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Poor retail sales data highlight euro zone’s consumption slump

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3 hours ago

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Reuters

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March 6, 2025

Euro zone retail sales unexpectedly dipped in January, adding to signs that a long-predicted consumption-led recovery is not yet on the horizon, fresh data from Eurostat showed on Thursday.

Reuters

Retail sales in the 20 nations sharing the euro currency dipped by 0.3% on the month, confounding expectations for a 0.1% rise, as non-food products and fuel sales both fell.

It was the fourth straight month of contraction or zero growth, and retail figures have been trending down for the past half year.

Consumption was widely expected to take off in the second half of last year as real wages finally caught up to levels before the inflation surge of 2022-2023.

But households are still choosing to save up their cash, worried that the relentless flow of negative news from trade tensions to Russia’s war in Ukraine and an industrial recession could drag the bloc into recession and lead to massive job losses.

Those fears have been proven wrong so far as employment continues to rise to record highs but hours worked are falling and order levels in manufacturing remain low, denting confidence.

Among the bloc’s biggest countries, Germany reported a small rise in retail sales, but France and Italy both recorded drops.

Retail sales rose by 1.5% compared with a year earlier, a slowdown from 2.2% a month earlier and also below expectations for 1.9%.

Weak consumption is a key reason the European Central Bank is all but certain to cut interest rates once again on Thursday and keep the door open to more monetary policy easing.

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Trump hails $20 billion investment by shipping firm CMA CGM

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30 minutes ago

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March 6, 2025

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Reuters

Published



March 6, 2025

U.S. President Donald Trump on Thursday said French-based shipping firm CMA CGM would invest $20 billion in the United States to build out shipping logistics and terminals.

Reuters

Trump told reporters he would also announce a new program for building ships in the United States next week or the following week, including incentives.

CMA CGM is the world’s third-largest container shipping line.

Its CEO Rodolphe Saade, who joined Trump in the Oval Office, confirmed the $20 billion investment and said it was expected to create 10,000 jobs.

The shipping line industry is faced with uncertainty as the Trump administration’s plans for import tariffs and port fees on Chinese-built vessels threaten to shake up maritime trade.

The $20 billion investment over four years would include expansion of container ports and the creation of an air cargo hub in Chicago supported by five new Boeing 777 freighters flown by American pilots, CMA CGM said in a statement.

Saade, a French-Lebanese billionaire who controls CMA CGM with other family members, told Trump at the White House that his group was also looking at supporting building of container ships and would make an announcement “in the coming weeks”.

The company further plans to raise its number of U.S.-flagged vessels to 30 from 10 currently, he added.

Lagging U.S. vessel capacity and shipbuilding compared with China has been a major concern for U.S. officials. A White House document seen by Reuters showed the Trump administration plans to levy fees on imports on Chinese-made ships and offer tax credits to resuscitate domestic shipbuilding.

CMA CGM operates port terminals in New York and Los Angeles that it acquired as part of multi-billion investments drawing on record profits made during a post-COVID shipping boom.

The Marseille-based firm is the biggest cargo carrier for U.S. retail giant Walmart.

CMA CGM, which is also part of a vessel-sharing alliance with Asian lines including China’s COSCO, had warned last week that U.S. port fees on China-built ships would have a big impact on all shipping firms.

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Galderma to discuss U.S. tariffs with retailers, sees “moving target”

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1 hour ago

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March 6, 2025

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Reuters

Published



March 6, 2025

Swiss skincare company Galderma will talk to major American retailers about trade tariffs imposed by the U.S. government in order to manage their impact, CEO Flemming Ornskov said on Thursday.

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U.S. President Donald Trump this week slapped tariffs of 25% on Canada and Mexico, though his administration later said it would temporarily exempt automakers and consider other products.

“We will be talking to Walmart, Target, Amazon, and others to figure out how we’re going to react to this, also price-wise,” Ornskov told Reuters after Galderma posted a 9.3% sales increase for 2024 and net income of $231 million.

He described tariffs as “a bit of a moving target,” noting that their scope could still be altered.
Ornskov said his company had already taken “precautions on stock and other things” in the U.S. to mitigate the impact on Galderma, which has major production operations in Canada.

“Another way of compensating this would be just to drive more volume with your product,” he said.
Galderma’s net U.S. sales were flat in 2024 on the year and fell in the final quarter. Ornskov said there were specific factors behind that and was confident U.S. sales would grow in 2025.

Trump has also threatened to impose tariffs on Europe.

As most aesthetic companies produce in Europe, they and Galderma would be affected, Ornskov said.

Galderma’s results come almost a year after it listed on the Swiss stock exchange. Its share price has since doubled from its initial launch price, though the stock fell by as much as 9% on Thursday before paring losses.

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Victoria’s Secret Q4 sales stable on solid comps

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2 hours ago

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March 6, 2025

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Victoria’s Secret & Co. announced on Wednesday sales for the fourth quarter rose 1% to $2.106 billion, on the back of sold comparable sales growth during the quarter ending February 1.

Victoria’s Secret
The U.S. lingerie giant said comparable sales during the 13-week period increased 5%. As a result of the recovery in the fourth quarter, the Ohio-based firm reported sales of $6.230 billion for the fiscal year 2024, an increase of 1%. Total comparable sales for fiscal year 2024 were flat, the company added.

Net income for the year increased to $165 million, or $2.05 per diluted share, compared to net income of $109 million, or $1.39 per diluted in the prior-year period.

“I am pleased with the strength of our fourth quarter holiday results, which saw sales up in both our Victoria’s Secret and Pink brands and our powerhouse Beauty business. Sales increased across most major merchandise categories, in our stores and digital channels, and in both our North America and International businesses. We won in the big moments of the quarter and gained more than our fair share of the traffic in the mall and online. The teams focused on execution and drove healthy margins, controlled costs, and managed inventory levels extremely well in a highly competitive and promotional holiday environment,” said VS&Co CEO Hillary Super.

“During the holiday season we clearly connected emotionally with our customer through our merchandise offering of the accessible luxuries she loves. After my first holiday season with the business, I continue to be optimistic about our future, our opportunity to further differentiate the brands with compelling storytelling and make even deeper emotional connections with our customers.”

Looking ahead, the company is forecasting sales for the first quarter of 2025 to be in the range of $1.3 billion to $1.33 billion, compared to last year’s $1.359 billion, hurt by an uncertain ​macro environment and a shift in consumer confidence.

“As we look forward to 2025 and the future, we recognize there are near-term headwinds and ongoing uncertainty in the macro environment which we will manage aggressively while also working to build upon our solid foundation, realize the full potential of our brands and drive long-term, sustainable growth,” concluded Super.

This week, Victoria’s Secret said it has halted its promotion goal for Black workers and altered language on diversity, equity and inclusion, joining a slew of U.S. companies in shifting policy.

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