first standalone store in the city centre.”

Last year, beauty sales at Bullring & Grand Central “grew significantly, making it the best-performing category at the destination”, Hammerson said.

It added that the strength of consumer demand was reflected in the opening of Sephora’s West Midlands’ flagship, complete with the brand’s biggest window façade in Europe, and the regional debut of the K-beauty retailer PureSeoul. They added to Bullring’s “existing critical mass of beauty and wellness”, which includes Boots, Kiko Milano, and Selfridges’ beauty and cosmetics hall, alongside Grand Central’s line-up including Kiehl’s, L’Occitane and MAC.

Paul O’Brien, director of Leasing & Commercialisation at Hammerson, said: “Bullring and Grand Central continues to be the place to go for health and beauty in Birmingham. [Our] strategy of creating best-in-class spaces for international brands seeking a flagship presence in destinations that out-perform is evidenced by Space NK’s decision to open their largest store outside the capital”.

Hammerson added that Space NK’s signing “continues a strong run of key new additions to Bullring”, with Zara opening its significantly upsized flagship last autumn and SDMN Clothing opening its first store outside London.

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Global secondhand fashion market to reach $367 billion by 2029: ThredUp

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Online resale platform ThredUp has launched its annual ‘Resale Report’ revealing that the global secondhand apparel market is projected to reach $367 billion by 2029, with a compound annual growth rate (CAGR) of 10%.

Secondhand fashion market to reach $367 billion by 2029: ThredUp. – ThredUp

This year’s report, released in partnership with GlobalData, highlights that the secondhand apparel market outpaced the broader retail clothing market by five times in 2024. The U.S. secondhand apparel market grew 14% in 2024—its strongest annual growth since 2021.

In terms of shopping behaviour, shoppers are increasingly turning to secondhand options in response to economic shifts. In fact, 59% of consumers say if tariffs and trade policies make new apparel more expensive, they will opt for secondhand, a figure that jumps to 69% among Millennials.

With secondhand shopping becoming mainstream, brands are integrating resale into their business models. Ninety-four percent of retail executives report their customers are already participating in resale, a new record high. Likewise, 32% of secondhand shoppers in 2024 purchased directly from a brand, with nearly half (47%) of Gen Z and Millennial consumers doing the same. 

Social media platforms are becoming an important driver of resale adoption with 39% of younger shoppers having purchased secondhand apparel through a social commerce platform in the past year. Half of Gen Z and Millennial secondhand shoppers purchased items to create content or share on social media.

Lastly, artificial intelligence is revolutionizing the way consumers shop for secondhand goods. Now, 48% of consumers say AI-powered personalization, search, and discovery make shopping secondhand as easy as buying new. Meanwhile, 78% of retailers have already made significant investments in AI, with 58% planning to launch AI-powered tools in the next year.

“As consumers are increasingly thinking secondhand first, the retail industry is adopting powerful new pathways for resale,” said James Reinhart, CEO, ThredUp.

“From the integration of social commerce and innovative AI applications to the establishment of trade organizations and interfacing with government, it’s clear why resale is seeing accelerated growth and has such a promising growth trajectory.” 

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Kith expands in Japan with new Osaka flagship

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Kith is set to open its latest flagship store in the city of Osaka on Friday, marking its second flagship in Japan, following its Tokyo location.

Kith expands in Japan with new Osaka flagship. – Kith

Located in northern Osaka, the new flagship sits within a bustling shopping complex across from the newly developed Umekita Park.

The store’s main room is characterized by Venetian plaster walls, Mountain White Danby stone flooring, and a Rosewood ceiling, highlighting men’s and women’s apparel along the perimeter. The central focus is a monolithic travertine structure that houses accessories and lifestyle pieces on the exterior, and a display of footwear on the inside.

Across the street, Kith Kids introduces a vibrant, playful space with multicolored Kith Monogram wallpaper and a design crafted from Rosa Portugalo, Verde Paradise, and Mediterranean Blue stone. 

Next door, Kith Treats opens its second ice cream shop in Japan, complete with an exclusive Osaka-inspired treat. It will offer a modern and airy ambiance with Rosa Aurora walls, Mediterranean Blue stone, and a colorful seating area along the ice cream bar.

For the opening, Kith has teamed up with New Balance for two exclusive sneaker releases: the Made in USA 992 and the Made in UK 991v2, available in a limited-edition color palette.

It will equally launch an exclusive in-store capsule collection featuring apparel and accessories inspired by Osaka’s culture and the flagship store. The collection includes jackets, tees, crewnecks, and hoodies featuring custom graphics and logos, alongside Nolan Trucker Caps and engraved keyrings.

In partnership with New Era, Kith presents two Hanshin Tigers and Orix Buffaloes caps, honoring Japan’s deep-rooted baseball tradition. Lastly, Kith has collaborated with Kaikado, a heritage Japanese brand with a 150-year legacy, to introduce a special edition travel-friendly tea canister, alongside their iconic handcrafted tea caddies.

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