Stockout – Web Firma http://webfirma.info/ Tue, 22 Nov 2022 22:05:21 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://webfirma.info/wp-content/uploads/2021/05/cropped-icon-32x32.png Stockout – Web Firma http://webfirma.info/ 32 32 What Abercrombie & Fitch Co. is looking forward to in 2023 https://webfirma.info/what-abercrombie-fitch-co-is-looking-forward-to-in-2023/ Tue, 22 Nov 2022 22:05:21 +0000 https://webfirma.info/what-abercrombie-fitch-co-is-looking-forward-to-in-2023/

To Abercrombie & Fitch Co., there has been skyrocketing growth in brick-and-mortar stores, with more expected in 2023.

“2022 was our first year of net openings in a decade,” said Fran Horowitz, CEO of Abercrombie & Fitch Co., told WWD, citing plans to open 18 A&Fs, 24 Hollisters, 15 Gilly Hicks and three Abercrombie Kids, and about 30 store closures.

No more WWD

Horowitz, along with Scott Lipesky, executive vice president and chief financial officer, outlined to WWD on Tuesday some of what A&F Co. looks forward to in 2023, just after the company reported higher and lower declines in the third quarter which exceeded expectations and increased projections for 2022 overall. And as a result, the stock price rose 20%, or $3.69, to $22.32 around noon Tuesday.

Looking ahead, the leaders said:

  • Store growth will continue into next year, although the schedule will not be as aggressive as this year in terms of units opened.

  • There is flexibility in negotiations for landlords, with more than 200 leases expiring in 2023.

  • Shipping and cotton costs are falling, which should help the bottom line next year.

  • Inventory will be stable by the end of the fourth quarter, which will better position the company to meet the level of demand expected in the new year.

  • Merchants will “look into” the best-selling categories.

For the quarter ended Oct. 29, A&F reported a net loss of $2.2 million, or 4 cents per share, compared to net income of $47.2 million, or 77 cents per share, in the third quarter. ‘last year. Adjusted net earnings of $0.01 per share exceeded the expected loss of $0.15.

Net sales in the third quarter fell 3% to $880.1 million from $905.16 million a year ago. Sales remained stable at constant exchange rates. Wall Street expected about $830 million in sales.

The Abercrombie division posted a 10% rise in sales to $422.3 million from $382.85 million a year ago.

Hollister reported a 12% drop in sales to $457.75 million from $522.31 million a year ago. Executives have blamed inflation for having an outsized impact on Hollister’s teenage customer base.

For all of 2022, A&F now expects net sales to decline in the range of 2% to 3% from $3.7 billion in 2021. This compares to previous expectations of a decline at an average number. The outlook includes an estimated negative impact of around 250 basis points from foreign currencies, compared to an estimated 200 basis points last quarter.

The operating margin for 2022 is estimated between 2% and 3%, compared to the previous outlook of 1% to 3%.

A&F Co.’s return to net store openings driven by new real estate opportunities; creating smaller, more productive store formats and seeing consumers return to physical stores more frequently after staying cooped up at home during the pandemic and mostly shopping online.

The company’s new store concept has upgraded fixtures and furnishings, updated dressing rooms with variable lighting, and displays focused on style outfits and key categories.

“Our new Abercrombie stores are having 60% more sales per square foot than the average Abercrombie adult store,” Horowitz said on a conference call with detail analysts.

“For Hollister, we are excited to begin rolling out our ‘Revolve’ store concept this quarter,” she continued. “The new format creates an upbeat and welcoming environment that is omni-focused and complements our digital shopping experience. The open-concept interior is designed to be nimble and adaptable, allowing for merchandising flexibility. Across all brands, we let’s stay disciplined in our real estate approach with new stores checking every acquired box: the right size, the right location and the right economy.”

According to Lipesky, the deployment often involves returning to certain malls that A&F Co. left. For example, the company returned to Roosevelt Field, a huge regional mall in Garden City, New York, with four stores, after pulling out of the property years before.

On the merchandising front, Horowitz talked about continuing to look into cargo pants, woven tops and clothing styles at Hollister to improve business there. At Abercrombie, jeans, dresses and pants have been strong and will continue to be the focus through 2023, Horowitz told WWD.

She expects shopping to “normalize” more to pre-pandemic patterns with the kind of sales spikes historically seen on major shopping days like Black Friday and Cyber ​​Monday, followed by a lull in the detail business until a week or two before Christmas. Last year saw an extended holiday season marked by sluggish trade trends due to the wave of early price promotions and fears of stock-outs due to shipping bottlenecks.

Executives cited lower shipping and cotton costs, the former contributing to bottom line through 2023; the second, in the second half of 2023.

In another change, Horowitz said, “We transferred ownership of Hollister marketing to Carey Krug, who has been our head of Abercrombie marketing for the past four years, where she has built a great team and is instrumental in A&F’s incredible turnaround. Carey has taken on a new role as chief marketing officer and is now responsible for marketing strategy and creative for all brands. »

Hollister could also leverage the Share2Pay app, launched last quarter, allowing young shoppers to share their digital shopping bags with anyone who pays their bills, eliminating a barrier to conversions, especially among Hollister’s teenage customer base.

“Going into 2023, we are watching consumer demand closely,” Lipesky told retail analysts on a conference call. “We remain cautiously optimistic about significant product cost relief and some inflation stabilization in other key spending categories.”

“We also made progress on multi-year technology modernization efforts in areas such as merchandising and data, [which] will allow us to be smarter and faster in the future,” added Horowitz.

“While our teams work to deliver great holidays, we choose to stay focused on the long term. As we go through [the fourth quarter] and in 2023, we plan to continue to leverage our strong balance sheet to fund the multi-year strategic investments needed to execute our Always Forward plan,” she said, which calls for targeted growth across brands, “revolutionizing” digital business and financial discipline.

The company also announced that Terry Burman will step down as chairman of the board at the end of the company’s fiscal year ending Jan. 28, and will be replaced by board member Nigel Travis.

“I am encouraged by the trajectory of our business and I am confident that the steps we have taken throughout the year will put us in a position to win in [the fourth quarter] and beyond,” Horowitz said. “For both men and women, we are well positioned for the holidays and are energized by the emerging spring trends we will deliver in early 2023.”

She said she looked forward to visiting the malls on Black Friday in Columbus, Ohio. region, where A&F is based, and seeing “all the energy consumed this weekend”.

“We were pleased to see year-over-year sales trends improve for all brands in light of the global macro environment,” Horowitz said in his prepared statement. “While net sales were down 3% from a year ago on a reported basis, net sales were flat at constant currencies. Results were driven by Abercrombie brands where we delivered the most high [third-quarter] net sales since 2014 and the tenth consecutive quarter of average unit sales growth.

“We are cautiously optimistic as the holiday season kicks into high gear,” Horowitz added. “While the environment remains dynamic, we are focused on what we can control. We have strategically adjusted our inventory receipts for the holidays and early 2023, and unlike last year, we have inventory available to meet holiday demand during the peak period from Black Friday to Christmas. In addition, we have reduced controllable expenses, where applicable. At the same time, we are leveraging our strong financial position to advance the long-term strategic investments needed to deliver our Always Forward 2025 plan.”

From the Abercrombie & Fitch brand marketing campaign.

From the Abercrombie & Fitch brand marketing campaign.

Click here to read the full article.

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Deeside businesses fear missing out on Christmas trade due to flooding https://webfirma.info/deeside-businesses-fear-missing-out-on-christmas-trade-due-to-flooding/ Sat, 19 Nov 2022 17:47:00 +0000 https://webfirma.info/deeside-businesses-fear-missing-out-on-christmas-trade-due-to-flooding/

Staff at a Deeside business fear they won’t be able to reopen before Christmas after being submerged in several feet of water.

Hidden Scotland Shop in Milton of Crathes was inundated by the River Dee on Friday as torrential rain battered much of the area.

Staff scrambled desperately to erect flood defenses and pile up sandbags, but up to 3 feet still spilled into the store.

It was completely gone this morning, but the damage will take weeks to disappear.

“It was a total washout”

Eryn Inglis was working in the shop when water levels in the area have started to rise.

She said the tusks bought them some time, but before long the workshop was “completely under”.

Eryn Inglis was working at the store when water started flowing in the store. Pictured: Jack Cairney.

She said: “We were pretty much completely under. I think the tide mark is probably about three feet in the store and then two feet in the studio; a total wash I would say.

“There was a moment when we thought, it’s the river. We didn’t insist; it was always safe and the people on the estate were there to help us.

“We installed the anti-flood valves and we put in sandbags, which definitely slowed down the flow in the store and saved us some time. It was definitely a different Friday than we all expected.

Nearby locals and passers-by turned out to lend a hand to staff as they rushed to empty the shop.

Neighboring premises Milton Brasserie has closed its veranda to customers to provide space for the shop’s valuable stock.

Miss Inglis added: “Luckily we managed to get most of the stock out, if not pretty much all of the store stock.

“As soon as we noticed it was starting to get pretty serious, everyone was on deck. Luckily everyone rallied and we packed everything up and got out of there.

The store could remain closed until after Christmas

Staff say the extent of the damage to the store is unclear, leaving them uncertain about when they will be able to reopen.

Staff at the Hidden Scotland Shop faced a race against time when the River Dee overflowed yesterday. Pictured: Jack Cairney.

The store employee added: ‘We don’t know if it will be this Christmas side that will be open which is obviously quite devastating for us.

“We’re lucky to still have the online side of things which we will continue. We have a Christmas market in Glen Tanar on December 4th so we’re going to push hard for that and make it our pop-up shop. to accompany us through the holiday season and try to salvage what we can.

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[Deeside business fears it will miss Christmas trade due to flooding]

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Microsoft announces new supply chain management tools https://webfirma.info/microsoft-announces-new-supply-chain-management-tools/ Tue, 15 Nov 2022 17:41:14 +0000 https://webfirma.info/microsoft-announces-new-supply-chain-management-tools/

The pandemic has shown how supply chain disruptions can bring industries to their knees. And even today, the push to fully restore the chain is far from over. Waiting, Microsoft announced the Supply Chain Platform and the Supply Chain Center to at least make it a little easier to manage.

The Supply Chain Platform is designed as the foundation for supply chain data orchestration, while the Supply Chain Center provides a “command center” experience for users and is part of of the supply chain platform.

Both new solutions aim to provide buyers with an easier way to manage the progress of their order and notify them of any disruptions. Together, they consolidate supply chain data and connect it to produce insights and recommendations for action. This unification of data and management is the raison d’être of the entire platform.

