This week's spotlight:
- Some companies suspended their operations in Russia
- Yum China ceased operations of the Oriental White brand
- Luckin Coffee announced the conclusion of the overseas provisional liquidation process
- McDonald's in Japan rose prices for the first time in three years
- Lulu Lemon will release the first women's shoes
- IKEA closes its Guiyang offline store to focus on online
- China's fourth Taikoo Li will land in Xi'an
- Amazon announced it would split its shares 1-20
- DoorDash is considering acquiring Deliveroo
- Adidas China, Nike and other personnel changes
- Gaipu, Guizhou Moutai, Wuliangye, JD.com, and LeGao released financial reports
Hot topics this week
1 Some companies suspended their operations in Russia
Uniqlo announced that it will suspend its operations in Russia. Japan's Fast Retailing company of clothing chain brand Uniqlo announced on the 10th that it will suspend its Russian business. In the case of domestic and foreign companies suspending their operations in Russia, the company is still operating normally, and its business decisions have received attention. The company operates about 50 stores in Russia. Uniqlo launched its first store in Russia in 2010 and has maintained a good business in recent years. Regarding the treatment of local employees, the head of public relations said that "in order to save them from worrying about life, they will be taken care of to the greatest extent possible." Notably, founder Yanai Masayoshi said the company would continue to operate in Russia, despite the isolation pressure exerted by the international community on Russia over the conflict in Ukraine, leading to wave after wave of companies withdrawing. Clothing is a necessity of life. The Russian people have the right to live as much as we do.
Zara's parent company suspended its Operations in Russia. Following brands such as H&M and Nike, Zara's parent company, Inditex Group, also announced in a statement on Saturday that it would halt trading in Russia, closing 502 stores and sales on its online platform. The data shows that the Russian market accounts for about 8.5% of the group's EBIT. In the nine months ended October 31 last year, Inditex Group sales surged 37% to EUR 19.33 billion, net profit soared fourfold to EUR 2.5 billion and net cash flow of EUR 9.6 billion.
Estée Lauder will close all stores owned and operated in Russia. Estee Lauder announced that it would close all stores owned and operated in Russia and stop supplying to Russian retailers. The New York cosmetics giant suspended commercial investments and projects in Russia last week. Russia was one of the strongest performing markets for Estée Lauder in the most recent quarter. About 2.7% of Estée Lauder's revenue comes from Russia. The company has been operating in Russia for more than 30 years.
L'Oréal will close its Russian operations. Following Estée Lauder, L'Oréal, the world's largest beauty group, has also decided to close stores, department stores and e-commerce sites in Russia, and will suspend all industrial and media investments in Russia. According to the data, the group's sales rose 16.1% year-on-year to 32.28 billion euros last year, and operating profit soared 18.3% year-on-year to 6.16 billion euros, both exceeding pre-epidemic levels, mainly due to the promotion of the two core markets of China and the United States.
McDonald's announced the temporary closure of 850 stores in Russia. The US restaurant chain McDonald's announced on March 8 local time that it will temporarily close 850 stores in Russia, but will continue to pay employees' wages, and its McDonald's Uncle House Charities will continue to operate.
Yum! Brands will suspend KFC and Pizza Hut operations in Russia. American restaurant group Yum! Brands announced that it will suspend the operation of KFC restaurants in Russia and reach an agreement with major franchise distributors to suspend the operation of all Pizza Hut restaurants in Russia. It also said it would suspend all investments and restaurant development operations in Russia. The group owns at least 1,000 KFC and 50 Pizza Hut restaurants in Russia, almost all of which are operated by independent franchisees.
Coca-Cola will suspend its Russian operations. Coca-Cola said it would suspend operations in Russia. PepsiCo said it was suspending soda sales in Russia and that some of its business would continue. Coca-Cola said it will continue to monitor and evaluate the situation as things unfold. PepsiCo said sales of its Pepsi, Qixi and Meinenda brands, as well as capital investments and all advertising and promotional activities in Russia, will be suspended, but the company will continue to sell some basic products in Russia, such as infant formula, milk and baby food.
