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Primark Fashion Firms up Profit Guidance After Post-Lockdown Trading Exceeds Expectations

FILE PHOTO: Signage is displayed outside a Primark store at the Oxford Street, in London, Britain July 2, 2020. REUTERS/Hannah McKay
FILE PHOTO: Signage is displayed outside a Primark store at the Oxford Street, in London, Britain July 2, 2020. REUTERS/Hannah McKay
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Primark Fashion Firms up Profit Guidance After Post-Lockdown Trading Exceeds Expectations

FILE PHOTO: Signage is displayed outside a Primark store at the Oxford Street, in London, Britain July 2, 2020. REUTERS/Hannah McKay
FILE PHOTO: Signage is displayed outside a Primark store at the Oxford Street, in London, Britain July 2, 2020. REUTERS/Hannah McKay

Associated British Foods said on Monday it expects full-year profit at its Primark fashion chain to be at least at the top end of its previously guided range after trading in its latest quarter exceeded expectations.

Adjusted earnings per share for the group as a whole for the year to Sept. 12 were forecast to be "significantly below" last year, however, mainly as a result of the decline in Primark's profit due to lockdowns across Europe.

In July the group forecast full year adjusted operating profit for Primark in a range of 300 million-350 million pounds ($396 million-$462 million), down from 913 million pounds the previous year.

Shares in the group were up 3.7% at 0709 GMT.

Following the lockdowns, all Primark stores reopened during May, June and July, and trading during the fourth quarter has been strong, the group said, Reuters reported.

In the latest four-week UK market data for sales in all channels, Primark achieved its highest ever value and volume shares for this time of year, it added.

Primark, which does not have an online offer, expects UK sales since reopening to be 12% lower on a like-for-like basis, with Europe and the United States down 17% and 9% respectively on the same basis.

AB Foods also said trading in its food businesses had exceeded expectations in its fourth quarter.

It said the grocery division had benefited from a continuation of increased sales in its key markets of the United States, Europe and Australia.

Increased demand for yeast and bakery ingredients, particularly across the Americas and China, delivered higher sales for the ingredients division, it added.

For the full year the group forecast a "very strong" increase in aggregate profit for its sugar, grocery, agriculture and ingredients businesses.

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Fashion

NASA to Wear Prada as Luxury Group Pushes Into Space Industry

The inner-layer liquid cooling and ventilation garment designed by Prada and Axiom Space is unveiled at a press event in New York City, US, June 7, 2026. REUTERS/Heather Khalifa
The inner-layer liquid cooling and ventilation garment designed by Prada and Axiom Space is unveiled at a press event in New York City, US, June 7, 2026. REUTERS/Heather Khalifa
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NASA to Wear Prada as Luxury Group Pushes Into Space Industry

The inner-layer liquid cooling and ventilation garment designed by Prada and Axiom Space is unveiled at a press event in New York City, US, June 7, 2026. REUTERS/Heather Khalifa
The inner-layer liquid cooling and ventilation garment designed by Prada and Axiom Space is unveiled at a press event in New York City, US, June 7, 2026. REUTERS/Heather Khalifa

Italian fashion house Prada unveiled on Sunday the inner-layer garment set to be worn by NASA astronauts heading into space, underscoring the brand's push to be the first major luxury player to make inroads in the space industry.

The body-hugging suit, created in collaboration with Houston-based space infrastructure developer Axiom Space, features ventilation tubes knitted into the garment.

"We have really a broad spectrum of capability and know-how," Lorenzo Bertelli, Prada's chief marketing officer, said at an event at Prada's Manhattan store, sitting beside a mannequin donning the new Liquid Cooling and Ventilation Garment.

Expertise for developing space exploration products "can come from lots of seemingly unrelated industries," Reuters quoted Jonathan Cirtain, CEO of Axiom Space, as saying.

The new product follows Prada's splashy foray into space fashion in 2024 with the ⁠unveiling of a ⁠spacesuit that is expected to be used for NASA's Artemis 3 Earth orbit, set to launch in 2027, and the anticipated Artemis 4 moon landing in 2028. Luxury brands have long drawn inspiration from space travel.

