1. United States
Growth in clothing retail and slight decline in home furnishings
The latest data from the US Department of Labor shows that the Consumer Price Index (CPI) in April increased by 3.4% year-on-year and 0.3% month on month; The core CPI further fell to 3.6% year-on-year, reaching its lowest point since April 2021, with marginal easing of inflationary pressure.
Retail sales in the United States remained stable month on month and increased by 3% year-on-year in April. Specifically, core retail sales decreased by 0.3% month on month. Out of the 13 categories, 7 categories experienced a decrease in sales, with online retailers, sports goods, and hobby goods suppliers experiencing the most significant decline.
These sales data indicate that consumer demand, which has been supporting the economy, is weakening. Although the labor market remains strong and provides consumers with sufficient spending power, high prices and interest rates may further squeeze household finances and restrict the purchase of non essential goods.
Clothing and apparel stores: Retail sales in April reached 25.85 billion US dollars, an increase of 1.6% month on month and 2.7% compared to the same period last year.
Furniture and Home Furnishings Store: Retail sales in April reached 10.67 billion US dollars, a decrease of 0.5% month on month and 8.4% compared to the same period last year.
Comprehensive stores (including supermarkets and department stores): The retail sales in April were $75.87 billion, a decrease of 0.3% from the previous month and an increase of 3.7% from the same period last year. The retail sales of department stores reached 10.97 billion US dollars, an increase of 0.5% month on month and a decrease of 1.2% year-on-year.
Non physical retailers: Retail sales in April were $119.33 billion, a decrease of 1.2% month on month and an increase of 7.5% compared to the same period last year.
Household inventory sales ratio growth, clothing stability
In March, the inventory/sales ratio of clothing and apparel stores in the United States was 2.29, a slight increase of 0.9% compared to the previous month; The inventory/sales ratio of furniture, home furnishings, and electronic stores was 1.66, an increase of 2.5% compared to the previous month.
2. EU
Macro: The 2024 Spring Economic Outlook Report of the European Commission believes that since the beginning of this year, the EU's economic growth has performed better than expected, inflation levels have been controlled, and economic expansion has begun to take shape. The report predicts that the EU economy will grow by 1% and 1.6% respectively in 2024 and 2025, and the Eurozone economy will grow by 0.8% and 1.4% respectively in 2024 and 2025. According to preliminary data from the Eurostat, the Consumer Price Index (CPI) in the Eurozone increased by 2.4% year-on-year in April, a significant decline from before.
Retail: According to Eurostat estimates, the Eurozone's retail trade volume increased by 0.8% month on month in March 2024, while the EU grew by 1.2%. Compared to the same period last year, the retail sales index increased by 0.7%, while the EU increased by 2.0%.
3. Japan
Macro: According to the March household income and expenditure survey recently released by the Japanese Ministry of General Affairs, the average monthly consumption expenditure of households with two or more people in 2023 (April 2023 to March 2024) was 294116 yen (approximately RMB 14000), a decrease of 3.2% compared to the previous year, marking the first decrease in three years. The main reason is that prices have been rising for a long time, and consumers are holding onto their wallets.
Retail: According to adjusted data from the Japanese Ministry of Economy, Trade and Industry, retail sales in Japan increased by 1.2% year-on-year in March. From January to March, the cumulative retail sales of textile and clothing in Japan reached 1.94 trillion yen, a year-on-year decrease of 5.2%.
4. UK
Macro: Recently, multiple international organizations have lowered their expectations for future economic growth in the UK. The OECD's growth forecast for the UK economy this year has been lowered from 0.7% in February to 0.4%, and its growth forecast for 2025 has been lowered from the previous 1.2% to 1.0%. Previously, the International Monetary Fund also lowered its expectations for the UK economy, stating that the UK's GDP will only grow by 0.5% in 2024, lower than the January forecast of 0.6%.
According to data from the UK Bureau of Statistics, as energy prices further decline, the UK's CPI growth in April decreased from 3.2% in March to 2.3%, the lowest point in nearly three years.
Retail: According to data from the UK Office for National Statistics, retail sales in the UK decreased by 2.3% month on month in April, marking the worst performance since December last year, with a year-on-year decrease of 2.7%. Due to the humid weather, shoppers are reluctant to shop on the commercial streets, and retail sales of most products including clothing, sports equipment, toys, etc. fell in April. From January to April, the cumulative retail sales of textile, clothing, and footwear in the UK amounted to 17.83 billion pounds, a year-on-year decrease of 3%.
5. Australia
Retail: The Australian Bureau of Statistics reported that, adjusted for seasonal factors, the country's retail sales in April increased by about 1.3% year-on-year and about 0.1% month on month, reaching AUD 35.714 billion (approximately RMB 172.584 billion). Looking at different industries, sales in the Australian home goods retail sector increased by 0.7% in April; The sales of clothing, footwear, and personal accessories in the retail sector decreased by 0.7% month on month; The sales in the department store sector increased by 0.1% month on month. From January to April, the cumulative retail sales of clothing, clothing, and footwear stores amounted to AUD 11.9 billion, a slight decrease of 0.1% year-on-year.
The Director of Retail Statistics at the Australian Bureau of Statistics stated that retail spending in Australia has continued to be weak, with sales slightly increasing in April, but not enough to cover the decline in March. In fact, since the beginning of 2024, Australia's retail sales have remained stable due to consumer caution and reduced discretionary spending.