Ray Smith, vice president of supply chain in Microsoft’s enterprise applications and platforms group, pointed out that viewing supply chains as mere start-and-end points just won’t work anymore. .

“I think over the last couple of years we’ve realized that the old way was indeed insufficient to handle all of this disruption,” Smith said. “It’s a little too linear: how we do our selection, how we do our manufacturing, how we do our fulfillment, and how we do our distribution, they’re all disconnected silos, and they usually each have their own systems. So , bringing those systems together is really at the heart of the supply chain hubs, like bringing the data across all of those existing investments, even the legacy investments, to help companies get that end-to-end visibility and collaborate in the process. “

When asked which industries the Supply Chain Center is most applicable, Smith said it was designed to be industry independent.

“I think the big ones [industries] that weigh heavily on the supply chain are likely manufacturing, retail and consumer goods,” Smith said. “So those are kind of the big three that most people think of when they think of supply chains. But it really is a horizontal use case across all industries.

The two parts of Microsoft’s new offering work in tandem. The first part is the supply chain platform which provides supply chain data connectors on Microsoft Azure, Dynamics 365 and Teams. The second is the Supply Chain Center which generates insights using existing supply chain data and applications. The Supply Chain Center is designed to work natively with existing supply chain systems and harmonizes data from various enterprise resource planning (ERP) vendors such as Dynamics 365, SAP, Oracle and others. Other Autonomous Supply Chain Systems.

In a hypothetical scenario, Microsoft showed how Supply Chain Center can help a store maintain inventory when a cyber attack on a trucking company impacted product deliveries. The dashboard described affected orders or vendors and sent recommendations to mitigate the issue, as well as how they might affect business results. And using vendor updates and other data points, the platform can predict potential out-of-stocks, overstocks, and other metrics, near real-time.

For future inventory planning, the Orders Dashboard provides historical order data so users can modify their supply chains to operate more efficiently.

Additionally, the platform integrates teams to allow suppliers and buyers to communicate directly. Microsoft notes that a direct line of communication reduces delays due to missed emails and voicemails.

Smith explained that over years of collecting and processing data from different systems, Microsoft has developed a unique connector framework for data mapping.

“Microsoft has been investing in this space for over a decade, with Power BI connecting to multiple data sources, with Power Automate already having over 800 connectors to many of these systems,” Smith said. “It’s part of the supply chain platform, and productizing that into the center of the supply chain really enables a connector framework or a connector system in those systems, and enables a capability of mapping that says, hey, field, A, B, and C matches D, E, and F here. And we’re even using AI to do automatic mapping between different systems. Every customer will say they have supply chains unique, so this simplification of the connector and the mapping is a huge differentiation.”

The Microsoft Supply Chain Center is now available in preview. Existing Dynamics 365 Supply Chain Management customers will automatically have access to the Supply Chain Center.

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With Twitter Delisted, Put Your Money Into These Stocks Instead https://webfirma.info/with-twitter-delisted-put-your-money-into-these-stocks-instead/ Sat, 12 Nov 2022 01:07:00 +0000 https://webfirma.info/with-twitter-delisted-put-your-money-into-these-stocks-instead/

It’s official, Twitter is no longer available to the general public. With Elon Musk already making his mark on the microblogging social media platform, many investors are probably wondering where they should be looking if they are still looking to capitalize on the ramshackle social media space. In this piece we will look at two social media companies, META and SNAP, which seem far more compelling than Twitter. Indeed, social media reversals won’t be easy, but Elon Musk’s big bet, I believe, suggests he sees value in the space.

Without a doubt, Twitter is a beast when it comes to microblogging. He has more than his fair share of baggage. However, with visionary leader Elon Musk at the helm, anything is possible as he seeks to lift the company out of its historic funk.

Whether it’s huge layoffs to improve profitability prospects or introducing controversial product changes (pay for verification), there’s no doubt that boldness and willingness to pivot could be key to turn the tide.

With interest rates rising, it’s high time for unprofitable (or barely profitable) social media platforms to take the plunge into profit growth. While Musk’s reign will surely be turbulent, we as investors will no longer be able to witness the instability of TWTR shares in the public markets. It’s been a fun ride, but investors need to look elsewhere for exposure to the social rebound, which could be expected in 2023.

With Twitter removed from the list, here are two actions to consider.

Meta Platforms is already a profitable business reaping cash flow from its family of social media apps. Undoubtedly, Meta is an unpopular company with the general public and investors.

CEO Mark Zuckerberg is going all out in the Metaverse, with around $15 billion spent on Metaverse initiatives. In a rising rate environment, wasting such sums of money will be punished, even if such projects promise prosperous gains in the future.

Recently, Meta stock has gained ground after its catastrophic implosion of more than 75% from peak to trough. Meta lays off 11,000 workersa decision greeted with optimism on Wall Street.

As Meta continues to put the brakes on its forward-thinking ambitions while righting the ship with Facebook, I believe META stock has the wherewithal to deliver strong results for investors moving forward. If anything, Meta is still the best publicly traded social media stock. While TikTok is a formidable rival to measure against, I have no doubts about Meta’s abilities to replicate and build on the success of its video-based social media counterpart.

As 2023 approaches, analysts will be much more optimistic with the “lite” version of Meta. Even as the ads weigh in a recession year, the stock is oversold here, leaving a big advantage for brave buyers. Over the past five trading days (at the time of writing), the stock is up more than 24%.

Despite the run, Meta stock is still cheap at 10.7x the earnings of the last few months. Such a multiple doesn’t do justice to the enduring family of social media apps. Forget the metaverse; the portfolio of wonderful social media apps will help meta stock rise after its crash.

What is the target price for META stock?

Wall Street is bullish on Meta. The average META stock price target of $146.06 has come down a lot over the past year. Still, the average price target suggests gains of 29.2% from here.

Recovering from the social media wreckage will not be easy for companies that have struggled to maintain profitability. Even after its recent rebound, Snap stock remains down 86% from its all-time high. Amid Meta’s layoffs, Snap investors seem optimistic that similar job cuts could be on the cards for Evan Spiegel’s empire.

Undoubtedly, Snap has many forward-thinking projects, including augmented reality (AR) software and hardware technologies (glasses). Indeed, these products could be essential for next-level growth. However, as rates increase, it may be necessary to pull the brakes to get Snap out of the gutter.

Like TikTok, Snap’s user base is largely made up of a younger audience. As the company looks to increase engagement (and growth) while being more mindful of profitability metrics, I think the company can find a happy medium.

At the time of writing, the shares are trading at 4.1 times sales, a modest multiple to pay for a company that could turn a corner by controlling costs.

What is the price target for SNAP shares?

Wall Street is wary of Snap shares, with a “Hold” rating. The average SNAP stock price target of $10.62 suggests downside potential of 8.3% from here.

Conclusion: Wall Street sees more upside in META stocks

The social media trading scene is less crowded, with Twitter now out of public markets. Still, there’s no shortage of promises (and beats) social stocks to play a recovery. META stocks are preferred by Wall Street over Snap stocks.

Disclosure

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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Elon Musk’s Net Worth Drops Below $200 Billion After Selling $3.95 Billion Of Tesla Stock https://webfirma.info/elon-musks-net-worth-drops-below-200-billion-after-selling-3-95-billion-of-tesla-stock/ Wed, 09 Nov 2022 08:15:35 +0000 https://webfirma.info/elon-musks-net-worth-drops-below-200-billion-after-selling-3-95-billion-of-tesla-stock/

As Tesla shares fluctuated on Tuesday, Elon Musk, the new owner of Twitter and CEO of Tesla, saw his net worth fall below $200 billion. Investors sold shares of Tesla Inc. over fears that Musk, who took control last month, was too focused on Twitter.

Author

First published November 9, 2022, 1:45 p.m. IST

The fact that Elon Musk, the world’s richest man and the new owner of Twitter, seems so preoccupied with his latest acquisition has Tesla investors worried. The billionaire is no longer a member of the $200 billion club after his net worth fell below that amount. He was the only member.

Investors sold their Tesla shares over fears that the company’s chief executive and largest shareholder, who also happens to be its largest shareholder, would focus more on Twitter than anything else. Musk is chairman and CEO of Tesla Inc. and SpaceX.

Read also | Meta likely to begin mass layoffs today, CEO Zuckerberg says ‘overoptimism has led to overstaffing’

Forbes estimates his current net worth at $197.4 billion, a significant portion of which comes from his roughly 15% stake in Tesla, which has a market value of $622 billion. Since Musk’s initial Twitter offering in April, the company has lost about half of its market value and its net worth has shrunk by $70 billion, according to Reuters. According to SEC filings on Tuesday, Tesla CEO Musk also sold more than $4 billion worth of the company’s stock. This comes more than a week after it completed the $44 billion purchase of Twitter.

U.S. Securities and Exchange Commission filings revealed Musk sold more than 19 million shares worth more than $3.9 billion, after using Tesla shares to pay a large part of its Twitter acquisition.

Read also | “Twitter usage is at an all-time high,” says Tesla CEO Elon Musk hopes “servers won’t melt”

The 51-year-old billionaire who is the world’s richest finalized the $44 billion deal late last month with a commitment of $33.5 billion in equity and $13 billion in loans. Musk hasn’t tweeted much about Tesla since buying Twitter, despite it being a strategy that helped him gain followers there. He announced firm social media intentions on Twitter, such as the $8 monthly subscription fee for blue tick verification.

Read also | Twitter Blue will launch in India in ‘less than a month’, confirms Elon Musk

Last updated Nov 9, 2022, 1:45 PM IST

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PS5, PS5 Digital Edition are now more expensive in India: details https://webfirma.info/ps5-ps5-digital-edition-are-now-more-expensive-in-india-details/ Sun, 06 Nov 2022 07:45:50 +0000 https://webfirma.info/ps5-ps5-digital-edition-are-now-more-expensive-in-india-details/

The PlayStation 5 is getting more expensive in India – by at least 10%. On Saturday, Sony India quietly updated the prices for both variants of Sony’s elusive next-gen console, PS5 and PS5 Digital Edition, on Sony Center’s ShopAtSC website. The 4K Blu-ray-equipped PlayStation 5 now costs Rs. 54,990, up 10% from its launch price of Rs. 49,990. Meanwhile, its discless counterpart PS5 Digital Edition is getting even more expensive at Rs. 44,990, which is a 12.5% ​​increase on its launch price of Rs. 39,990. This is likely due to the surging US Dollar (USD), which has affected almost all sections of society in the world. Gadgets 360 has contacted Sony India for comment, but we had not heard back at the time of publication.

