Mixed Performance in 2024 Fashion Retail: Levi's, H&M Lead Growth

STRONG: GROWTH IN BOTH SALES & PROFITS

LEVIS (NYSE: LEVI)

Levi Strauss & Co. announced financial results for its fourth quarter and fiscal year ended December 1, 2024 on January 29, 2025.

Company’s fourth quarter net revenues of $1.8 billion increased 12 per cent on a reported basis and 8 per cent on an organic basis compared to Q4, FY23. Net income amounted to $183 million compared to $127 million, and adjusted net income amounted to $202 million compared to $179 million in the same quarter last year.

Full year reported net revenues of $6.4 billion were up 3 per cent to FY 2023, on an organic basis. Gross margin was 60.0 per cent, rising by 310 basis points above FY 2023; and, net income stood at $211 million while adjusted net income was reported at $503 million, growing from $441 million in FY 2023. The company declared a dividend of $0.13 per share totalling approximately $51 million, payable in cash on February 28, 2025.

Company’s 2025 outlook includes 1 to 2 per cent growth in reported and 3.5 to 4.5 per cent organic growth in net revenues. Adjusted EBIT margin to expand to 10.9 to 11.1 per cent, and adjusted diluted EPS to stay in the range of $1.20 to $1.25, including an approximate 20c headwind from foreign exchange rates and a higher tax rate.

San Francisco-headquartered Levi Strauss & Co. designs and markets jeans, casual wear and related accessories for men, women and children, and is listed on NYSE.

H&M (STO: HM-B)

Swedish fashion retailer H&M ended fourth quarter and the full FY24 in November 2024, and reported the financial performance of the same on January 30, 2025.

In the fourth quarter, net sales, amounting SEK 61,193 ($5,745) million, increased 3 per cent in local currency over same quarter last year. On full year basis, group’s net sales amounted SEK 234,478 ($22,012) million, increasing 1 per cent in local currency. Respective gross margins amounted SEK 33,942 million (54.6 per cent of sales) and SEK 125,299 million (53.2 per cent of sales).

Full year operating profit increased to SEK 17,306 ($1,625) million against SEK 14,537 million of last year, reflecting operating margin of 7.4 per cent versus 6.2 per cent a year prior. Increase in operating profit excluding the result from investments in associated companies and JVs was 28 per cent.

Group’s sales for the period December 1, 2024 to January 28, 2025, of current fiscal was also reported to have increased by 4 per cent in local currency compared to same period of the last fiscal.

The first H&M store in Brazil is slated to open in São Paulo towards the end of 2025.

MODERATE: GROWTH IN EITHER SALES OR PROFITS

VF CORP (NYSE: VFC)

VF Corp reported Q3 (ended December 31, 2024), FY25 financial results in January end. The NYSE-listed company exceeded its Q3 guidance revenue forecast of $2.7 to $2.75 billion and reported revenue of $2.8 billion, growing 2 per cent over same quarter last year. Brand wise, The North Face grew 5 per cent and Timberland grew 11 per cent, while Vans and Dickies dropped 9 per cent and 11 per cent, respectively.

While operating income was $226 million (operating margin of 8 per cent was up by 1,130 basis points), the adjusted operating income also exceeded guidance of $170 to 200 million by reaching $324 million (operating margin of 11.4 per cent was up by 360 basis points). Net income amounted to $168 million against last year’s loss of $42 million.

On nine-month basis, revenue dropped from $7.4 billion last year to ~$7 billion this year though net loss improved from $550 million to $39 million. Owing to this 9M result, VFC performance classifies as ‘Moderate’.

The company also shared Q4 revenue and adjusted operating income guidance, as well as cash flow guidance for full FY25. Compared to fourth quarter of last year, the revenue growth is expected to be in the range of negative of 4 to 6 per cent in reported and 2 to 4 per cent in constant currency terms. Adjusted operating loss in the last quarter of current fiscal is to remain in the range of $30 to $0 million. Full fiscal free cash flow is expected to be $440 million – an upgrade from earlier forecast of $425 million, reflecting higher-than-planned proceeds on sale of non-core physical assets and improved core fundamentals.

