2025 JULY ISSUE
MARKET INTELLIGENCE
SHORT READ
| PART 2
Contents:
Lululemon is In the News Again
H&M Moves Upmarket
Dillard’s Store at the Shops at Willow Bend is Closing
More American Store Closures
Saks Global is Planning to File for Chapter 11 Bankruptcy Soon
Puma is Rolling Out of Its Brand-Reset
Prada’s Quarterly Report
Highlights of Gucci
Rapha – the Cycling Fashion Group
Secondhand Sales Are Taking Business Away from Luxury Brands
Uniqlo Projects Its Project Amid the US Tariffs
Nike Has Some Turnaround to Make
Written by Andrew Sia
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From the Desk of the Publisher
We bring you the market news and hope that even some of the news are quite depressing as they are dealing with the closure of stores. We have to find out ways how to entice our customers from the market for their different needs. Only if we can maintain ourselves positive, then we can transpire our ideas to catch the market.
Personally, I like to visit stores that are airier with wide aisle, and the instore café can always be more enjoyable as one can combine shopping with leisure.
Other than that, I would like to include community activities, like running, cycling, camping and trekking, and start to do research on their apparels and accessories. These are all business opportunities that can inspire our younger generations to study and develop their career.
Lululemon is In the News Again
Lululemon’s year-end and end-of-season sales are currently ongoing. Discounts are up to 60% on a wide range of popular items including leggings, jackets, and accessories. These deals are part of their overstock section, and they would be sold as they last.
Deals can be found on their official website.
Its latest news involves the stopping of online sales of their new “Get Low” legging in North America due to customer complains about sheerness.
It is still searching for a new Chief Executive Officer to replace Calvin McDonald.
Its new spring launches including new seasonal colors, such as “Grape Mist” and “Walnut Crunch” and refreshing styles in popular fabrics like “Nulu.”
For its campaign, it continues to collaborate with Yo-Yo Ma, the cellist for its “Be Spring” campaign.
In essence, Lululemon is navigating product quality concern, leadership changes, and investor pressure, while still pushing forward for new seasonal collections and marketing. I would say that its plate is full.
H&M Moves Upmarket – FT, November 29, 2024
H&M’s new chief executive, Daniel Eevér, 44 has urged European politicians to introduce tariffs, chemical regulations, purchasing practices, and workers’ rights to combat unfair competition from Chinese rivals — Temu and Shein.
In fact, H&M has been in this uphill battle with Zara since it ceded it crown as the world’s largest fashion chain to Zara several years ago. Recently it has been squeezed out from its second position to Shein who is dominating the ultra-fast fashion space. Both Shein and Temu have captured a large portion of sales especially in markets like the U.S., UK, and Spain, forcing H&M to shift to target more aspirational shoppers to compete.
H&M’s archrival in Europe, Zara, has been pushing upmarket with tactics for limited-edition collections at prominent events such as Paris Fashion Week. They have further revamped their stores designed by leading architects. H&M tried to follow by refitting its store in the heart of Stockholm, allowing it airier with more space between displays and fewer clothes on show. At its entrance, customers can find its Atelier range as well as beauty products.
The revamp brought some positive result as operating margins fell from more than 20% in 2010 to 3% in 2022. They reached 8.6% in the third quarter of 2024, up from 5.9% a year ago. Daniel Eevér who just took up the company in February in 2024. He tried to steer the company away from the price war.
H&M has historically been sourcing from Asia, unlike Zara who has more production for its biggest market in Europe. It is now looking to nearshoring and have more items on sale six to ten weeks after the initial launch.
H&M is also attempting to launch its collection at London Fashion Week for the first time. It drawn the attention from the journalists and influencers.
It is also pushing for second-hand market and some of the stores, like the one in the center of Stockholm, have the second-hand section to attract younger shoppers.
H&M is controlled by the family of Stefan Persson, who is the second generation who owns 83% shares for voting rights. He has gradually increased the family’s ownership, and the market is expecting him to take the company private.
Dillard’s Store at the Shops at Willow Bend is Closing – The U.S. Sun, January 11, 2026
The store at The Shops at Willow Bend opened nearly 25 years ago during the mall’s 2001 debut, is to close this month. For the shoppers to shop at Dillard’s they have to go to the nearby store in North Texas.
The Dillard’s closure is a part of a wider change for the mall. The property owner, Centennial, plans to demolish a large portion of the mall and remodel it into a mixed-use project call The Bend. It will renew it with an urban-style community with 800,000 square feet of retail, restaurant, and entertainment facilities. It will also include nearly 1,000 apartments, a hotel, a seven-story office tower, and a potential jockey arena.
It will take three years to complete. This will also mean that 60 stores will need to close, and along with Dillard’s, Nieman Marcus is leaving Plano mall by January 2027.
More American Store Closures in 2025
We read that there have been thousands of stores closures in 2025 affecting the U.S. consumers. Below are the most notable shutdowns.
