Despite all the talk about tough times for UK retail, a surprisingly large number of major names have reported strong festive season trading. Premium performance-wear and athleisure brand Castore was the latest of them on Wednesday as it said it saw “a record trading period”.
Its “strongest-ever” sales performance came as Castore grew revenues 16% in December year on year and “as the sportswear market remained more resilient than other retail segments and consumers continue[d] to prioritise their health, wellbeing and fitness”.
It noted that customers were “more organised” and pulled forward Christmas spending, with the weekend of 7and 8 December seeing the highest footfall in stores.
Boxing Day was the largest individual revenue day with a majority of sales happening online and through the Castore app as shoppers stayed home to spend time with their families.
Dubai Mall remained Castore’s highest-revenue-generating store for the second consecutive year, as the brand continued to grow in the region and further internationally.
Product-wise, over 150,000 football shirts were sold in the final weeks before Christmas.Formula 1 products were also “standout performer[s]”, with McLaren and Red Bull sales growing by more than 20% year on year, “as the sport continued to benefit from growth in global interest as both teams performed strongly on track”.
In fact, F1 remains “a key growth area for the business ahead of the new season starting in March, as Castore looks to lead the market and serve an ever-expanding fan base”.
It would be easy to assume from all this that most sales were to men but the company added that female product sales were up over 30%, “demonstrating the continued growth in women’s sport. There has been continued strong sales of team products across all women’s sports, whilst the Zone performance legging was the most in demand item, supported by the continued athleisure trend, which shows no sign of abating”.
Overall, the best-selling Castore items were the Apex training T-shirts, signalling a rush to the gym post-Christmas. These retail at the higher end of the pricing range, “showing customers are willing to spend on premium products where they see performance benefits and value”. Importantly, that “reverses a trend seen in 2023 where lower-priced products were more favoured by customers”.
The company remains upbeat, despite rising costs, and plans to open five to 10 new stores this year.
Co-founder Tom Beahon highlighted the challenging environment but said: “We remain focused on omnichannel, combining the best of digital, physical stores and third-party retail partners to maximise the reach of the Castore brand. Product innovation remains at the heart of Castore’s success and we are excited to launch a number of new ranges to customers and fans this year.
“We are pleased to see long-term partners and ambassadors like Sir Andy Murray – currently coaching Novak Djokovic at the Australian Open – continue to wear Castore, which again has a resilient, knock-on impact on demand for specific products, as well as our team partners’ continued success on and off the pitch.
“We are optimistic about 2025 despite the macro-economic uncertainties and are forecasting continued profitable growth both in the UK and international markets.”
Deckers Outdoor on Thursday beat third-quarter sales estimates on robust holiday demand for its Hoka running shoes, but an in-line annual forecast caused the footwear maker’s shares to tumble 17% in extended trading.
Hoka shoes with their oversized soles have been gaining market share from brands such as Nike in the sportswear category. The brand, which retails for up to $300 in the United States, have also enjoyed full-price sales.
This drove up the company’s third-quarter revenue by 17% to $1.83 billion, beating analysts’ average estimate of $1.73 billion, according to data compiled by LSEG. Deckers also raised its annual net sales forecast for a second time this year.
“The guidance looks pretty conservative and considering the beat, it’s bit of a negative read into the out quarter,” said Drake MacFarlane, analyst at MScience.
The popularity of the Hoka shoes and the success of the company’s Ugg boots and sandals has helped it post double-digit revenue growth for nearly seven quarters.
The company now expects annual net sales to increase about 15% to $4.9 billion, compared with its prior expectation of about 12% growth to $4.8 billion. Analysts estimated an increase of 14.9% to $4.93 billion.
Deckers expects annual earnings per share of $5.75 to $5.80, compared with its prior forecast of $5.15 to $5.25.
Amazon.com is increasing its advertising on billionaire Elon Musk’s social media platform X, the Wall Street Journal reported on Thursday, citing people familiar with the matter.
The major shift comes after the e-commerce giant withdrew much of its advertising from the platform more than a year ago due to concerns over hate speech.
In 2023, Apple also pulled all of its advertising from X and has recently been in discussions about testing ads on the platform, the report said.
Several ad agencies, tech and media companies had also suspended advertising on X following Musk’s endorsement of an antisemitic post that falsely accused members of the Jewish community of inciting hatred against white people.
Monthly U.S. ad revenue at social media platform X has declined by at least 55% year-over-year each month since Musk bought the company, formerly known as Twitter, in October 2022. He had acknowledged that an extended boycott by advertisers could bankrupt X.
Musk has become one of the most influential figures following President Donald Trump‘s re-election. He now leads the Department of Government Efficiency, which aims to cut $2 trillion in government spending.
Italian luxury goods group Salvatore Ferragamo said on Thursday its revenue dropped by 4% at constant currencies in the fourth quarter, flagging “encouraging results” from its direct-to-consumer sales which were overall flat in the last three months of the year.
Sales in the North American region, which accounted for 29% of total revenue, were up 6.3% in the quarter. However, the Asia Pacific area saw a 25% drop in revenue at constant exchange rates.
The slowdown in global demand for luxury goods, especially in China, has made the group’s turnaround harder. Overall preliminary revenues reached 1.03 billion euros in 2024, in line with analysts’ estimates, according to an LSEG consensus.
“January shows an acceleration in our DTC channel’s growth, albeit supported by the different timing of the Chinese New Year and a favourable comparison base versus last year”, Chief Executive Marco Gobbetti said in a statement.