GlobalData vs Planet

Victoria's Secret embraces nostalgia and entertainment as Q2 sales rise

Victoria's Secret & Co. is leveraging nostalgia and entertainment to re-engage shoppers, according to comments from CEO Hillary Super after the company's Q2 earnings. The lingerie retailer expanded its fragrance portfolio with iterations like Tease Strawberry Bisou and archive drops such as Pink's square bottle scents, which sold out online in under a day. The company also positioned itself as an entertainment brand, premiering the YouTube docuseries 'Angels Among Us' this month. Victoria's Secret reported Q2 net sales of $1.6 billion, up 10% year over year, with 9% comp growth and net income topping $85 million. The company raised its full-year sales guidance to $7.1 billion to $7.18 billion and expects adjusted operating income of up to $590 million, citing strong performance in bras, Pink, beauty, and all channels.

• Victoria's Secret & Co. reported Q2 net sales of $1.6 billion, up 10% year over year.
• Comparable sales rose 9% in Q2, with brick-and-mortar comps growing 7%.
• Net income in Q2 nearly tripled to more than $85 million.

Dillard's Gains Market Share in Q2

Dillard’s reported modest Q2 retail sales growth as comparable sales rose 1% and total retail sales (excluding construction) reached $1.5 billion. The company’s gross margin expanded to 40.9% and net income increased 34% to $97.7 million, partly driven by $37.2 million in tariff refunds that accounted for most of the margin improvement. Category performance was mixed: gains in accessories, lingerie, home, shoes, beauty and men’s, while children’s, juniors and women’s apparel declined. GlobalData analysis and company commentary indicated the apparel weakness reflected lower consumer spending rather than defections to competitors; inventory at quarter end rose about 5% year over year. UBS analysts had expected flat comps, so Dillard’s 1% comp rise beat those expectations.

• Dillard’s Q2 retail sales (excluding construction) were $1.5 billion, with comps up 1% year over year.
• The company received $37.2 million in tariff refunds, which accounted for 260 of the 280 basis-point gross margin increase.
• Gross margin reached 40.9% in Q2.

Adidas apparel outshines footwear in World Cup quarter

Adidas reported a 13% year-over-year increase in second-quarter revenues to €6.7 billion, led by a 34% jump in apparel net sales while footwear remained flat and accessories rose 18%. Direct-to-consumer (DTC) net sales grew 24% versus 6% wholesale growth. The company increased marketing and point-of-sale spending by 30% to capitalize on the World Cup, which weighed on Q2 operating margin. Adidas announced a CFO transition: outgoing CFO Harm Ohlmeyer will be succeeded by former Adidas employee Birgit Kretschmer, who will join the executive board on Sept. 1. Regional strength came from Latin America, North America and Greater China.

• Adidas' Q2 revenues rose 13% year-over-year to €6.7 billion (about $7.8 billion).
• Apparel net sales increased 34% in the second quarter; footwear sales were flat; accessories rose 18%.
• Direct-to-consumer (DTC) net sales increased 24%, while wholesale grew 6%.

Planet Launches Suncatcher, Tanager-2, and 18 SuperDove Satellites

Planet announced the launch of Suncatcher, Tanager-2, and 18 SuperDove satellites, along with several other major announcements including a landmark German federal contract, a new AI tool for the Amazon, and a 7-figure defense agreement.

Google Sends AI Chips to Space for Testing

Google's Project Suncatcher has launched its first AI chip, a Trillium TPU, into orbit as a step toward space-based data centers. The prototype satellite, built with Planet Labs and launched on SpaceX's Transporter-18 mission, carries four TPUs and tests them against radiation, vibration, and extreme temperatures. The mission runs Google's Gemma model in 15-minute intervals due to thermal constraints in a vacuum. The one-year mission aims to validate endurance; ground tests showed higher radiation resistance than expected, but silent data corruption remains a challenge. Economic viability requires launch costs below $200 per kilogram, needing about 1,800 Starship flights over ten years to transport 370,000 tons. Google published findings in Joule and plans two more satellites with laser links by early 2027, aligning with Elon Musk's vision of solar-powered orbital data centers.

• Google launched its first AI chip (TPU) into orbit via Project Suncatcher, with a satellite built by Planet Labs and launched on SpaceX's Transporter-18 mission.
• The satellite carries four Trillium TPUs, the same AI chips used for Gemini, and runs Gemma in 15-minute intervals due to thermal constraints.
• The mission lasts one year; two more satellites with laser-linked chips are planned for launch by early 2027, with networked satellite launches from early 2027.

Google to send TPUs to space with Planet

Google has provided an update on Project Suncatcher, its initiative to put AI compute in space. In collaboration with satellite imaging company Planet, Google will send some of its Trillium TPUs to orbit on the SpaceX Transporter-18 rideshare mission. The company has conducted stress tests, confirming the chips can withstand radiation doses beyond a five-year mission requirement. Cooling in the vacuum of space remains a challenge. This move reflects the growing energy and space demands of AI training and inference, potentially shifting significant compute operations off-planet.

• Google will send Trillium TPUs to space on SpaceX Transporter-18 with partner Planet.
• The chips survived radiation doses greater than a five-year mission requirement.
• Cooling in space remains a challenge for the project.