Joann Fabrics – It was a major American retailer for fabrics, sewing, and arts & crafts supplier that after financial struggles and multiple bankruptcies in 2024-2025, closed all its 800 standalone stores across 49 states by May 2025.
Claire’s – It was a global retail chain known for the selling of trendy, inexpensive jewelry, hair accessories, cosmetics, and toys. It was primarily targeting young girls, tweens, and teens, and known for its ear-piecing services. It struggled with its financial and filed for bankruptcy in August. It closed 235 brand name spots along with 56 premium locations.
Forever 21 – It went bankrupt in March and closed approximately 354 store locations in the U.S.
Macy’s – In 2025, it closed around 66 locations, and in 2026, it is in the process of closing those 150 non-performing stores. It is part of their “Bold New Chapter” strategy.
Party City – Filed for bankruptcy in December 2024, store closures continued into 2025 with about 850 being shut down. Party City was known for party supplies, like balloons, costumes, and decorations.
Dollar General – Around 96 Dollar General locations and 45 Home-décor-focused pOpshelf stores have closed in 2025. It is a major American small-box discount retailer known for neighborhood general store. Offering daily essentials like food, cleaning supplies, health/beauty products at low price.
GameStop – In 2024 it already closed 1,000 shops, and over 400 locations were closed in January 2025. Another 38 were closed months after. Nearly 300 stores will be closed in early 2026. GameStop is a major American retailer of video games, consoles, and pop culture collectibles.
CVS – About 270 stores have been closed as part of a broad strategy to streamline operations. Between 2022 and 2024, around 900 stores were closed.
Walgreens – About 500 were closed by the end of 2025. Target to close another 1,200 as part of the streamline the operation.
Carter’s – Several stores have been closed. Part of the larger plan is to close 150 more stores in 2028. It was founded in 1865 and operates over 1,000 stores selling clothing, gifts, and accessories for babies, toddlers, and young children.
Saks Global is Planning to File for Chapter 11 Bankruptcy Soon
The parent company of Saks Fifth Avenue and Neiman Marcus is reported to file for Chapter 11 bankruptcy as early as January 11, Sunday. It missed an interest payment of over $100 million in late December 2025, which was tied to debt from its $2.7 billion acquisition of Nieman Marcus.
The company is currently negotiating for roughly $1.25 billion to $1.5 billion in debtor-in-possession (DIP) financing to maintain operations during the restructuring. A reorganizing plan which is including significant downsizing and closure those unproductive stores under Saks Fifth Avenue, Saks Off 5th stores, and Neiman Marcus.
Many luxury vendors have stopped shipments or pulled merchandise from stores due to persistent payment delays. This has led to a noticeable inventory shortage.
Customers are rushing to use gift cards and store credits.
Puma is Rolling Out Its Brand-Reset – WSJ, October 31, 2025
It is expanding its continuing cost-reduction program and aim to return to growth from 2027 onward. It continues to cut back on its headcount and aimed to reduce by approximately 7,000 by the end of 2026. In 2025, it already cut 500 under the program. Its new chief executive, Arthur Hoeld, a former Adidas executive joined Puma only this year.
He stated the ambition to establish back to the top 3 sports brand globally.
Puma posted third-quarter sales of €1,955 billion, which was 15% lower than the previous quarter a year ago. It also entered into a net loss of €62.3 billion from a net profit of €127.8 million. Puma has a lot of reset to do.
Prada’s Quarterly Report – WSJ, October 24, 2025
The Italian luxury fashion posted a revenue of €4.07 billion for the three quarter of the year, which was 9% higher than the same period a year ago. Prada has logged for its 19th quarter of uninterrupted growth.
While many of the peers in the luxury business have been hit by a slump in demand for upscale fashion and accessories, Prada’s growth is benefitted from its Miu Miu brand. For its third quarter, its retail sale rose 29% on year, although its growth was 40% for the past quarter.
In the first nine months of the year, sales grew across all regions which included China. Although China is facing its own economic challenges, its rebound will be crucial to a recovery in luxury sector. The brand saw the increase of sales in the U.S. market, but for Europe it remained soft due to softer spending by tourists.
This year we have seen the company added a third brand, Versace, to its portfolio. Prada spent $1.38 billion to acquire this from the U.S. luxury conglomerate Capri Capital.
Highlights of Gucci
Gucci’s sales have been declining significantly across recent quarters. In Q3 of 2025 revenue was down by 14-18% compared with the year before. For full fiscal 2024, Gucci’s annual revenue dropped around 23-24%. It was the weakest in recent years.
Its parent company, Kering’s overall group revenue also fell, largely because of Gucci’s share of business. This has led Kering to bring in a new top executive Francesca Bellettini to steady its operations. It is also looking to refine its aesthetic and product strategy to better appeal to consumers and to regain its cultural relevance.
Gucci is still an iconic brand with global recognition and remains as a major contributor to Kering.