Fortunately, there is no price change for PS5 accessories yet. The PlayStation 5 wireless controller, DualSense, is still priced at Rs. 5,990 (for white and black) and Rs. 6,390 (for blue, red, pink and purple color variants). You can get them below the MRP though, as always. The PS5 Pulse 3D Wireless Headset is still at Rs. 8,590, although it is regularly available at Rs. 7,890. The PS5 HD Camera remains at Rs. 5,190, although it is offered at Rs. 4,790 in most places. Finally, the PS5 Media Remote and the DualSense charging station retain their launch price: Rs. 2,590.

The new PS5 family banner on the Sony Center ShopAtSC website
Photo credit: Sony Center

India isn’t the only market affected when it comes to a PS5 price hike – and it’s not even the first. In August, Sony India announced that the PlayStation 5 and PS5 Digital Edition were getting more expensive in the UK, Australia, Canada, Japan, China, Mexico, and some markets in Europe, Africa and from the Middle-East. While Canada saw the smallest increase of 3-4%, Sony’s Japan was the hardest hit with an increase of 21-24%. The PlayStation maker cited “high global inflation rates” and “unfavorable monetary trends”. Now the impact of the same has reached our shores. The Indian Rupee (INR) has fallen around 10% this year against the US Dollar.

For what it’s worth, the PS5 isn’t impacted as much as the Xbox Series X, which is up 12% from its launch price of Rs. 55,990. Unlike Sony, it didn’t. once. In July, Microsoft was the first to react to the strengthening US dollar, pushing the Indian price of its flagship game console up 6% from Rs. 49,990 to Rs. 52,990. Earlier this week, it reported further increased the price of Series X in India by more than 5% from Rs. 52,990 to Rs. 55,990. The new price is already visible on Amazon India, although some are clearing old discounted stock.

Microsoft’s digital-only console, the Xbox Series S, also suffered two rounds of price increases. Although the difference is the smallest, at 8.5% from the launch price. In June, the price of the Series S in India was increased by almost 6% from Rs. 34,990 to Rs. 36,990. Then in August, Microsoft made a small hike, bumping it up by 2.7 % from Rs. 36,990 to Rs. 37,990. While the Series S had become an unattractive prospect, given its price proximity to the PS5 Digital Edition, that has now changed. While Sony’s digital-only console was 14% more expensive than Microsoft’s at launch, the PS5 Digital Edition is now almost 18.5% more expensive than the Xbox Series S.

The PlayStation 5 now costs Rs. 54,990 in India, with the PS5 Digital Edition at Rs. 44,990. As of now, only Sony Center is listing the new prices. None of the other major online retailers – be it Croma, Flipkart or Vijay Sales – have yet updated prices on their website. PS5 pages on Amazon India and Reliance Digital remain offline. At the time of writing, other than ShopAtSC, only e2z Store was showing the new PS5 India price.


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VIR BIOTECHNOLOGY, INC. Management report and analysis of the financial situation and operating results. (Form 10-Q) https://webfirma.info/vir-biotechnology-inc-management-report-and-analysis-of-the-financial-situation-and-operating-results-form-10-q/ Thu, 03 Nov 2022 20:17:21 +0000 https://webfirma.info/vir-biotechnology-inc-management-report-and-analysis-of-the-financial-situation-and-operating-results-form-10-q/
You should read the following discussion and analysis of our financial condition
and results of operations in conjunction with our unaudited condensed
consolidated financial statements and the related notes and other financial
information included elsewhere in this Quarterly Report on Form 10-Q and our
audited consolidated financial statements and notes thereto and the related
Management's Discussion and Analysis of Financial Condition and Results of
Operations included as part of our Annual Report on Form 10-K for the year ended
December 31, 2021. Unless the context requires otherwise, references in this
Quarterly Report on Form 10-Q to the "Company", "Vir," "we," "us" and "our"
refer to Vir Biotechnology, Inc. and its consolidated subsidiaries.

Insight


We are a commercial-stage immunology company focused on combining immunologic
insights with cutting-edge technologies to treat and prevent serious infectious
diseases. Infectious diseases are among the leading causes of death worldwide
and can cause trillions of dollars of direct and indirect economic burden each
year - as evidenced by the coronavirus disease 2019, or COVID-19, pandemic. We
believe that now is the time to apply the recent and remarkable advances in
immunology to combat current and prepare for future infectious diseases. Our
approach begins with identifying the limitations of the immune system in
combating a particular pathogen, the vulnerabilities of that pathogen and the
reasons why previous approaches have failed. We then bring to bear powerful
technologies that we believe, individually or in combination, will lead to
effective therapies.

Our current pipeline consists of sotrovimab (previously VIR-7831; and where
marketing authorization has been granted, marketed under the brand name Xevudy®)
and other product candidates targeting COVID-19, hepatitis B virus, or HBV,
hepatitis D virus, or HDV, influenza A virus, and human immunodeficiency virus,
or HIV. We have assembled four technology platforms, focused on antibodies, T
cells, innate immunity and small interfering ribonucleic acid, or siRNA, through
internal development, collaborations and acquisitions. We have built an
industry-leading team that has deep experience in immunology, infectious
diseases, and product development and commercialization. Given the global impact
of infectious diseases, we are committed to developing cost-effective treatments
that can be delivered at scale.

General

In September 2022, the Biomedical Advanced Research and Development Authority,
or BARDA, part of the U.S. Department of Health and Human Services', or HHS,
Administration for Strategic Preparedness and Response, or ASPR, awarded us a
multi-year contract with the potential for an investment of up to $1.0 billion
to advance the development of a full portfolio of innovative solutions to
address influenza and potentially other infectious disease threats. The initial
investment of approximately $55.0 million will support the ongoing and rapid
development of VIR-2482, an investigational prophylactic monoclonal antibody
designed with the aim to protect against seasonal and pandemic influenza A.

In September 2022, as part of our 2021 expanded collaboration agreement with GSK
that built on the companies' 2020 collaboration agreement for COVID-19, GSK
opted-in to exclusively collaborate on the development and commercialization of
antibodies against respiratory syncytial virus, or RSV.

COVID-19[feminine]


Sotrovimab is an investigational severe acute respiratory syndrome coronavirus
2, or SARS-CoV-2, neutralizing monoclonal antibody, or mAb, that incorporates
Xencor, Inc.'s, or Xencor, Xtend™ technology.

In the third quarter of 2022, approximately 230,000 doses of sotrovimab have been delivered, all to countries other than the United States. Sotrovimab currently has Emergency Use Authorization, Temporary Authorization, or Marketing Authorization (under the brand name Xevudy®?) for the early treatment of COVID-19 in more from 40 countries, and remains in use outside the United States.

As part of our and GSK’s ongoing efforts with sotrovimab:


o
The companies continue to conduct in vitro testing of sotrovimab against new
variants and subvariants as they emerge, and to collect and evaluate real-world
evidence, both of which are being shared with regulatory authorities
.

o

In August 2022the Phase 3 Prophylaxis Platform Trial for Prophylaxis of Patients at Risk of COVID-19 Infection (PROTECT-V) sponsored by Cambridge University Hospitals National Health Service, or NHS, Foundation Trust evaluation of the use of a 2 g dose of sotrovimab in high-risk uninfected individuals has been initiated. The first data is expected in the second half of 2023.

                                       34
--------------------------------------------------------------------------------


In preparation for new waves of COVID-19 variants and for future pandemics, we
and GSK continue to actively pursue the evaluation of innovative next-generation
therapy options for COVID-19 and other respiratory diseases.

Hepatitis B virus (HBV) and hepatitis D virus (HDV)

VIR-2218 is an experimental siRNA targeting HBV. VIR-3434 is an investigational HBV neutralizing mAb that incorporates Xencor’s Xtend and other Fc technologies.

In October 2022, we announced multiple abstracts (two oral presentations, one
poster and one late-breaker poster featuring real-world data from a 20-year
trial evaluating treatment patterns for chronic HBV) were accepted for
presentation at the American Association for the Study of Liver Diseases, or
AASLD, The Liver Meeting® 2022, taking place November 4-8, 2022. Both oral
presentations have been selected by AASLD for inclusion in the "Best of the
Liver Meeting" summary.

Initial data from Part B of the ongoing Phase 2 Monoclonal Antibody siRNA
Combination against Hepatitis B (MARCH) trial evaluating VIR-2218 in combination
with VIR-3434 for 24 and 48 weeks, and in triple combination with VIR-3434 and
interferon for 24 and 48 weeks, are expected in the second half of 2023.
Previously reported results from the MARCH Part A trial demonstrated that the
combination of VIR-3434 and VIR-2218 resulted in an approximate 3 log decline in
hepatitis B surface antigen, or HBsAg, with no safety signals reported to date.

Initiation of the Phase 2 PREVAIL platform trial and its THRIVE/STRIVE
sub-protocols of VIR-2218 in combination with VIR-3434 in viremic patients is
expected in the fourth quarter of 2022, with initial data expected in the second
half of 2023.

Initial data from the Phase 2 trial led by Brii Biosciences Offshore Limited, or
Brii Bio, evaluating VIR-2218 in combination with BRII-179, an investigational T
cell vaccine, for the potential treatment of chronic HBV infection are expected
by the end of 2022.

In September 2022, we initiated the Phase 2 SOLSTICE trial evaluating VIR-2218
and VIR-3434 as monotherapy and in combination for the treatment of people
living with chronic HDV, the most aggressive form of viral hepatitis. The trial
is assessing the ability of the combination to reduce HDV viremia and block
viral entry, which recent research suggests could be effective in suppressing
chronic HDV infection. Initial data are expected in the second half of 2023.

Influenza A virus

VIR-2482 is an investigational mAb designed for the prevention of influenza A that incorporates Xencor’s Xtend technology.

In October 2022, we initiated the Phase 2 Prevention of Illness Due to Influenza
A (PENINSULA) trial in healthy volunteers aged 18 to 64 to evaluate the safety,
tolerability and efficacy of two different intramuscularly administered doses of
VIR-2482 in preventing illness due to influenza A. This is the first trial to
evaluate the role of a monoclonal antibody in the prevention of influenza A
illness. The primary efficacy endpoint is the proportion of trial participants
with protocol-defined influenza-like illness with confirmed influenza A
infection compared to placebo. Other endpoints will evaluate the effect of
VIR-2482 on the severity and duration of illness in trial participants with
confirmed influenza A compared to placebo. Initial data are expected in
mid-2023. The PENINSULA trial is being funded in part with federal funds from
HHS; ASPR; BARDA, under OT number: 75A50122C00081.