Starbucks announced the suspension of its Russian operations. The starbucks official website released an open letter from CEO Kevin Johnson on the 8th, announcing that the company will suspend its business in Russia. He said the company decided to suspend all commercial activities in Russia, including the delivery of Starbucks products, and its concession partners, who are solely responsible for operating stores in Russia, have agreed to immediately suspend the operation of 130 stores in the country and will provide support to nearly 2,000 employees.
P&G will terminate all new capital investments in Russia. U.S. consumer goods giant Procter & Gamble said it would end all new capital investments in Russia and "drastically cut" its product portfolio to focus on essential hygiene, health and personal care products. P&G will also suspend all media, advertising and promotions in Russia. P&G Russia manufactures Tide Laundry Detergent, Pampers Diapers and Gillette Razors. Procter & Gamble directly employs 2,500 people in Russia and 500 in Ukraine. The company "voluntarily suspended" operations in Ukraine and provided evacuation support, financial assistance, food and shelter to employees.
Prada's Russian stores and e-commerce companies are suspended. Italian luxury goods group Prada announced in a statement on Saturday that its brands have suspended their retail operations in Russia, while expressing concern for all affected colleagues and families and will provide corresponding support. Thanks to the effectiveness of the transformation strategy, Prada Group's sales in 2021 surged by 41% year-on-year to EUR 3.364 billion, an increase of 8% compared to 2019 and exceeding analysts' expectations of EUR 3.28 billion.
CK's parent company will suspend operations in Russia and Belarus. PVH Group, which owns Calvin Klein and Tommy Hilfiger, said it would temporarily close stores in Russia and Belarus and suspend operations, and its e-commerce business was halted last week. As of now, PVH Group has about 550 employees in Russia, and they will continue to receive salaries and benefits.
Skechers suspended russian operations. Skechers said it had suspended shipments to Russia and would donate $250,000 in humanitarian aid to organizations in Ukraine and Poland, while at the same time making donations of up to $250,000 to affected employees. For the full year 2021, Skechers sales surged 36.7% year-over-year to $6.285 billion, and net profit surged 458% to $815 million.
2 Luckin Coffee announces the conclusion of the overseas provisional liquidation process
Luckin Coffee announced that, in accordance with the ruling of the Cayman Islands Court effective March 4, the company's application for provisional liquidation has been revoked, the duty of the joint provisional liquidators has been discharged, and the company's provisional liquidation has been successfully concluded.
3 Yum China ceased operation of the Oriental White brand
Yum China said in its 2021 annual report that the Oriental white brand has been seriously affected by the new crown epidemic. As a result, the Company has decided to terminate the operation of the brand. As of December 31, 2021, there are five Oriental white stores in China, all of which are scheduled to be permanently closed in 2022. According to Yum China's 2020 annual report, as of December 31, 2020, there were 8 Oriental White stores in China. In the past year, the number of Oriental white Chinese stores has been reduced by 3.
4 McDonald's in Japan rose prices for the first time in three years
McDonald's of Japan recently said that it will raise the price of products including burgers, milkshakes, chicken nuggets and other products from the 14th, an increase of up to 20%, to reflect the rise in raw materials, labor and logistics costs. This is the company's first price increase since Japan raised the consumption tax to 10% in 2019.
5 Lulu Lemon will release the first women's shoes
Canadian sportswear maker Lululemon has announced it will launch its first shoe, starting with the first women's shoe, Blissfeel, released in March, and plans to launch a men's shoe line next year. The Blissfeel women's shoe, which will be available in North America, Chinese mainland and the United Kingdom from March 22, is a running shoe with a supportive sports upper and foam sole, with ten colors available to consumers.
