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Showing posts with label sales. Show all posts
Showing posts with label sales. Show all posts

Saturday, December 1, 2012

Brazil looks to score overseas shirt sales boost

29 November 2012 Last updated at 00:09 GMT By Will Smale Business reporter, BBC News, Soccerex, Rio Sao Paulo (white) play Fluminense in a Brazilian championship football match in November Brazilian football shirts are not widely available to buy in Europe or the US A host of colourful Brazilian club football shirts could be coming to sports shops across Europe and the US.

That's the aim of Brazilian sports official Pedro Trengrouse.

A lawyer who works for the country's National Sports Council, he says he wants to end the "very dangerous one-way globalisation" that sees European clubs such as Manchester United and AC Milan have their shirts on sale in Brazil, but not vice versa.

While the famous yellow and green Brazilian national strip has long been available to buy in Europe and the US, Mr Trengrouse aims for the country's biggest club teams to follow suit.

He wants to see the red and black shirts of Rio's Flamengo and the white tops of Sao Paulo's Corinthians, to name but two sides, flying off shopping rails from London to Rome.

Speaking in Rio de Janeiro at the Soccerex global football finance and business convention, Mr Trengrouse said he hoped that the 2014 World Cup - which Brazil is hosting - would drive such overseas commercial expansion.

'New model'

"Foreign clubs have long been developing their brands abroad, but I haven't been able to find one shirt of a Brazilian club team overseas," he says.

"We need to access the global market… the World Cup and the 12 new stadiums will represent a change… of bringing more commercialisation to Brazilian football."

Brazil players celebrate a goal against Argentina Continue reading the main story

Until the 1950s, the Brazil national team played in an all-white kit with a blue collar trimming.

However in the trauma that followed their failure to win the World Cup on home soil in 1950, the national team kit was accused of "lacking patriotism".

A competition was held to pick new colours, and the winning design was a yellow jersey with green trim and blue shorts with white trim.

It was designed by 19-year-old Aldyr Garcia Schlee, and includes the four colours of the Brazil national flag.

It is now one of the most famous football kits in the world.

In a number of talks at Soccerex looking at how well Brazilian football clubs are run from a commercial point of view, the general consensus was a mixture of disappointment at the current weak position, and high levels of optimism at the opportunity presented by the World Cup.

In addition to the export situation explored by Mr Trengrouse, others said they hoped the World Cup would act as a catalyst to boost the level of professionalism in the way the country's club sides are run as commercial operations, especially in terms of maximising sponsorship revenues.

Mauricio Assumpcao, president of Rio de Janeiro-based club Botafogo, said his team had already started work to improve matters.

"In 2009 we realised that we had to have a different model," he said.

"So we said that players could only give interviews when they were wearing their official shirt."

While such a situation - protecting sponsors and clothing suppliers - has long been in place in European sport, and especially in the US, it appears to be relatively new in Brazil.

Sponsorship 'activation'

To help Brazilian football clubs run themselves in a more professional way, their sponsors are now having a much great involvement, to an extent that would perplex or even appal leading teams in Europe.

Ricardo Tadeu De Soares, vice president of sales at Brazil's brewing giant AmBev, part of Brazilian-Belgian group Anheuser-Busch InBev, the world's largest brewer, said his company worked closely with the biggest four football teams in Rio on work to improve their wider facilities.

Ambev beer brands being loaded into a fridge at a bar in Rio de Janeiro AmBev is hoping to benefit from its football connections

Showing AmBev was helping the clubs generate a deeper benefit from the sponsorship arrangement allowed his company to better connect with the clubs' supporters, who would then be more likely to become "brand consumers", he added.

So not entirely an altruistic act by the brewer.

Both Walter De Mattos, editor of Brazilian sports newspaper Lance, and Richardo Fort, a marketing boss at global credit card giant Visa, described such efforts by sponsors in Brazil to help football clubs as "activation", as in activating their brand, rather than simply being a passive sponsor, which they said would not be successful.

Mr De Mattos said such sports sponsorship would only continue to grow in Brazil, because sponsoring teams allowed sponsors to benefit from being associated with something seen as both positive and emotional.

Plus, he said, increased sponsorship of football would only help the sport develop as a business, and "help Brazil get the GDP [gross domestic product] we deserve".


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Tuesday, November 6, 2012

AOL ad sales boost third-quarter profit

By Jennifer Saba

Tue Nov 6, 2012 10:35am EST

n">(Reuters) - AOL Inc (AOL.N) reported higher-than-expected revenue and profit on the strongest advertising growth the company has seen in seven years.

