UK’s Boohoo to Stop Supplying US Customers Locally 

 A woman poses with a smartphone showing the Boohoo app in front of the Boohoo logo on display in this illustration taken September 30, 2020.  (Reuters)
A woman poses with a smartphone showing the Boohoo app in front of the Boohoo logo on display in this illustration taken September 30, 2020. (Reuters)
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UK’s Boohoo to Stop Supplying US Customers Locally 

 A woman poses with a smartphone showing the Boohoo app in front of the Boohoo logo on display in this illustration taken September 30, 2020.  (Reuters)
A woman poses with a smartphone showing the Boohoo app in front of the Boohoo logo on display in this illustration taken September 30, 2020. (Reuters)

Online fashion retailer Boohoo said on Wednesday it would stop supplying US customers from a site in Pennsylvania and return to fulfilling orders from Britain, in a strategy reversal it said would lead to an unquantified write-down.

Boohoo shares were down 2% in early trade, extending 2024 losses to 32%, after the British company said it would stop using the distribution center by Nov. 11, just over a year after it started operations there. It said it would sublet its space at the center, which is run by a third party.

CEO John Lyttle had previously described the site as a "complete gamechanger" as it would slash delivery times to shoppers in the US, Boohoo's largest overseas market.

However, the company said on Wednesday it would return to fulfilling all US orders from its automated center in Sheffield, northern England, enabling it to cut costs over the medium term and broaden its product offering to US shoppers.

"To us, the short life of the US warehouse ... is concerning, highlighting a naivety of the American market, along with a waste of time and resources," Shore Capital analysts said.

Boohoo said the move would result in a write-down on its balance sheet against the investments and costs associated with the US operation, as well as certain one-off exceptional cash costs. Further details will be given at its half-year results.

Analysts at Peel Hunt estimated a 34 million pounds ($44.5 million) capital expenditure write-off.

Boohoo said it "remains excited" about the opportunity in the US market and had been developing wider routes-to-market strategies, the first of which was the recent launch of its Nasty Gal brand in Nordstrom stores.

Boohoo said it was in advanced talks with major US brands over new routes to market for other brands within the group.

The company, like UK peer ASOS, was a winner during the pandemic, which drove a boom in online shopping. It has struggled since, hurt by supply chain problems, higher product returns, competition from rivals such as Shein and subdued consumer demand.



Saudi 100 Brands Program Announces Winner of 'Saudi Heritage Revival’ Competition

The competition was launched in July by the Saudi 100 Brands Program -- an initiative of the Saudi Fashion Commission
The competition was launched in July by the Saudi 100 Brands Program -- an initiative of the Saudi Fashion Commission
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Saudi 100 Brands Program Announces Winner of 'Saudi Heritage Revival’ Competition

The competition was launched in July by the Saudi 100 Brands Program -- an initiative of the Saudi Fashion Commission
The competition was launched in July by the Saudi 100 Brands Program -- an initiative of the Saudi Fashion Commission

The "Saudi Heritage Revival" competition winner was announced Wednesday at the Creative Residence under the Fashion Commission FCR headquarters at JAX District, in the presence of the jury and competition participants.

The competition was launched in July by the Saudi 100 Brands Program -- an initiative of the Saudi Fashion Commission -- with the aim of encouraging sustainability within the field of fashion design and the Saudi fashion industry by highlighting the cultural and national heritage.

Specifically, it provided an opportunity for participants to submit unique fashion designs using a group of classic Swarovski crystals while integrating the features and elements of heritage and design art with Saudi culture.
The stages of the competition included allocating a virtual introductory meeting for participants about the objectives and requirements of the competition on August 26 and guidance workshops with Swarovski experts in Riyadh on September 2-4, in addition to individual virtual sessions to follow up on the work of participants. The participants' outputs were subject to arbitration by the jury, and the winner was chosen on September 25 at the Creative Residence under the Fashion Commission FCR headquarters. The winning designer receives a training opportunity at the headquarters of Dar Al-Hanouf Fashion in Jeddah, while the top five designers get to participate in an international academic competition by Swarovski called “Interpretation of the Swarovski SS 2025 Inspiration Theme Street Art in a Commercial Ready to Wear Outfit.”
The winner was Hebah Baatiyyah and the top five designers were Hebah Baatiyyah, Alanood Aljabeer, Lama AlHabashi, Rawan Alyami and Reem Bashawri.