In September 2022, we have initiated a phase 1b prophylaxis trial evaluating the safety of VIR-2482 in elderly participants (65 years and older) receiving an influenza vaccine. This population is representative of our planned Phase 3 trial population. The first data are expected in mid-2023.

HIV

VIR-1111 is an experimental T-cell HIV vaccine based on human cytomegalovirus, or HCMV. VIR-1388 is an HCMV-based preclinical T-cell HIV vaccine.

Safety and immunology data from the initial two cohorts of the proof-of-concept
Phase 1 trial of VIR-1111 show no safety signals and no vector shedding or
viremia reported to date. No sustained HIV insert-specific T-cell responses have
been observed in the lower dose cohorts 1 and 2. Safety and immunology data from
the highest dose cohort 3 are expected in the first half of 2023. This trial is
being funded in part by the Bill and Melinda Gates Foundation.

Learnings from VIR-1111 have informed the design of VIR-1388, a next generation
candidate, for which we expect to initiate a Phase 1 trial in the second half of
2023. This trial is being funded in part by the Bill and Melinda Gates
Foundation and the National Institutes of Health's Division of AIDS, through the
HIV Vaccine Trials Network.

                                       35
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Financial overview


We were incorporated in April 2016 and commenced principal operations later that
year. To date, we have focused primarily on organizing and staffing our company,
business planning, raising capital, identifying, acquiring, developing and
in-licensing our technology platforms and product candidates, and conducting
preclinical studies and clinical trials.

We have financed our operations primarily through sales of our common stock from
our initial public offering, subsequent follow-on offering and convertible
preferred securities, and payments received under our grant and collaboration
agreements. As of September 30, 2022, we had $2.4 billion in cash, cash
equivalents, and investments. Based upon our current operating plan, we believe
that the $2.4 billion as of September 30, 2022 will enable us to fund our
operations for at least the next 12 months. However, our operating plan may
change as a result of many factors currently unknown to us, and we may need to
seek additional financing to fund our long-term operations sooner than planned.
See the section titled "Liquidity, Capital Resources and Capital
Requirements-Future Funding Requirements" below for additional information.

Although we recorded net income for the year ended December 31, 2021 and the
three and nine months ended September 30, 2022, we have otherwise incurred net
losses since inception and may continue to incur net losses in the foreseeable
future. To date, sotrovimab has been granted EUA, temporary authorization or
marketing approval (under the brand name, Xevudy®) in more than 40 countries.
Although we have an EUA from the FDA for sotrovimab, the FDA has excluded the
use of sotrovimab in all U.S. regions due to the continued proportion of
COVID-19 cases caused by certain Omicron subvariants. With this EUA revision,
sotrovimab is not currently authorized for use in any U.S. region. In light of
these developments, we cannot predict whether (if at all) or to what extent
sotrovimab may be reauthorized for use by the FDA in any U.S. region in the
future. Furthermore, due to the evolving COVID-19 landscape and based on
discussions with the FDA, we and GSK do not plan to file a BLA for sotrovimab at
this time. In September 2022, the World Health Organization, or WHO, issued new
guidance strongly recommending against the use of sotrovimab in patients with
non-severe COVID-19 on the basis that it is unlikely to work against currently
circulating variants and subvariants. Although certain countries outside of the
U.S., such as Canada and Japan, continue to maintain access to sotrovimab 500 mg
IV while noting that it is unlikely to maintain efficacy against certain Omicron
subvariants, we cannot predict whether countries will align with the WHO
recommendation (if at all) and further limit the use of sotrovimab. We have not
obtained regulatory approval for any other product candidates, and we do not
expect to generate significant revenue from the sale of our other product
candidates until we complete clinical development, submit regulatory filings and
receive approvals from the applicable regulatory bodies for such product
candidates, if ever.

We had net income of $617.4 million and $3.3 million for the nine months ended
September 30, 2022 and 2021, respectively. As of September 30, 2022, we had
retained earnings of $478.8 million. Our primary use of our capital resources is
to fund our operating expenses, which consist primarily of expenditures related
to identifying, acquiring, developing, manufacturing and in-licensing our
technology platforms and product candidates, and conducting preclinical studies
and clinical trials, and to a lesser extent, selling, general and administrative
expenditures. Cash used to fund operating expenses is impacted by the timing of
when we pay these expenses, as reflected in the change in our outstanding
accounts payable and accrued expenses. Although we began recognizing revenue for
sotrovimab and have substantial deferred revenue under our definitive
collaboration agreement with GSK executed in May 2021, or the 2021 GSK
Agreement, we may continue to incur net operating losses for at least the next
several years as the extent of future revenue remains uncertain. In particular,
we expect our expenses and losses to increase as we continue our research and
development efforts, advance our product candidates through preclinical and
clinical development, seek regulatory approval, and prepare for
commercialization, as well as hire additional personnel, protect our
intellectual property and incur additional costs associated with being a public
company. We also expect to increase the size of our administrative functions to
support the growth of our business. Our net losses may fluctuate significantly
from quarter-to-quarter and year-to-year, depending on the timing of our
clinical trials and our expenditures on other research and development
activities.

We are currently manufacturing product candidates from three of our platforms:
antibodies, T cells and siRNAs. We have established our own internal process
development, manufacturing and quality capabilities and are working with
contract development and manufacturing organizations, or CDMOs, to supply our
early- and late-stage product candidates in the near term. We continue to expand
our internal capabilities and resources in process development, analytical
development, quality, manufacturing and supply chain, which are supported by our
San Francisco, California, and Portland, Oregon facilities that include
laboratories for process development, production of HCMV research viral seed
stock and selected quality control testing for our product candidates. We have
established relationships with multiple CDMOs and have produced material to
support preclinical studies and Phase 1 through Phase 3 clinical trials.
Material for Phase 3 clinical trials and commercial supply will generally
require large-volume, low-cost-of-goods production. For example, for our
COVID-19 program, we and our collaborator GSK have executed manufacturing
agreements with CDMOs having large-scale capacity to support future scale-up and
product supply, particularly for potential commercialization.

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COVID-19 Business Update


We have implemented a number of plans and policies designed to address and
mitigate the impact of the COVID-19 pandemic on our employees and our business.
We continue to closely monitor the COVID-19 situation and will evolve our plans
and policies as needed going forward. As a result of these developments, in
March 2020, we implemented work-from-home policies for most of our employees. We
now offer all of our employees the choice of working full time in the office, a
hybrid approach, or full-time remote. As a result, we expect to continue to be
subject to the challenges and risks of having a remote workforce, as well as new
challenges and risks from operating with a hybrid workforce. We are working
closely with our CDMOs to manage our supply chain activities and mitigate any
potential disruptions to our clinical trial supplies as a result of the COVID-19
pandemic. However, there are no assurances that our manufacturing and supply
chain infrastructure will remain uninterrupted and reliable, or that the CDMOs
will be able to satisfy demand in a timely manner and not have supply chain
disruptions due to COVID-19 related shutdowns, stock-outs due to raw material
shortages and/or greater than anticipated demand or quality issues given the
operational challenges and raw material shortages that have been experienced
during the COVID-19 pandemic. In addition, we rely on contract research
organizations or other third parties to assist us with clinical trials, and we
cannot guarantee that they will continue to perform their contractual duties in
a timely and satisfactory manner as a result of the COVID-19 pandemic.

Our collaboration, license and grant agreements


We have entered into collaboration, license and grant arrangements with various
third parties. For details regarding these and other agreements, see Note
5-Grant Agreements and Note 6-Collaboration and License Agreements to our
unaudited condensed consolidated financial statements included in this Quarterly
Report on Form 10-Q.

Components of operating results

Revenue


To date, sotrovimab has been granted EUA, temporary authorization or marketing
approval (under the brand name, Xevudy®) in more than 40 countries. Although we
have previously recognized revenue from our profit-share under our definitive
collaboration agreement with GSK executed in June 2020, or the 2020 GSK
Agreement, related to sotrovimab, we may continue to incur net operating losses
for at least the next several years as the extent of future revenue from the
sale of sotrovimab remains uncertain. Although we have an EUA from the FDA for
sotrovimab, the FDA has excluded the use of sotrovimab in all U.S. regions due
to the continued proportion of COVID-19 cases caused by certain Omicron
subvariants. With this EUA revision, sotrovimab is not currently authorized for
use in any U.S. region. In September 2022, the WHO issued new guidance strongly
recommending against the use of sotrovimab in patients with non-severe COVID-19
on the basis that it is unlikely to work against currently circulating variants
and subvariants. Although certain countries outside of the U.S., such as Canada
and Japan, continue to maintain access to sotrovimab 500 mg IV while noting that
it is unlikely to maintain efficacy against certain Omicron subvariants, we
cannot predict whether countries will align with the WHO recommendation (if at
all) and further limit the use of sotrovimab. In addition, due to the evolving
COVID-19 landscape and based on discussions with the FDA, we and GSK do not plan
to file a BLA for sotrovimab at this time. In light of these developments, we
cannot predict whether (if at all) or to what extent sotrovimab may be
reauthorized for use by the FDA in any U.S. region in the future. In addition,
we have not obtained regulatory approval for any other product candidates, and
we do not expect to generate any significant revenue from the sale of our other
product candidates until we complete clinical development, submit regulatory
filings and receive approvals from the applicable regulatory bodies for such
product candidates, if ever.

Our revenues consist of the following:


Collaboration revenue includes recognition of our profit-share from the sales of
sotrovimab pursuant to the 2020 GSK Agreement. Our contractual share of 72.5%
from the sales of sotrovimab is applied to the net sales reported in the period
by GSK, net of cost of goods sold and allowable expenses from both GSK and us
(e.g., manufacturing, distribution, medical affairs, selling, and marketing
expenses). In order to record collaboration revenue, we utilize certain
information from our collaboration partner, including actual net product sales
and costs incurred for sales activities, and make key judgments based on
business updates related to commercial and clinical activities such as expected
commercial demand, commercial supply plan, manufacturing commitments, risks
related to expired or obsolete inventories, and risks related to potential
product returns or contract terminations.

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Constraint on variable consideration


In May 2021, the FDA granted an EUA in the U.S. for sotrovimab. In April 2022,
the FDA excluded the use of sotrovimab in all U.S. regions due to the continued
proportion of COVID-19 cases caused by certain Omicron subvariants. As the lead
party for all manufacturing and commercialization activities, GSK incurs all of
the manufacturing, sales and marketing expenses and is the principal on sales
transactions with third parties. Our accounting policy related to the
profit-share is to consider the agreed-upon share of the profit-sharing amounts
each quarter and evaluate whether those amounts are subject to potential future
adjustments based on the latest available facts and circumstances, subject to
the terms of the 2020 GSK Agreement.