6. Retail business performance
Allbirds
Allbirds announced its first quarter results as of March 31, 2024, with revenue falling 28% to $39.3 million, net loss of $27.3 million, and gross profit margin increasing by 680 basis points to 46.9%. The company expects sales to further decline this year, with a 25% decline in revenue for the full year of 2024 to $190 million.
Columbia
The American outdoor brand Columbia announced its Q1 2024 results as of March 31, with sales falling 6% to $770 million, net profit falling 8% to $42.39 million, and gross profit margin at 50.6%. By brand, Columbia's sales fell 6% to approximately $660 million. The company expects a 4% decrease in sales for the full year of 2024 to $3.35 billion.
Lululemon
Lululemon's revenue for the fiscal year 2023 increased by 19% to $9.6 billion, net profit increased by 81.4% to $1.55 billion, and gross profit margin was 58.3%. The company stated that its revenue and profit were lower than expected, mainly due to weakened demand for high-end sports and leisure products in North America. The company expects revenue of $10.7 billion to $10.8 billion for the fiscal year 2024, while analysts expect it to be $10.9 billion.
HanesBrands
Hanes Brands Group, an American clothing manufacturer, released its Q1 2024 results, with net sales falling 17% to $1.16 billion, profit of $52.1 million, gross profit margin of 39.9%, and inventory down 28%. By department, sales in the lingerie department decreased by 8.4% to $506 million, the sportswear department plummeted by 30.9% to $218 million, the international department fell by 12.3% to $406 million, and other departments plummeted by 56.3% to $25.57 million.
Kontool Brands
Lee's parent company Kontool Brands announced its first quarter results, with sales falling 5% to $631 million, mainly due to inventory management measures by US retailers, reduced seasonal product sales, and a decline in international market sales. By market, sales in the US market decreased by 5% to $492 million, while in the international market, they decreased by 7% to $139 million. By brand, Wrangler's sales fell 3% to $409 million, while Lee fell 9% to $219 million.
Macy's
As of May 4, 2024, Macy's Q1 results showed a 2.7% decrease in sales to $4.8 billion, a profit of $62 million, an 80 basis point decrease in gross profit margin to 39.2%, and a 1.7% increase in commodity inventory. During the period, the company opened a 31000 square foot small Macy's department store in Laurel Hill, New Jersey, and plans to open 11 to 24 new stores this year. Macy's is expected to generate revenue of $4.97 billion to $5.1 billion in the second quarter.
Puma
German sports brand Puma released its first quarter results, with sales falling 3.9% to 2.1 billion euros and profits falling 1.8% to 900 million euros. By market, revenue in the European, Middle Eastern, and African markets fell by 3.2%, the Americas market fell by 4.6%, and the Asia Pacific market fell by 4.1%. By category, sales of footwear increased by 3.1% to 1.18 billion euros, clothing decreased by 2.4% to 608 million euros, and accessories decreased by 3.2% to 313 million euros.
Ralph Lauren
Ralph Lauren announced the results for the fiscal year and fourth quarter ended March 30, 2024. Revenue increased by 2.9% to $6.631 billion, net profit increased by 23.52% to $646 million, gross profit increased by 6.4% to $4.431 billion, and gross profit margin increased by 190 basis points to 66.8%. In the fourth quarter, revenue increased by 2% to $1.6 billion, with a net profit of $90.7 million, compared to $32.3 million in the same period last year.
TJX
US discount retailer TJX announced its Q1 results as of May 4, 2024, with sales increasing by 6% to $12.48 billion, profits reaching $1.1 billion, and gross profit margin increasing by 1.1 percentage points to 30%. By department, the Marmaxx department responsible for selling clothing and other products saw a 5% increase in sales to $7.75 billion, the Home Furnishings department saw a 6% increase to $2.079 billion, the TJX Canada department saw a 7% increase to $1.113 billion, and the TJX International department saw a 9% increase to $1.537 billion.
Under Armour
American sports brand Andemar announced its full year results for the fiscal year ended March 31, 2024, with revenue falling 3% to $5.7 billion and profit of $232 million. By category, clothing revenue for the year decreased by 2% to $3.8 billion, footwear by 5% to $1.4 billion, and accessories by 1% to $406 million. In order to strengthen the company's operational efficiency and restore performance growth, Andema announced layoffs and reduced third-party marketing contracts. In the future, it will reduce promotional activities and focus the company's development on its core men's clothing business.
Walmart
Wal Mart announced the results of the first quarter as of April 30, 2024. Its revenue increased by 6% to $161.5 billion, its adjusted operating profit increased by 13.7% to $7.1 billion, its gross margin increased by 42 basis points to 24.1%, and its global inventory decreased by 7%. Wal Mart is strengthening its online business and paying more attention to fashion business. Last year, the company's fashion sales in the United States reached $29.5 billion, and global online sales exceeded $100 billion for the first time, achieving a 21% growth in the first quarter.
Zalando
European e-commerce giant Zalando announced its Q1 2024 results, with revenue falling 0.6% to 2.24 billion euros and pre tax profit reaching 700000 euros. In addition, the total GMV of the company's commodity transactions during the period increased by 1.3% to 3.27 billion euros, while the number of active users decreased by 3.3% to 49.5 million people. Zalando2023 saw a 1.9% decrease in revenue to 10.1 billion euros, an 89% increase in pre tax profit to 350 million euros, and a 1.1% decrease in GMV to 14.6 billion euros.
Post time: Jun-09-2024