Happy Friday and welcome back to The Spin! Amazon's record profit of $2.9 billion was not enough to satisfy investors who sent the stock downward in after hour trading. On a lighter note, German Karstadt Group opened a new department store for the first time in 30 years. We also reveal, which British retail magnate has just been outed as an alleged #MeToo offender. Enjoy the read - and your weekend! Cheers, Ulrike


Amazon didn't deliver. Amazon’s Q3 $2.9 billion profit (press release) clearly beat analysts’ expectations, but lower than expected revenue growth and a weaker forecast for Q4 resulted in a 9 percent stock drop in after hour trading. While its North American business remains strong, the online giant still struggles overseas.

Tough decisions. Following a record £500 million annual loss, Debenhams plans to shut down up to 50 of its 165 stores over the next three to five years, putting about 5,000 jobs at risk. Previously, the British department store chain announced the closure of 11 warehouses and ten stores, two of which already closed. To raise capital, the company is also trying to sell assets.

2,000 red roses. German department store chain Karstadt, which is about to merge with HBC’s Galeria Kaufhof, has opened (paywall; in German) its first new store in 30 years. Located at Berlin’s Gropius Passagen and spanning 7,900 sqm, the store (image gallery) links a strong focus on local customer needs with digital innovation. The product range includes fashion, living, beauty and food.


Red-hot Off-White. Virgil Abloh’s Off-White has been named the planet’s hottest brand in the quarterly ranking of fashion search engine and shopping platform, Lyst. Based on Lyst users’ shopping behaviour and engagement including social media mentions, Off-White has surpassed Gucci, Balenciaga and Nike. Kanye West’s Yeezy, which briefly dropped out last quarter, is also back in the top ten. See the full ranking here.

Nothing to Talkabout. Troubled German fashion company Gerry Weber has decided to discontinue Talkabout to focus on its core brands, Typhoon, Samoon and Hallhuber. Launched in 2016 as a vertical wholesale collection for the segment between mainstream and contemporary, Talkabout counts about 170 clients in six European countries. The last collection will be delivered (paywall; in German) in February 2019.


Digital drops. Streetwear-related Internet searches in China are currently growing faster than luxury-related queries. Contrary to the US, where streetwear brands like Supreme work with their own apps to help customers keep track on digital drops, messenger platforms like WeChat have taken on this market in China. With push notifications and timers for the selling periods, they allow shoppers to participate in the countdown.


Raeburn's return. VFC-owned outdoor brand Timberland has named Christopher Raeburn global creative director. In this newly created role, the recycling specialist is expected to bring the brand’s creative vision and ethos of responsibility to every touchpoint, including products, store environments and marketing. In a collaboration for Spring 2019, the British designer already created a capsule (image gallery) made of vintage Timberland pieces. His first full collection will be released for fall 2020.

Guilty as charged. James Gatto, former director of basketball sports marketing at Adidas, has been found guilty of wire fraud and pay-for-play schemes to recruit players for US colleges. Adidas claims to have fully cooperated with the authorities and has since strengthened internal controls. In addition to Gatto, the District Court of New York also convicted two co-defendants, former Adidas consultant Merl Code and sports manager Christian Dawkins. Sentencing is scheduled for March 5, 2019.


#GreenToo. After UK retail billionaire Sir Philip Green banned the Daily Telegraph by court order from naming him in an explosive #MeToo story, he was outed by a British politician as the perpetrator. The chairman of Arcadia Group, which holds brands like Topshop and Miss Selfridge, loves being seen with top models and actresses. Now he is accused of bullying, racism and sexual harassment. He vehemently denies all accusations.


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