The Latest Financial Updates From Fashion and Retail Brands
Our latest assessment of the financial reports and updates from major fashion and retail brands include Under Armour, Frasers Group and Superdry. With the UK economy as a whole facing unprecedented challenges that are unlikely to change in the short term, we need to know how fashion brands are performing. This is particularly important for those of us working in support industries, such as the ghost mannequin photography business.
What is surprising with the following results, is that some offer glimpses of positivity and potential for the future of their brands. So let’s get started.
Under Armour, one of the major sports fashion brands across the world has announced the results for the first quarter of their financial year. These results cover up to the 30th of June 2023 and show their financial performance staying relatively flat.
Whilst the CEO stated that the brand is pleased with the start of the financial year and their outlook remains unchanged, the statistics show plenty of challenges across the different markets they operate within.
Some of the key figures include:
- Wholesale revenue for the brand saw a 6% drop, down to £581 million
- Direct-to-consumer revenue saw a 4% increase, up to £426 million
- North American revenue decreased by 9%
- International revenue decreased by 12%
- Apparel revenue decreased by 5%
- Footwear revenue decreased by 5%
As highlighted above, not the best results but compared to many brands a relatively stable revenue is something to cling to in these troubling economic times.
The Frasers Group are never shy when it comes to investing in new brands, opening up stores or exploring new opportunities. This is a viewpoint we appreciate in the world of ghost mannequin photography and it looks like Frasers Group is continuing with this approach.
Their latest update details an increased stake in ASOS. This means an increase from 10.5% to 16.8%, only a short time after the previous investment. Making the retail brand the third largest shareholder, it shows their confidence in the e-commerce business or perhaps confidence in the brand itself. Recent reports from ASOS show a drop in sales and pre-tax losses increasing, so there must be hope in its turnaround plan.
We often see brands attempting to secure funding as a way to shore up their business due to problems or potential problems on the horizon. Recent reports show that Superdry has obtained an additional lending facility from Hilco Capital, in the amount of £25 million. Hilco Capital are a well-known refinancing and restructuring business that assists brands in implementing cost-saving programmes.
This additional funding follows shortly on from other fundraising efforts in May and the stated aim is to find significant cost savings by the end of the 2024 financial year. What this means for Superdry, who recently announced the closure of eight franchised stores is not clear at this stage but we look on with concern and hope for a brighter 2024.