Nike and Lego Announce Collaboration, Shein Shifts Focus to Hong Kong Listing and Li Auto Reports Q1 Earnings

Gap Reports Q1 Sales and Profit Growth

Gap saw a 2 percent increase in Q1 net sales, reaching $3.5 billion, and a rise in net income to $193 million. The company’s two largest brands, Gap and Old Navy, contributed to the positive performance, with both seeing market share gains. However, the company faces potential tariff impacts, with an estimated $100 million to $150 million effect on operating income in 2025. Online sales grew 6 percent, now accounting for 39 percent of total net sales. The retailer expects moderate sales growth and operating income increases for the year.

Nike and Lego Announce Sneaker and Play Collaboration

Nike and Lego are launching a series of collaborative products, starting with a 1,180-piece Lego Dunk High set on July 1. The collection will include wearable sneakers like the Air Max Dn and Dunk Low, available starting August 1 and September 1, respectively. A range of in-person events will take place globally, including Legoland California and soccer tournaments in London, with activations in China scheduled for the summer and fall. The products are primarily for children, and the collaboration emphasizes the role of play in creativity and sports.

Estée Lauder Appoints Lisa Sequino as President of Makeup Division

Estée Lauder has named Lisa Sequino as the new president of its makeup brand cluster, effective June 9. Sequino will oversee brands such as Mac, Bobbi Brown, and Too Faced, with a focus on global growth. She returns to Estée Lauder after leading Supergoop! and JLo Beauty. This appointment follows a 9 percent decline in makeup sales in the latest quarterly update, signaling a shift to bolster the makeup category.

China’s May Manufacturing Activity to Show Contraction for Second Consecutive Month

China’s manufacturing sector is expected to show contraction for the second month in May, with the official PMI forecasted to rise slightly to 49.5 from 49.0 in April, according to a Reuters poll. A reading below 50 indicates contraction, reflecting ongoing trade tensions with key export markets. Economists suggest that these challenges are affecting manufacturers as the US and China navigate their tariff disputes.

Li Auto Reports Q1 2025 Earnings with Net Profit of 647 Million RMB

Li Auto reported its Q1 2025 financial results, with a 15.5 percent year-on-year increase in vehicle deliveries, reaching 92,864 units. Revenue for the quarter amounted to 25.9 billion RMB, making it the top-performing new energy vehicle startup. Net profit reached 647 million RMB, marking a 9.4 percent increase. The company invested 2.5 billion RMB in R&D, focusing on AI and advanced driver assistance systems. Li Auto’s cash reserves totaled 110.7 billion RMB, supporting long-term product and technology development. For Q2 2025, Li Auto expects delivery growth of up to 17.9 percent.

Stone Island Expands Presence in China with Flagship Openings

Stone Island is strengthening its commitment to the Chinese market with the opening of new flagship stores in Hangzhou and Hong Kong. The Hangzhou location, spanning nearly 4,000 square feet, aligns with the brand’s global retail concept and features unique material designs. Stone Island is focusing on optimizing its footprint in China, where it has recently integrated operations and revamped stores. The brand has seen a strong response in China, with an increasing share of female customers. Stone Island’s Asia sales, particularly in China, have seen growth, contributing to the brand’s long-term strategy in the region.

Amazon Launches Haul in the UK to Compete with Shein and Temu

Amazon has launched its mobile-only site, Amazon Haul, in the UK, offering affordable fashion and beauty products. Available exclusively on smartphones, Haul provides tens of thousands of items, many priced under 10 euros, with free delivery on orders over 15 euros. The platform’s low prices are driven by Chinese manufacturers selling directly through Amazon’s warehouses in China. The launch is seen as part of Amazon’s strategy to compete with fast-fashion giants like Shein and Temu.

Shein Shifts Focus to Hong Kong Listing After London IPO Delay

According to Reuters, Shein is now aiming for a listing in Hong Kong after its London IPO faced setbacks due to delays in receiving approval from Chinese regulators, particularly the China Securities Regulatory Commission. The company plans to file its prospectus in the coming weeks, with an expected Hong Kong listing within this year. Shein had initially sought a London listing to strengthen its global presence but encountered challenges.