Lego revenue rose 21 per cent. DICK'S stores grew while Foot Locker declined, and PDD revenue missed expectations as price competition persisted in China.
Economics & Markets··Evening
Licensed sets help Lego expand among children and adults
Lego's first-half revenue rose 21 per cent to 41.9 billion Danish crowns, while net profit increased 32 per cent to 8.6 billion crowns. The company released more than 330 sets in six months, including a 199.99-dollar FIFA World Cup trophy replica, interactive Pokemon products and a K-Pop Demon Hunters range. Chief executive Niels Christiansen said the numbers of both child and adult customers grew. Entertainment licences and a broader adult customer base accompanied market-share gains against Mattel and Hasbro. Higher oil prices linked to the Iran conflict raised plastic costs, although non-fossil materials have limited that effect so far.[1]
DICK'S grows while Foot Locker sales decline
DICK'S Sporting Goods recorded 5.59 billion dollars of net sales in the quarter ended 1 August. Comparable sales rose 4.9 per cent at DICK'S stores but fell 3.6 per cent at Foot Locker. The company cut its consolidated operating-income outlook to 1.45 billion–1.55 billion dollars from 1.69 billion–1.81 billion dollars. It now expects full-year net sales of 21.9 billion–22.2 billion dollars and earnings per share of 10.94–11.94 dollars. Executive chairman Ed Stack pointed to a strong quarter at DICK'S and said confidence in the long-term opportunities for both brands had not changed.[2]
PDD revenue rises 8 per cent but misses expectations
Revenue at PDD, the owner of Pinduoduo and Temu, rose 8 per cent to 112.36 billion yuan in the quarter ended 30 June, below analysts' expectation of 116.35 billion yuan. Net income attributable to ordinary shareholders fell 12 per cent to 27.2 billion yuan. Executives said Chinese e-commerce competition remained intense and spending stayed subdued even during the 618 discount festival. Temu also faced US tariffs and the removal of duty-free treatment for low-value parcels, forcing some merchants to raise prices. Adjusted earnings per American depositary share beat expectations, and the shares rose 2.3 per cent in early trading.[3]
