• investment management
• securities
• prime brokerage
• asset management
• securities underwriting

It also offers institutional investors investment banking services.

The bank is a major dealer in the US Treasury security market and, more broadly, a distinguished market maker and is one of the world’s top investment banking companies by revenue. The Financial Stability Board considers it a systemically important bank. Goldman Sachs Bank USA, a direct bank, is also owned by the group.

The company was placed 62nd on the Fortune 500 list of the top US corporations by total revenue as of May 2020. Goldman Sachs was involved in a major controversy with 1MDB and paid a record penalty of over $2 billion under the FCPA, putting it among the top ten FCPA infractions as of 2021.

The Four Business Units of Goldman Sachs

Goldman Sachs has four operating business units, namely:

• Asset management
• Global markets
• Consumer and wealth management
• Investment banking

Asset Management

Asset management accounted for 18% of total business revenues in 2015. In August 2021, they announced that it had reached an agreement with NN Group to purchase NN Investment Partners and merge it with GSAM to expand its overseas activities. For €1.7 billion, NN Investment Partners, which manages $335 billion in assets, was purchased.

To a diversified collection of institutions and individuals worldwide, the Asset Management division provides investment consulting and financial planning services and investment products, mainly through separately managed accounts and intermingled entities, across all major asset classes. 

Institutional clients, such as mutual funds, hedge funds, and pension funds, use the division for clearing, custody, financing, reporting, and securities lending. Spreads and management, and transaction fees are the primary sources of revenue for the department.

Global Markets

The four divisions of the segment include:

• Fixed income
• Currencies and commodities
• Equities
• Investing

Global Markets accounted for 37% of total revenue in 2017. The revenues and profits generated by the bank’s trading activities, both on behalf of its clients (flow trading) and for its own account (propriety trading), are included in this segment.

Consumer and Wealth Management

Goldman Sachs Personal Financial Management, and Goldman Sachs Private Wealth, Ayco, are all managed under Consumer & Wealth Management.

The following are included in Consumer and Wealth Management:

• Management and other fees
• Incentive fees
• Results from deposit-taking operations relative to the company’s wealth management division
• Accepting deposits and issuing unsecured loans through Marcus by Goldman Sachs, the company’s digital platform
• Results of offering loans through the company’s private bank

Investment Banking

Two aspects of investment banking include:

• Financial advisory 
• Underwriting

Goldman Sachs is a renowned mergers and acquisition advising business, frequently topping Thomson Financial league tables for transaction sizes. By advising clients on avoiding unwanted hostile takeovers, they earned a reputation as a white knight in the M&A market. 

Goldman Sachs was the only leading investment bank in the 1980s to have a rigid policy against assisting in launching a hostile takeover, which greatly enhanced the firm’s reputation among sitting management teams.

Investment banking accounted for 21% of the total company revenue in 2015.

Goldman Sachs COVID-19 Relief Efforts in India

Earlier this year, Goldman Sachs pledged an additional $10 million to help India fight against COVID-19 infections and deaths. Support will be provided to frontline health facilities in a few cities and will include vaccination efforts.

Frontline health facilities will include isolation care units for low-income communities and oxygen concentrators and generators.

Reduced Growth Anticipated in the United States in 2021

Economists at Goldman Sachs decreased their prediction for US economic growth in 2021, citing a larger-than-expected impact from the COVID-19 delta variant, which might lead to more supply-chain disruptions and higher prices.

They now expect the US gross domestic product to grow by 6% this year, up from a previous prediction of 6.4%. That’s less than the median forecast of 6.2% in a Bloomberg poll, which had a low estimate of 5%. Goldman raised its 2022 projection to 4.5%, up from 4.4% previously.

According to economists at Goldman Sachs, the delta variant has impacted growth and inflation. The delta variant and other setbacks are anticipated to drive up prices of supply-constrained durable goods through the end of the year.

According to economists, supply-chain issues have been troubling businesses for some time, prompting them to raise prices. They raised its inflation prediction for core personal consumption expenditures to 3.75% by the end of 2021.

Expansion with Hyderabad Office – India

Goldman Sachs expanded its back-office operations in India with a 1,300 seater office in Hyderabad. The bank will also hire an additional 560 people to expand by the end of 2021.

Several global banks and financial institutions have similar offices in various parts of the country, including Bengaluru, Pune, and Hyderabad, where local workers assist with international operations and innovation initiatives.

David Solomon, the CEO of Goldman Sachs, indicated that the Hyderabad office would function as an innovation hub for various industries.

By the end of 2021, the office in Hyderabad will grow to 800 personnel, with roughly 70% new hires. The Hyderabad office might have 2,500 employees by 2023, according to the company.

Goldman Sachs CEO: David M. Solomon

The CEO of Goldman Sachs is David M. Solomon, a position he’s held since 2018. He is also a member of its Board of Directors. In 1999, he became a partner at Goldman Sachs.

Under the stage name “David Solomon” (formerly known as DJ D-Sol), Solomon also makes electronic dance music (EDM) recordings for fun. He’s played in New York, Miami, and the Bahamas at nightclubs and music festivals.

David Solomon: His Leadership Style During the Pandemic

The coronavirus pandemic has recently tested Solomon’s leadership style. Employees were unclear of his leadership style, and stockholders didn’t know which direction he was taking the company. As a music DJ in his spare time, he was known for being direct, realistic, intuitive, and adaptable.

As soon as the pandemic hit, Solomon faced a leadership challenge, which was also an opportunity to show who he truly is.

Solomon has proven to be a skilled navigator during the global health crisis, quickly adapting to changes that took some of his bank’s larger competitors off guard. However, it resulted in an unintended mistake, highlighting the dangers of a fun-loving approach, which he had previously seen as beneficial when working with Goldman’s young workforce.

When New York City went into its first lockdown in March last year, most of the bank’s 40,000 employees immediately got sent home. Solomon approved the company’s purchase of landline phone systems and thousands of monitors in home offices. He also communicated with clients via Zoom, assuring them that Goldman would assist them in overcoming their challenges at no cost.

Goldman’s forward-thinking and embracing a work-from-home environment for his employees helped traders take advantage of increased market activity in the first two quarters of 2020.

In the first and second quarters, traders took advantage of increased market activity. Their efforts drove the firm’s stock and bond trading revenues to new highs, all while reducing disruptions and boosting employee loyalty.

David Solomon Shakes Things Up at Goldman Sachs

Solomon’s rhetoric appears to be calibrated to the mores of the changing banking industry, with roughly half of the bank’s employees under 30. As a yogi and music lover, he had already brought a fresh atmosphere to the position, ripping up the company’s conservative dress code and preaching the need of bringing one’s “whole self” to work. 

In overseeing Goldman’s reaction to the virus, he’s also emerging as the face for a kinder era on Wall Street, where personal well-being can take precedent over profits, and expressing anxieties isn’t frowned upon.

Goldman Sachs (NYSE: GS) Latest Stock and Dividend News

As of August 26, 2021, Goldman Sachs’s stock price is $412.35.

Goldman Sachs has been paying dividends consecutively for the past ten years. The dividend yield is currently 2.03%. The dividend growth rate over ten years is 13.58%.

Financial Report Second-Quarter 2021

Goldman Sachs released its financial report for the second quarter of 2021. Here are a few of the highlights:

• The results showed the second-highest quarterly net revenues of $15.39 billion, second highest quarterly net profit of $5.49 billion, and second-highest quarterly diluted EPS of $15.02 per share.
• For the year to date, the company has ranked first in global announced and completed mergers and acquisitions, global equity and equity-related offers, common stock offerings, and initial public offerings.
• Investment Banking achieved $3.61 billion in net revenues in the second quarter of 2021, following record net revenues in the first quarter.
• Consumer & Wealth Management produced $1.75 billion in quarterly net revenues, a new high.
• Book value per common share climbed 5.6% in the first quarter and 12.2% in the first half of 2021 to $264.90.

AbbVie got listed on the New York Stock Exchange on January 2, 2013, after the separation became effective on January 1, 2013.

AbbVie has roughly 48,000 employees and operations in over 175 countries.

About AbbVie, Inc

AbbVie may have only been created in 2013, but they have strong origins. They broke away from Abbott in 2013, while they have a shared history and bright possibilities for the future.

Their name alludes to their links to the past and future. AbbVie created a new type of business when it became its own corporation: a biopharmaceutical company. They combine a pharmaceutical company’s stability, worldwide scale, resources, and commercial capabilities with a biotech’s focus and culture.

Today, AbbVie’s employees worldwide are focused on delivering game-changing medications and therapies that benefit patients.

Scientists, researchers, communicators, industrial specialists, and regulatory experts worldwide work for AbbVie. They devise novel techniques to deal with today’s health problems, ranging from life-threatening illnesses to chronic illnesses.

They focus on specific, difficult-to-cure diseases where their core R&D expertise can help progress science. They are continually working to develop solutions that positively influence patients’ lives, society, and science itself and cure the condition.

Competing With Biogen In Alzheimer’s Disease

AbbVie has announced that it will begin testing a next-generation version of the Alzheimer’s medicine Aduhelm sometime this year or next year. Aduhelm, a Biogen medication, was approved in June, causing researchers to redirect their attention to the beta-amyloid treatment theory.

Beta-amyloid is a sort of plaque that forms in Alzheimer’s patient’s brains. Biogen and other companies, such as AbbVie, believe that removing it will help patients’ cognition. However, the scientific community does not fully support the theory. AbbVie President Michael Severino noted on the company’s second-quarter results call that the business had been monitoring this area for some years.

