Story of the Week

Supreme Court strikes down Trump tariffs, rebuking president’s signature economic policy

On February 20th, the Supreme Court struck down a huge chunk of President Donald Trump’s far-reaching tariff agenda, delivering a major rebuke of the president’s key economic policy. The law that undergirds those import duties “does not authorize the President to impose tariffs,” the majority ruled six to three in the long-awaited decision. The ruling is a massive loss for Trump, who has made tariffs — and his asserted power to impose them on any country at any time, without congressional input — a central feature of his administration’s economic and foreign policies. Trump’s legal stance “would represent a transformative expansion of the President’s authority over tariff policy,” the majority concluded. They highlighted that Trump imposed the tariffs without Congress, which has the power to tax under the Constitution.

Apparel & Footwear

New Balance Races to $9.2 Billion in 2025 Sales

New Balance marked its fifth consecutive year of double-digit growth worldwide. The private shoe and apparel powerhouse said on February 19 that its annual global sales for 2025 reached $9.2 billion, a 19% increase from 2024 levels. “Our footwear and apparel products continued to deliver across lifestyle and performance,” said New Balance Athletics Inc. president and CEO Joe Preston in a business update. The double-digit gain, which includes North America up 20% and Europe up 30% year-over-year, reinforces the firm’s confidence in its ability to reach $10 billion in annual global sales. The company said global apparel and owned retail each surpassed $1 billion for the first time.

ASICS posts record profit as FY25 operating margin hits 17.6%

Japanese sportswear company ASICS Corporation has posted record results for fiscal 2025 (FY25) ended December 31, with net sales rising 19.5 percent year on year to ¥810.9 billion (~$5.29 billion) and operating profit climbing 42.4 percent to ¥142.5 billion (~$930 million). Ordinary profit increased 50.4 percent to ¥139.3 billion, while profit attributable to owners of the parent surged 54.7 percent to ¥98.7 billion. Operating margin improved to 17.6 percent from 14.8 percent a year earlier, as gross profit rose 21.6 percent to ¥460.6 billion, supported by both higher sales and improved gross margin. On a currency-neutral basis, net sales grew 19.4 percent, and operating profit rose 42.2 percent.

Footasylum CEO David Pujolar Steps Down as Company Pushes Ahead on Growth

Footasylum chief executive officer David Pujolar has stepped down from his role at the UK-based footwear retailer after two years at the helm. Pujolar joined Footasylum in 2024 from European sportswear retailer AW Lab, where he served as general manager. He also held several senior roles at Adidas, Foot Locker, and Tommy Hilfiger. In the wake of Pujolar’s absence, the company noted that Stephan Rahmede, the senior representative for Aurelius WaterRise (the in-house operations advisory team of Footasylum owner Aurelius Group), will take over in an interim capacity.

Athletic & Sporting Goods

Callaway Golf CEO Talks About a Return to a Pure Play Golf Equipment Company

Callaway Golf Company returned to its roots in 2025, reverting to its pre-Topgolf moniker and changing its ticker symbol to one that better reflected its focus as a pure-play golf equipment company.  “We successfully completed our 2025 strategic initiatives, which were to return Callaway to a pure play golf equipment company and strengthen our balance sheet,” commented Chip Brewer, president and CEO, Callaway Golf Company, in an earnings release. “The sale of our Jack Wolfskin business and the sale of a 60 percent stake in our Topgolf business have simplified our portfolio, generated significant cash, eliminated our liability for any Topgolf venue financing and operating leases and allowed us to pay down $1 billion of term debt.”  Brewer said these actions leave the company in a net cash position and with future upside at Topgolf, given its remaining 40 percent stake.

