Crocs breaks through $ 1 billion quarterly revenue barrier
Farfetch shuts down its beauty division
US investor takes majority stake in Zimmermann
Wendy ' s to open 200 restaurants in Australia by 2034
NEWS
Crocs breaks through $ 1 billion quarterly revenue barrier
Casual footwear brand Crocs has reported record quarterly sales of more than $ 1 billion , reflecting a 12 percent increase in constant currency terms over the previous year .
The company ’ s growth was driven by Asia , where sales increased by 33.2 percent , or by 39 percent on a constant currency basis , and North America , where direct-to-consumer ( DTC ) comparable sales grew by 12.9 percent , year on year .
Revenue of $ 160.1 million from Europe , the Middle East , Africa , and Latin America decreased by 0.2 percent , or 1.4 percent when measured in constant currency .
Crocs CEO Andrew Rees said , “ Both the Crocs and HeyDude brands continue to gain share and bring in new consumers with our comfortable offerings , as evidenced by DTC growth of 26 percent in the second quarter . We continue to invest behind our strategic priorities that are driving profitable growth .”
The business anticipates a consolidated sales increase of 12.5 percent to 14.5 percent in the third quarter of this year compared with 2022 , translating to revenues of roughly $ 4 billion to $ 4.065 billion at exchange rates as of the end of the most recent reported period .
Farfetch shuts down its beauty division
Online luxury fashion retailer Farfetch has shut down its beauty division , just over a year after it was launched .
Farfetch commenced the operation of a beauty division in April 2022 , following the acquisition of omnichannel beauty retailer Violet Grey in January of the same year .
It grew the offering to include more than 100 prestige brands , featuring Chanel , Charlotte Tilbury , Gucci , Olaplex , Prada , Sam McKnight , Tom Ford , Westman Atelier , and Yves Saint Laurent Beauté , among others .
The retailer reportedly encountered various challenges , however , namely issues with inventory management and a slowdown in consumer demand , resulting in the closure of the division .
It has also been reported that Farfetch is making redundancies in its London and New York offices amid a company-wide restructure .
The company posted an 8 percent increase in revenue for the first quarter ended March 31 , but gross profit margin was down year over year .
US investor takes majority stake in Zimmermann
US private equity investor Advent International has acquired a majority stake in luxury fashion label Zimmermann from Style Capital .
The price has not been disclosed , but Reuters quoted two people close to the matter who said the transaction valued the brand at around 14 times its core profit – meaning more than $ 1 billion .
Zimmermann is said to have an annual turnover of $ 400 million with a 30 percent core profit margin .
The deal comes about three years after Style Capital bought a 70 percent stake in the brand from General Atlantic for a reported A $ 408 million . The Australian womenswear brand , founded by sisters Nicky and Simone Zimmermann in 1991 in Sydney , currently has 58 stores across China , Australia , the US , the UK and Europe .
Both Style Capital and the Zimmermann sisters will retain sizeable minority interests in the business , Advent said in a statement .
“ Zimmermann presents a rare and exciting opportunity to acquire a fast-growing iconic luxury fashion brand with significant potential for further expansion ,” said Ranjan Sen , managing partner at Advent .
“ The Zimmermann team has successfully created a distinctive and desirable global luxury brand , which has built a loyal customer base around the world . We look forward to supporting the management team around CEO Chris Olliver , and Nicky and Simone Zimmermann , to help build on the company ’ s strong foundations and deliver superior continuous growth .”
Wendy ' s to open 200 restaurants in Australia by 2034
Wendy ’ s is set to open 200 restaurants across Australia through 2034 as part of a new master franchise agreement with Flynn Restaurant Group , a restaurant franchise operator that will serve as the burger chain ’ s exclusive master franchisee in Australia .
Abigail Pringle , president of international and chief development officer at Wendy ’ s Company , said Australia was a “ strategic market ” for long-term growth for the fast food company .
“ Flynn Restaurant Group has incredible experience in the restaurant space , and we are thrilled to expand our relationship with them ,” Pringle said .
The company said the decision to launch in Australia was based on the “ overwhelming interest ” it received for a one-day pop-up event in Sydney in 2021 .
Ron Bellamy , COO of Flynn Restaurant Group , said the business is “ excited ” to expand its partnership with Wendy ’ s .
“ It is a tremendous brand with significant untapped potential outside of the US and we think it is an especially great fit for Australia , given the savvy nature of the Australian consumer ,” he said .
The agreement between the entities will help establish both equity stores and sub-franchise partners in the country and will primarily drive growth after 2025 .
September 2023 www . insideretail . us 13