Blume’s twin posts have been a contentious issue among shareholders since Porsche’s listing as a separate company in September 2022

International News via Reuters:

Porsche has begun the search for a successor to CEO Oliver Blume, a source close to the matter said, signalling what is likely to be the end of his dual role at the helm of the luxury sports car maker and parent Volkswagen.

Blume’s twin posts have been a contentious issue among shareholders since Porsche’s listing as a separate company in September 2022, with investors repeatedly calling for him to step down from one of the positions over governance concerns.

Though Blume has repeatedly stated that the dual role was not designed to be permanent, he said this month that a date to sever the connection has not been set and “we will see how we get on this year”.

Volkswagen, Porsche AG and Porsche SE – the investment vehicle of the Porsche and Piech families, which holds most of Volkswagen’s voting rights – all declined to comment.

Porsche shares rose sharply on the news, which was first reported by WirtschaftsWoche. By afternoon trading, they were up around 1% at 46.52 euros.

The magazine cited company and financial sources as saying that talks on Blume’s succession were ongoing and an appointment was expected in the autumn, with both internal and external candidates under consideration.

“Such a move would alleviate corporate governance concerns,” said Metzler Equities analyst Pal Skirta, pointing to questions over allocation of resources and time, given the scale of both companies and the structural challenges facing the industry.

The Porsche and Piech families voiced their continued backing of Blume at Porsche SE’s annual general meeting in May.

Porsche is undergoing a costly restructuring as it contends with weak demand for its sports cars in China, a sluggish transition to electric vehicles and increased U.S. tariffs that have prompted it to cut its full-year profitability target.

Shares in Porsche, which listed in 2022 with a higher valuation than Volkswagen, have since fallen by about 45%.

Handelsblatt newspaper reported a number of potential successors to Blume, who has been in the top job at the luxury carmaker for a decade.

One was Michael Steiner, Porsche’s board member for research and development, who already serves as Blume’s deputy.

Volkswagen’s head of group strategy, Stefan Weckbach, as well as Bentley CEO Frank-Steffen Walliser and Skoda CEO Klaus Zellmer – both subsidiaries of the Volkswagen group – have also been floated as potential candidates, the newspaper said.

A Porsche spokesperson declined to comment on the executives named by the paper.

Reporting by Christina Amann and Rachel MoreAdditional reporting by Amir Orusov Writing by Christoph SteitzEditing by Tomasz Janowski, Thomas Seythal and David Goodman

The tariff warning overshadowed the Hollister parent’s upbeat annual sales forecast

International News via Reuters:

Abercrombie & Fitch on Wednesday tightened its annual profit forecast and warned of a $90 million hit to its margins from import tariffs, sending its shares down 2% in early trading.

The tariff warning overshadowed the Hollister parent’s upbeat annual sales forecast, driven by robust demand for its dresses and denim jeans as shoppers prioritize spending on trendy apparel undeterred by price hikes.

In May, Abercrombie had expected a $50 million charge for the year, factoring for its mitigation efforts. However, levies on its key sourcing countries such as Vietnam, Indonesia, and Cambodia have risen to a range of 10% to 20%, while India faces potential tariffs of about 50%.

U.S. President Donald Trump’s trade policies have also put margin pressure on other retailers such as Ralph Lauren and Coach handbag owner Tapestry.

Abercrombie would tightly control inventory levels to cushion the hit from tariff and support its growth plans, company executives said on a post-earnings conference call.

The company, whose denim jeans average $100, has driven growth at its eponymous and Hollister brands by targeting affluent female shoppers.

Well-heeled shoppers in the U.S. have so far shown little resistance to price hikes, as indicated by resilient spending on aspirational goods such as Birkenstock sandals and Bugaboo strollers.

The apparel retailer now expects net sales for fiscal year 2025 to grow in the range of 5% to 7%, compared to its prior forecast of a 3% to 6% increase.

Annual net income per share is projected in the range of $10 to $10.50, compared with its earlier forecast between $9.50 and $10.50.

Net sales were $1.21 billion for the quarter ended August 2, compared with analysts’ average estimate of $1.20 billion, according to data compiled by LSEG.

Its adjusted profit of $2.32 per share beat estimates of $2.30 a share.

Reporting by Savyata Mishra in Bengaluru; Editing by Leroy Leo

Members will vote on the proposed change to the alliance’s status by the end of September

International News via Reuters:

The banking industry’s main group leading the sector’s global effort to cut carbon emissions plans to overhaul its structure, it said on Wednesday, after the high-profile exit of many of its largest members.

The Net-Zero Banking Alliance, set up in 2021 ahead of global climate talks in Glasgow, has proposed changing from being a “membership-based alliance” to a “framework initiative”.

Membership obligations have included making a commitment to reach net-zero emissions by 2050, setting interim emission-reduction targets for carbon-intensive sectors by 2030, and annual progress reports.

Members will vote on the proposed change to the alliance’s status by the end of September.

Many large banks left the group after pressure from some U.S. Republican politicians who said membership could be regarded as a breach of antitrust rules.

Swiss lender UBS became the latest to leave earlier in August, shortly after UK peers Barclays and HSBC and several months after the largest U.S., Canadian, Australian and Japanese banks.

In a statement on its website, the NZBA said its steering group believed the proposed model was the best way to continue supporting banks to remain resilient and accelerate “the real economy transition” in line with the 2015 Paris Agreement on climate change.

It said it would allow continued “engagement with the global banking industry to develop further guidance and tools needed to support them and their clients”.

Lucie Pinson, director of non-profit Reclaim Finance, said the changes were a way for the NZBA to avoid “the embarrassment of losing relevance as its largest members gradually withdraw”.

“For those working to protect the environment and the climate, this underlines once again the limits of voluntary corporate commitments and the urgent need for binding measures, including strong regulatory action, to trigger real change,” she said.

Reporting by Simon Jessop; Editing by Tommy Reggiori Wilkes and Barbara Lewis