6 The Japanese garment industry has seen a wave of price increases
UNIQLO, a subsidiary of Fast Retailing of Japan, will raise the price of some standard goods produced in Southeast Asia and other places, and Shimamura is also considering raising prices from the second half of 2022. As material prices and logistics costs rise, it is becoming increasingly difficult for companies to maintain prices. The Asian price of polyester long fibers used in clothes reached around $1.45 per kilogram in December 2021, up 32% year-on-year. The prices of high-purity terephthalic acid and monoethylene glycol, the main raw materials for polyesters, have risen by 60% to 70% in the year to October last year.
7 Uniqlo will open a store at Tokyo's Jishenghui Central Hospital on March 16
This is the first time that a store has been opened in a medical institution. The store covers an area of about 40 square meters and sells all kinds of clothing and underwear. Customers can also pick up products purchased online at the store. In addition to patients and medical institution staff, it is expected to attract ordinary customers living nearby.
8 H&M brand Monki may withdraw from the Chinese market
Monki, a cheap fast fashion brand owned by Swedish fast fashion giant H&M, recently released a store closure announcement at the Tmall flagship store, announcing that the brand will officially close the store from April 1, 2022, and will carry out clearance activities from March 10 to 31, and all stores will be removed from shelves and stop selling from April 1, and customer service will also be closed after April 15. Monki officially entered the Chinese market in early 2015, opening its first store in Dalian, followed by opening stores in Beijing, Shanghai, Shenzhen, Xi'an, Kunming and other cities, all of which are currently in a state of suspension or withdrawal.
9 Rolex sales surged 77% last year to $54.8 billion
According to the 2021 Swiss watch industry research report jointly released by investment institutions Morgan Stanley and LuxConsult, Rolex is the highest total sales watch brand in 2021, up 77% year-on-year to 8 billion Swiss francs or about 54.8 billion yuan, accounting for 28.8% of the Swiss watch brand market share, which is the sum of Cartier, Omega, Audemars Piguet, Longines and Patek Philippe combined, and the annual output increased from 810,000 in 2020 to 1.05 million.
10 IKEA closes guiyang offline store focusing on online
IKEA announced on its official website that the company decided to no longer retain Guiyang offline customer contact points from April 1, 2022, focusing on online channels to achieve flexibility and healthy business development in the local market. This is the first time IKEA has closed its offline stores in Chinese mainland. IKEA evaluated its business in the Guiyang market from an omni-channel perspective, and the online business in the Guiyang market showed stronger growth compared with offline. As a result, IKEA China decided to adjust its customer contact layout in the Guiyang market. According to the announcement of IKEA China, Guizhou has been included in the service scope of the IKEA Tmall flagship store, while other IKEA e-commerce channels, such as IKEA China Online Mall, IKEA Home App, IKEA WeChat Shopping Mini Program, etc. also cover the Guizhou market. In the future, local consumers can purchase IKEA products and services through the above channels.
11 China's fourth Taikoo Li will land in Xi'an
Swire Properties announced that the fourth Taikoo Li in China will be confirmed to be in Xi'an, with a total area of about 119,900 square meters and a total construction area of 269,200 square meters, which is expected to open in 2025. Swire Properties previously bid for the right to develop commercial land in Beilin District for RMB2.575 billion and will cooperate with Xi'an Chenghuan Cultural Investment and Development Co., Ltd., a state-owned enterprise under the Management Committee of Xi'an Qujiang New Area, to develop the Xi'an Taikoo Li project.
12 Amazon announces a 1-20 split
Amazon said it has stopped sending products sold on its retail website to customers based in Russia and stopped offering streaming video services in Russia. Amazon Inc. announced that its board of directors has approved a 20-to-1 split of shares. If the Amazon stock split is completed, the cost per share will drop from $2785.58 to $139.28, and each existing holder will receive 19 additional shares for every 1 share held. At the same time, Amazon also announced plans to buy back up to $10 billion worth of shares.