FDA Approvals are Necessary

Skyrizi, AbbVie’s psoriasis drug, was released as a single-dose injection in early August. The medication was formerly given in two 75mg shots. Every 12 weeks, patients can now receive a single 150mg injection. However, the announcement did not affect ABBV’s stock.

The stock dropped after the FDA announced that it would postpone its consideration of Rinvoq in two types of arthritis while it investigates Pfizer’s (PFE) Xeljanz study. In research comparing Xeljanz to previous TNF medications, it was discovered that Xeljanz increased the risk of heart disease and cancer.

The FDA is also considering Rinvoq for use in eczema patients. In adults with eczema, Rinvoq outperformed Regeneron Pharmaceuticals’ and Sanofi’s Dupixent last year. In the final phase of the research, more adults receiving Rinvoq had at least 75% eczema eradication at week 16.

The European Commission’s Committee for Medicinal Products for Human Use proposed Rinvoq for eczema approval on June 25. The European Union is likely to make a decision later in the year. Rinvoq would receive its fourth European approval. The European Union approved the medicine in January for two forms of arthritis.

AbbVie is also working on completing the acquisition of privately-held aesthetics startup Cypris Medical. The company is now researching a gadget that could treat mid-face descent and neck lifts.

AbbVie is also testing coronavirus treatments. The medicine could lead to a treatment for Covid-19 or a new strategy to prevent the disease from spreading.

AbbVie in Oncology

AbbVie recently announced that if conditions are met, the CADTH pCODR Expert Review Committee (pERC) recommends that Venclexta (Venetoclax) in combination with azacitidine be reimbursed for the treatment of patients. This applies to newly diagnosed acute myeloid leukemia (AML) who are 75 years or older or have comorbidities that preclude the use of intensive induction chemotherapy. 

AML is a blood malignancy that is aggressive and difficult to cure, with a low survival rate and is very common in adults. In Canada, the five-year net survival percentage for patients diagnosed with AML in the general population is around 21%.

According to doctors, this specific cancer progresses rapidly and, when compared to other cancers, has a very low survival rate.

The average age of AML patients is about 70, and most are not candidates for aggressive chemotherapy or stem cell transplantation. Treatments for those patients have not been very beneficial so far, but this new regimen has shown to be more effective.

In December 2020, Health Canada approved Venclexta in combination with azacitidine. Project Orbis, an FDA program that provides a framework for simultaneous submission and assessment of cancer drugs across international partners, received Health Canada’s clearance.

COVID-19 Research Development

AbbVie’s scientific expertise has proven invaluable in the fight against COVID-19. The company has been collaborating with biopharmaceutical enterprises to address the pandemic’s health implications.

• Antibody research: Harbour BioMed, Utrecht University, and Erasmus Medical Center are collaborating with AbbVie to explore innovative antibody therapies to prevent and cure COVID-19. The cooperation will develop the fully human, neutralizing antibody 47D11, which targets the conserved domain of SARS-spike CoV-2’s protein, which produces COVID-19.

• Ibrutinib research: Ibrutinib is being tested in a Phase 2 trial in individuals with COVID-19 infection by AbbVie. The trial’s purpose is to determine Ibrutinib can improve patient outcomes by reducing the cytokine storm, an immunological response that promotes morbidity and mortality in COVID-19 patients.

• ACTIV partnership: The Foundation for the National Institutes of Health (FNIH) and The National Institutes of Health are leading the Accelerating COVID-19 Therapeutic Interventions and Vaccines (ACTIV) initiative, which AbbVie is a part of. More than a dozen renowned biopharmaceutical companies have joined the partnership, the US Food and Drug Administration (FDA), the US Centers for Disease Control and Prevention (CDC), and the European Medicines Agency (EMA) to devise a global strategy for coordinating research in the face of the COVID-19 pandemic.

• COVID R&D Alliance: AbbVie is a member of the COVID R&D Alliance, collaborating with partners in the industry to battle COVID-19. They’re collaborating to find, research, and develop the most potential therapeutic drug candidates.

CEO Richard A. Gonzalez

The present Chief Executive Officer (CEO) and Chairman of the Board of AbbVie is Richard A. Gonzalez. He was a 30-year Abbott veteran before AbbVie’s departure from Abbott in January 2013. Before briefly retiring in 2007, Gonzalez was President and Chief Operating Officer of Abbott. He also held several high management positions in Abbott’s medical products division.

Education Controversy

Richard Gonzalez has faced controversy regarding his college education. Between 2002 and 2007, Abbott Laboratories misrepresented his educational credentials in at least nine regulatory submissions, according to Crain’s Chicago Healthcare

Gonzalez held a bachelor’s degree in biochemistry from Houston and a master’s degree in biochemistry from Miami, according to the company’s regulatory filings from 2002 to 2007.

Gonzalez’s educational credits in his profile on Abbott’s website have since been amended, stating that he worked at the University of Miami School of Medicine as a research biochemist and majored in biochemistry at the University of Houston.

Abbott’s spokesperson, Melissa Brotz, had the following to say about the situation:

“There’s no issue here with respect to his educational background and his ability to lead AbbVie. His ability to lead AbbVie is evidenced by his distinguished career over 30 years, culminating in his reaching the highest levels of the company.”

AbbVie (NYSE: ABBV) Latest Stock and Dividend News

AbbVie’s (ABBV) stock is trading at $120.40 as of August 26, 2021. The company has been paying dividends for the last nine consecutive years, with the dividend yield currently being 4.41%.

The dividend growth rate over the past five years is 18.09%.

AbbVie Financial Results Second-Quarter 2021

AbbVie recently released its financial results for the second quarter of 2021. Here are some of the highlights:

• Delivers second-quarter net revenues of $13.959 billion, an increase of 33.9% on a reported basis
• Reports second-quarter diluted EPS of $0.42 on a GAAP Basis; Adjusted diluted EPS of $3.11
• The Immunology Portfolio’s second-quarter global net revenues were $6.120 billion, up 15.1% on a reported basis and 13.8% on an operational basis
• Global Neuroscience Portfolio Net Revenues Were $1.459 Billion in the Second Quarter; Global Botox Therapeutic Net Revenues Were $603 Million; Global Vraylar Net Revenues Were $432 Million
• Worldwide net revenues were $13.959 billion, an increase of 33.9% reported or 19.3% on a comparable operational basis
• Net interest expense was $606 million on a GAAP basis
• Diluted EPS in the second quarter was $0.42 on a GAAP basis. Adjusted diluted EPS, excluding specific items, was $3.11

With over 1,000 locations and nearly 100,000 employees in the United States and Canada, Best Buy is the top distributor of consumer technology products and services in North America.

Yahoo Finance previously named Best Buy the largest specialized retailer in the United States consumer electronics retail market. The company was placed 72 on the Fortune 500 list of the largest corporations in the United States by total revenue in 2018.

How Best Buy Performed During COVID-19 in 2020

Best Buy was one of the retail champions of the Covid-19 pandemic, with full-year sales of $47.2 billion in the fiscal year, up from $43.6 billion the previous year. During the early months of the Covid-19 outbreak, businesses were ordered closed. However, Best Buy was allowed to remain open because of its “essential business” status. 

However, to protect staff, Corie Barry, Best Buy’s CEO, ordered the chain’s doors to be closed and switched to an online and curbside-only operation for weeks, a move she described as a “life and death” decision. Customers required equipment to equip home offices or electronic toys to survive being cooped up at home, so Best Buy sales soared.

Best Buy announced that its US internet sales (increased purchasing of printers, computers, fitness tech, tablets, and other gear) for the second quarter of 2020 tripled due to the COVID-19 pandemic’s lockdown and increased working frequency from home. Despite these alleged gains, Best Buy lay off roughly 5,000 employees in early 2021, forcing many others to work part-time.

Best Buy also intends to leverage more of its in-store space to fulfill orders for home delivery. The company is testing new shop layouts to reduce sales floors while increasing the area dedicated to shipping orders.

Best Buy Ranked First Among Big-Box Retailers for COVID-19 Safety

Best Buy was named the top big-box retailer in a countrywide assessment of brands’ safety responses to the COVID-19 outbreak. They also won Best Overall Brand alongside three other companies for their end-to-end client journey, distinguishing them from the other 24 competitors.

The Consumer Health & Safety Index was created by Ipsos, a major market research business, using data from shoppers at 3,500 different sites and a survey of 2,000 people. It examined the health and safety aspects customers value the most and how brands are doing compared to consumer expectations.

About the study:

Ipsos shoppers evaluated the compliance of over 25 brands with key health and safety features. During this investigation, a random sample of 75 to 125 stores per brand was audited. The study took into account geographic representation and a margin of error of 5% to 7%.

Environmental Sustainability

Best Buy is one of the most sustainable companies in the United States. Having already reduced carbon emissions by 55% since 2009, they pledge to be carbon neutral by 2040.

In the company’s latest environmental, social, and governance (ESG) report (the fiscal year 2021), they stated the following:

• After achieving their objective of reducing carbon emissions in their operations by 60%, they set a new goal of reducing carbon emissions by 75% by 2030. (over a 2009 baseline). This target is in line with the Science-Based Targets initiative (SBTi), which means their decrease is per the reduction required to keep global temperature rise below 2°C, as indicated in the Intergovernmental Panel on Climate Change’s Fifth Assessment Report (IPCC).

• Their operational carbon reduction is 61% by the end of 2020. Many projects, including increased investments in LED lighting, are being spread across their stores to help with the decrease. The grid is becoming cleaner as well, something they actively promote with investor-owned utilities and policymakers.

• CDP, the world’s leading authority on climate change, has appointed Best Buy to its renowned Climate A List for the fifth year in a row. Best Buy’s efforts to reduce emissions, alleviate climate risks, and develop a low-carbon economy are recognized on the list. This puts them in the top 5% of all companies involved in the CDP’s climate change initiative.

