Today is Cyber Monday, AKA the Super Bowl for many retailers. Other than shopping and “All I Want For Christmas Is You” inevitably entering the Billboard Top 10, there’s other stuff going on this week:
In auctions: French womenswear brand Kookaï will likely get a new owner on Wednesday after a court in Paris issues a ruling on its sale. It went under receivership earlier this year. So far, seven prospective buyers have placed bids on the company, and two of them have offered to buy all of Kookaï’s assets.
- Businessman Rob Cromb has owned the brand, founded in 1983, since 2017.
- Kookaï was placed under receivership in February, as the brand has struggled financially in recent years, triggered by “the economic difficulties faced by the ready-to-wear sector in Europe, accentuated by the Covid-19 crisis,” Fashion Network reported.
In earnings: Dollar Tree reports its earnings on Wednesday and last quarter the company beat Wall Street’s expectations but its share price dropped 13% after it reported its Q2 earnings in August, and CEO Rick Dreiling explained earlier this year that customers were focusing on food and essentials.
- “While the challenging macro environment continues to pressure our sales mix in both segments, I am pleased with the gains in traffic, new customers and market share,” he said during the August earnings call with investors.
- Dollar Tree was also one of the many retailers claiming shoplifting was affecting its margin, and said it would take measures such as locking up merchandise to combat theft.
Foot Locker also reports its earnings Wednesday and also needs a win, as its Q2 earnings were nothing to write home about. The company’s sales fell 9.9% in Q2 and as a result, its share price dropped 28% in August. Foot Locker also lowered its guidance for the fiscal year, as consumers are having to think twice if they really need a new pair of sneakers.
- And once again, Foot Locker blamed shrink for some losses on profits in that quarter.
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