As we are the agent under the 2020 GSK Agreement, we recognize our contractual
share of the profit-sharing amounts or royalties (in case of an opt-out) as
revenue, based on sales net of estimated various deductions such as rebates,
discounts, chargebacks, credits and returns, less cost of sales and allowable
expenses (including manufacturing, distribution, medical affairs, selling, and
marketing expenses) in the period the sale occurs. Manufacturing costs include
inventory revaluation adjustments, lower of cost or market inventory
adjustments, inventory write-downs and write-offs, and binding purchase
commitments with a third-party manufacturer among other manufacturing costs. Our
contractual share of the profit-sharing amounts is subject to potential future
adjustments to allowable expenses, which we account for as a form of variable
consideration.

As of September 30, 2022, GSK held certain potentially excess binding supply
manufacturing commitments of sotrovimab and reserved certain binding
manufacturing capacity potentially not expected to be utilized, which have not
yet been reported to us as allowable manufacturing expenses for the cumulative
profit-sharing amounts to date. We expect GSK to adjust allowable manufacturing
expenses for our share of the potential charge for excess supply write-offs and
unused binding manufacturing capacity and report to us as cost-sharing amounts
in future periods. We evaluated the latest available facts and circumstances to
determine whether any portion of profit-sharing amounts should be constrained.
In doing so, as of September 30, 2022, based on the current state of the
COVID-19 pandemic, including the continued proportion of cases caused by certain
Omicron subvariants, discussions with the FDA and other regulatory authorities,
and our expectations for future sales in light of these factors, we revised our
estimates and determined that $379.5 million should be constrained from
profit-sharing revenues earned in relation to the Company's anticipated
contractual share of potential future adjustments to manufacturing expenses and
recorded such amount as adjustments to profit-sharing amounts recognized in the
nine months ended September 30, 2022 and accrued and other liabilities. We will
re-assess these estimates each reporting period. Actual results could materially
differ from this estimate.

Contract revenue includes recognition of revenue generated from license rights
issued to GSK, from research and development services under other third-party
contracts, and from a clinical supply agreement with Brii Bio.

Grant revenue includes revenue from grant agreements with government-sponsored and private organizations.


License revenue from a related party is comprised of revenue related to Brii
Bio's exercise of its option to obtain exclusive rights to develop and
commercialize compounds arising from VIR-3434 in greater China recognized in the
period.

Operating Expenses

Cost of Revenue

Cost of revenue currently represents royalties earned by third-party licensors
on net sales of sotrovimab by us or our collaborators. We recognize these
royalties as cost of revenue when we recognize the corresponding revenue that
gives rise to payments due to our licensors.

Research and development


To date, our research and development expenses have related primarily to
discovery efforts and preclinical and clinical development of our product
candidates. Research and development expenses are recognized as incurred and
payments made prior to the receipt of goods or services to be used in research
and development are capitalized until the goods or services are received. We do
not track research and development expenses by product candidate.

Research and development expenses primarily include costs incurred for our product candidates in development and prior to regulatory approval, which include:

expenses related to licensing and collaboration agreements and changes in the fair value of certain contingent consideration obligations arising from business acquisitions;

                                       38
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personnel-related expenses, including salaries, benefits and stock-based compensation for personnel contributing to research and development activities;

expenses incurred under agreements with third-party contract manufacturing organizations, contract research organizations and consultants;

clinical costs, including laboratory supplies and costs related to meeting regulatory requirements; and

other allocated expenses, including expenses for rent and maintenance of facilities, and depreciation allowances.


We expect our research and development expenses to increase substantially in
absolute dollars for the foreseeable future as we advance our product candidates
into and through preclinical studies and clinical trials and pursue regulatory
approval of our product candidates. The process of conducting the necessary
clinical research to obtain regulatory approval is costly and time-consuming.
The actual probability of success for our product candidates may be affected by
a variety of factors including: the safety and efficacy of our product
candidates, early clinical data, investment in our clinical programs, the
ability of collaborators to successfully develop our licensed product
candidates, competition, manufacturing capability and commercial viability. To
date, sotrovimab has been granted EUA, temporary authorization or marketing
approval (under the brand name, Xevudy®) in more than 40 countries. Although we
have an EUA from the FDA for sotrovimab, the FDA has excluded the use of
sotrovimab in all U.S. regions due to the continued proportion of COVID-19 cases
caused by certain Omicron subvariants. With this EUA revision, sotrovimab is not
currently authorized for use in any U.S. region. In light of these developments,
we cannot predict whether (if at all) or to what extent sotrovimab may be
reauthorized for use by the FDA in any U.S. region in the future. In addition,
due to the evolving COVID-19 landscape and based on discussions with the FDA, we
and GSK do not plan to file a BLA for sotrovimab at this time. In September
2022, the World Health Organization, or WHO, issued new guidance strongly
recommending against the use of sotrovimab in patients with non-severe COVID-19
on the basis that it is unlikely to work against currently circulating variants
and subvariants . Although certain countries outside of the U.S., such as Canada
and Japan, continue to maintain access to sotrovimab 500 mg IV while noting that
it is unlikely to maintain efficacy against certain Omicron subvariants, we
cannot predict whether countries will align with the WHO recommendation (if at
all) and further limit the use of sotrovimab. Furthermore, COVID-19 treatment
standards are susceptible to rapid changes in epidemiology and the emergence of
new variants or subvariants, which may render sotrovimab inferior or obsolete in
the future.

As a result of the uncertainties discussed above, we are unable to determine the
duration and completion costs of our research and development projects or when
and to what extent we will generate significant revenue from the
commercialization and sale of any of our product candidates. Clinical and
preclinical development timelines, the probability of success and development
costs can differ materially from expectations. We anticipate that we will make
determinations as to which product candidates to pursue and how much funding to
direct to each product candidate on an ongoing basis in response to the results
of ongoing and future preclinical studies and clinical trials, regulatory
developments, our ongoing assessments as to each product candidate's commercial
potential and the impact of public health epidemics, such as the COVID-19
pandemic. In addition, we cannot forecast which product candidates may be
subject to future collaborations, when such arrangements will be secured, if at
all, and to what degree such arrangements would affect our development plans and
capital requirements.

Our clinical development costs can vary significantly depending on factors such as:

whether an employee pays part or all of the costs;

trial costs per patient;

the number of tests required for approval;

the number of sites included in the trials;

enrollment and retention of patients in trials in countries disrupted by geopolitical events, including civil or political unrest (such as the ongoing war between Ukraine and Russia);

the length of time required to enroll eligible patients;

the number of patients participating in the trials;

the number of doses patients receive;

patient attrition or default rates;

potential additional safety oversight requested by regulators;

the duration of patient participation in trials and follow-up;

the cost and timing of manufacturing our product candidates;

                                       39
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the development phase of our product candidates; and

the efficacy and safety profile of our product candidates.

Selling, general and administrative expenses

Our selling, general and administrative expenses consist primarily of personnel expenses for management personnel, finance and other administrative functions, facilities and other allocated expenses, other expenses for outside professional services, including legal, auditing and accounting services, insurance costs and fair value foreign exchange of certain contingent consideration obligations arising from business acquisitions. Personnel expenses include salaries, benefits and stock-based compensation.


We expect our selling, general and administrative expenses to increase
substantially in absolute dollars in the foreseeable future as we continue to
support our research and development activities, and commercialization
activities for any of our product candidates, if approved, and to grow our
business. We also anticipate incurring additional expenses associated with
operating as a public company, including increased expenses related to audit,
legal, regulatory, and tax-related services associated with maintaining
compliance with the rules and regulations of the Securities and Exchange
Commission, or SEC, and standards applicable to companies listed on a national
securities exchange, additional insurance expenses, investor relations
activities and other administrative and professional services.

Change in fair value of equity securities


Change in fair value of equity investments consists of the remeasurement of our
investment in Brii Biosciences Limited's, or Brii Bio Parent, ordinary shares
based on the quoted market price at each reporting date.

interest income

Interest income includes interest earned on our cash, cash equivalents and investments.


Other Income (Expense), Net

Other income (expense), net consists of gains and losses from foreign currency
transactions and the remeasurement of contingent consideration related to our
acquisition of TomegaVax, Inc., or TomegaVax.

Provision for income taxes

The provision for income taxes consisted primarily of income tax from our domestic and foreign operations.

                                       40
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Operating results

Comparison of the three and nine month periods ended September 30, 2022 and 2021

The following table summarizes our operating results for the periods presented:


                            Three Months Ended
                               September 30,                               

Nine month period ended September 30,

                           2022             2021          Change             2022                   2021             Change
                                                                    (in thousands)
Revenue:
Collaboration revenue   $  309,145       $  102,398     $  206,747     $       1,483,860       $       107,731     $ 1,376,129
Contract revenue            39,998              315         39,683                52,534               169,581        (117,047 )
License revenue from
a related party             22,289                -         22,289                22,289                     -          22,289
Grant revenue                3,125              903          2,222                 7,704                 5,356           2,348
Total revenue              374,557          103,616        270,941             1,566,387               282,668       1,283,719
Operating expenses:
Cost of revenue             22,253            7,836         14,417               140,323                 8,988         131,335
Research and
development                114,166           98,669         15,497               319,475               319,665            (190 )
Selling, general and
administrative              43,174           50,496         (7,322 )             123,019               105,016          18,003
Total operating
expenses                   179,593          157,001         22,592               582,817               433,669         149,148
Income (loss) from
operations                 194,964          (53,385 )      248,349               983,570              (151,001 )     1,134,571
Other income
(expense):
Change in fair value
of equity investments      (13,590 )        164,072       (177,662 )            (120,019 )             164,072        (284,091 )
Interest income              9,332               11          9,321                11,920                   272          11,648
Other income
(expense), net              27,026               64         26,962                30,447                (9,430 )        39,877
Total other income
(expense)                   22,768          164,147       (141,379 )             (77,652 )             154,914        (232,566 )
Income before
provision for income
taxes                      217,732          110,762        106,970               905,918                 3,913         902,005
Provision for income
taxes                      (42,420 )           (334 )      (42,086 )            (288,478 )                (583 )      (287,895 )
Net income              $  175,312       $  110,428     $   64,884     $         617,440       $         3,330     $   614,110




Revenues

The increase in collaboration revenue for the three months ended September 30,
2022 compared to the same period in 2021 was due to an increase of $188.8
million in profit-sharing amount for the sale of sotrovimab under the 2020 GSK
Agreement and the release of $20.4 million from profit-sharing amount
constrained in the three months ended September 30, 2022, partially offset by
$2.4 million of profit-sharing amount constrained in the three months ended
September 30, 2022. The increase in collaboration revenue for the nine months
ended September 30, 2022 compared to the same period in 2021 was due to an
increase of $1.8 billion in profit-sharing amount for the sale of sotrovimab
under the 2020 GSK Agreement in the nine months ended September 30, 2022,
partially offset by $379.5 million of profit-sharing amount constrained in the
nine months ended September 30, 2022. Our contractual share of 72.5% from the
sales of sotrovimab is applied to the profit-sharing amounts, based on sales net
of various estimated deductions such as rebates, discounts, chargebacks, credits
and returns, less cost of sales and allowable expenses (including manufacturing,
distribution, medical affairs, selling, and marketing expenses) in the period
the sale occurs.