• Renewable Energy Credits (RECs), which incentivize renewable energy development, are still being purchased by Best Buy. They were ranked No. 5 on the Green Power Partnership retail list by the US Environmental Protection Agency in January 2021.

• In 2020, the company utilized little under 1 million cubic meters of water in its United States and Canada operations. This is a 31% decrease over the previous year.

Best Buy’s Commitment to Increase BIPOC Representation

Best Buy promised last year that they would “do better,” and they are finally following through on that promise. Brown Venture Group, a venture capital firm specializing in Black, Latinx, and Indigenous technology entrepreneurs in emerging technologies, is investing up to $10 million with Best Buy.

The purpose of this investment is to assist in breaking down systemic barriers that Black, Indigenous, and People of Color (BIPOC) entrepreneurs experience, such as a lack of finance, and to encourage the next generation of software entrepreneurs.

Brown Venture Group is trying to support tech startups around the country, and it expects to be one of the major funds in the nation with a diversity mandate. This fall, investments will commence.

Best Buy CEO, Corie Barry, said, “We’re committed to taking meaningful action to address the challenges faced by BIPOC entrepreneurs. Through partnerships like this, we believe we can begin to do this by helping to build a stronger, more vibrant community of diverse innovators in the tech industry, some of whom we hope will become partners of Best Buy in the future.”

Best Buy CEO Corie Barry

Only a few women lead Fortune 500 corporations, and CEO Corie Barry is one of them. She’s also one of the youngest CEOs of an S&P 500 company at 46.

Best Buy is on track to become one of the best places to work in America under Corie’s leadership, with a goal of doubling important customer relationship events to 50 million and increasing annual revenue to $50 billion by fiscal 2025.

Corie had many senior positions before becoming CEO in June 2019, including a vital role in developing and executing the company’s Building the New Blue growth plan and related transformation. She was the company’s chief financial and strategic transformation officer, most recently, in charge of strategic change and growth, digital and technology, global finance, investor relations, enterprise risk and compliance, integration management, and Best Buy Health.

In an interview with CNBC, she said, “My career path is anything but linear. I spent time in finance. I spent time actually living and working in the field in retail. I spent time running services. I started our strategic growth office. I’ve had the chance to run our technology teams.”

Best Buy (NYSE: BBY) Stock and Dividend News

As of August 25, 2021, Best Buy Co., Inc.’s stock is trading at $121.64.

Best Buy has been paying dividends for the last 18 consecutive years and currently has a dividend yield of 2.55%, with a growth rate of 19.64% over five years. Dividends are paid quarterly.

Financial Report Highlights – Second Quarter Financial Year 2022

Best Buy Co., Inc. reported second-quarter results for the 13 weeks ending July 31, 2021 (Q2 FY22), compared to the 13 weeks ending August 1, 2020 (Q2 FY21). Here are some of the highlights from the report:

• Domestic revenue was $11.01 billion, up 20.6% from the previous year. The increase was driven mainly by a 20.8% increase in comparable sales.
• Domestic gross profit margins were 23.7%, up from 22.8% the previous year.
• GAAP Diluted Earnings Per Share (EPS) rose 76% to $2.90.
• GAAP and Non-GAAP Diluted EPS both increased by about 47%.
• International revenue of $838 million was up 7.2% from the prior year. This improvement was driven by a 1,070 basis point gain in favorable foreign currency exchange rates, as well as a 5.0% increase in comparable sales.
• The company returned a total of $571 million to shareholders in Q2 FY22, with $396 million in share repurchases and $175 million in dividends. They returned a total of $1.7 billion to shareholders this year through $1.3 billion in share repurchases and $350 million in dividends.

Best Buy’s Forecast for Fiscal Year 2022

• $51.0 billion to $52.0 billion in total revenue
• Enterprise comparable sales growth of 9% to 11%, up from the previous forecast of 3% to 6% growth
• Enterprise non-GAAP gross profit rate somewhat higher than last year, compared to the earlier estimate of about flat last year
• Enterprise non-GAAP gross profit rate somewhat higher than last year, compared to the earlier estimate of about flat last year
• Approximately 20% non-GAAP effective income tax rate 
• More than $2.5 billion in share repurchases, compared to an earlier forecast of $2.5 billion

We’re taking a deep dive into the former L Brands turned BBWI brand. This article looks at the separation of L Brands into BBWI and VSCO, along with the CEO of BBWI, Andrew Meslow, and CEO of VSCO, Martin Waters.

About L Brands Inc.

L Brands Inc has traded under two previous names, Limited Brands, Inc. and The Limited, Inc. This article will look into its current existence as Bath & Body Works, Inc. later. The American specialty retailer began as a clothing store called “The Limited” in 1963. The family-run business grew gradually, leading to a number of brand acquisitions in the 1980s.

It was first listed on the New York Stock Exchange in 1982 as “The Limited”. Victoria’s Secret originally came under the ownership of L Brands in 1982 when it was purchased from Roy Raymond for $1 million. It came when the organization was buying up several brands, including Henri Bendel, Lane Bryant, and Abercrombie and Fitch stores.

The 1990s saw a large growth and focus on initial development, including Bath & Body Works and Victoria’s Secret Beauty. Changing fortunes amongst the brands saw several being sold off. L Brands is no stranger to business misfortune. Henri Bendel ceased its operations in January 2019 after being one of the most popular New York-based accessories stores.

Prior to the spin-off of Victoria’s Secret, L Brands also spun off other brands. Lane Bryant was sold to Charming Shoppes in 2012, while Abercrombie & Fitch was sold to The Limited in 1988 and went public on the NYSE in 1996. 

The current CFO of L Brands Inc, Stuart Burgdoerfer, was announced in February 2021. Martin Waters, the current CEO of Victoria’s Secret, was announced as his replacement. Prior to the spin-off of Victoria’s Secret and the changing of L Brands to its new BBWI ticker, a number of leadership changes were made.

The separation of L Brands and Victoria Secret 

The separation of Victoria’s Secret from Bath and Body Works was to free a successful, growing brand from the misfortunate of a lingerie and apparel brand that had experienced its peak and was making large losses. When the two were together, the success of Bath and Body Works was being tarnished by the failures of Victoria’s Secret.

In February 2020, it was announced that Victoria’s Secret was being sold to Sycamore Partners, a private equity firm. They would gain 55% of control of Victoria’s Secret, with L Brands keeping a 45% stake. As a result, Bath & Body Works would become the sole business of L Brands. The sale collapsed in May 2020, with Wexner, the then CEO, stepping down as planned. The collapse of the sale was described as a “mutual termination”, with the settlement made in litigation.

The separation of Victoria’s Secret and Bath & Body Works, Inc. was announced in March 2021. As part of the spin-off, L Brands sold its stake in the UK business of Victoria’s Secret to Next PLC for an undisclosed financial agreement.

Before the spin-off, L Brands increased its fourth-quarter guidance with sales rising 10%. As expected, the bulk of this came from Bath & Body Works, which saw a 22% increase, while Victoria’s Secret experienced a 3% decrease. It reflected the difference in success between the two brands and how – arguably – one was holding the other back.

The reason a spin-off was chosen instead of another attempted saw was due to the gradual growth that Victoria’s Secret was beginning to see.

In August 2021, L Brands finished the separation of its Victoria’s Secret business into its own public company. It was achieved through a tax-free spin-off for L Brands shareholders. This new independent company – Victoria’s Secret & Co. – includes the various brands under the Victoria’s Secret umbrella, including PINK and Victoria’s Secret Beauty. You can find the company on the NYSE under the ticker symbol of VSCO.

As a result of the split, investors with shares in L Brands, Inc. at the time of the spin-off received shares in both Victoria’s Secret and Bath & Body Works. L Brands changed its ticker to BBWI to allow it to closer conform to Bath & Body Works, their last remaining brand name.

As part of the separation of L Brands, Victoria’s Secret announced a new board, primarily filled with women and a new approach that broke away from the ‘Victoria Secret Angels’ and instead focused on female empowerment and diversity. ‘VS Collective’ was also announced as a brand ambassador panel, including culturally diverse celebrities such as Priyanka Chopra Jonas, Megan Rapinoe, and Paloma Elsesser. These changes were made in a bid to make Victoria’s Secret culturally relevant in the modern era.

Bath & Body Works, Inc. on the Stock Market

BBWI is listed on the New York Stock Exchange. It continues to be one of the biggest growers within the retail space, which were previously being masked by the misfortunes of Victoria’s Secret. They had a remarkable third quarter in 2020, primarily driven by sales of soaps and sanitizers during the pandemic.

Throughout August 2021, Bath and Body Works’ stock has been rising after they crushed their estimated earnings. During the first report that was released following its separation, the company delivered better-than-expected earnings for its fiscal second quarter. It earned $1.34 per share, gaining from its loss of 18 cents a share the previous year. 

The revenues for Bath and Body Works have jumped 36% year on year to $1.7 billion. They are also up 54% from the second quarter of 2019 for a pre-pandemic comparison. Stock market analysts are expecting EPS of $1.05 on the revenue at $1.7 billion. During the third quarter, the brand expects to have earnings of 55 to 50 cents per share. Other calls predict EPS of 65 cents.

Bath and Body Works Inc. is number 248 on the 2020 Fortune 500 list of the largest companies by revenue in the United States. The separation of Bath & Body Works, Inc. and Victoria’s Secret allows the former to be judged independently of the changing fortunes of Victoria’s Secret.

