Latest news with #HelenReid
Yahoo
11-06-2025
- Business
- Yahoo
Zara owner Inditex's early summer sales disappoint as tariffs fuel uncertainty
By Helen Reid and Inti Landauro MADRID (Reuters) -Zara owner Inditex missed expectations for first-quarter sales and early summer trading on Wednesday, as tariff fallout complicated the fast-fashion retailer's efforts to maintain strong growth. Concerns about resurgent inflation and an economic slowdown triggered by U.S. President Donald Trump's erratic tariff rollout have already dampened shopping enthusiasm in the United States and other major consumer markets. The weaker-than-expected numbers, which sent Inditex's shares down 4.6% on Wednesday, offer a first glimpse of the impact of global trade tensions on the fast-fashion industry ahead of the second-quarter earnings season. The tariff environment is difficult to predict, but Inditex is well-placed to weather it, Gorka Garcia-Tapia, the Spanish company's head of investor relations, said in an investor call. "We have such a global presence, and therefore we have a lot of experience over the last few decades with regards to managing changes in tariff regimes," he said, adding that Inditex's diversified sales and sourcing give it flexibility. "We have that focus on proximity sourcing. I think that all that, with regards to the U.S., really helps us out." Inditex reported a slower start to its summer sales, with currency-adjusted revenue growth of 6% from May 1 to June 9, compared to analysts' expectations of 7.3%, and down from 12% growth in the same period a year ago. Revenues for the first quarter ending April 30 were 8.27 billion euros ($9.44 billion), falling short of analysts' average estimate of 8.36 billion euros, according to an LSEG poll. Net income increased 0.8% in the quarter, to 1.3 billion euros. The company expects its growth margin to remain stable in 2025, Garcia-Tapia said. 'SOLID' PERFORMANCE Inditex did not provide an explanation for the weaker sales growth. In a statement, it called its performance "solid", having labelled it "very robust" at its previous results announcement in March, when annual sales were up 10.5%. "We need to take a step back and look at mid single-digit growth as actually being quite good in this environment," said Bernstein analyst William Woods. Inditex's competitors have also experienced a sluggish spring. H&M's sales have struggled, growing by just 1% in March compared to 4% in the same period a year earlier. Its December-February revenue grew by 2%, below analyst forecasts. H&M will report second-quarter results on June 26. Rainy weather in Inditex's home market Spain, which accounts for 15% of its global sales, also likely hurt the company's performance, according to Bernstein analysts. Spain has experienced one of its wettest-ever springs, with Madrid recording three times its usual levels of rainfall for the season. With volatility in foreign exchange markets driven by trade risks, Inditex said currency fluctuations will have a bigger impact than previously expected, predicting a 3% negative effect on its 2025 sales, compared with the 1% it flagged in March. Inditex is testing its low-priced, Gen Z-focused brand Lefties in markets beyond Spain, Portugal and Mexico, CEO Oscar Garcia Maceiras said. It also plans to open new stores for its Oysho brand in the Netherlands, he said. ($1 = 0.8759 euros) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
09-06-2025
- Business
- Yahoo
Exclusive-Shein and Reliance aim to sell India-made clothes abroad within a year, sources say
By Dhwani Pandya and Helen Reid MUMBAI/LONDON (Reuters) -Fashion retailer Shein and partner Reliance Retail plan to rapidly expand their Indian supplier base and start overseas sales of India-made Shein-branded clothes within six to 12 months, said two people with knowledge of the matter. The China-founded, Singapore-headquartered e-commerce firm has been discussing plans with the Indian retailer since before the U.S. imposed tariffs on Chinese imports that intensified the need to diversify sourcing, the people said. The aim is to raise Indian suppliers to 1,000 from 150 within a year, they said. In a statement to Reuters, Shein said it licensed its brand for use in India. Reliance did not respond to queries. Shein sells low-priced apparel such as $5 dresses and $10 jeans shipped directly from 7,000 suppliers in China to customers in around 150 countries. Its biggest market is the U.S. where it is adjusting to tariffs on low-value e-commerce packages from China which were previously imported duty free. The retailer launched in India in 2018 but its app was banned in 2020 as part of government action against China-linked firms amid border tension with its northeastern neighbour. It returned in February under a licensing deal with the Reliance Industries unit which launched selling Shein-branded clothes produced in local