Merger
DoorDash is considering acquiring Deliveroo. U.S. food delivery company DoorDash (89.86, -11.82, -11.62%) had considered acquiring London-based Deliveroo, but the two sides have failed to reach an agreement. U.S. food delivery company DoorDash is considering further expansion of its expansion plans in Europe, which will create a food delivery company with sales of £4 billion ($5.2 billion). Previously, DoorDash acquired Finnish food delivery startup Wolt Enterprises Oy for about $8 billion. This became one of the most high-profile business consolidation cases in the rapidly consolidating food delivery industry.
Earnings
Gap Inc., a retail apparel company Results for the fourth quarter and full year ended January 29, 2021 are announced
, to achieve a double growth in sales and profits. In fiscal 2021, Gap Group achieved net sales of US$16.7 billion, up 21% year-on-year and up 2% from pre-pandemic 2019, with online sales soaring 57% or 39% of total sales. For the full year, it achieved a turnaround, recording a net profit of US$256 million. The Company's fourth-quarter net sales reached $4.5 billion, up 2% year-over-year.
Guizhou Moutai released the main operating data announcement for January and February 2022, which shows that from January to February this year, Moutai achieved a total operating income of about 20.2 billion yuan, an increase of about 20% year-on-year, and a net profit of about 10.2 billion yuan, an increase of about 20% year-on-year.
Wuliangye released the 2021 annual performance data announcement. In 2021, the company's operating income is expected to be about 66.2 billion yuan, an increase of about 15% year-on-year; and the net profit is about 23.35 billion yuan, an increase of about 17% year-on-year.
Unified Enterprise China released its 2021 annual report, showing that the revenue in 2021 was 25.231 billion yuan, an increase of 10.08% year-on-year; the profit attributable to the company's equity holders during the period was 1.501 billion yuan, down 7.70% year-on-year. Revenue from the beverage business recorded double-digit growth.
Yili co., Ltd. released the business situation announcement for January and February 2022. The report shows that the company's revenue in January and February 2022 was about 21.5 billion yuan, an increase of more than 15% year-on-year; net profit was 3.3 billion yuan, an increase of more than 20% year-on-year.
Swire Coca-Cola Limited announces its 2021 results. Recorded a record profit of HK$2,549 million (approximately RMB2.06 billion) in 2021, an increase of 23% over 2020, during which the business was severely affected by the pandemic. Among them, the profit attributable to the Chinese mainland business was HK$1.418 billion (about RMB1.146 billion), accounting for more than 55%.
JD.com released its financial results for the fourth quarter and full year of 2021. Fourth-quarter net revenue was RMB275.9 billion (approximately US$43.3 billion), up 23.0% year-over-year. Net loss attributable to common shareholders was $5.2 billion, compared to net profit of $24.3 billion for the year-ago quarter. Based on non-GAAP, net profit was $3.6 billion, compared to $2.4 billion for the year-ago quarter. Net revenue for 2021 was RMB951.6 billion (approximately US$1493), an increase of 27.6% over 2020. Net loss attributable to common shareholders was $3.6 billion and net profit for 2020 was $49.4 billion. Based on non-GAAP, net profit was $17.2 billion, compared to $16.8 billion in 2020.
Lego Group (LEGO) announces its 2021 annual financial report. Full-year revenue increased by 27% to DKK 55.3 billion and retail sales increased by 22% year-on-year. Full-year operating profit reached DKK 17 billion, up 32% from 2020. Compared to a net profit of DKK 9.9 billion in 2020, the net profit in 2021 increased to DKK 13.3 billion. The LEGO Group opened 165 branded retail stores in 2021, 90 of which are in the Chinese market. As of December 31, the LEGO Group had a total of 832 brick-and-mortar retail stores worldwide.
The small town of Florence saw sales in China soar 15 percent last year. Italian commercial real estate group RDM in China's 7 Florentine towns last year sales soared 15% year-on-year to 11 billion yuan, passenger flow of more than 23 million people, an increase of 20% year-on-year, of which Beijing-Tianjin, Shanghai towns rose steadily, sales and footfall are leading the industry, Chengdu town sales increased by as much as 50%, passenger flow increased by 36% over last year. Up to now, florence town has more than 500,000 square meters of retail area in China, bringing together more than 300 European, American and Asian brands, with a total of more than 1,200 shops.
