Birkenstocks, Sister Jane dresses, retro toys and silk pyjamas are some of this year’s top Christmas gifts, research from John Lewis revealed.
Whether a booming Christmas will move the dial for Birkenstock remains to be seen, but the newly listed company, up 6.3% since IPOing, could use a jump in sales to help its plans to deleverage itself.
Net IPO proceeds allowed the group to pay off US$450 million of debt early, part of a plan to reduce its leverage ratio to below 1.0x – with the group currently geared to just below 2.5x.
Birkenstock ornaments? Source: Etsy (NASDAQ:ETSY)
Oliver Reichert, chief executive officer of the Birkenstock Group, said in a company statement: “It’s as simple as this: We don’t like to be in debt, and we don’t need to because we run a profitable and cash-rich business.”
ASOS PLC (LSE:ASC), which is experiencing one of the most horrific post-pandemic periods out of any retailer, could receive a well-needed boost should Sister Jane dresses gain popularity like John Lewis Partnership predicts.
Sister Jane, the London fashion label, has a whole range of free-flowing dresses which can cost up to £250.
Luckily for the struggling online retailer, it sells a whole range of Sister Jane clothing, including its dresses, many of which have been reduced and/or are cheaper than purchasing directly from the fashion label.
Unfortunately, ASOS will have to compete with German rival and e-commerce peer Zalando and festive shopping favourite Selfridges, as both also stock Sister Jane clothing.
Traditional high-street toy stores like The Entertainer and Smyth’s could benefit from sales of retro toys like Furbys and Barbie dolls, however a busy Christmas for both these retailers will likely not be much of a surprise.
Hasbro (NASDAQ:HAS), the creator of Furby, experienced a healthy jump in share price back in June after announcing the return of the robotic creature.
Furby Source: The NY Times
While the group's valuation has dwindled by more than 33% since, it may be hoping a Furby-boom can reinvigorate the stock.
Amazon and Argos, which is owned by Sainsbury’s, also stock Furbys and could benefit from a rise in nostalgia-inspired gifts.
Another big winner could be Mattel, Inc (NASDAQ:MAT), the original creator of Barbie, which saw a 24% increase in doll sales in its third quarter.
While it continues to reap the benefits of the Barbie movie, which includes a 10% share price lift in 2023, the group has warned of slowing sales in the industry due to tough macroeconomic conditions which are dampening demand.
Barbie Source:WWD
Outdoor neon star lights, air fryer mince pies, mushroom baubles and crafts are also being touted as some of the top products for the 2023 festive period, according to John Lewis, which most likely has many of these items stocked in its stores.
Mr Kipling, owned by Premier Foods (LSE:PFD), runs the world's largest mince pie factory in Barnsley, with the site producing more than 2,100 of the baked treats every minute.
Mince Pies Source: Jus-Rol
One-third of families now have two Christmas trees, with one being considered a “show tree”, John Lewis added.
While the group likely hoping to stoke some additional sales from its Christmas ornaments collections, it noted that six in 10 households are planning to buy lights to put outside and added that since 2022 sales of outdoor decorations have skyrocketed by 96%.