LVMH, the bellwether of the luxury industry, is falling by 2% in the third quarter, compare with a fall of 9% the quarter before. This helps the lift of its stock by 14%, and also to those of Hermès, Burberry and Kering.
Rapha — the Cycling Fashion Group – FT, October 18, 2025
Rapha is a well-known high-end cycling and lifestyle brand founded in 2004 in London by Simon Mottram and Luke Scheybeler. The brand is best known for premium road-cycling jerseys, bibs, and accessories. It redefines cycling fashion with minimalist designs and Rapha Cycling Club (RCC) community spaces called clubhouses around the world.
After it was founded, Rapha quickly rose to become one of the biggest names in cycling fashion, known for its minimalist designs, high quality, and details. The cycling fashion brand whose rapid ascent came crushing to a halt with the end of the pandemic bike boom.
There are more to read in a separate article I have featured about Rapha in our January 2026 issue. I want to bring out more opportunities for the readers to know more about this surging sports.
Secondhand Sales Are Taking Business Away from Luxury Brands – WSJ, October 20, 2025
The RealReal, world’s biggest online luxury online reseller has increased its quarterly sales by 10% on average over the past 18 months. Its listing in Nasdaq has increased more than 200% over the year.
Meanwhile, demand for the new luxury goods has been flat on average for its six consecutive quarters and this is among the top European brands. Many of them have rushed to hire new designers trying to revive their sales.
Previously shoppers would use resale websites to clear out unwanted old clothes and use the cash to make new purchases in the primary market. This behavior has changed over the past two years as they are using this cash to purchase secondhand goods. This has been a common practice for the younger customers.
Gen Z and millennial consumers are The RealReal fastest growing customers. It is reported that Gen Z consumers have spent less than 7% less on new luxury goods in 2024 than a year ago. Millennials’ spending slipped 2%.
The above-average price increases by the luxury brands have driven people over to resale website for discount. Economy outlook has prompted luxury shoppers to spend more cautiously.
The market for used luxury goods was worth $56 billion last year. This is as much as three times than a decade ago. It is also equivalent to all the business than luxury brands did through department stores globally in 2024.
Pricing of the secondhand goods are transparent. Brands are tracking the secondhand market for what the consumers are looking for. Brands are using this information as an indicator whether they should bring back older products. But to persuade the consumers to pay for full price rather than the bargained price on resellers’ websites is not too easy for them.
Uniqlo Projects Its Profit Amid the US Tariffs – October 10, 2025
Fast Retailing said that it expects earnings to rise despite the impact of the U.S. tariffs. As we know that Uniqlo is chasing growth outside Japan and China. It is adding more Uniqlo stores in the U.S. and Southeast Asia while reducing stores in China where the consumers have been weakened with their demand.
Today Uniqlo clothing are mostly made in countries such as China, Vietnam, Bangladesh, Indonesia and India.
Its U.S. business is accounted for 8% over its total revenue, compare with 30% for Japan, and 19% for markets of China, Hong Kong, and Taiwan.
For 2025, it planned for reaching 3,594 stores, most of the new openings are coming from Uniqlo stores overseas. It plans for flagship stores in cities like Chicago, San Francisco, Osaka, Hong Kong, Frankfurt, and Warsaw.
Fast Retailing’s fiscal-year earning rose 16% to $2.84 billion, and its annual revenue also grew 9.6% to $22 billion. But its stock has fallen about 10% in 2025 due to the concerns over the impact of the U.S. tariffs.
To offset the tariffs impact, the company is going through processes to strengthen its branding, cut costs and revise price for some products in North America.
Nike Has Some Turnaround to Make – WSJ, November 11, 2025
Sales rose 1% in Nike’s latest quarter which ended November 30. It was propped up by strong performance in North America, but its income still fell 32% weighted by mainland China, Hong Kong, and Taiwan, where revenue fell 17%. It is trying to recover a series of missteps led to a lengthy sales slump and lost market share. It has to trim much of its lifestyle product lines and to gain lost ground to performance sectors such as running.
It has lost ground to newer brands like the new shoemaker On, from Switzerland, and Hoka (originally from France, now with its headquarters in the U.S.
Nike’s chief executive, Elliott Hill, came back from his retirement and take up the job again last year. He tried to clear out old inventory and reinvigorate product development especially for performance shoes. He restructured the company’s corporate structure and replaced many top executives.
To revive its important market, China, Nike would need to start with product reassortment in the marketplace. Currently all its outlets in China are operated by retail partners. Now it is going to invest in its own stores in Beijing and Shanghai.
Tariffs have slowed down Nike’s progress. The company expects the tariffs to add $1.5 billion to its costs and reduce its gross margin for going forward. To cope with the rising cost, Nike has raised some prices of its sneakers, apparel, and equipment.
Its Converse label is still with problem with sales fell 30%. But it is resetting the brand’s Chuck Taylor line, its most popular shoes.
Nike must win back the loyalty of athletes as a foundation of its future business.