Personnel changes
Adidas replaced the head of China operations. German sportswear group Adidas has announced Adrian Siu as Managing Director for Greater China, succeeding Jason Thomas, who took office in 2019, who will be transferred to Senior Vice President of Global Franchising. Adrian Siu previously worked primarily in Adidas' Hong Kong and Shanghai business units and also served as CEO of Cosmo Lady. It is worth noting that adidas China has recorded double-digit declines for two consecutive quarters, which has seriously slowed down the growth of the Group's performance.
Adidas appoints a new chief creative officer. Sportswear giant Adidas has announced Alasdhair Willis as chief creative officer, and the appointment will take effect in April. In this role, Alasdhair Willis will lead the adidas design team, overseeing the creative direction of three main business lines: Performance, Originals and Sportswear. Alasdhair Willis has been working with Adidas since 2005, playing a key role in Adidas' collaboration with Stella McCartney, having also been creative director of British fashion brand Hunter and co-founder of Wallpaper magazine.
Nike appointed Lucy Rouse as vice president of SNKRS. After appointing Ron Faris, former vice president of SNKRS, as head of Nike Virtual Studios, Nike has announced that Lucy Rouse will succeed Ron Faris as the new vice president of SNKRS. She previously served as Nike Account Manager in Australia and was later promoted to Vice President and General Manager of Nike Sportswear and women's apparel business in Europe, middle east and Africa. In his time, Lucy Rouse's responsibilities were not limited to SNKRS, but rather vice president and general manager of NBHD, SNKRS Launch and S23NYC. NBHD is short for Nike's top community sneaker boutique partner, and S23NYC is the studio of the SNKRS team in New York.
Kiko Milano appointed Coty's former executive as new CEO. Italian beauty brand Kiko Milano has announced Simone Dominici as its new CEO, succeeding Cristina Scocchia, who left last December. Prior to joining Kiko Milano, Simone Dominici had been with the U.S. cosmetics group Coty since 2018, serving as EXECUTIVE president for Europe, the Middle East and Africa, and previously as global executive vice president for luxury brands such as Bottega Veneta and Valentino.
Pandora's chief marketing officer left at the end of this month. Danish jeweler Pandora announced that its chief marketing officer, Carla Liuni, left late this month after two years at the company. Carla Liuni has worked in sales and marketing at Bulgari and Procter & Gamble and joined Pandora as Chief Marketing Officer in March 2020.
Ceo Michael Kors leaves abruptly. American luxury goods group Capri announced that Joshua Schulman, who joined the group at the end of last year, suddenly resigned, and John Idol will continue to serve as the group's CEO and chairman, but did not disclose the specific reason for Joshua Schulman's departure. It is worth noting that Joshua Schulman was previously the CEO of Coach and has a wealth of relevant experience. According to the plan, Joshua Schulman will officially take over John Idol in September this year, becoming the new leader of the Capri Group.
Estée Lauder Retired President of Global Travel Retail. American cosmetics group Estée Lauder has announced that Olivier Bottrie, the group's president of travel retail, will retire, transition to the position of special adviser from May 1, and leave the company on June 30, and its successor will be appointed in the coming days. Olivier Bottrie has led Estée Lauder's global travel retail business since 2004, increasing the travel retail channel from approximately 6% of group net sales in 2004 to 28% in FY2021.
Marks & Spencer's CEO will leave. Marks & Spencer has announced that CEO Steve Rowe will leave in May and that his role will be taken over by Katie Bivkerstaffe, head of home furnishing, and Stuart Machin, head of the video business. Steve Rowe has been with Marks & Spencer for nearly 40 years and has been instrumental in helping Marks & Spencer turn around. In the six months ended 2 October last year, the department store's overall performance increased significantly from the same period before the epidemic, with sales up 5% to £5,105 million and net profit up 30.6% to £159.9 million compared to two years ago.