MARIMEKKO (HEL: MEKKO)

Marimekko’s net sales in the fourth quarter increased by 7 per cent and totalled €54 ($56.52) million compared to €50.6 million in Q4,2023, mainly boosted by the increased retail sales in all market areas. Net sales in domestic Finland market grew by 3 per cent as domestic retail sales increased by 8 per cent, while international sales grew by 13 per cent with increase in both retail sales and wholesale. The fourth quarter’s operating profit stood at € 9.1 million (€8.1 million in Q4,2023).

The highlights of company’s financial performance for full fiscal 2024 includes net sales amounting to €182.6 ($191.11) million, growing 5 per cent over €174.1 million of last year. This growth was the result of growth in retail sales across all market areas and an increase in wholesale sales in the Asia-Pacific region and Scandinavia. Net sales in Finland increased by 2 per cent and international sales grew by 9 per cent.

Marimekko, the Finnish company known for its prints and designs, reported full year comparable operating profit of €31.9 ($33.39) million, reflecting operating profit margin of 17.5 per cent compared to 18.4 per cent (2023). Although operating profit was boosted by increased net sales, the higher fixed costs and lower relative sales margin had a weakening impact on the operating profit, putting full year performance under ‘Moderate’ class.

In guidance for 2025, Marimekko Group's net sales are expected to grow from €182.6 million. Comparable operating profit margin is estimated to be approximately some 16–19 per cent. Development of consumer confidence and purchasing power especially in Finland as well as general uncertainties and possible disruptions in global supply chains, among others, may however cause some volatility to this outlook.

WEAK: NO GROWTH IN SALES & PROFITS

AEFFE S.P.A. (BIT: AEF)

On January 23, 2025, the Board of Directors of Aeffe S.p.A. – a luxury company listed on the Euronext Star Segment of Euronext Milan Market of Borsa Italiana, operating in the prêt-à-porter, footwear and leatherwear sectors with a portfolio of international brands, including Alberta Ferretti, Philosophy di Lorenzo Serafini, Moschino and Pollini – approved the Group’s preliminary sales figures for the full fiscal 2024.

The consolidated revenues of €251 ($263.61) million was a decrease of 21.2 per cent at constant exchange rates and 21.3 per cent at current exchange rates, compared to €319 million in 2023.

Revenues of the prêt-à-porter division amounted to €166.1 ($174.45) million, gross of the eliminations between the two divisions, recording a decrease of 21.7 per cent at constant exchange rates and 21.8 per cent at current exchange rates. The revenues of the footwear & leather goods division amounted to €106.2 ($111.54) million (also gross of the eliminations between the two divisions), decreasing 25.3 per cent, both at constant and current exchange rates, compared to 2023.

Aeffe’s Italian market decreased 20.6 per cent to €106.4 million, Europe decreased 22.4 per cent, Asia & ROW decreased 20.8 per cent, and America decreased 20.2 per cent, y-o-y.

Basis the approved figures, the performance is classified as Weak.

HANESBRANDS INC. (NYSE: HBI)

New Carolina-headquartered Hanesbrands fourth quarter and full 2024 financial reporting featured the quarter’s net sales of $888 million, up 4.5 per cent (3.8 per cent in constant currency terms), and annual sales of $3,507.4 million, down 3.6 per cent, compared to respective periods of last year.

The owner of iconic apparel brands, Hanesbrands Inc. ended FY24 on December 30, 2024, compared to FY23 that ended December 28, 2023.

Compared to last year, the selling, general and administrative (SGA) expenses, both in quarter and full-year, saw an y-o-y increase. As a result, quarterly net income dropped from a positive of ~$78 million (Q4,2023) to a negative of ~$13 million (Q4,2024), and annual net loss of ~$18 million (FY23) expanded to $320.4 million (FY24).

For fiscal year 2025, which ends on January 3, 2026, and includes a 53^rd week, the company expects net sales from continuing operations of approximately $3.47 billion to $3.52 billion, inclusive of projected headwinds of approximately $60 million from changes in foreign currency exchange rates. Adjusted operating profit is expected in the range of approximately $450 million to $465 million, excluding pre-tax charges for restructuring and other action-related charges of approximately $25 million to $30 million and including projected headwind of approximately $8 million from changes in foreign currency exchange rates.

For the Q1, FY25, expected net sales are approximately $750 million, and adjusted operating profit at $65 million.

