News

Lululemon reported a significant increase in both sales and profit for its fiscal second quarter, driven by a remarkable 61% revenue spike in China. As a result, the athletic apparel retailer has raised its full-year guidance, now expecting higher sales and profits compared to previous estimates. Lululemon’s sales in North America grew by 11%, while international markets outside of North America experienced a remarkable 52% sales increase, with China leading the way.

The company’s finance chief noted the strong and healthy sales growth, despite China’s slowing economy. Lululemon’s ambitious growth plan remains on track, with a focus on expanding its brick-and-mortar presence, increasing men’s category sales, and boosting direct-to-consumer revenue. Meanwhile, the company continues to address inventory levels, with improvements seen in the second quarter. Overall, Lululemon’s performance exceeded Wall Street expectations and showcases its resilience in the current market.

According to Bloomberg, Apple is experimenting with 3D printing technology to manufacture stainless steel chassis for its upcoming smartwatches. The company is initially testing this method for the Apple Watch 9 and, if successful, intends to incorporate it into the production process for other products in the coming years.

Currently, Apple creates the watch chassis by cutting metal slabs, but 3D printing would reduce production time and material usage. Apple also aims to use 3D printing for the next version of the titanium-encased Apple Watch Ultra in the following year. However, mass production of 3D-printed aluminum enclosures for Apple’s Mac and iPad lineup has not yet been achieved. Apple’s long-term plan is to utilize recycled aluminum and steel for its enclosures, aligning with its 2017 sustainable goal reaffirmed in 2022.

Microsoft has announced that it will separate its chat and video app Teams from its Office product and make it easier for competitors to work with its software, in response to an ongoing antitrust investigation by the European Commission. The move follows a complaint by Slack, a competing workspace messaging app owned by Salesforce. However, rival companies have suggested that Microsoft’s proposed changes may not be sufficient to avoid an EU antitrust fine. The Commission is expected to decide whether to issue formal charges against Microsoft in the autumn. The company could face fines for tying or bundling products together, as it has previously done.

India’s economy achieved an impressive growth rate of 7.8% in the first quarter of the current financial year, driven by solid performances in the agriculture and financial sectors. The agriculture sector recorded a growth rate of 3.5%, while financial, real estate, and professional services saw growth of 12.2%. However, manufacturing, mining, electricity, gas, water supply, and construction experienced a decline in growth.

Despite the positive outlook, the World Bank warns that rising borrowing costs, inflationary pressures, and the fluctuating monsoon may hamper India’s growth in the upcoming quarters. The World Bank predicts a moderate GDP growth rate of 6.3% for the current financial year, while the Indian federal bank expects a growth rate of 6.5%.

American Airlines flight attendants, represented by the Association of Professional Flight Attendants (APFA), have voted overwhelmingly in favor of authorizing a strike if the company fails to agree to “reasonable” contract terms. Over 99% of the flight attendants voted in favor of the strike, which could be initiated if the company and the union were unable to reach an agreement during federal mediation. The strike authorization comes as union workers across various industries are leveraging their increased bargaining power in a tight labor market. American Airlines pilots recently approved a new contract that includes significant pay and benefits increases.

A chronic shortage of engineers in Vietnam poses a significant challenge to the country’s semiconductor industry, and the US plans to establish Vietnam as a chip hub to mitigate supply risks from China. As US President Joe Biden prepares to visit Vietnam, semiconductors are expected to be a key focus, with the US offering support to boost Vietnam’s chip production. However, industry experts warn that the shortage of trained hardware and software engineers could hinder the rapid development of the chip industry.

Vietnam currently has only 5,000 to 6,000 trained hardware engineers, far below the expected demand of 20,000 in five years and 50,000 in a decade. This shortage in skilled labor could make Vietnam vulnerable to competitors such as Malaysia and India. The US may also be interested in boosting Vietnam’s supply of raw materials, such as rare earths, as it aims to reduce its reliance on China. Addressing the skilled labor shortage will be crucial for Vietnam’s semiconductor ambitions.

Companies in North America are reducing their orders for robots as a slowing economy and rising interest rates dampen the demand. The Association for Advancing Automation (A3) reported a 37% decline in robot orders in the second quarter of the year compared to the previous year. This decline follows a drop in orders in last year’s first and fourth quarters. While the pandemic initially drove a surge in robot sales, other factors, such as concerns about inflation and the economy, have led companies to hold off on purchasing robots.

Some industries, like e-commerce, overinvested in robots during the pandemic boom, leading to decreased demand. The softness in robot orders will continue until the fourth quarter or early next year. However, robots are still being adopted in various sectors, including construction, hospitals, and food-processing plants. The tight labor market was a key driver for robot sales, but as worker shortages ease, the demand for robots has declined. Companies like Swinerton are leasing robots instead of buying them to mitigate costs. Overall, the decline in robot orders reflects the broader economic challenges faced by North American companies.