Starbucks exceeds expectations

The return of Pumpkin Spice Lattes

Welcome to the Retailist Roundup! As the days grow shorter and Thanksgiving draws near, we can anticipate a surge in Pumpkin Spice craze and an uptick in business news. In this space, our editors curate the freshest updates in ecommerce, retail, and DTC brands for your perusal.

We've condensed the highlights of the past week to bring you the most noteworthy headlines, emerging trends, and expert insights from the worldwide retail industry. Let's delve into the standout subjects for this week:

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In the News: This week’s top headlines

Starbucks gets sales bump from US demand for 'affordable luxuries'. Starbucks exceeded expectations in its fourth-quarter sales and profit, driven by strong demand for its premium coffee and cold drinks in North America, along with the return of the Pumpkin Spice Latte. This seasonal favorite contributed to an 8% increase in U.S. same-store sales and a 20% surge in visits on its launch day. However, the company experienced a slower recovery in China, with sales only growing by 5%, significantly less than the previous quarter's 46% increase. [Reuters]

Simon Property Group reduces stake in Forever 21. Simon Property Group's CEO, David Simon, mentioned that the retail business within the company is less stable compared to its core real estate business. While the retail holdings have been profitable, the company is looking to "harvest" and monetize these investments over time. Higher interest rates and inflation are causing middle-income consumers to be more cautious about spending, but it's not significantly affecting retailers' growth plans. In the third quarter, net operating income from Simon's North America properties rose 4.2%, and occupancy at its U.S. Malls and Premium Outlets increased, despite lower sales per square foot for retail tenants. [Retail Dive]

Peloton shares sink on wider-than-expected loss, ‘bad news’ for paid subscriptions. Peloton's shares dropped by 6% in premarket trading as the company reported a wider-than-expected quarterly loss and provided a lackluster holiday forecast. In its first fiscal quarter, the company reported a loss of 44 cents per share, higher than the expected 34 cents per share, while revenue was $595.5 million, slightly above the expected $591 million. Peloton also anticipates a decline in revenue for its holiday quarter and a decrease in paid connected fitness subscriptions, reflecting ongoing challenges for the company. Despite some bright spots like its rental service, Peloton continues to face higher membership churn and struggles to convert free app users into paying subscribers. [CNBC] 

Global Payments delays new POS launch. Global Payments, a payments processor, has delayed the launch of its new point-of-sale (POS) software for retail and restaurant customers until early 2024. The company didn't specify the reason for the delay, but the beta version of the platform was launched in the current quarter, and the full commercial release is now planned for the first quarter of 2024. Global Payments sees its POS business as a significant growth area, and it aims to leverage its capabilities in the U.S. market to expand into international markets, with recent launches in Canada, the U.K., Spain, and central Europe. [Payments Dive]

Cup Noodles unveils game-changing packaging update for 2024. Nissin Foods USA is introducing a new paper cup design for its Cup Noodles in early 2024 to replace the current polystyrene cup. The change allows the ramen noodles to be microwaved in the package, reducing cooking time and aligning with the company's environmental commitment to reduce carbon emissions and reach carbon neutrality by 2050 as part of its Earth Food Challenge 2030 initiative. The new packaging aims to support current consumer needs and reduce the product's environmental impact. [Fox Business]

Hugo Boss reaffirms 2023 outlook amid luxury downturn, shares rise. Hugo Boss confirmed its full-year outlook after reporting third-quarter sales that met analysts' expectations. The company's strong demand for its products, successful product design, diversification, and effective marketing have helped it maintain double-digit growth, despite challenges in the luxury sector. Hugo Boss recorded a 15% increase in Q3 sales, reaching 1.03 billion euros, and its quarterly earnings before interest and taxes (EBIT) rose by 12% to 103 million euros. The company's stock also saw a 4.8% increase in value, although it had previously fallen 27% from its peak earlier in the year, with the luxury sector facing challenges related to slowing demand for fashion and accessories. [Reuters]

Amazon tweaks tech to create first 100% fiber-focused fulfillment center. Amazon is testing new automated systems in its fulfillment center in Euclid, aiming to ensure the technology can handle the increased orders during the holiday season. This move comes after the success of Prime Big Deal Days earlier in the month, with the intention of implementing the technology in other facilities over a multi-year effort. The Euclid plant, which is the first to be 100% fiber-focused, is currently operating at full capacity, and Amazon owns the intellectual property for the new systems. [Retail Dive]

E.l.f. Beauty blows past Wall Street’s estimates, raises full-year guidance again. E.l.f. Beauty reported a 76% year-over-year increase in sales, surpassing Wall Street's expectations, and nearly tripled its profits in the fiscal second quarter. The company raised its full-year outlook for the second consecutive quarter and now expects a 55-57% increase in net sales, estimated between $896 million and $906 million. E.l.f. attributes its success to its value proposition, innovative products, and strong community engagement, and it believes it can continue its growth trajectory, doubling its market share over the next few years. [CNBC]

PayPal tapping Google AI tool.  Google CEO Sundar Pichai mentioned during a third-quarter earnings call that PayPal is using an artificial intelligence-powered tool called Duet AI from Google. While the details of how PayPal is utilizing the tool were not provided, Pichai noted that it has helped "boost developer productivity." Duet AI is designed to assist software engineers who use Google's cloud computing platform by answering questions and generating computer code, mimicking human conversation. [Payments Dive]

Job Board: This week’s Top Openings in DTC, RetailTech, and more

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