The increase in contract revenue for the three months ended September 30, 2022
compared to the same period in 2021 was primarily due to $39.8 million related
to GSK's selection of RSV as a first pathogen under the 2021 GSK Agreement,
which we refer to as the First Option Exercise. The decrease in contract revenue
for the nine months ended September 30, 2022 compared to the same period in 2021
was primarily due to $168.3 million related to the license granted to GSK upon
execution of the 2021 GSK Agreement in the second quarter of 2021, partially
offset by $39.8 million related to GSK's First Option Exercise, which had
previously been included in deferred revenue, and $7.0 million related to the
additional license granted to GSK in mainland China, Hong Kong, Macau and Taiwan
upon execution of the Amendment No. 1 to the 2020 GSK Agreement in the second
quarter of 2022.

The increase in license revenue from a related party for the three and nine
months ended September 30, 2022 was due to $22.3 million related to Brii Bio's
exercise of its option to obtain exclusive rights to develop and commercialize
compounds and products arising from VIR-3434 in China, Taiwan, Hong Kong and
Macau. No comparable amount was incurred for the same periods in 2021.

                                       41
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The increase in grant revenue for the three and nine months ended September 30,
2022 compared to the same periods in 2021 was primarily due to the timing of
research activities under the grant agreements with the Bill & Melinda Gates
Foundation.

Cost of Revenue

The increase in cost of revenue for the three and nine months ended September
30, 2022 compared to the same periods in 2021 was due to third-party royalties
owed based on the sales of sotrovimab under the 2020 GSK Agreement.

Research and development costs

The following table presents the main components of our research and development expenses for the periods presented:

                                 Three Months Ended                       Nine Months Ended September
                                   September 30,                                      30,
                                2022            2021         Change          2022             2021         Change
                                                                 (in thousands)
Licenses, collaborations
and contingent
consideration                $   14,939       $  14,350     $     589     $   50,002       $   85,421     $ (35,419 )
Personnel                        38,580          28,763         9,817        116,426           82,591        33,835
Contract manufacturing           14,180           3,878        10,302         30,738           19,520        11,218
Clinical costs                   20,269          35,553       (15,284 )       52,172           81,700       (29,528 )
Other                            26,198          16,125        10,073         70,137           50,433        19,704
Total research and
development expenses         $  114,166       $  98,669     $  15,497     $  319,475       $  319,665     $    (190 )



Comparison of three months ended September 30, 2022 and 2021


The increase in research and development expenses for the three months ended
September 30, 2022 compared to the same period in 2021 was primarily due to the
following factors:

outsourcing expenses increased by $10.3 millionwhich was primarily related to an increase in manufacturing activities of our product candidates;

payroll expenses increased by $9.8 millionmainly attributable to an increase in our workforce;

other research and development expenses increased by $10.1 million, which was
primarily attributable to the allocation of facilities and other costs due to an
increase in our headcount and higher lease expenses;

licenses, collaborations and contingent consideration expenses increased by $0.6
million compared to the same period in 2021, which was primarily attributable to
an increase of $2.9 million related to the change in fair value of the
contingent consideration from our acquisition of Humabs Biomed SA, or Humabs,
partially offset by a decrease of $0.9 million in costs under our collaboration
agreements with GSK, and $1.3 million third-party milestone payments in the same
period of 2021;

partially offset by

•
a decrease of $15.3 million in clinical costs, which was primarily attributable
to activities related to the clinical trials for sotrovimab in the prior period,
partially offset by activities related to VIR-2482, VIR3434 and VIR-2218 in the
third quarter of 2022.

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Comparison of the nine months ended September 30, 2022 and 2021

The decrease in research and development expenses for the nine months ended
September 30, 2022 compared to the same period in 2021 was mainly due to the following factors:

licenses, collaborations and contingent consideration expenses decreased by
$35.4 million, which was primarily attributable to a decrease of $22.7 million
in costs under our collaboration agreements with GSK, and $21.4 million related
to the change in fair value of the contingent consideration from our acquisition
of Humabs, partially offset by $7.0 million recognized in connection with the
termination of our development and manufacturing collaboration agreement with
WuXi Biologics (Hong Kong) Limited, or WuXi Biologics;

clinical costs decreased by $29.5 millionprimarily attributable to activities related to clinical trials of sotrovimab in the prior period;


partially offset by

an augmentation of $33.8 million payroll expenses, which are mainly explained by an increase in our workforce;

an augmentation of $11.2 million contract manufacturing expenses, which were primarily related to increased manufacturing activities for our product candidates in the current period; and

an increase of $19.7 million in other research and development expenses, which
was primarily attributable to the allocation of facilities and other costs due
to an increase in our headcount and higher lease expenses.

Selling, general and administrative expenses


The decrease in selling, general and administrative expenses for the three
months ended September 30, 2022 compared to the same period in 2021 was
primarily due to a $20.2 million increase in fair value of the contingent
consideration recorded in the third quarter of 2021 related to sales-based
milestones from our acquisition of Humabs, partially offset by higher
personnel-related expenses related to additional headcount, external consulting
services, business tax expenses related to increased profit-sharing amount and
allocated facilities costs due to higher lease expenses.

The increase in selling, general and administrative expenses for the nine months
ended September 30, 2022 compared to the same period in 2021 was primarily due
to higher personnel-related expenses related to additional headcount, external
consulting services, business tax expenses related to increased profit-sharing
amount and allocated facilities costs due to higher lease expenses.


Change in fair value of equity securities


In July 2021, Brii Bio Parent became a publicly traded company on the Stock
Exchange of Hong Kong Limited. In connection with the initial public offering,
our investment in shares of Brii Bio Parent became a marketable equity
investment and subsequently remeasured to fair value at each reporting period.
For the three and nine months ended September 30, 2022, we recognized an
unrealized loss of $13.6 million and $120.0 million, respectively, compared to
an unrealized gain of $164.1 million for the same periods in 2021.

interest income


The increases in interest income were primarily due to higher interest rates as
well as higher balances of short-term and long-term investments, partially
offset by higher amortization of premium on investment balances, in the three
and nine months ended September 30, 2022 compared to the same periods in 2021.

Other income (expenses), net


The increase in other income (expense), net for the three months ended September
30, 2022 compared to the same period in 2021 was primarily due to $26.0 million
unrealized gain from foreign exchange measurement related to the other liability
recognized in connection with the profit-sharing amount constrained under the
2020 GSK Agreement.

The increase in other income (expense), net for the nine months ended September
30, 2022 compared to the same period in 2021 was primarily due to $26.0 million
unrealized gain from foreign exchange measurement related to the profit-sharing
amount constrained under the 2020 GSK Agreement, and the change in fair value of
the contingent consideration related to our acquisition of TomegaVax.

                                       43
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Provision for income taxes


The increase in provision for income taxes for the three months ended September
30, 2022 compared to the same period in 2021 was primarily due to taxable income
for 2022 attributable to collaboration revenue under the 2020 GSK agreement and
the requirement under the Tax Cuts and Jobs Act of 2017 for taxpayers to
capitalize and amortize research and development expenditures over five or
fifteen years pursuant to Section 174 of the Internal Revenue Code of 1986, as
amended.

The increase in provision for income taxes for the nine months ended September
30, 2022 compared to the same period in 2021 was primarily due to taxable income
for 2022 attributable to collaboration revenue under the 2020 GSK agreement and
the requirement under the Tax Cuts and Jobs Act of 2017 for taxpayers to
capitalize and amortize research and development expenditures over five or
fifteen years pursuant to Section 174 of the Internal Revenue Code of 1986, as
amended.

Liquidity, capital resources and capital requirements

Sources of liquidity


To date, we have financed our operations primarily through sales of our common
stock from our initial public offering and subsequent follow-on offering; sales
of our convertible preferred securities; and payments received under our grant
and collaboration agreements. As of September 30, 2022, we had $2.4 billion in
cash, cash equivalents, and investments. As of September 30, 2022, we had
retained earnings of $478.8 million. We entered into a sales agreement, or the
Sales Agreement, with Cowen and Company, LLC, or Cowen, in 2020 pursuant to
which we may from time to time offer and sell shares of our common stock for an
aggregate offering price of up to $300.0 million, through or to Cowen, acting as
sales agent or principal. We will pay Cowen a commission of up to 3.0% of the
aggregate gross proceeds from each sale of shares, reimburse legal fees and
disbursements and provide Cowen with customary indemnification and contribution
rights. As of September 30, 2022, no shares have been issued under the Sales
Agreement.

Our primary use of our capital resources is to fund our operating expenses,
which consist primarily of expenditures related to identifying, acquiring,
developing, manufacturing and in-licensing our technology platforms and product
candidates, and conducting preclinical studies and clinical trials, and to a
lesser extent, selling, general and administrative expenditures.

Future funding needs


Based upon our current operating plan, we believe that our existing cash, cash
equivalents and investments as of September 30, 2022 as noted above will enable
us to fund our operations for at least the next 12 months. However, our
operating plan may change as a result of many factors currently unknown to us,
and we may need to seek additional financing to fund our long-term operations
sooner than planned. Moreover, it is particularly difficult to estimate with
certainty our future revenue and expenses given the dynamic and rapidly evolving
nature of our business and the COVID-19 pandemic environment generally. For
example, in March and April 2022, the FDA amended the EUA fact sheet to exclude
sotrovimab use in geographic regions where infection is likely to have been
caused by a non-susceptible SARS-CoV-2 variant based on available information,
including variant susceptibility to these drugs and regional variant frequency.
With these EUA revisions, sotrovimab is not currently authorized for use in any
U.S. region. In light of these developments, we cannot predict whether (if at
all) or to what extent sotrovimab may be reauthorized for use by the FDA in any
U.S. region in the future. In addition, due to the evolving COVID-19 landscape
and based on discussions with the FDA, we and GSK do not plan to file a BLA for
sotrovimab at this time. It is possible that the FDA and other regulatory
authorities may not grant sotrovimab full marketing approval for the treatment
of COVID-19, or that any such marketing approvals, if granted, may have similar
or other significant limitations on its use.