LINDEX GROUP PLC (HEL: STOCKA)

Helsinki’s Lindex Group plc reported financial results for fourth quarter and full fiscal 2024, ended December 2024, on February 7, 2025.

The total revenue for the Group, in the fourth quarter, stood at €273.7 million ($286.46 million) versus €274.3 million in Q4, FY23, with revenues in Lindex division growing to €169.1 million (vs. €168.2 million) and Stockmann division decreasing to €104.6 million (vs. €106.1 million).

For the full 12-month period from January to December 2024, the Group’s revenue was €940.1 million ($984 million) compared to €951.7 million in 2023, dropping 1.3 per cent in local currency. In local currencies, the revenues for Lindex division decreased 0.9 per cent and 2.2 per cent for Stockmann division. Gross margin remained flat at 58.3 per cent compared to 58.2 per cent. The net financial result culminated into a decline to €13.2 million ($13.82 million) versus €51.7 million last year due to increase in tax expenses and costs related to the restructuring programme.

Envisaging challenging macroeconomic situation especially during the first half of 2025, Lindex Group expects its revenue to increase by 0 to 4 per cent in local currencies compared to 2024. The Group’s adjusted operating result is estimated to be €70−90 million. Foreign exchange rate fluctuations may have a significant effect on the adjusted operating result.

Lindex Group plc, an international multichannel retail group, operates two divisions: Lindex and Stockmann, a premium multi-brand retailer with department stores in Finland and the Baltics. The global fashion company offers three strong categories of womenswear, kidswear and lingerie.

QVC GROUP, INC. (NASDAQ: QRTEA, QRTEB, QRTEP)

Englewood, Colorado-headquartered Qurate Retail, Inc. was renamed as QVC Group, Inc. on February 21, 2025. The NASDAQ-listed company ended fourth quarter and full year 2024 on December 31, 2024. Announcing financial performance for both periods in February-end, QVC Group reported 6 per cent decrease in quarter revenue and 5 per cent decrease in full fiscal revenue, both on current and constant currency basis. The major contribution, about 66 per cent, to the Group’s revenue came from QxH business which decreased 8 per cent in Q4 and 6 per cent in full year, and balance from QVC International and Cornerstone. QVC International revenue was flat to last year in Q4 and decreased 2 per cent in full year in US dollars; while, in constant currency revenue was flat in Q4 and in full year; Cornerstone revenue decreased 7 per cent in Q4 and 11 per cent in full year.

The live social shopping company that offers shopping experience through video-driven commerce encompassing smartphones, tablets, laptops and TVs, owns six retail brands namely QVC, HSN, Ballard Designs, Frontgate, Garnet Hill and Grandinroad. 

For the quarter, the company generated operating loss of $1.3 billion. For full year, loss amounted to $809 million. Adjusted OIBDA (Operating Income Before Depreciation & Amortisation) decreased 8 per cent in the fourth quarter and 1 per cent in full year in US dollars. In constant currency terms, the decrease in the quarter was 8 per cent and flat on full year basis.

Overall, QVC Group delivered a ‘Weak’ performance.

WINMARK CORP (NASDAQ: WINA)

Another NASDAQ-listed US company Winmark Corp. announced full FY24 unaudited financial results in the 3^rd week of February. The company’s full year ended December 28, 2024 with net income of $39,954,200 or $10.8 per share diluted compared to net income of $40,178,100 or $11.04 per share diluted in FY23 ended December 30, 2023. The company, headquartered at Minneapolis, Minnesota, reported fourth quarter net income of $9,583,100 or $2.60 per share diluted compared to $9,716,800 or $2.64 per share diluted for the same quarter last year.

Revenues for full year was reported at $81,289,100, decreasing from $83,243,500 last year. Reported year’s results were said to have been impacted by the company’s decision in May 2021 to run-off its leasing portfolio.

Winmark, the Resale Company, is a nationally recognised franchisor focused on sustainability and small business formation. Its resale franchises include Plato’s Closet, Once Upon A Child, Play It Again Sports, Style Encore and Music Go Round. As of December 28, 2024, company has 1,350 operational franchises over 2,800 available territories.

Fibre2Fashion News Desk (WE - SB)