factories. In contrast, Shein's other websites mainly list goods from China. Reliance, controlled by Asia's richest person, Mukesh Ambani, has contracted 150 garment manufacturers and is in discussion with 400 more, said the two people, declining to be identified due to confidentiality concerns. The goal is 1,000 Indian factories making Shein-branded clothes within a year for both the Indian market and to service some of Shein's global websites, the people said. Shein initially wants to list India-made clothes on its U.S. and British websites, one of the people said. Discussions have been ongoing for months and the launch time of six to 12 months could change depending on supplier numbers, the person said. The scale of supplier expansion and export time frame is reported here for the first time. Shein has licensed its brand for domestic use to Reliance which "is responsible for manufacturing, supply chain, sales and operations in the Indian market," Shein said in a statement. In December, Minister of Commerce and Industry Piyush Goyal told parliament that the Shein-Reliance partnership aimed to create a network of Indian suppliers of Shein-branded clothes for sale "domestically and globally". ON-DEMAND MANUFACTURING Shein is a fast-fashion behemoth earning annual revenue of over $30 billion through low prices and aggressive marketing. Most of its products are from China with some made in countries such as Turkey and Brazil. Its expansion in India mirrors interest in the country from the likes of Walmart and others throughout the global fashion and retail industries, particularly those looking for suppliers outside China due to the Sino-U.S. trade war. The Shein India app has been downloaded 2.7 million times across Apple and Google Play stores, averaging 120% on-month growth, showed data from market intelligence firm Sensor Tower. Offerings during its first four months have reached 12,000 designs, a fraction of the 600,000 products on its U.S. site. In the women's dresses category, its cheapest item is priced 349 Indian rupees ($4) versus $3.39 on the U.S. site as of June 9. Shein's Indian partner Reliance, which operates the app, is working with suppliers to assess whether they can replicate Shein's global best-sellers at lower cost, the two people said. Reliance aims to emulate Shein's on-demand manufacturing model, asking suppliers to make as few as 100 pieces per design before increasing production of those that sell well, they said. Executives from Reliance recently visited China to understand Shein's "innovative" supply chain operations, "data driven" design processes and "disruptive" digital marketing, Manish Aziz, assistant vice president Shein India at Reliance Retail, said in a LinkedIn post in which he called Shein's scale and speed "truly incredible". The partnership is one of dozens Reliance has with fashion brands, such as Brooks Brothers and Marks and Spencer. The firm also runs e-commerce site Ajio and its retail network competes with Amazon and Walmart's Flipkart as well as value retailers such as Tata's Zudio. Reliance plans to work with new suppliers to source fabric - especially fabric made using synthetic fibres where India lacks expertise - and import required machinery, the people said. The firm will invest in suppliers and help them grow which in turn will help the Shein-Reliance partnership go global, they said. Sign in to access your portfolio
ABC News
09-06-2025
- Climate
- ABC News
Snow turns the town of Orange white on the NSW Central Tablelands
The first snow of the season is falling on the New South Wales Central Tablelands. Light falls have been reported in Orange, around Oberon and at Yetholme between Bathurst and Lithgow. The Bureau of Meteorology (BOM) had forecast snow in the Central Tablelands down to 800 metres, and down to 900m on the Southern Tablelands and Central West slopes and plains. "There are a couple of areas where there's just a little bit of white in the corners of social media or on web cams but it isn't looking like the nice white blanket that we've had on the ski fields [in the Snowy Mountains]," BOM meteorologist Helen Reid said. Overnight conditions plunged to minus 1 degree Celsius in a number of districts, with the apparent or "feels like" temperature hovering around minus 5C. "I think most places have fallen below 2C which is when we start thinking about the idea of frostiness, so that's right through the Central Tablelands and down into the Southern Tablelands," Ms Reid said. The BOM said the cold air mass creating the conditions was expected to linger for the next few days, with small hail and icy showers also forecast. "I would suggest that today is your better day to see some snow come through," Ms Reid said. "After that time, we aren't expecting snow to be a feature. "However there is another slim chance on Wednesday that we might see something in the Central Tablelands."