We may also need to raise additional capital to complete the development and
commercialization of our product candidates and fund certain of our existing
manufacturing and other commitments. We expect to finance our cash needs through
public or private equity or debt financings, third-party (including government)
funding and marketing and distribution arrangements, as well as other
collaborations, strategic alliances and licensing arrangements, or any
combination of these approaches. To the extent that we raise additional capital
through the sale of equity or convertible debt securities, the ownership
interest of our stockholders will be or could be diluted, and the terms of these
securities may include liquidation or other preferences that adversely affect
the rights of our common stockholders. Debt financing and preferred equity
financing, if available, may involve agreements that include covenants limiting
or restricting our ability to take specific actions, such as incurring
additional debt, making capital expenditures or declaring dividends. If we raise
funds through collaborations, licenses and other similar arrangements with third
parties, we may have to relinquish valuable rights to our technologies, future
revenue streams, research programs or product candidates or grant licenses on
terms that may not be favorable to us and/or may reduce the value of our common
stock. There can be no assurance that sufficient funds will be available to us
on attractive terms or at all. If we are unable to obtain additional funding
from these or other sources, it may be necessary to significantly reduce our
rate of spending through reductions in staff and delaying, scaling back, or
stopping certain research and development programs. Insufficient liquidity may
also require us to relinquish rights to product candidates at an earlier stage
of development or on less favorable terms than we would otherwise choose. In
addition, the COVID-19 pandemic

                                       44
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continues to rapidly evolve and has already resulted in a significant disruption
of global financial markets. If the disruption persists and deepens, we could
experience an inability to access additional capital, which could in the future
negatively affect our capacity for certain corporate development transactions or
our ability to make other important, opportunistic investments. Market
volatility, inflation, interest rate fluctuations and concerns related to the
COVID-19 pandemic and geopolitical events, including civil or political unrest
(such as the ongoing war between Ukraine and Russia), may have a significant
impact on the availability of funding sources and the terms on which any funding
may be available.

We have based our projections of operating capital requirements on assumptions
that may prove to be incorrect and we may use all of our available capital
resources sooner than we expect. Because of the numerous risks and uncertainties
associated with research, development and commercialization of biotechnology
products, we are unable to estimate the exact amount of our operating capital
requirements. See the section titled "Risk Factors-Risks Related to Our
Financial Position and Capital Needs" for a description of certain risks that
will affect our future capital requirements.

We have various operating lease arrangements for office and laboratory spaces
located in California, Oregon, Missouri and Switzerland with contractual lease
periods expiring between 2022 and 2033. As of September 30, 2022, we expect to
make total lease payments of $179.6 million through 2033.

To date, we have entered into collaboration, license and acquisition agreements
where the payment obligations are contingent upon future events such as our
achievement of specified development, regulatory and commercial milestones, and
we are required to make royalty payments in connection with the sale of products
developed under those agreements. For additional information regarding these
agreements, including our payment obligations thereunder, see Note
4-Acquisitions and Note 6-Collaboration and License Agreements to our unaudited
condensed consolidated financial statements included in this Quarterly Report on
Form 10-Q. For information related to our future commitments under our
facilities and manufacturing agreements, see Note 8-Commitments and
Contingencies to our unaudited condensed consolidated financial statements
included in this Quarterly Report on Form 10-Q.

We did not have, during the periods presented, and we do not currently have, any off-balance sheet arrangements.

Cash flow

    The following table summarizes our cash flows for the periods indicated:

                                                               Nine Months Ended September 30,
                                                                  2022                   2021
                                                                       (in thousands)
Net cash provided by (used in):
Operating activities                                       $        1,628,127       $      (55,284 )
Investing activities                                               (1,040,326 )            236,768
Financing activities                                                   32,750               94,661

Net increase in cash and cash equivalents and

  cash and cash equivalents                                $          620,551       $      276,145




                                       45
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Operational activities


During the nine months ended September 30, 2022, net cash provided by operating
activities was $1.6 billion. This consisted primarily of net income of $617.4
million, non-cash charges of $475.1 million, and an increase in our net
operating assets of $535.5 million. The change in our net operating assets of
$535.5 million was primarily due to a decrease in collaboration receivable by
$491.9 million resulting from our profit-share from the sale of sotrovimab and
an increase in accrued liabilities and other long-term liabilities by $65.1
million due to timing of payments, partially offset by a $24.5 million decrease
in deferred revenue primarily driven by GSK's First Option Exercise and Brii
Bio's exercise for VIR-3434 netted with the grants received from Bill & Melinda
Gates Foundation. The non-cash charges of $475.1 million primarily consisted of
$353.5 million for change in estimated constraint on profit-sharing amount, an
unrealized loss of $120.0 million on our equity investment, $77.2 million for
stock-based compensation expense, $7.9 million for revaluation of contingent
consideration, $6.5 million for noncash lease expense and $4.4 million for
depreciation and amortization expense, partially offset by $93.8 million for
payment for contingent consideration in excess of acquisition date fair value.

During the nine months ended September 30, 2021, net cash used in operating
activities was $55.3 million. This consisted primarily of net income of $3.3
million and non-cash charges of $131.0 million, offset by payment of contingent
consideration of $8.1 million for a milestone achieved related to our TomegaVax
acquisition, an unrealized gain of $164.1 million on our equity investment, and
an increase in our net operating assets of $17.4 million. The change in our net
operating assets of $17.4 million was primarily due to an increase in
collaboration receivable by $93.0 million resulting from our profit share from
the sale of sotrovimab, and a decrease in accrued liabilities and other
long-term liabilities by $13.5 million due to timing of payments, partially
offset by increases in deferred revenue by $89.6 million driven by the upfront
fee received under the 2021 GSK Agreement, and prepaid expenses and other
current assets by $1.9 million. The non-cash charges of $131.0 million primarily
consisted of $63.2 million for revaluation of contingent consideration, $59.4
million for stock-based compensation expense, $4.5 million for noncash lease
expense, and $3.9 million for depreciation and amortization.

Investing activities

In the nine months ended September 30, 2022the net cash used in investing activities was $1.0 billion. These were primarily investment purchases of $1.1 billion and the goods and equipment of $55.4 millionpartially offset by $84.8 million proceeds received from maturing investments during the period.


During the nine months ended September 30, 2021, net cash provided by investing
activities was $236.8 million. This consisted primarily of $301.2 million in
proceeds received from investments that matured during the period, partially
offset by purchases of investments of $55.7 million and property and equipment
of $8.8 million.

Financing Activities

During the nine months ended September 30, 2022, net cash provided by financing
activities was $32.8 million. This consisted primarily of proceeds from the
issuance of our common stock to the Bill & Melinda Gates Foundation of $28.5
million under the stock purchase agreement, from exercises of stock options of
$3.6 million, and from issuance of common stock under our employee stock
purchase plan of $2.1 million, partially offset by $1.2 million for payment of
contingent consideration.

During the three and nine months ended September 30, 2021, net cash provided by
financing activities was $94.7 million. This consisted primarily of proceeds
received from the issuance of our common stock to Glaxo Group Limited (an
affiliate of GSK) of $85.2 million in March 2021 and from exercises of stock
options of $9.6 million.

                                       46
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Significant Accounting Policies and Estimates


Our unaudited condensed consolidated financial statements are prepared in
accordance with accounting principles generally accepted in the United States.
The preparation of our unaudited condensed consolidated financial statements
requires us to make assumptions and estimates about future events and apply
judgments that affect the reported amounts of assets, liabilities, revenue and
expenses and the related disclosures. We base our estimates on historical
experience and other assumptions that we believe to be reasonable under the
circumstances. Actual results may differ from these estimates.

There have been no significant changes in our critical accounting policies during the nine months ended September 30, 2022compared to those previously disclosed in our Annual Report on Form 10-K for the year ended
December 31, 2021filed with the SECOND on February 28, 2022.

© Edgar Online, source Previews

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A month after opening, and the Costco madness continues https://webfirma.info/a-month-after-opening-and-the-costco-madness-continues/ Mon, 31 Oct 2022 22:55:00 +0000 https://webfirma.info/a-month-after-opening-and-the-costco-madness-continues/

A month after its grand opening, the Costco madness continues with daily lines to enter the Auckland storeand some high-demand items sell out hours before the store closes.

On Monday, lines had formed again in the Costco parking lot, with security personnel staggering the entry of shoppers onto escalators to take them to the store.

Long lines had also formed again at the counters where shoppers collected $60 membership cards, which bought them the right to shop in the store.

The nearly 147,000 members of the Costco NZ Westgate Community Facebook page have been swapping tips on the best times to go to the store, but going later in the evening on workdays can mean finding meat cooler gaps and the bakery where the most popular items should be.

READ MORE:
* Costco is really, really big. It may not be for everyone
* People line up for up to 90 minutes for Costco memberships
* Coronavirus: Supermarkets urge calm as queues form ahead of Covid-19 lockdown

Last Wednesday, just before 8 p.m., 30 minutes before the store closed, there was such a demand for hot dogs and pizzas at the food court that a worker with a megaphone was on duty to maintain the ‘order and shout out the number of orders that were ready for hungry buyers.

The bakery was still operating, but some shelves were empty and there were thin pickings where Costco’s extra-large muffin trays should have been.

Among the sold out items were 3kg trays of premium ground beef, 2.3kg trays of chicken breasts and leg of lamb.

Where's the lamb, Costco?  Demand remains so high at Costco that someone trying to beat the crowds by going later on a weeknight may find some things they want are sold out.

ROB STOCK / Stuff

Where’s the lamb, Costco? Demand remains so high at Costco that someone trying to beat the crowds by going later on a weeknight may find some things they want are sold out.

The store’s produce section, where Costco sells large trays, bags and packs of produce, had also been reworked and some sections were nearly empty.

Social media has spurred demand for certain products, including Downey scent beads, which people use to scent their laundry. They had sold out at 1:30 p.m. Monday.

Costco Country Manager Patrick Noone said warehouse and purchasing staff were working hard to keep up with demand.

“Our high membership numbers and daily foot traffic tell us that our products and prices are resonating with the people of Auckland,” he said.

