TOP NEWS
* Prada SpA's shares closed up 14% on March 12 after the Italian fashion house signaled its sales were improving. Prada, whose shares are listed in Hong Kong, on March 9 reported that net sales in the year ended Dec. 31, 2017, fell 2% year over year to EUR3.1 billion, but CEO Patrizio Bertelli said the performance in the second half and the first months of 2018 had been "progressively improving." Net income in 2017 fell 4.3% year over year to EUR248.9 million from EUR260.2 million, missing an S&P Capital IQ mean consensus of analysts' estimates of EUR253.2 million.
* U.K. online fashion retailer Farfetch UK Ltd plans to launch a more than £4 billion initial public offering, which is close to the market valuation of larger U.K. retailer Marks & Spencer Group PLC, The Guardian reported. Farfetch will shortly announce a deal with U.K. specialty retailer Harvey Nichols Group Ltd. as part of its series of collaborations with other retailers, including its partnership with British luxury goods company Burberry Group PLC, the report said. French fashion house Chanel reportedly purchase a minority interest in Farfetch.
TEXTILES, APPARELS AND LUXURY GOODS
* U.S. law firm Bronstein Gewirtz & Grossman LLC filed a class-action lawsuit against sportswear company Foot Locker Inc. and certain officers on behalf of shareholders who acquired Foot Locker's securities between Aug. 19, 2016, and Aug. 17, 2017. The suit alleges that the company failed to disclose that its vendors were switching to selling through other online channels and that the company faced increased competition from online retailers.
* L Catterton Asia-owned Chinese men's fashion retailer GXG seeks to raise about $300 million through an initial public offering in Hong Kong, Bloomberg News reported, citing sources, who said GXG was working with investment banks on a proposed listing this year. L Catterton Asia is backed by luxury company LVMH Moët Hennessy Louis Vuitton SE.
* Victoria's Secret owner L Brands Inc. launched a $250 million share repurchase program, which includes the remaining $23.1 million outstanding under a previous program.
E-COMMERCE
* Blue Pool Capital Ltd., an entity that primarily makes investments for the founders of Chinese e-commerce giant Alibaba Group Holding Ltd.'s Jack Ma and Joe Tsai, invested $20 million in the U.S. online apparel rental company Rent the Runway, Recode reported. The move values the American company at a little less than $800 million, the report said, citing a filing spotted by research firm Lagniappe Labs.
FOOD AND STAPLES RETAILING
* Amazon.com Inc.-owned Whole Foods Market Inc. plans to hold a supplier meeting March 19 to discuss issues including its plan to charge for centralized merchandising, CNBC reported, citing sources familiar with the situation. The grocer is reportedly looking to smooth relations with its vendors following its sale to Amazon in 2017. Some of them told CNBC that they were frustrated with Whole Foods' limited communication about the status of plans such as shifting from a local to a national focus, and its proposal to centralize merchandising.
HOUSEHOLD AND PERSONAL PRODUCTS
* Clorox Co. agreed to buy Florida-based wellness company Nutranext for $700 million, subject to certain closing conditions and customary regulatory approvals, as the household products manufacturer continues its strategy of acquiring brands in growing categories. Clorox said it plans to fund the transaction, expected to close in the company's fiscal fourth quarter ending June 30, through available cash and debt financing.
HOUSEHOLD DURABLES AND SPECIALTY RETAIL
* U.S. electronics retailer Best Buy Co. Inc. finished its five-year turnaround, resulting in a positive impact on its financial results and attracting more customers, Reuters reported. As part of its turnaround, the company improved price matching, quicker delivery, enhanced the search function on its website, and improved customer service to attract shoppers to its stores and website, the report said.
* Swedish home appliances manufacturer AB Electrolux said March 9 that it will form a joint venture with Chinese household appliances company Midea Group Co. Ltd. to launch its premium brand AEG in China. The JV aims to open AEG's first home appliance store with select products in China in June, followed by the opening of a flagship store in the city of Guangzhou in August and more product releases in October.
* Struggling South African retailer Steinhoff International Holdings NV said March 9 that the Johannesburg Stock Exchange deregistered the medium-term note program of its wholly owned indirect subsidiary Steinhoff Services Ltd. The move comes after the stock exchange on March 1 suspended from trading another unit of Steinhoff for its failure to report financial statements for fiscal 2017.
INDUSTRY NEWS
* Total retail sales in Singapore dropped 8.4% year over year to S$3.9 billion in January, compared to S$4.3 billion in the prior year when Chinese New Year took place, according to the city-state's Department of Statistics. On a seasonally adjusted month-to-month basis, total retail sales dropped 5.4% from December 2017 on a decline in motor vehicle sales. Excluding motor vehicles, retail sales in January were down 8.1% year over year and 1.5% month to month. The Chinese New Year holiday fell in late January in 2017 and in mid-February in 2018.