Business of Fashion
05-06-2025
- Business
- Business of Fashion
Shein Hit With Complaint From EU Consumer Group Over ‘Dark Patterns'
Pan-European consumers organisation BEUC filed a complaint with the European Commission on Thursday against online fast-fashion retailer Shein over its use of 'dark patterns', tactics designed to make people buy more on its app and website. Pop-ups urging customers not to leave the app or risk losing promotions, countdown timers that create time pressure to complete a purchase, and the infinite scroll on its app are among the methods Shein uses that could be considered 'aggressive commercial practices', BEUC said in a report also published on Thursday. The BEUC also detailed Shein's use of frequent notifications, with one phone receiving 12 notifications from the app in a single day. 'For fast fashion you need to have volume, you need to have mass consumption, and these dark patterns are designed to stimulate mass consumption,' Agustin Reyna, director general of BEUC, said in an interview. 'For us, to be satisfactory they need to get rid of these dark patterns, but the question is whether they will have enough incentive to do so, knowing the potential impact it can have on the volume of purchases.' In a statement, Shein said: 'We are already working constructively with national consumers authorities and the EU Commission to demonstrate our commitment to complying with EU laws and regulations.' It added that the BEUC had not accepted its request for a meeting. Shein and rival online discount platform Temu have surged in popularity in Europe, partly helped by apps that encourage shoppers to engage with games and stand to win discounts and free products. The BEUC has also previously targeted Temu in a complaint. Shein's use of gamification, drawing shoppers to use the app regularly, has helped drive its success. In the 'Puppy Keep' game on the app, users feed a virtual dog and collect points to win free items. They can gain more points by scrolling through the app, and by ordering items, but must log into the game every day or risk losing cumulative rewards. The BEUC noted that dark patterns are widely used by mass-market clothing retailers and called on the consumer protection network to include other retailers in its investigation. It said 25 of its member organisations in 21 countries, including France, Germany and Spain, joined in the grievance filed with the Commission and with the European consumer protection network. Late last month, the European Commission notified Shein of practices breaching EU consumer law and warned it would face fines if it failed to address the concerns. The company is also under scrutiny from EU tech regulators on how it complies with EU online content rules. By Helen Reid, Inti Landauro; Editor: Mark Heinrich Learn more: Shein to Increase Product Safety Testing After EU Probe After the EU warned of potential fines due to concerns about unsafe products, Shein announced plans to increase its product safety testing and compliance spending in 2025.
Yahoo
05-06-2025
- Business
- Yahoo
Shein hit with complaint from EU consumer group over 'dark patterns'
By Helen Reid LONDON (Reuters) -Pan-European consumers organisation BEUC filed a complaint with the European Commission on Thursday against online fast-fashion retailer Shein over its use of "dark patterns", tactics designed to make people buy more on its app and website. Pop-ups urging customers not to leave the app or risk losing promotions, countdown timers that create time pressure to complete a purchase, and the infinite scroll on its app are among the methods Shein uses that could be considered "aggressive commercial practices", BEUC said in a report also published on Thursday. The BEUC also detailed Shein's use of frequent notifications, with one phone receiving 12 notifications from the app in a single day. "For fast fashion you need to have volume, you need to have mass consumption, and these dark patterns are designed to stimulate mass consumption," Agustin Reyna, director general of BEUC, said in an interview. "For us, to be satisfactory they need to get rid of these dark patterns, but the question is whether they will have enough incentive to do so, knowing the potential impact it can have on the volume of purchases." In a statement, Shein said: "We are already working constructively with national consumers authorities and the EU Commission to demonstrate our commitment to complying with EU laws and regulations." It added that the BEUC had not accepted its request for a meeting. Shein and rival online discount platform Temu have surged in popularity in Europe, partly helped by apps that encourage shoppers to engage with games and stand to win discounts and free products. The BEUC has also previously targeted Temu in a complaint. Shein's use of gamification, drawing shoppers to use the app regularly, has helped drive its success. In the "Puppy Keep" game on the app, users feed a virtual dog and collect points to win free items. They can gain more points by scrolling through the app, and by ordering items, but must log into the game every day or risk losing cumulative rewards. The BEUC noted that dark patterns are widely used by mass-market clothing retailers and called on the consumer protection network to include other retailers in its investigation. It said 25 of its member organisations in 21 countries, including France, Germany and Spain, joined in the grievance filed with the Commission and with the European consumer protection network. Late last month, the European Commission notified Shein of practices breaching EU consumer law and warned it would face fines if it failed to address the concerns. The company is also under scrutiny from EU tech regulators on how it complies with EU online content rules. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
