Canada Goose to boost production
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Canada Goose's luxurious coats flew off the shelves this winter. So in a bid to boost supply and its profit margins, it plans to do what some other high-end brands do: make more coats in-house. That would also allow the Toronto-based company to increase its control over quality that would justify its hefty price tag: $725 to $1,700 a piece. Retail analyst Mary Epner of Mary Epner Retail Analysis applauds the move. "Their demand has outpaced their supply, which is a high quality problem to have. And so, they need to do something in order to fill existing orders and future orders and beyond that, they also want to expand their e-commerce business to represent 50 percent of their total sales by 2020. So they're going to need to do something. So yes, I'm all in favor of that." Demand is so high, lines used to form outside this Canada Goose store in Manhattan. Shoppers like Helen Huang and Nancy Park seemed aware of the supply issues. "In China, Shanghai, it's very expensive, and even you have money, you cannot buy that. It's out of stock. So this time, we actually we just back New York last week from China, and our friend asked us to buy Canada Goose in New York." "I had a little hard time. At first I wanted black, and they didn't have black. But this is fine with me, so." Despite the high electricity rates in Canada Goose's home province and the hike in the minimum wage there, the risk to boost in-house production may be worth it. Investors cheered the fat 60 percent operating margins for its online sales, and the stock has roughly doubled since it listed a year ago. The company plans to have as many as 20 stores by the end of 2020 and begin selling in China and possibly Russia.
Google to turn searches into cash
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Google is teaming up with stores like Target, Walmart, and Costco. It lets them list their products on Google Search, Google Express, and Google Assistant. In return, it gets a cut of each purchase. For consumers, it means one shopping cart and an instant checkout. Google says its new program, called Shopping Actions, helps retailers sell more on desktops, cell phones and smart home devices with voice search, the next frontier for e-commerce. Google also says, it gives retailers a leg-up in competition with Amazon. Analysts at a retail technology firm, Boomerang Commerce, agree. Retailers that use Shopping Actions say they've already seen a jump in an average order value.
Hyundai Motor shares slide as U.S. probes air bag failures
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Shares in Hyundai Motor tumbled on Monday after U.S. authorities announced on Saturday they will probe why air bags failed to deploy in some of the company's vehicles. The investigation follows crashes that reportedly killed four people and injured six and will review the 2011 Sonata sedan as well as the 2012-13 Forte made by affiliate Kia Motors Corp. It's left investors fretting about potential recalls for the once popular cars, with the probe encompassing some 425,000 vehicles. Authorities will also determine if any other manufacturers used similar air bag control units. Hyundai Motor shares fell 4.8 percent as a result, while Kia Motors lost 3.7 percent. Last month, Hyundai issued a recall for more than 150-thousand U.S. Sonatas after incidents of non-deployment were linked the air-bag control unit, but said it didn't have a final fix. It's the second U.S. investigation into the South Korean duo in less than a year, exacerbating headaches for Hyundai which in January reported its worst annual earnings in seven years.