The continued strength of Bath & Body Works’ sales shows that their popularity goes beyond soaps and sanitizers, with a focus on body care items. The brand has already said that they expect a drop in sales of soap and sanitizer products after the heights of the pandemic. It appears that their 2020 growth was the result of broader growth than was originally estimated.

USB rated Bath and Body Works Stock as a buy-in August 2021 with a price target of $90. By comparison, Wells Fargo was rating Bath & Body Works as overweight with a price target of $80. The growth of Bath & Body Works has outpaced the benchmark of the S&P 500 Index after going up almost 50%. The index gained 19.1% in the same period.

The strength of the brand’s body care niche is showing strong year-on-year growth, adding further encouragement for potential investors in the brand.

Victoria’s Secret & Co on the Stock Market

Before the split, Victoria’s Secret was growing year on year with a slight increase in their pre-pandemic 2019 revenue. On its first day as a stand-alone company, Victoria’s Secret shares soared by 29%. It’s believed that its turnaround and growth as a culturally relevant brand have helped compel the brand to potential investors.

The misfortunes of Victoria’s Secret revolve primarily around its never-changing merchandise and marketing, which led to a heavy reliance on promotional offers. Even with consumer preferences changing and new competition entering the market, Victoria’s Secret remained unchanged.

The company ended its first day of trading at $58.23. Wells Fargo’s analysis at the time had Victoria’s Secret at overweight, with a price target of $100. MKM Partners described the stock as “compelling value” with a $88 price target.

Victoria’s Secret has had mixed earnings, which have been described by Yahoo as being a “recalibration” for the brand following the spin-off from Bath & Body Works. Their fortunes have differed greatly from its sister company. While Bath & Body Works’ shares went up almost 10%, Victoria’s Secret shares were coming under pressure.

For now, investors are being conservative about VSCO stock. Although the brand is not experiencing the same surging fortunes as Bath & Body Works, the future appears to be somewhat bright for Victoria’s Secret & Co.

About Andrew Meslow, CEO of Bath & Body Works Inc and L Brands.

Andrew Meslow was announced as the CEO of Bath & Body Works Inc. in December 2020 when a series of leadership changes were made at the then L Brands Inc. Julie Rosen joined as President and Deon Riley as Chief Human Resources Officer at the same time. Melsow’s appointment was also made at the same time as several internal promotions. Meslow had previously been Chief Operating Officer at Bath & Body Works for eight years.

He has almost 30 years of experience with specialty retail and leading areas such as merchandise planning and finance. Meslow joined L Brands in 2003, working in various roles within Victoria’s Secret before switching to Bath & Body Works in 2005 to become its Executive Vice President and Chief Financial Officer. 

Before he came to L Brands, Meslow worked with the apparel-brand Banana Republic for over seven years. He served as the company’s Vice President and CFO. His career started in 1991 at Ann Taylor, working as part of the launch team for Loft.

When Leslie Wexner departed from L Brands Inc. as CEO in May 2020, Meslow stepped up as CEO of the organization. When this happened, L Brands announced that they were closing 250 Victoria’s Secret and 50 Bath and Body Works stores, along with spinning off Victoria’s Secret as an independent company.

When Meslow became CEO and took over the reins of Bath & Body Works and L Brands Inc., he reportedly received an $18.5 million payday. He was awarded stock valued at $12.3 million, making up the bulk of the value.

About Martin Waters, CEO of Victoria’s Secret & Co

Martin Waters became the CEO of Victoria’s Secret following the separation of the company from Bath and Body Works. He first joined L Brands as Head of the International Division in 2008. It was under Waters’ leadership that the number of brands expanded to have over 700 stores globally.

Before working at L Brands, Waters served at Boots International as Managing Director. Boots is Europe’s leading retailer for health and beauty products. He’s known for his extensive experience in merchandising, brand management, strategic planning, and marketing.

Waters appointed as CEO came after a strenuous year for Victoria’s Secret as it focused on finding ways to become relevant in a changing world where their products were largely seen as irrelevant and outdated in their view of women. His appointment came into effect after the spin-off of Victoria’s Secret.

Waters was educated at Manchester University and has a board membership at Victoria’s Secret & Co, along with Boys & Girls Clubs of America. In his role of CEO, Waters recalled how the decline of Victoria’s Secret was due to its inability to meet changes in society. He told the New York Times that “when the world was changing, we were too slow to respond”. 

Bath & Body Works Inc. (BBWI) is currently trading at $66.26, while Victoria’s Secret & CO (VSCO) trades at $69.11 at the week commencing 23rd August.

The founder of Walmart is the famous Sam Walton in 1962 and incorporated the company in 1969. While he is well known today for this billion-dollar company, he started from humble beginnings. Not only does this conglomerate own Walmarts in most American towns, but they also own and operate the members-only warehouse retailer Sam’s Club and various other successful companies. 

Currently, there are 10,524 stores in 24 countries, while they operate under different names. In 1972, Walmart got listed on the New York Stock Exchange and became the largest company by revenue in 1989. 

How It All Began 

Sam Walton was born in 1918 in Oklahoma. After leaving the military in 1945, he moved to Newport, Arkansas, where he gained significant retail experience and eventually owned and operated a variety store. The success of his dime store inspired him to do something great and opened the first Walmart in Rogers, Arkansas, in 1962.  

Sam’s competitors couldn’t understand Sam’s ideas on building a successful business based on low prices, but this plan exceeded everyone’s expectations, and Walmart went public in 1970. After Sam died in 1992, Walmart remains the most successful retail store in the industry.  

Walmart CEO, Doug McMillon 

Doug McMillon is the current CEO of Walmart since 2014. Walmart’s intention for the company is to make employees’ lives easier, and they are committed to increasing associate wages, education, and benefits. These benefits include a dollar-a-day college program for employees and expanding their parental leave policy. Walmart also launched Project Gigaton to combat climate change and lower its carbon footprint by working with suppliers and avoiding the 1 billion metric tons of emissions they expel.  

Doug McMillon began at Walmart when he was just a teenager and spent his afternoons unloading trucks for a small hourly wage, and began to take on leadership roles in the business segment of the company. He has been in the Walmart family for 30 years. Between 2005 and 2009, he was CEO of Sam’s Club, and from 2009 to 2014, he was CEO of Walmart International.  

McMillion did something controversial in September 2019. He declared that the company would stop selling ammunition that is used for military-style weapons and handguns. The mass shooting in their El Paso Walmart triggered the decision, and it opened a dialogue between consumers and retailers to address violent crimes. 

Walmart Expands Delivery Services 

Walmart is going to expand and commercialize its delivery platform to local stores. They announced Tuesday, August 24^th, 2021, that its delivery drivers will raise the stakes and deliver to neighborhood businesses competing against Amazon and Target. This new venture also puts Walmart in direct competition with FedEx, US Postal Service, and UPS. 

Walmart’s current same-day delivery services deliver items from 3,000 stores to 70% of the population. While they are still far behind Amazon, Walmart will take a large portion of the market share in the years to come. 

Global Sustainability 

Walmart has been striving to positively impact the environment with its supply chain collaborations for the last 15 years. They have expressed their desire to prioritize people and the environment by reducing waste emissions and put in the effort to restoring nature.  

Walmart has committed to creating a regenerative company that prioritizes the environment and humanity in its business processes.

Their supply chain focus on climate, nature, waste, and people delivers measurable benefits for their business and communities. According to solar and wind groups, Walmart acquired more wind and installed more solar in 2019 than any other corporation in the US. In 2020, they diverted 81% of their waste from landfills and incineration internationally. They were also included on the Climate Disclosure Project’s ‘A List’ for climate action in 2019 and 2020.

Walmart has committed to several objectives, including:

Climate:

• By 2040, they want to have zero emissions in their own operations.
• By 2035, they will have reached 100% renewable energy.
• By 2030, collaborate with suppliers to eliminate one gigaton of greenhouse gas emissions from the global value chain.

Waste:

• By 2025, they will have achieved zero waste in their operations in the United States and Canada.
• By 2025, private-brand packaging will be 100% recyclable, reused, or industrially compostable. ​

Nature:

• Contribute to the protection, management, or restoration of at least 1 million square miles of ocean and 50 million acres of land by 2030 through the Walmart Foundation.
• By 2025, at least 20 commodities will be sourced more sustainably.

People:

• To enhance human dignity, make ethical recruitment a mainstream business practice by 2026. ​

 “We want to play an important role in transforming the world’s supply chains to be regenerative. We face a growing crisis of climate change and nature loss, and we all need to take action with urgency. For 15 years, we have been partnering to do the work and continually raising our sustainability ambitions across climate action, nature, waste, and people. The commitments we’re making today not only aim to decarbonize Walmart’s global operations, they also put us on the path to becoming a regenerative company – one that works to restore, renew, and replenish in addition to preserving our planet; and encourages others to do the same.” – Doug McMillon, Walmart CEO

Walmart Takes Care of its Employees 

Walmart announced this year it would be paying for full college tuition for its US workers and will include the cost for books. This announcement is an effort made by the company to attract and retain employees in a restricted job market.

Ten academic partners are involved in the program, ranging from the University of Arizona to Brandman University. To be eligible, participants must work part-time or full-time at Walmart.

Walmart and Sam’s Club employees who want to obtain a degree will no longer have to pay a $1 per day fee. Walmart started the program in 2018, and it now employs around 28,000 people. Approximately 1.5 million people work at Walmart. Eliminating the dollar-a-day investment, according to the company, reduces financial barriers to enrollment and expands access.

​​

Walmart also announced more degree and certificate choices in business administration, supply chain management, and cybersecurity.

Walmart has a vested interest in seeing the initiative grow. Employees who have completed the program are double as likely to be promoted. They are also employed at a “much higher rate” than non-participants.

