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Ross Stores forecasts annual sales, profit below estimates on weaker demand

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Reuters

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March 5, 2025

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.

© Thomson Reuters 2025 All rights reserved.



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Adidas forecasts higher profits this year as retro sneaker demand surges

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Bloomberg

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March 5, 2025

Adidas AG expects higher profits in 2025 as the German sports brand expands its lineup of retro sneakers, which have fueled renewed momentum in global sales.

According to a statement released Wednesday that builds on January’s preliminary fourth-quarter earnings report, the company projects an operating profit of €1.7 billion ($1.81 billion) to €1.8 billion this year. While this falls short of analysts’ €2.07 billion average estimate, Adidas is known for its conservative guidance, having raised its outlook three times last year.

The recent strong performance highlights the company’s recovery under CEO Bjørn Gulden, now in his third year leading the brand. The former Puma SE CEO is credited with managing the fallout from Adidas’ terminated partnership with rapper and designer Ye, formerly known as Kanye West. Investors have responded positively to Gulden’s back-to-basics approach, which focuses on sportswear and pragmatic product development. He aims to narrow the gap with Nike Inc., which, despite its struggles, remains the industry leader.

Retro sneakers drive Adidas’ revival

Demand continues to surge for retro sneaker models, including the Samba and Campus, which have helped revive the brand after a series of challenges in recent years. Adidas has also introduced additional throwback styles, such as the SL72 running shoe and Tokyo trainer, catering to the growing appetite for vintage designs.

Due to the sustained popularity of these models, Gulden has postponed the re-release of the 1970s-era Superstar basketball shoes, aiming to prevent oversaturation in the three-stripe sneaker market.

Beyond lifestyle footwear, Adidas is also seeing strong demand for its sports gear, particularly the Predator football boots and the Adizero running shoe franchise, the company said.

Global sales momentum and Yeezy exit

Adidas expects currency-neutral sales to grow at a high-single-digit rate in 2025, which is in line with analyst estimates. Excluding the now-defunct Yeezy franchise, the brand anticipates double-digit growth.

The company reported a 16% sales increase in Greater China and a 25% surge in Europe during the fourth quarter. North American sales rose 15%, marking a significant gain in a region long dominated by Nike, where Adidas has previously struggled.

Adidas completed the sale of its remaining Yeezy inventory in the fourth quarter, generating €650 million in revenue during 2024. The final sales occurred over two years after the brand severed ties with Ye.

Adidas shares have climbed about 32% over the past year, outperforming both Nike and Puma.



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END.-Adidas collab campaign heads to Berlin to ‘tie the knot’

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UK-based global fashion retailer END. has promised a breathless celebration for its 20th anniversary and core to its mission is maintaining collaborations with long-standing brand partners. One of its biggest associations is with sportswear giant Adidas so the pair are now exclusively ‘Tying the Knot’ as part of those anniversary celebrations.

As an ode to the “essence of love and partnership”, both END. and Adidas “merge classic Adidas silhouettes with refined co-branded details in their latest execution of the Superstar Vintage and Japan OG”. 

With minimal exteriors (in sleek black leather and white lace uppers), a “subtle yet meaningful touch” is embossed on the underside of the tongue with the classic phrase of ’something old, something new, something borrowed, something blue’.

For the campaign, the pair have embarked on a journey to Berlin documenting five couples from diverse backgrounds to frame the collaboration “in a modern context of love and understanding of beauty within each relationship”. 

The couples “navigate and redefine sneaker culture through storytelling and innovation, with a shared commitment to quality, heritage and progressive design”.

The END. x adidas ‘Tying the Knot’ collection launches Friday (7 March) at END. stores and online priced from £125 to £150/€139 to €175.

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(Fashion) Minority Report and ASOS return for a second incubator programme

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Applications have been opened for round two of ScaleUP, the incubator programme for ‘global majority’-owned brands that’s run by the (Fashion) Minority Report (FMR) in partnership with ASOS.

The previous incubator’s winners were Isabelle Pennington Edmead and Taideux

Global majority refers to people of African, Asian, indigenous, Latin American, or mixed-heritage backgrounds who comprise 85% of the world’s population. And ScaleUP is designed to help bridge the gap between the fashion industry and those brands that “continue to face barriers in accessing the fashion market and scaling up their business operations”.

The programme provides successful candidates with support including insight and guidance from industry experts, mentorship, wholesale opportunities, the opportunity to pitch for funding help in developing a long-term strategy.

Applications for ScaleUP will be open until 3 April. They’ll be reviewed and shortlisted by a panel of judges including  Daniel Peters, FMR founder; ASOS’s creative EVP Vanessa Spence, and its partner brand director Shazmeen Malik; plus the BFC’s Head of designer initiatives and education, Katie Rawle, with more judges to be announced soon.

The inaugural programme debuted in 2023 and FMR and ASOS have learnt from that experience saying that this year “every brand selected as a finalist will be supported in scaling up their business through masterclasses in marketing, finance and wholesale”. 

Meanwhile the overall winning brand will receive an investment of £20,000 and their collection will be sold on ASOS.com, with a second place winner receiving £10,000 to scale up their brand. 

The 2023 launch programme saw 100 applications with11 applicants being shortlisted and six brands receiving expert guidance and mentoring. 

The two final winners of the first programme were womenswear specialists Isabelle Pennington Edmead and Taideux. The latter has already launched on ASOS.com, while Isabelle Pennington Edmead will launch this spring.

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