Gap, Abercrombie and (Sort of) Nike: Earnings to Watch This Week

A few of the largest mass trend retailers report their fourth-quarter outcomes this week (most luxurious manufacturers took their flip across the begin of the month). We already know that vacation gross sales had been stronger-than-expected at high-flying retailers like Abercrombie & Fitch and American Eagle; much less so at struggling rivals. And after final week’s large shakeup at Macy’s, may different retailers be seeking to make some main modifications too?

Abercrombie & Fitch: How Lengthy Can They Preserve This Up?

Significantly, how are they doing it? The corporate, which was lumped in with Hole and different struggling mall manufacturers not all that way back, is on fireplace. In what was anticipated to be a weak vacation season for many retailers, gross sales grew within the mid-teens. The key to Abercrombie’s success is mainly simply retail 101: work out what your clients need, and promote it in simply the correct amount. The corporate’s inventory, one of the best performing of any giant US firm final yr, has continued to rise in 2024. Nothing lasts ceaselessly, however there aren’t any indicators the social gathering is winding down but.

Talking of manufacturers that preserve shifting from excessive to excessive: Fellow mall rat American Eagle, which additionally had a blowout vacation season, experiences Thursday. In case your style in red-hot manufacturers run extra luxe, Prada experiences Thursday (and Miu Miu exhibits in Paris on Tuesday).

Foot Locker: However Additionally, Nike

The footwear vendor has traditionally served as a de facto Nike showroom, with the sneaker model representing about two-thirds of annual gross sales (and that’s really down from latest years). Nike was talked about 21 occasions in Foot Locker’s final earnings name (it’s a little bit of a one-sided relationship; the retailer didn’t come up as soon as when Nike executives final spoke to analysts). The symbiotic association could make Foot Locker indicator for the place Nike is headed; which footwear it sends to third-party retailers, and in what portions, says lots about considering in Beaverton. This go-round is particularly related, given Nike’s recent troubles, and the quickly shifting panorama within the basketball class, a Foot Locker specialty.

Hole: Turning Round or in Traction?

We’re beginning to catch glimpses of what the Richard Dickson period at Hole will appear to be. Zac Posen’s appointment as inventive director raised eyebrows (whether or not in pleasure or confusion, you resolve). Final week noticed the debut of a brand new advert starring Tyla, a Grammy Award-winning, TikTok-viral South African musician who has by no means fronted a serious trend marketing campaign that evokes that khaki business. A nostalgia-flecked model remix definitely labored for Barbie, however comebacks in trend are tougher than in youngsters’s toys. Then once more, a Hole marketing campaign that isn’t ignored or ruthlessly mocked counts as a victory today, proper?

Talking of turnarounds, Victoria’s Secret experiences outcomes on Wednesday. The lingerie big is one thing of a cautionary story for Hole; the model is edging away from its 2022 makeover, which did not resonate with customers.

Nordstrom: What Is the Future for Division Shops?

Final week, Macy’s new CEO introduced that the chain would shut 150 malls and make investments extra in its luxury-focused Bloomingdale’s areas, a drastic transfer aimed toward guaranteeing the corporate may survive an assault from activist buyers, in addition to the broader retail apocalypse. Nordstrom’s product combine is nearer to Bloomingdale’s than Macy’s, but it surely faces lots of the identical issues, together with declining foot site visitors in some malls and shrinking margins within the at all times powerful wholesale enterprise. The corporate has dabbled in fixes starting from small-format shops to closing unprofitable companies (RIP Nordstrom Canada), and the closure of Macy’s shops could ship some clients to rival malls. But when issues don’t flip round quickly, the corporate could have to ponder some drastic strikes of its personal, or threat changing into one other activist investor goal.

What Else to Look ahead to This Week

Sunday

Paris Style Week: Balenciaga, Valentino, Mugler

Monday

Paris Style Week: Stella McCartney, Zimmermann, Marine Serre, Sacai, Pierre Cardin, Coperni

Sew Repair, Thredup report outcomes

Tuesday

Paris Style Week: Chanel, Kiko Kostadinov, Miu Miu, Lacoste, Louis Vuitton

Oddity Tech, Ross Shops, Nordstrom report outcomes

Wednesday

Foot Locker, Abercrombie & Fitch, Victoria’s Secret, The Trustworthy Firm report outcomes

Thursday

Hugo Boss, Burlington, Prada, American Eagle, Hole report outcomes

The Week Forward needs to listen to from you! Ship ideas, options, complaints and compliments to brian.baskin@businessoffashion.com.