According to the most recent data from the Bureau of Labor Statistics, the retail industry had 974,000 job openings in May.

Walmart hiked wages for 425,000 US employees to at least $13 an hour earlier this year. Walmart’s minimum salary is $11 per hour, lower than their competitors.

Walmart Inc (NYSE: WMT) Latest Stock and Dividend News 

As of August 25th, 2021, Walmart, Inc’s stock is trading at $148.96. 

Walmart has been paying dividends for the past 48 years. The current dividend yield is 1.47%, and dividends get paid quarterly. Walmart’s dividend growth rate over ten years is 5.03%. 

Walmart is considered a Dividend Aristocrat. They are well-known for their strong brand and domination in the business and their long dividend history.  

The Dividend Aristocrats are 65 S&P 500 companies that have grown their dividends for at least 25 years. Investors consider dividend Aristocrats as among the greatest dividend stocks. They are believed to be the best dividend-paying stocks to buy and hold for the long run. 

Financial Report – FY22 Q2 Highlights 

Walmart recently released their fiscal year 2022 second-quarter results. Here are some of the highlights: 

• Total revenue increased by 2.4% to $141.0 billion, despite a loss of $8.9 billion due to divestitures. Total revenue would have climbed 0.6% to $138.6 billion if currency were not factored in. 
• Operating income in the United States climbed by 20.4%. The adjusted operating income2 increased by 12.0%. 

• Over two years, eCommerce sales in the United States increased by 6% and 103%, respectively. 
• Strong growth in the advertising industry worldwide, including nearly doubling sales at Walmart in the United States over the previous year. 
• Walmart International’s net sales were $23.0 billion, a fall of $4.1 billion, or 15.2%, due to divestitures that cost $8.9 billion. Net sales increased by $2.4 billion as a result of changes in foreign exchange rates. 

• Walmart US gained 20 basis points while the consolidated gross profit rate fell 15 basis points. Operating expenses as a proportion of net sales decreased 81 basis points, while adjusted operating expenses fell 47 basis points. 
• With strength across the board, consolidated operating income increased by 21.4% to $7.4 billion. The adjusted operating income as a proportion of net sales climbed 50 basis points, while the consolidated operating income as a percentage of net sales grew 83 basis points. 

Guess? Inc. is the stock symbol of the international fashion brand ‘Guess’. It distributes, markets, and licenses lifestyle collections that focus on fashion and accessories for children, men, and women. The parent company oversees several brands that carry the GUESS name, including MARCIANO and GUESS by MARCIANO.

The company was founded in 1981, with headquarters in Los Angeles. We’re taking a deep dive into the company, including its position on the stock market and its current CEO, Carlos E. Alberini.

About Guess? Inc

Guess operates with five segments to their organization – Asia, America’s Wholesale, America’s Retail, Europe, and Licensing. Its licensing includes the design and distribution of manufactured eyewear, fragrance, jewelry, and fashion accessories.

Guess? Inc. currently operates over 1,000 retail stores across America, Asia, and Europe at the start of 2021. Its distributor partners opera a further 500 retail stores. Their products are also available for sale across the brand’s retail websites and that of their official stockists.

How the Guess Brand began

The original Guess brand launched in 1981 as a book focusing on styles by Georges Marciano. It began as a family enterprise following the launch of their successful ‘MGA’ stores in France. Their best-selling product was unisex jeans, leading the brothers to decide to come to the United States with the hopes of repeating the MGA success in LA with Guess.

When Guess first launched, jeans were almost universally sold in indigo blue or with a bleached finish. Georges Marciano oversaw the design work for Guess.

His brother, Maurice, was brought on to help with product development. The pair’s other brothers, Armand and Paul, were put in charge of overseeing advertising and distributing. All of these departments operate in-house, with Georges Marciano overseeing the design aspect of the business.

These early designs encapsulated Guess’ signature aesthetic and style, focusing on soft and form-fitting denim that was lighter in color than most of their competitors. The original plan was to sell Guess designs within exclusive and high-market department stores, such as Bloomingdales in the United States. 

The other Marciano brothers decided to take a broader strategy, including using outlet stores to offer their products at a discounted price. This rift and division over the direction of Guess as a luxury brand led to Georges Marciano selling his shares in the brand to the other Marciano brothers in 1993. His stake was sold for $214.2 million, with the three brothers borrowing $210 million to buy him out. It was this need for capital that led to Guess going public. 

This move came after Guess had recently recovered from a legal battle with the apparel maker Jordache Enterprises Inc. In 1983, they had sold half of the company to Avi, Joe, and Ralph Nakash. It resulted in a legal battle that lasted six and a half years with federal investigations and lawsuits that are believed to have cost $80 million in legal expenses. The case ended in 1990 when the Marciano brothers regained full ownership.

The only remaining Marciano brother who remains working within the brand is Paul after Maurice retired and Armand left following a medical leave.

The popularity of the Guess brand

Guess launched their stonewashed denim jeans, with a signature ankle zipper, in 1981. Their logo was a red triangle with a ?. The brand was met with instant success, with sales hitting $6 million at their Beverly Hills store and in Bloomingdale’s department store within the first year. 

Part of the popularity and allure of Guess comes from its successful advertising campaigns and close-knit relationship with some of the world’s most iconic supermodels. The likes of Anna Nicole Smith, Claudia Schiffer, and Gigi Hadid have all been ambassadors for the brand and featured heavily in their advertising campaigns. 

Guess jeans jumped into the pop culture sphere in 1985 with Back to the Future, while the lead character was wearing Guess denim jeans that were designed for the movie.

The expansion of the Guess brand

The success of Guess has been founded in its origins as the original designer denim brand. In the beginning, they focused exclusively on womenswear before expanding to men’s denim jeans in 1983. 

In 1984, Guess expanded beyond denim to introduce their watch line, which has grown to include several product lines. The same year saw the launch of one of Guess’ first sister brands, ‘Baby Guess’, which is now part of the ‘Guess Accessories’ label. 

The 1990s saw Guess move beyond fashion for the first time with a new division, Guess Home. The ‘Guess Home’ brand launched with a focus on upscale bedding and towels. The success was short-lived and by the end of the 1990s, the ‘Guess Home’ division was discontinued. In 1999, Guess launched its e-commerce store at www.guess.com. 

The early 2000s led to Guess developing its presence within outlet stores, creating special collections and pieces sold at a lower price. At the same time, ‘Marciano’ was released as an elevated womenswear clothing and accessory brand. It was during this decade that Guess developed and expanded its global presence, with distributors and licensees across Australia, the Middle East, and Asia.

Some of Guess’ biggest success is found within their ‘Guess Accessorise’, ‘Guess Denim’, and ‘Guess Kids’ brands.

Like other fashion brands – such as Chanel and Dior – Guess launched its first perfume in 2005. Their perfume brand caters to both men and women with several scents and special edition fragrances available.

In 2009, Gucci entered a counterfeiting and trademark infringement against Gucci for copying their recognizable logo and interlocking Gs after they appeared on Guess shoes. The legal case continued until 2012 when Guess paid Gucci $4.7 million in damages, significantly less than the original $221 million wanted by the Italian fashion house.

Although Guess is seen as an all-American brand, around 70% of their sales are being generated outside of the United States. Their primary competitors include The Gap Inc, Abercrombie & Fitch Co., and Ralph Lauren Corporation.

Guess? Inc. On the Stock Market

As of August 2021, Guess has experienced a 52-week change of 95.74% with a 52 week high of 31.12 and a 52-week low of 10.98. Their profit margin currently sits at 4.14%, with an operating margin of 6.03%. Their stock currently sits at around $22.98 with a market cap of $1.49 billion, paying a dividend of $0.11. 

Guess? Inc. trades on the NYSE and the S&P SmallCap 600 Index. In 2018, Guess’ revenue sat at $2.4 billion. Carlos Alberini, the current CEO, is estimated to own more than 83,000 units of stock, valued at around $7.4 million. Additionally, he’s believed to have sold GES stock worth over $120 million within the last 18 years.

Paul Marciano, the last remaining Marciano brother still working within the company, served as CEO until 2015. Paul took up the role of Executive Chairman of the Board and Chief Creative Officer, a role he remains in today. It took Marciano over a year of working in partnership with his brother Maurice Marciano to find his successor.

He was succeeded by Victor Herrero the same year before he stepped down in 2019 after a short tenure. Herrero came to the role from outside the brand, having previously worked for Inditex, heading up their operations in Asia and Europe. Inditex is the parent company that owned fashion brands like Stradivarius and Zara.

Before the pandemic, Guess predicted their global retail sales would hit $5 billion. The temporary store closures brought on by the pandemic brought the figure to a humbler $4 billion. The company has 25 product categories, continuing operation in over 100 countries.

Meet Carlos E. Alberini – Guess’ CEO

Carlos E. Alberini oversees the Guess brand and its 11,000 full-time employees. He’s estimated to earn an annual pay of 3.4 million. Carlos took up his position as the company’s CEO in February 2019.

Alberini has kept a relatively low profile since taking up the post of CEO. Unlike his predecessor, Alberini was hired for the position of CEO from within the brand. He had previously served as President and Chief Operating Officer from 2000 to 2010 before becoming the Co-CEO and then a Director of Restoration Hardware after he departed from Guess. He has also served as the Chairman and CEO of Lucky Brand, another apparel label known for its denim. Alberini has also previously been Interim Chief Financial Officer at Guess during his tenure as Chief Operating Officer from May to July 2006.