AOL said on Tuesday that third-quarter revenue was flat at $531.7 million, ahead of analysts' average estimate of $521.6 million, according to Thomson Reuters I/B/E/S.

Advertising revenue rose 7 percent to $340 million, while subscription revenue for AOL's dial-up services fell 10 percent to $173.5 million.

Subscription revenue had its lowest rate of decline in six years.

AOL shares rose 11 percent to $39.61 in morning trade.

"Things look great," RBC Capital Markets analyst Andre Sequin said. "This company is continuing to make steps in the right direction."

These trends are helping AOL since its turnaround hinges on the success of getting more online advertising dollars and reducing its reliance on the lucrative but moribund dial-up business.

AOL Chief Executive Tim Armstrong said in an interview with Reuters that the main focus next year will be to focus on advertising and video, which tends to command higher prices from marketers.

Still, there are troubling signs in the results. Domestic display advertising, where AOL is making a big effort, including splashy acquisitions such as the Huffington Post, fell 3 percent in the quarter.

That compares with the overall U.S. display ad market estimated to grow more than 20 percent to $14.98 billion, according to research firm eMarketer.

AOL's advertising revenue was lifted by search revenue and double-digit growth in third-party network revenue.

Display ads are big, pricey units on Web pages favored by brand advertisers. Third-party network consists of AOL's Ad.com, which helps sell ads across other properties. These types of ads typically are lower-cost than those ads known in the industry as premium display.

"We weren't exactly 100 percent drilled and focused on the advertising strategy the first half of the year. But we are now," Armstrong said on a call with analysts.

"I think overall, what you're going to see is an operational improvement around advertising as we get into 2013."

The company, however, has taken a number of steps over the year, including selling some of its patents to Microsoft (MSFT.O) for $1 billion and returning those proceeds to shareholders.

Shares are up 137 percent year-to-date.

Net income was $20.8 million, or 22 cents per share, compared with a year-earlier loss of $2.6 million, or 2 cents per share.

AOL's third-quarter EPS of 22 cents was well ahead of analysts' forecast of 17 cents.

The company raised its estimate for 2012 adjusted OIBDA to about $400 million from $375 million.

(Reporting by Jennifer Saba in New York; Editing by Lisa Von Ahn, Maureen Bavdek, Sofina Mirza-Reid and Dale Hudson)


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Sunday, November 4, 2012

Ralph Lauren lowers full-year sales view, second-quarter results fall

n">(Reuters) - Ralph Lauren Corp (RL.N) on Friday reported lower quarterly earnings and reduced its full-year sales forecast because of its ongoing closures of locations in China and the discontinuation of its American Living brand, warning that the global economy is still threatening demand for its fashion items.

Ralph Lauren's sales have been hurt by its phasing out of stores and boutiques operated by local partners in China. It plans to replace the stores over time with company-run shops in what it has said will be better spots that elevate its image.

The company's sales have also been hit by the phase-out of its American Living brand, which was dropped by low-price department store J.C. Penney Co Inc (JCP.N) earlier this year.

Ralph Lauren Chief Operating Officer Roger Farah said in a statement that global economic conditions "lead us to be incrementally more cautious on near-term demand".

The company now expects revenue to be up 2 percent to 3 percent for the year ending in March, compared with a previous forecast for mid-single-digit percentage growth.

Ralph Lauren shares were down 2.5 percent at $155 in morning trading.

For the current quarter, which includes the holiday season, Ralph Lauren expects a low-single-digit percentage revenue gain, with sales at its own shops vastly outperforming business at department stores such as Macy's Inc (M.N) and other retailers that carry its various brands.

Revenue fell 2.2 percent to $1.86 billion. Excluding the impact of its Chinese store closings and the American Living brand, revenue rose 3 percent in the quarter.

But that decline was less steep than the company's forecast of a mid-single-digit percentage drop.

Wholesale sales fell 8 percent in part because Ralph Lauren shopped fewer goods to European stores. Sales at Ralph Lauren's own stores rose 5 percent, despite the impact of China.

Net income fell 8.5 percent to $213.7 million, or $2.29 per share, in the second quarter ended September 29, from $233.5 million, or $2.46 per share, a year earlier.

Excluding one-time tax items, Ralph Lauren earned $2.45 per share, above the $2.15 Wall Street analysts were expecting, according to Thomson Reuters I/B/E/S. (Reporting by Phil Wahba in New York; Editing by Gerald E. McCormick and Dale Hudson)


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