At Costco on Wednesday night, there was such a demand for hot dogs and pizza that a Costco staff member with a megaphone was needed to call when orders were ready.

ROB STOCK / Stuff

At Costco on Wednesday night, there was such a demand for hot dogs and pizza that a Costco staff member with a megaphone was needed to call when orders were ready.

Retail expert Chris Wilkinson of First Retail Group did not believe the daily queues at Costco were a symptom of dissatisfaction with prices in the Countdown and Foodstuffs supermarket duopoly.

“New Zealand consumers are very absorbed by the phenomenon. We tend to be very enthusiastic and embrace new concepts,” he said. “It’s just a total fascination with what’s new in New Zealand.”

The absence of wanted articles at times began to attract comments online.

Customer Marcia Prince posted on Facebook: “I went back yesterday around 11:00 to get in, but all the chicken fridges were empty.

Customer Brenna Graham posted in response to the high demand for rotisserie chickens: “Chickens – they sell out faster than they can cook them. There are only so many dishes they can cook at once, and they can’t pre-cook too many as they can only stay warm for a short time.

At 1:30 p.m. Monday, a long line of shoppers lined up to get roast chickens.

Costco's bakery shelves offered fine pickings at 7:30 p.m. Wednesday.  Behind the shoppers line up for roast chickens.

ROB STOCK / Stuff

Costco’s bakery shelves offered fine pickings at 7:30 p.m. Wednesday. Behind the shoppers line up for roast chickens.

Prince was disappointed that some Halloween animatronics were sold out.

“Very low stock, out of many items, all the 10 foot witches and the headless horsemen sold out, only Halloween items still available were the 2 little skeleton scarecrows and the tiny Disney haunted house”, she said.

Even before it opened, Noone warned that Costco’s products were rotating quickly and items on sale one day might not be available the next.

It was part of Costco treasure hunt strategybut he also had a seasonal strategy through consumer festivals and holiday seasons throughout the year.

Speculation on the fan website about the cheapest time to leave has settled at 4 p.m. on Tuesday.

Costco's struggle to keep bays full Wednesday night was evident in the vegetable cold store.

ROB STOCK / Stuff

Costco’s struggle to keep bays full Wednesday night was evident in the vegetable cold store.

Costco opened on October 28with a few eager shoppers camping overnight to be the first to enter the store.

Costco is a bulk retailer, selling groceries in sizes larger than those usually available in supermarkets. To shop there, people must buy a Costco membership for $60 a year.

Costco intended to open stores in christchurch, Wellington and another store in Auckland. It could also one day open stores in small regional towns like Hamilton and Dunedin.

]]> Delivering Frictionless Customer Service with Mobile POS | Payment TrendsRetail Customer Experience https://webfirma.info/delivering-frictionless-customer-service-with-mobile-pos-payment-trendsretail-customer-experience/ Tue, 25 Oct 2022 10:00:00 +0000 https://webfirma.info/delivering-frictionless-customer-service-with-mobile-pos-payment-trendsretail-customer-experience/ Retailers need to differentiate themselves from competitors at every touchpoint when it comes to customer service, from initial engagement through point of sale.

Transparent customer service is essential for retailers looking to both attract new customers and retain existing customers. In today’s digital environment, consumers have a plethora of online and offline options when it comes to shopping and will simply turn to another retailer if they do not receive the experience they require.

In such a competitive landscape, retailers need to differentiate themselves from their competitors at every touchpoint when it comes to customer service, from initial engagement through point of sale.

A recent Harvard Business Review report revealed a significant gap in the way companies interact with their customers. Despite knowing the importance of customer engagement, industry leaders face challenges in executing on appropriate technologies.

Whether it’s slow order processing, out of stock, or even a lack of integration with new payment providers, consumers don’t want to experience friction during the purchase process. . Long lines at checkouts fuel frustration and can cause customers to abandon their purchase altogether.

Restricted to a specific location in the store, traditional point-of-sale systems are unable to provide retailers with the agility required to respond to consumer demands. Retailers need to be able to serve consumers anywhere in the store while providing a full personalized experience, which can, in turn, positively impact consumer loyalty. A balance between the two is essential. The question remains, how?

Increase customer loyalty

Customer experience plays an indispensable role in building consumer loyalty, while helping retailers get the most out of their customer traffic. Whether consumers are simply window shopping or taking advantage of deep discounts, providing a seamless experience has become fundamental to attracting and retaining customers. With a high-quality customer experience, retailers can build consumer loyalty, which translates into sales. Studies show that 86% of buyers are willing to pay more for an exceptional customer experience.

With mobile POS, all of this can be facilitated from any part of the store in both offline and online modes, eliminating the frustration of long queues and waiting times. Additionally, MPOS technology serves as a single source of information for in-store sales associates, allowing them to spontaneously make personalized recommendations.

Maximize visibility for effective decision making

The entire retail ecosystem is changing rapidly. Something that might have appealed to consumers last month may not necessarily appeal to them today. In fact, sales techniques for customers can be completely different from each other depending on their preferences. However, with access to the right data available in MPOS, retailers can segment and categorize consumers based on their purchase frequency, history, and habits. This enables highly efficient and consumer-centric decision making for associates.

How does this look in practice? A consumer may want to buy a particular product but the item in question is out of stock. By leveraging MPOS technology that stores all relevant information – such as stock levels and expected stock arrival times – in-store associates can provide consumers with accurate assurances about when the item will be available. new available. They can also reserve the product and keep it for the customer when the item arrives, or they can order it to be delivered to their doorstep. Once the item arrives, associates can also directly email consumers directly from the MPOS app to let them know. This not only positively affects sales, but also strengthens the relationship between the retailer and the customer.

Provide a high level customer experience

Providing consumers with a next-level customer experience isn’t necessarily easy. It requires an equal level of convenience and simplification in every area of ​​the consumer’s buying journey. However, a number of factors can help retailers deliver a top-notch experience for their customers.

Optimization of returns

MPOS provides store associates with all the information needed to process returns quickly and efficiently. Consumers can return items seamlessly without having to wait in long lines. Retailers can also turn a return into a loyalty opportunity by offering consumers a range of suitable alternatives, such as other products, coupons or exclusive discounts tailored to consumers’ needs. MPOS makes it all available at the fingertips of associates.

Regardless of where or on what platform the product was purchased, MPOS gives store teams incredible control and flexibility over returns. While offering options such as Online Buy Return to Store and Online Buy Pick Up Store, modern MPOS systems are a great tool to enhance the customer return experience.

Payments Modernization

Putting the consumer first when organizing operations is a strategic way to build long-term relationships. One of the best ways to do this is to offer a variety of payment options and let customers pay the way they want.

The MPOS software is very flexible and can easily add new payment methods when needed. This simplifies the transaction process for associates and customers. A transparent payment process can have a positive impact on the future relationship.

Seamless integration

Advanced MPOS technology offers frictionless integration with different applications to maximize offers. Retailers can take advantage of increased digital offerings, improved point of sale, and streamlined real-time information flow across different platforms. MPOS systems are user-friendly and allow retailers to train new employees in a fraction of the time it would take to train them at traditional points of sale. This is especially useful during the festive peak, when retailers hire additional staff to meet increased demand.

It’s important to understand that to provide a seamless experience for customers, the day-to-day work experience must be simplified for employees. User-friendly technology can empower staff to do more while accommodating overall business growth.

Jonathan Mauerer is Vice President of Operations at Teamwork Commerce, a leading omnichannel solution, providing retailers with point of sale, order management, inventory control, CRM and analytics. It also has an ecosystem of integrations with the best solutions making unified commerce a seamless business.

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SupplyPro Announces UStockit Platform | Industrial Distribution https://webfirma.info/supplypro-announces-ustockit-platform-industrial-distribution/ Fri, 21 Oct 2022 17:17:00 +0000 https://webfirma.info/supplypro-announces-ustockit-platform-industrial-distribution/

SupplyPro announces the launch of the UStockit platform, an inventory subscription platform that will revolutionize inventory control for even the smallest distributors.

The UStockit platform will combine groundbreaking smart technology with groundbreaking customer experience.

“Ownership is transformed into the user,” said Floyd Miller, CEO of SupplyPro, “The subscription economy reduces the need for ownership and the responsibilities that come with it. Our customers have more productive uses of their time and of their capital.

UStockit is a brand new subscription services platform that brings together proven hardware and software from SupplyPro, revolutionary inventory management products and exciting new low-cost solutions. UStockit subscription includes expert system configuration and management services, 24/7 SupplyPro customer support, unparalleled hardware warranty, and SupplyPro’s intelligent inventory control software (UStockit Web, UStockit Device and UStockit Mobile) in a low-cost, flexible monthly subscription. And when the subscription period is over, so is any responsibility for storing material or updating obsolete technology.

UStockit subscription services remove ownership risk with a single monthly subscription for as low as $249/month

Low monthly fees

UStockit enables qualified distributors to offer their customers inventory control solutions that previously could not justify the capital expenditure of a system. Qualification is easy, requiring only a handful of data points from the subscriber. Subscriptions can be expanded as the customer grows or their needs change.

Support throughout the subscription lifecycle

UStockIt was launched to help streamline every step of inventory management for the distributor so they can focus on running their business instead of becoming technical or inventory experts. UStockit’s goal is to provide both human and automation resources to unlock the benefits of inventory control for the retailer and their customers.

Out of stock can be catastrophic for any business. The Covid pandemic has put enormous pressure on manufacturers to track and account for every SKU in their warehouse or stockpile.

According to Stan Sigman, CRO SupplyPro, “When a customer is looking to purchase a custom system, SupplyPro is a great option, but when capital or resources are limited, UStockit is a great alternative. doesn’t have to worry about what to do with the system once their customer contract is over, they just send the system back in. It also allows the distributor to offer the latest and most reliable technology, fully guaranteed throughout. of his typical 3-year contract.

UStockit will offer revolutionary new products

In addition to offering traditional SupplyPro systems, UStockit develops innovative new products and low-cost systems that leverage smart technology to specifically target the mid-market distributor.

According to Floyd Miller, “After significant investment in R&D, we are thrilled to announce the first UStockit-branded product; UStockit inventory shelf tag. »

The Inventory Shelf Tag, currently available in BETA, is a revolutionary inventory management product that offers unprecedented flexibility at a low cost, designed for small cradles or small stashes. The inventory shelf tag is Bluetooth enabled, battery powered and can be placed anywhere.

Miller said, “Any store or warehouse should be turned into a virtual vending machine.”

The distributor achieves significant labor savings and increases sales with less risk of out of stock.

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