Before his original tenure at Guess, Alberini was the Senior Vice President and Chief Financial Officer at Footstar Inc., serving from October 1996 to December 2000 when he moved to Guess. Before Footstar Inc., Alberini was Acting Chief Financial Officer and Vice President of Finance for the Melville Corporation.

He served in various roles – including Chief Financial Officer – for the department store operator, The Bon-Ton Stores, Inc. Alberini also held several positions at PricewaterhouseCoopers LLP, an auditing firm, before this.

Alberini continues to serve as Director of the board of Restoration Hardware. He joined the board due to his experience in the retail and merchandising industry, including his experience with financing and branded consumer goods.

During his original 10-years at Guess, Alberini was responsible for building the brand’s international presence in Asia and Europe.

Alberini is overseeing the challenge of bringing Guess into an age where denim has been replaced by yoga wear and athleisure. These niches were already experiencing substantial growth at the expense of denim before the pandemic turbocharged their success.

It’s easy to see that Guess is no longer in its heyday, as denim continues its losing battle against athleisure and as fashion trends become more minimalistic. During the virtual ICR conference in January 2021, Alberini is reported as having said that there is “a lot of white space for us to continue to grow”. Their 2020 target of $5 billion remains part of their long-term ambition and a focus for their post-pandemic growth.

Guess has responded to changes within the industry, particularly during the pandemic. They launched their first athleisure line, entering into the market for the first time. Their footwear has also taken a more comfort-focused approach, switching from stilettoes to sneakers.

When Alberini originally took up the reigns of Guess, he planned to increase the brand’s focus on denim. While it’s always been at the core of the brand, it’s out of tune with the current trends within the fashion industry. 

Under Alberini’s leadership, Guess is planning to double their sourcing from China. As the trade war continues between China and the United States, resulting in tariffs and a political battle, Guess is an outlier in this field. Alberini has said that the brand will negotiate production costs with vendors who are willing to provide compelling pricing, despite the tariff increases. 

Their pre-pandemic plans for 2020 involved expanding the China-sourced apparel products from 12% to 23%.

Throughout the pandemic, Guess has been focusing on its digital investments, now accelerating its pre-pandemic plans that were stuck in the pipeline during 2020. As a result, Guess has reduced the number of styles that they’re offering by 38% in their most recent collection. While it is seeing a reduction in styles, the brand is moving more of its products online.

Alberini has said that he doesn’t believe any of the setbacks caused by the pandemic are permanent and instead are temporary. 

While the popularity of Guess peaked during the early 2000s with the rise of global supermodels and denim trends, it’s trying to tap into the athleisure industry. As a billion-dollar retailer with a global presence, Guess remains one of the most recognizable apparel brands in the world. 

Their heritage as the original designer denim brand means that denim continues to be the focus of their products while expanding to differentiate and stay current with trends. If it can make a success of its athleisure niche, Guess may finally hit its $5 billion revenue target.

• Bags
• Jewelry
• Clothing
• Furniture and home décor
• Art
• Craft supplies and tools

Items must be at a minimum of 20 years old to be considered vintage. For a cost of US$0.20 per item, the site follows the tradition of open craft fairs, providing merchants with their own storefronts where they can list their products.

Etsy had more than 60 million products in its marketplace as of December 31, 2018, and the online marketplace for vintage and handmade goods had linked 2.1 million sellers with 39.4 million consumers.

Etsy’s Marketplace revenue comes from a fee of 5% of the final sale value, which an Etsy seller pays for each finalized transaction, on top of a listing fee of 20 cents per item. Seller Services, Etsy’s fastest-growing revenue stream, includes fees for services like “Promoted Listings” and the purchase of shipping labs. Fees from third-party payment processors are among the Other sources of revenue.

Etsy’s Marketing Strategy: Social Media Influencers

Earlier this year, Etsy CEO Josh Silverman told CNBC that the company intends to delve into the network of social media influencers to draw new customers to its e-commerce platform.

CEO Josh Silverman told Jim Cramer of Mad Money:

“So many influencers who love Etsy, who are passionate about Etsy and talk about Etsy to their community already, we’ve created a tool where those influencers can curate their own collection of their favorites on Etsy and then broadcast that out to their community and say, ‘Here’s what I love on Etsy.'”

Etsy’s two-sided marketplace, according to Silverman, fosters confidence between consumers and sellers, which will be critical in differentiating them from other e-commerce companies and propelling long-term growth.

Etsy Completely Offsets Shipping-Related Carbon Emissions

Etsy has long been concerned about its environmental impact. They committed in 2016 to run their activities entirely on renewable energy by 2020. They were on schedule to accomplish that objective because of their ground-breaking Power Purchase Agreement, which enabled the creation of a new solar farm, migration to the Google Cloud Platform, and the installation of solar panels at their headquarters.

 In 2018, the company met its objective of operating zero-waste operations internationally, two years ahead of plan.

Items sent from Etsy’s merchants to their buyers account for 98% of its total emissions. Even though they do not actively supervise the shipping process, they reduced the environmental impact. As a result, Etsy became the first global eCommerce company to offset 100% of shipping-related carbon emissions in 2019.

When someone purchases something on Etsy, the company will buy verifiable carbon reductions, sometimes known as “offsets,” through its partner 3Degrees. These purchases help fund environmental projects such as preserving trees that enhance air quality and absorb carbon, supporting wind and solar farms that produce clean energy, replacing fossil fuels, and creating greener auto parts manufacturing methods.

Ecological Impact Goals 2021 

Etsy announced its new target to achieve net-zero emissions by 2030 earlier this year, reaffirming its commitment to a sustainable future.

Their reduction goals will be based on the Science Based Targets Initiative methodology. They will include a 50% reduction in Scope 1 and 2 greenhouse gas emissions and a 13.5% decrease in Scope 3 emissions. 

Etsy set out to ensure they are decreasing both their direct and indirect carbon footprint. This is why they’re tackling not only their Scope 1 and 2 emissions, such as office operations and purchased energy, but also their Scope 3 emissions, such as shipping and packaging.

• By procuring 100% renewable electricity, lowering the intensity of their energy use, and conducting zero-waste operations, they can achieve best-in-class sustainable operations.
• They are developing their markets into destinations for environmentally concerned customers and conscientious living.

Economic Impact Goals 2021

The following are some of Etsy’s economic impact goals and targets for 2021:

• Create and develop opportunities for creative entrepreneurs to make money: Set a new target for giving their sellers economic empowerment and define a baseline for doing so.
• Encourage their stakeholders’ economic and personal empowerment: Invest in social programs that encourage creative entrepreneurs to start businesses and provide musical instruction to underserved students.
• Support public policies that advance the company’s economic empowerment, fairness, and environmental sustainability goals: Advance public policies that help creative enterprises gain economic stability and eliminate administrative hassles.

Social Impact Goals 2021

A long-established commitment to equity, diversity, and inclusion is at the heart of Etsy’s business. They believe that embracing and encouraging different points of view makes them a stronger and more resilient company. 

• Create an inclusive and diverse workforce that reflects the diversity of their communities.
• To support their operations and deliver value to Etsy and its merchants, they need to build a diverse, inclusive, and sustainable supply chain.
• Make their marketplaces inviting, varied, and inclusive places to buy and sell.

Etsy CEO, Josh Silverman

Etsy’s CEO, Josh Silverman, is heading Etsy as it develops a platform that supports creative entrepreneurs all over the world. He is also a member of the Etsy board of directors.

Silverman has spent the last two decades building consumer technology companies and establishing global markets. He formerly worked for American Express as President of Consumer Products and Services, Skype as CEO, and shopping.com as CEO and other management positions at eBay. Silverman co-founded Evite, Inc. earlier in his career and is presently a member of the Shake Shack board of directors.

Silverman is deeply committed to civic and community participation. He is presently Chairman of Code Nation, a non-profit that provides essential coding skills and professional experiences to children in under-resourced schools.

Etsy (NASDAQ: ETSY) Latest Stock and Dividend News

Etsy (ETSY) stock is trading at $202.28 as of August 25, 2021, and does not pay dividends to its shareholders.

In April 2015, Etsy raised $267 million in its initial public offering (IPO), priced at 16 cents per share. On its first day of trade, Etsy stock jumped 72%. But it was all downhill from there, with Etsy stock dropping to an all-time low of 6.04 in the following nine months.

However, after a reorganization of management and introducing new items, Etsy stock began to rise again. Etsy had redesigned its ad platform. By making the site more personalized and dynamic, it made significant progress in search and discovery. It also improved its mobile app and moved some of its computer functions to the cloud.

Second Quarter Earnings Results – 2021 

Etsy recently released its second-quarter 2021 results. Here are the highlights from the report:

• The combined GMS was $3.0 billion, up 13.1% year over year (YoY), while the Etsy marketplace GMS was $2.8 billion, up 14.2% YoY.
• On a year-over-year basis, GMS per active buyer on the Etsy marketplace increased by 22%.
• Consolidated revenue was $528.9 million, up 23.4% from quarter 2 of 2020, with a 17.4% take rate (i.e., total revenue divided by total GMS).
• With diluted earnings per share of $0.68, net income was $98.3 million, up 1.9% YoY.
• Non-GAAP Adjusted EBITDA was $139.5 million, with a Non-GAAP Adjusted EBITDA margin of 26%, down 900 basis points from quarter 2 of 2020, as the company invested in the business.

Operating Highlights Q2 2021

• Etsy made progress in the discovering experience by redesigning their home and landing pages using personalization, machine learning, and recommendations in a way that made the material more engaging and enticing to customers.
• Etsy designed a new seller program that measures success by recognizing and rewarding their top-rated sellers, establishing standards, and providing them with the motivation, support, and agency they need to grow their Etsy businesses. On July 28, 2021, their seller community formally got introduced to the “Star Seller” program.
• With enhanced algorithms and new machine learning-based models, they increased their ranking skills for Etsy Ads to increase seller returns, deliver more relevant inventory for buyers, and raise click-through rates and income for Etsy.

