Your commercial news round-up: Klarna loans, Nike prices, Fortnite, WeightWatchers

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Klarna’s losses have doubled as more customers struggle to repay loans, while Nike is hiking prices amid tariff tensions. Meanwhile, Fortnite has made a dramatic return to the iPhone App Store after a year-long legal feud with Apple and WeightWatchers is pivoting to weight-loss injections following a major financial shake-up. Read on for a summary of this week’s commercial story picks!

• Buy now, pay later payment service Klarna saw its net loss double in the first quarter as more customers failed to repay their loans. On Monday, the fintech company reported a net loss of $99 million, up from $47 million in the previous year, with customer credit losses rising by 17% to $136 million. The company's results reflect concerns about US consumers' financial health amid economic uncertainty and President Donald Trump's trade war. Klarna's committed expansion in the US, with partnerships including DoorDash, eBay and Walmart, has raised worries about its exposure to a potential US recession. However, Klarna highlighted its ability to “adapt swiftly if required” to macroeconomic changes. The company's revenue increased by 13% to $701 million in the first quarter, driven by 99 million active customers. In addition, Klarna's focus on AI technology has helped it to reduce costs, with a 39% decrease in total headcount in the past two years and a 12% drop in customer service costs.
   
• Nike is due to increase prices on many of its products in the US from 1 June, with most shoes that cost more than $100 (£74.50) rising by up to $10 and clothing and equipment by $2 to $10. Popular trainers model Air Force 1 and shoes under $100, as well as children's products and Jordan-branded products, will be exempt from the price increase. According to the BBC, the move was caused by a range of internal and external factors, while the athletic footwear and apparel corporation said the pricing adjustments were “part of our seasonal planning”. Nike’s price increases follow Adidas’ warning last month that Trump’s tariffs will lead to it having to raise prices in the US for its popular trainers. Meanwhile, earlier in the week, UK sportswear chain JD Sports raised concerns about the impact of Trump’s tariffs on consumer demand and has revealed plans to vary the range of countries from which it sources goods.
   
• Popular video game Fortnite has officially returned to Apple’s App Store in the US, ending a nearly five-year absence. The game was first removed in August 2020 after violating Apple's policies by launching its own in-app payment system, bypassing Apple’s 15 to 30% commission on in-app transactions. Following a resolution filed in court on Tuesday, it’s now available to download again. Epic Games previously alleged that Apple's practice of charging a commission of up to 30% on in-app payments violated US antitrust rules. The game’s return was seen as a significant win for Epic Games. Speaking on the development, games business professor at NYU, Stern Joost van Dreunen, said: “Epic has effectively forced open a door that Apple and others worked very hard to keep shut. The industry has long tiptoed around platform gatekeeping, but this moment signals a shift in the balance. Creators and publishers will now have more leverage to challenge entrenched distribution models.”
   
• WeightWatchers has teamed up with CheqUp, an NHS-recommended provider of GLP-1 weight-loss medications and services, to help patients achieve “sustainable weight loss”. The move follows the brand's bankruptcy filing in the US amid the growing popularity of anti-obesity injections. The two companies believe their “complementary offerings” will enable patients to achieve better results than with just the use of medication alone, with chief commercial officer at WeightWatchers, Scott Honken, acknowledging the increasing “demand for GLP-1 medications in the UK”. He said: “The data is clear – we see in the US, that our members on obesity medications who also participate in our nutritional and behavioural lifestyle programme, lose 11% more weight on average than those using the medication alone.”

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