But Prada has gone "beyond inspiration into an actual partnership" as the space exploration and tourism industries develop, said Thomai Serdari, a luxury brand strategist and marketing professor at New York University's Stern ⁠School of Business. Serdari pointed to two factors motivating Prada's interest in the space industry: to gain access to affluent consumers who are contemplating space travel, and to align the brand with avant-garde thought.

Companies from Jeff Bezos' Blue Origin to Elon Musk's SpaceX have leaned into space tourism for the wealthy.

The resumption of space exploration and human travel to the moon is "bound to attract a lot of eyeballs," said Luca Solca, global head of luxury goods at Bernstein. Luxury brands need to stay relevant and visible, he said. Prada's push comes against a backdrop of a struggling luxury goods sector.

After two years of contraction, the ⁠industry was showing signs ⁠of stabilization until the Iran war began at the end of February, disrupting travel and denting luxury spending far beyond the Middle East.

WILL LUXURY PEERS FOLLOW? Other fashion and apparel companies have jumped on the space bandwagon. Under Armour has partnered with spaceflight company Virgin Galactic to create space apparel, while Columbia Sportswear has worked with space exploration company Intuitive Machines on space fabric technology.

But it remains unclear whether other luxury players might follow Prada's lead. "In luxury, it is important to be the first to do something, to be a trend-setter," Serdari said, noting that LVMH's Louis Vuitton, Hermès and Chanel are all interested in space travel but that they would likely find new ways to make inroads.

"You will never see the upper crust of the luxury sector copying each other," she added.

Fashion

Lululemon Slides as Bleak Forecasts Deepen Turnaround Worries

FILE PHOTO: A logo is displayed inside a Lululemon outlet retail store at Bicester Village in Oxfordshire, Britain, August 21, 2024. REUTERS/Hollie Adams/File Photo
FILE PHOTO: A logo is displayed inside a Lululemon outlet retail store at Bicester Village in Oxfordshire, Britain, August 21, 2024. REUTERS/Hollie Adams/File Photo
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Lululemon Slides as Bleak Forecasts Deepen Turnaround Worries

FILE PHOTO: A logo is displayed inside a Lululemon outlet retail store at Bicester Village in Oxfordshire, Britain, August 21, 2024. REUTERS/Hollie Adams/File Photo
FILE PHOTO: A logo is displayed inside a Lululemon outlet retail store at Bicester Village in Oxfordshire, Britain, August 21, 2024. REUTERS/Hollie Adams/File Photo

Lululemon Athletica shares dropped 12% in ‌premarket trade on Friday after bleak quarterly and annual profit outlooks deepened concerns over the yoga apparel maker's turnaround amid slowing US demand, competition and tariff costs.

The stock is on track to lose more than $1.7 billion from its market value of $14.44 billion if losses hold.

The weak forecasts intensified pressure on the stock, which has lost nearly 63% of its value in the last 12 months, as investors question how quickly Lululemon can revive product momentum in its ‌key US market, ‌while competing with newcomers like Alo Yoga ‌and ⁠Vuori.

"Lulu has just ⁠entered the 'trap' phase, where fundamentals are deteriorating as competition in all categories remains stiff and pricing power is fleeting for its core franchises," Barclays analysts said.

Lululemon, known for its pricey leggings and athleisure wear, has joined peers in feeling the pinch from muted spending on higher-margin products. Waning brand ⁠appeal in North America, design missteps and a ‌lack of fresh styles ‌have also added to the pressure amid a leadership transition.

Investors are ‌watching whether incoming CEO Heidi O'Neill, a former executive ‌at struggling Nike, can revive sales after she takes over in September, a task eased by the May resolution of a months-long proxy fight with founder Chip Wilson that had weighed on ‌the stock.

"A full strategic reset under the new CEO is required," Jefferies analysts said.