Financial Forecast

Etsy forecasts revenue to increase only 11% to 16% year over year in the third quarter, opposed to a consensus expectation of 17% growth.

According to their management, the company’s GMS is expected to expand roughly 12.5% YoY in the third quarter, while Etsy’s stand-alone operation will only achieve “mid-single digit” GMS growth. However, it forecasts Etsy’s stand-alone GMS to rise by the “mid-teens” if face mask sales are excluded from both periods.

According to analysts, Etsy’s sales are expected to jump 33% this year, then 20% next year as the company’s business returns to normal in the post-pandemic market. They anticipate a 16% increase in earnings this year and a 22% increase next year.

Prior to 2017, Tapestry Inc. had been trading under the name of Coach, Inc. The name change was to create a distinct corporate identity away from its primary fashion brand and to show the company’s potential. ‘Tapestry’ was chosen as a reflection of the company’s values of innovation, creativity, authenticity, and optimism.

This article takes a deep dive into everything you need to know about Tapestry Inc, its brands, and its current CEO

About Tapestry 

Tapestry describes its brands as being “defined by inclusivity, rather than exclusivity”. This ethos fits the fact that their fashion brands sit on the tier of attainable luxury. They’re considered investment pieces but sit at a price point where most people can comfortably afford to purchase from the stores. The company’s current tagline is “iconic brands, expansive possibilities”.

The company currently operates around 1,500 stores internationally across its three fashion brands. Tapestry currently employs an estimated 17,300 employees globally.

In July 2021, Tapestry announced its new Tapestry Foundation as part of its people-centered, purpose-led strategy. It’s been launched with an ambition to improve access and equity initiatives while helping to combat climate change. They based the Foundation on the company’s corporate responsibility agenda, ‘Our Social Fabric’, which focuses on making positive change.

As part of the announcement for its foundation, Tapestry committed itself to pay hourly employees a minimum wage of $15 and a special appreciation bonus for its employees in global stores.

The company has made an initial contribution of $25 million to their foundation, with the Coach Foundation giving $25 million as an endowment.

The Tapestry brands

Tapestry’s brands are defined as being “approachable and inviting” as attainable everyday luxury fashion brands. Each is known for its creativity, craftsmanship, and quality. Tapestry owns three infamous American fashion brands – Coach, Kate Spade New York, and Stuart Weitzman.

Coach began as a family-run workshop for leather accessories in New York in 1941. It began with six artisans who set out to create functional and beautiful accessories with the finest leather and craftsmanship. The brand is considered to be a pioneer in leather goods within the United States, having originally established itself as the ‘Original American House of Leather’. 

The brand has stayed true to its leather heritage over the last 75 years, continuing to make and produce leather handbags and accessories. This all-American brand is known for its contemporary luxury pieces and free-spirited attitude. Coach has become synonymous with the idea of the effortless chic of New York fashion.

Kate Spade New York is famous for its whimsical and quirky designs, being the first ‘designer’ brand that most American women buy from. It launched in 1993 with a collection of six core handbags. The brand has always stood for feminine designs, bold colors, and its optimistic outlook.

The accessories brand has expanded over the years to include everything from ready-to-wear and footwear to home décor and gifts. Kate Spade has a unique and distinctive DNA, being unapologetically feminine in an age of neutral color palettes and minimalism.

Stuart Weitzman is one of America’s leading accessories brands and is known for its purpose-driven attitude and bold designs. The brand is synonymous with its ability to blend function and fit with the latest trends to create practical designs that work in everyday life.

Its design focus has always been on creating footwear and accessories that give consumers the feeling of effortless chic. The brand believes that comfort and craftsmanship go hand in hand to help empower women.

Tapestry is linked to the Coach Foundation and the Kate Spade New York Foundation as their parent company.

When Tapestry acquired Kate Spade, it was widely thought that the company would come to dominate the market of ‘Modern Luxury’ with contemporary and mid-tier brands. Since its acquisition, Tapestry has struggled to get Kate Spade onto an even footing, already undergoing a change in its Creative Director and design team as it struggles to evolve without losing its core demographic.

Recent Q4 reporting appears to suggest that the tide is starting to turn. All three brands within the Tapestry company saw year-on-year growth. Coach was up by 130%, with Stuart Weitzman experiencing 156% growth and 108% growth for Kate Spade.

The leadership team at Tapestry

The Board of Directors for Tapestry is headed by Susan Kropf, an independent chair. Members of the board include John P. Bilbrey, Darrel Cavens, Joanne Crevoiserat, David Denton, Anne Gates, Thomas R. GRECO, Pam Lifford, Annabelle Yu Long, and Ivan Menezes. 

Liz Fraser serves as Chief Executive Officer and the Brand President for Kate Spade New York. Giorgio Sarne is the Chief Executive Officer and Brand President for Stuart Weitzman. Finally, Todd Kahn currently serves as the Chief Executive Officer and Brand President for Coach.

Deloitte and Touche, LLP serves as the independent auditors for Tapestry. One of the biggest controversies around Tapestry has come from its former CEO, Jide Zeitlin. He took up the role in September 2019 but stepped down the following summer following allegations of misconduct.

The current CEO, Joanne Crevoiserat, is the third CEO in a short term. Zeitlin’s predecessor Victor Luis had also struggled to find a way to leverage Tapestry as a luxury company to take on the popular European fashion conglomerates.

Tapestry on the Stock Exchange

Tapestry had its initial public offering as Coach, Inc. in October 2000. On October 31st, 2017, the name switched to Tapestry. They trade on the New York Stock Exchange under the stock symbol TPR. The initial public offer was for $16 per share, with a current equivalent of $2 per share following three stock splits that occurred in 2002, 2003, and 2005.

The company is included in the S&P 500 Index. You can find extensive coverage on Tapestry’s stock positions within national brokerage firms. 

Tapestry announced a temporary suspension of its dividend program in March 2020 as a result of the global pandemic. They made the last quarterly dividend payment in March 2020 of $0.33375 per common share for shareholders who had a record by the close of business on March 6th. The company’s current strategy is to return capital to its shareholders through traditional dividends on a long-term basis, stating that the board would evaluate the temporary suspension when appropriate. Tapestry offers a dividend reinvestment plan.

In August 2021, Tapestry announced it was reinstating its dividends but at a lower rate. Their plan includes returning over $750 million to its shareholders over fiscal 2022. With the outlook appearing positive for Tapestry, the Board of Directors approved the return of their dividend scheme

The quarterly cash dividend is now $0.25 per common share, payable on September 27th to shareholders with shares by the close of business on the 7th. The anticipated annual dividend rate is $1.00. Tapestry has announced that it plans to increase its dividend faster than its earnings growth rate. Its plans also include repurchasing around $500 million worth of its stock over fiscal 2022. Through share repurchases and dividends, it plans to give $750 million to its shareholders.

Tapestry stock currently sits at $40.58 on the New York Stock Exchange. Its 52-week range is $14.14 – $49.67, with a market cap of $11.345 billion. Tapestry’s stock has been falling despite out-performing expectations for its Q4 and 2021 fiscal year. A similar fell occurred after Tapestry also released better-than-expected Q3 results. Barron’s currently has Tapestry stock weighed as overweight with a price target of $54.89.

Tapestry’s positive Q4 reporting and growth

Its Q4 revenue was recorded at $1.62 billion, outpacing its FY19 pre-pandemic growth levels. Its e-commerce sales are largely to account for its recent Q4 success as it generated three-figure global digital gains. Tapestry has now reached $1.6 billion in e-commerce sales, primarily driven by the acquisition of new customers. Q4 saw Tapestry achieve a record annual operating margin. They outperformed their expectations for all three brands while reinvesting into the future of the company – primarily through digital.

Growth in China and the success of their e-commerce platforms are largely to thank for Tapestry’s revenue growth, exceeding its pre-pandemic levels for the first time. Digital growth grew 35% year on year and more than 200% compared to its pre-pandemic position. This Q4 growth has been primarily driven by the success of Coach following its recent switch in focus, with the brand currently having a number of ‘it’ bags.

Tapestry has also announced that it plans to repay its July 2022 bonds – worth $400 million – by the end of fiscal 2020. This announcement is in line with Tapestry’s goal of focusing on organic growth for profits and repayment of debts. 

Meet Tapestry’s CEO – Joanne Crevoiserat

Joanne Crevoiserat currently serves as Chief Executive Officer for Tapestry, taking responsibility for the brand’s strategic growth agenda. Crevoiserat joined the company as Chief Financial Officer in 2019. She has over 30 years of experience with retail companies, including in finance and operations. Crevoiserat has a Bachelor of Science degree in finance from the University of Connecticut.

She took over the position as CEO originally on an interim basis after Jide Zeitlin resigned following misconduct allegations in July 2020. Crevoiserat was announced as the CEO in her own right in December 2020. Her promotion came at a time when Tapestry was struggling to realize its growth ambitions and was struggling in particular with its newest acquisition, Kate Spade.

There’s no denying that Crevoiserat faces a challenge with Kate Spade New York. Since its acquisition, Tapestry has struggled to take the colorful fashion brand and find a way to attract new customers without alienating followers of the brand.

Before becoming CEO, Crevoiserat served as the company’s Chief Financial Officer and was the interim CEO for Kate Spade from December to March. She joined Tapestry in August 2019 after departing Abercrombie & Fitch Co., having served as Chief Operating Officer and Executive Vice President during a period of significant change for the brand.

