Today’s news in brief-19/2/24

Nike has announced plans to cut 1,600 jobs, approximately 2% of its workforce, in response to disappointing sales figures in the latter half of 2023. This move comes as the company seeks to streamline operations and focus on key growth areas, such as running, women’s apparel, and the Jordan brand. Despite initial expectations of mid-single digit growth, Nike now anticipates only a 1% growth rate for the full year. The company emphasises its commitment to pursuing growth opportunities amidst a strong interest in sports, health, and wellness.

Currys has rejected a takeover offer from Elliott, the owner of Waterstones. The proposal, which valued Currys at 62p per share, was deemed insufficient by Currys’ board and financial advisors, who believe it undervalues the company and its future potential. Despite forecasting higher-than-expected profits for the full year, Currys has experienced a decline in share prices over the past three years. Elliott has until March 16th to make a revised offer under the City Code on Takeover and Mergers.

Lush has settled a legal dispute with its former CEO’s investment firm, Silverwood Brands, over a blocked share transfer. The disagreement arose when Lush prevented Silverwood Brands from acquiring a 19.8% stake in the company, citing non-compliance with share transfer regulations. As part of the settlement, Gerrie and Hawksley, the former CEO and his wife, will pay Silverwood £300,000 in legal costs. The brokerage firm holding the disputed shares has returned them to Gerrie, facilitating a resolution.

Aurelius faces challenges following its acquisition of The Body Shop, which recently collapsed into administration. Peter Wood, the managing director involved in the £207m takeover, has left the company amid criticism over the deal. The Body Shop’s financial difficulties post-acquisition have led to questions regarding Aurelius’ due diligence process and alleged failure to fulfil financial obligations to former employees. The retailer’s UK stores remain operational as administrators seek to restructure the business.

MyTheresa has reported a strong performance in Q2 despite posting an operating loss of €4.4m. The company attributes its resilience to solid growth in net sales, particularly in the US market, and continued expansion of its customer base. MyTheresa’s CEO expresses confidence in the company’s competitive position and outlook, emphasising its focus on high-spending customers and the digital luxury shopping experience. Adjusted EBITDA margin for the full fiscal year is projected to be between 3% and 5%.