NEGATIVE BRAND ⁠BUZZ ADDS ⁠WORRIES

Meghan Frank, interim co-CEO and chief financial officer, said its yoga campaign rolled out to win back shoppers "hasn't had the expected halo effect on other areas of our assortment" and cited "negative commentary" as a headwind.

The spike in negative brand sentiment across media and social channels was evident in key markets, Barclays said, including the United States and China, and was primarily related to recent concerns about material composition and product safety.

The company's forward price-to-earnings multiple is 10.06, compared with 22.85 for Nike and 15.10 for Adidas , according to LSEG data.

Fashion

Designer Gabriela Hearst Still Believes in 'Brilliance of Humanity' Despite AI

Uruguayan-US fashion designer Gabriela Hearst gestures during an interview after presenting the official suits for Uruguay's national football team ahead of the 2026 FIFA World Cup at the Centenario Stadium in Montevideo, on June 2, 2026. (Photo by Eitan ABRAMOVICH / AFP)
Uruguayan-US fashion designer Gabriela Hearst gestures during an interview after presenting the official suits for Uruguay's national football team ahead of the 2026 FIFA World Cup at the Centenario Stadium in Montevideo, on June 2, 2026. (Photo by Eitan ABRAMOVICH / AFP)
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Designer Gabriela Hearst Still Believes in 'Brilliance of Humanity' Despite AI

Uruguayan-US fashion designer Gabriela Hearst gestures during an interview after presenting the official suits for Uruguay's national football team ahead of the 2026 FIFA World Cup at the Centenario Stadium in Montevideo, on June 2, 2026. (Photo by Eitan ABRAMOVICH / AFP)
Uruguayan-US fashion designer Gabriela Hearst gestures during an interview after presenting the official suits for Uruguay's national football team ahead of the 2026 FIFA World Cup at the Centenario Stadium in Montevideo, on June 2, 2026. (Photo by Eitan ABRAMOVICH / AFP)

The "brilliance of humanity" will matter more, not less, in an AI world, Uruguayan designer Gabriela Hearst told AFP in an interview.

Natural materials and handmade craftsmanship are the hallmarks of Hearst's luxury brand, whose commitment to environmentally friendly fashion has secured her status as a sustainable style icon.

With celebrities including Kate Middleton, Julia Roberts and former US first lady Jill Biden wearing her personal brand, Hearst was also the first Latin American woman to lead the French fashion house Chloe from 2020 to 2023.

In a world threatened by climate crisis and the emergence of artificial intelligence, "there will be a genuine need for handmade creation," Hearst told AFP during a recent trip to Montevideo to present World Cup uniforms to the Uruguayan team.

"The human part, the part of our brain that is unique to us, the part that represents the brilliance of humanity, is going to matter more and more," she said.

The designer on the cusp of 50 prizes quality over quantity, and obstinately opposes fast fashion fads.

"There are so many clothes in the world," she said. "There's always a way to have a small amount, but of good quality."

Now based in New York, Hearst said she owes her intimate knowledge of quality, sustainability and "true beauty" to her native Uruguay.

"When I was little, I wanted to go travel, to see the world," she said.

"After traveling," she continued, "I was able to appreciate what it means to grow up with those star-filled skies, the nature, eating food from the land, the quality, the natural luxury that surrounded me."

"Clothes were passed down" in Hearst's community, she said, recalling picking through her mother's wardrobe filled with garments made by the family seamstress.

In her native country of 3.4 million people, hundreds of weavers work for Manos del Uruguay, a network of cooperatives that produces handcrafted garments for Hearst's brand.

The finished products end up on runways, Vogue magazine covers and even on-screen in "Sex and the City" movie sequel, where a multi-colored blanket designed by Hearst appears draped over Sarah Jessica Parker's legs.

"It's incredible that our craftsmanship reaches so far," said 60-year-old weaver Mabel Bargas, who works in one of the Manos del Uruguay workshops.

Hearst wants to leave a legacy of positive social impact by creating jobs and doing her bit for the environment.

"We can't afford to lose our human connection," she said, adding that people with privilege "have a responsibility to help others."