Crevoiserat has also held senior positions within the finance departments at Wal-Mart and May Department Stores. She served as Chief Financial Officer for Famous-Barr, Filene’s, and Foley’s brands. Crevoiserat also served on the At Home Group Inc. Board of Directors from January 2019.

When Crevoiserat became CEO of Tapestry, she announced a strategy to save an estimated $300 million on gross expenses while continuing her predecessor’s focus on data analytical and digital distribution investment. She’s taken a “customer-centric, data-driven approach” for the company whose brands primarily cater to professional and middle-class women, particularly in the handbag and leather accessories niche.

Crevoiserat has been praised for Tapestry’s recent Q4 success. For Fiscal Year 2022, the company expects revenue to hit an estimated $6.4 billion, with a net interest expense of $65 million. Under Crevoiserat’s tenure, Tapestry has recruited over 900,000 new customers in North America via its e-commerce platforms, accumulating almost 4 million new customers to purchase from the company in this fiscal year.

This fiscal year has also seen high growth amongst Chinese consumers and an optimized global fleet, with streamlining and changes to operating structure achieving a gross expense saving of $200 million. Crevoiserat plans to have a gross run-rate saving of $300 in the next financial year.

Crevoiserat told CNBC that “we’re just getting started” during a recent interview following the brand’s Q4 success. The company’s acceleration plan is being overseen by Crevoiserat, focusing on attracting new customers in new ways, particularly within the Asian market. The growth of the middle class within China and Tapestry’s focus on digital markets has been fuelling its success since Crevoiserat took over as the brand’s CEO.
You can find out more about Tapestry by visiting the company’s official website here.

Masking has been shown since the beginning of this pandemic to be one of the best methods to prevent the spread of the virus, yet has been incredibly divisive among many. While masking was mandatory in just about all states during the early days of the pandemic, restrictions have been easing nationwide in recent days, especially as vaccination rates have been climbing and more of the general population is protected.

However, two crucial problems are facing schools this fall; firstly, none of the Covid vaccines currently available are fully effective against the Delta variant, which has been sweeping across the country. Secondly, none of the vaccines available have been approved for children under twelve, meaning that every student in elementary schools and many in middle and high schools will be completely unprotected.

Even as schools have yet to reopen for the fall, things are already looking dire for children as the country resumes its lifting of restrictions. Around the country, children’s hospitals and pediatric units are overfull, with the infrastructure of the nation’s healthcare stretching thinner and thinner as it fills beyond capacity. Even children in the hospital with illnesses unrelated to Covid are at risk from this surge, as the available resources to help children with other critical conditions wane as hospitals fill. 

With all of these concerns, many are surprised to see how many schools are fully reopening for in-person schooling at all, especially with few or no options for opt-in hybrid or fully remote students. Remote schooling as it has existed for the last several years, while the best option for eliminating covid transmission amongst children, has presented myriad problems for families, children, and teachers. It has resulted in major learning gaps for many children, stunted social and emotional development, and a serious lack of resources for children who need it most, such as special needs children and those from low-income families. So while in-person schooling does present many health concerns, there are many good arguments for providing options for students to return to school. However, the further decision to not require masking of any students, vaccinated or no, is especially startling. 

Of course, masking is just one of many ways that schools can mitigate the risk of transmission. Providing maximum ventilation, having students socially distance themselves from one another, preventing mixing classrooms of students together, and putting other physical barriers in place can all minimize transmission risk. However, doubts have risen from parents and teachers alike about the capability of the public school system to enforce any of these systems. Managing to separate students is a challenge, especially for younger students who struggle with impulse control and understanding the boundaries in place. Adequately ventilating schools presents a serious logistical challenge, as many school buildings are large, antiquated, and lack robust ventilation systems. 

Given all of these concerns, requiring masking for children only seems logical. However, as masks and vaccines have become so heavily politicized over the past several years, local governments and school districts are hesitant to enforce such requirements for fear of public backlash. 

Most concerning is that these schools without masking mandates are also generally in the places of the country in which there is a startlingly low rate of vaccination among adults and a high rate of infection in the general population. These high-risk communities are the most likely to have further outbreaks among children, but have the fewest protections in place for preventing them. 

One source of optimism does present itself in the vaccine, which public health experts have been racing to approve for use on children for months. Once the vaccine is approved for children, schools may quickly become a much safer place as children have a level of immune defense against covid, even one that is not maximally effective against the Delta strain. However, given that the schools with the most relaxed mask policies are also those with a currently rock-bottom vaccination rate, it’s unclear if vaccines are going to be received by the children who are most at risk and most in need of the protection a vaccine can offer. 

While it’s impossible to fully predict the ramifications of what these mask policies will mean, experts predict that schools will become hotbeds for covid transmission. The already thinly stretched hospitals could become dangerously over capacity, with those needing emergency lifesaving medical assistance being delayed or denied care. Children’s health could start taking a dangerous and tragic turn.

It’s critical that schools start quickly prioritizing the health and safety of their students above convenience or politics before the consequences of these decisions start coming, and the nation’s children are the ones who are forced to pay the extremely high price for a lack of adequate caution.

Important August Transits

Transits happen when planets move across the night’s sky. As they spin around our sun, each planet passes through every Zodiac sign – changing the way the energy of that planet is manifested in our lives. Analyzing the astrological transits gives us great insight into what we can expect for the energy of the month. 

Jupiter has now returned to the sign of Aquarius, where it had originally been since December 2020. It briefly entered Pisces in May 2021 but has now moved back into Aquarius. As a result, we can expect more of the same energy from early 2021. In typical Aquarius fashion, this placement wants to amplify out-of-the-box thinking, break foundations, and encourage community surrounding what is best for us and our planet. Be wary of trying too hard or pushing yourself to the brink during this time and any new leases on life should have long-standing momentum behind them. 

The month of August also began with the Sun and Mercury in Leo. This is a peace-bringing conjunction, where we may have been focusing on how we want to present ourselves to the world. The sign of Leo represents desire, so reflecting on goals and your sense of purpose are prominent themes throughout the month. You may see moments where you are reminded that the Universe works in tandem with what you desire. 

Early August gave us Venus in Virgo. Venus is actually debilitated in Virgo, which means its powers are stifled by the placement. This cautions us to be careful about nitpicking our relationships, nagging others, or expecting perfection. Venus typically represents harmonious relationships, and its Virgo placement shook this energy up. During this time, you may have felt a little stuck, but your lesson here was to trust in the compassion of the Universe. 

Mars will be moving into Virgo by the end of August, which will lighten up the collective intensity. This energy will ask us to focus on progress over perfection, and our messy lives will be beckoned to a wake-up call. Mars, the planet of action, in critical Virgo asks us to get down to business. 

Notable Astrological Dates in August

On August 8^th, we experienced a New Moon in Leo and the opening of the Lion’s Gate Portal. The Lion’s Gate Portal happens once a year when the star Sirius is visible in the sky. This was a time for elevated fortune and reaping in abundance. New projects and business ventures had the backing of these astrological forces and will likely see a tremendous amount of success. 

Venus entered its home sign of Libra on August 16^th. This is an incredibly harmonious placement, where we are pulled to listen to the messages in our hearts. This is a great time to put yourself out there, network, and maybe even start dating! Bask in those good feelings and open yourself up to receiving the best things in life. 

On August 19^th, Uranus goes retrograde in Taurus. Retrogrades happen when a planet moves in the perceived opposite direction that the other celestial bodies surrounding it are moving. This retrograde will ask us to re-evaluate old structures in our life to understand if we should or should not be putting momentum behind them. 

August concludes with Mercury entering Libra on August 30^th. As Libra is the sign of balance, this time will be marked by a desire to be honest with those around you, exercising diplomacy to maintain the balance, and cultivating your point of view. 

Start of Virgo Season

The sun will be entering Virgo on August 22^nd, which will mark the start of Virgo season. Virgo seasons are typically defined by high rational thought, logic, judgment, and criticism. Be wary of making harsh judgments on yourself and those around you during this time. 

This will be an opportune time for you to push yourself professionally, organize those drawers you have been putting off for too long, and focus on your physical health. Remember that investing in yourself will pay off in the long run, even if you find it difficult now. Take advantage and use the energy of Virgo season to propel you forward.

Double Full Moon in Aquarius

There is a double Full Moon in Aquarius on August 22^nd. Double Full Moons ask us to be aware of situations that were illuminated by the first Full Moon but might have not come fully to the surface just yet. This will be a time of honest self-improvement, as the Aquarius Full Moon values individuality but also harmonious communities and group spirit. 

Horoscope for August 2021

All outer planets will be in retrograde by the end of August 2021. This includes Jupiter, Saturn, Uranus, Neptune, Pluto, and Chiron. This signals a time for re-doing for most of us. It would seem as though we are entering a restructuring phase once again. We may see the common hiccups associated with retrogrades: plans following through, contracts becoming difficult, and structures wobbling to and fro. The idea is to focus on any outworn parts of your life during this time: old properties, old philosophies, old relationships, etc. It doesn’t necessarily mark an end but beckons us to reconsider them and perhaps view them in a new light. By October 2021, it seems that we may manifest changes in these areas of our lives so it’s important to set the stage intentionally now. 

Central Message for August 2021

The main folly for August is this idea of overdoing. For August, it is crucial to maintain or create your safe and healthy spaces. Rest and doing less are great actions in this month, as this will counteract any wily energy. If you can bring positive, healthy habits into your routine, you will see these come to fruition by the end of the year in powerful ways. It is an opportune time to consider whether or not what you are doing is for the long term. If not, consider what things you would like to change!