Sports Facilities Companies Acquires RCI Sports Management

The Sports Facilities Companies has acquired RCI Sports Management, bringing three more facilities into the SF Network.  SFC, based in Clearwater, Florida, has a national platform for managing and developing sports and recreation facilities. RCI is based in Texas and runs facilities in the central United States.  Those facilities joining the SF Network are Amarillo Netplex in Amarillo, Texas; the Refinery Fieldhouse, in Garden City, Kansas; and Travis Fields at Midtown Parkin Bryant, Texas.  Amarillo Netplex is a 62,000-square-foot multi-use facility in the Texas Panhandle that has adaptable courts for basketball, futsal, volleyball and more, as well as a private party room.  The Refinery Fieldhouse opened last year and has 200,000-square feet that boasts six basketball courts and volleyball courts and an indoor turf field, as well as space for conferences, corporate events and weddings.  Travis Fields opened in 2022 with three all-synthetic turn baseball and softball fields as well as eight batting cages and flexible rounds that make it suitable for multiple age ranges and formats.

Interactive Strength Acquires Ergatta, Eyes Gaming Tech Rollout

Ergatta, the game-based connected fitness company known for its rowing machines, has signed a definitive agreement to join Interactive Strength Inc., the company announced.  Interactive Strength owns a portfolio of performance fitness brands including Clmbr and smart fitness mirror Forme. The company acquired U.K.’s Wattbike last year.  The deal is expected to close this quarter.  Interactive Strength CEO Trent Ward called Ergatta “truly differentiated” in connected fitness and sees an opportunity to integrate its gaming platform across other hardware in the portfolio, pointing to the company’s engaged subscription community and profitable business model as key draws.

Cosmetics & Pharmacy

Puig Tops €5bn in Record 2025 Sales as Profitability Beats Guidance

Puig reported FY 2025 results showing record net revenue above €5 billion, strong same-store growth, and improved profitability, continuing to outperform the premium beauty market. Puig delivered FY 2025 net revenue of €5,042 million, up +7.8% same-store and +5.3% reported. Adjusted EBITDA rose +7.8% year on year to €1,045 million, with the adjusted EBITDA margin improving to 20.7%, ahead of guidance. Adjusted net profit reached €587 million (11.6% margin), while reported net profit was €594 million (11.8% margin). Free cash flow from operations totaled €664 million, with net debt/adjusted EBITDA at 0.7x.

Calvin McDonald Appointed CEO of The Wella Company

The Wella Company has appointed Calvin McDonald as its new Chief Executive Officer, effective April 2, 2026. McDonald will join the company’s Board of Directors and be based in New York, while Glenn Murphy will remain Executive Chair to ensure leadership continuity and provide strategic guidance. The appointment comes as Wella, under KKR’s ownership, continues to position itself as a global beauty powerhouse with brands including Wella Professionals, Sebastian Professional, OPI, ghd, Nioxin, and Clairol. McDonald brings extensive experience across global consumer and retail businesses.

Pat McGrath Labs secures $30M financing

Makeup brand Pat McGrath Cosmetics — commonly known as Pat McGrath Labs — has agreed to receive about $30 million in new financing from its lender GDA PMG Funding, according to a recent press release. The deal includes $10 million in new debtor-in-possession financing and a commitment of at least $20 million in “post-emergence working capital,” per the release. Brand founder and makeup artist Patricia McGrath will transition from CEO to chief creative officer. GDA Luma will hold a controlling equity interest in the brand. A restructuring term sheet from the court proceedings shows GDA will form a holding company to own 100% of membership interests in the reorganized brand.

Paya Health acquired by FabFitFun

Functional wellness brand Paya Health has been acquired by FabFitFun. Paya Health’s portfolio consists of beauty supplements formulated to offer an alternative to topical skin care solutions. The brand will join FabFitFun’s growing roster of family owned and operated brands that include Curateur, PupBox, Evie Beauty Fuel and Unhide, among others. The acquisition highlights FabFitFun’s growth beyond a subscription box into a diversified portfolio of brands designed to support founders and businesses across every stage of growth while creating elevated experiences for consumers, the brand shared.

Discounters & Department Stores

Walmart furthers gains with higher-income shoppers

Walmart Inc.’s fourth quarter revenue grew 5.6% year over year to $190.7 billion, and operating income improved 10.8% to about $8.7 billion, according to a recent report. Net sales increased 5.6% to nearly $189 billion for the period. Fourth quarter global e-commerce sales grew 24%, mainly due to store-based fulfillment and Walmart’s third-party marketplace. For the Walmart U.S. segment, which doesn’t include Sam’s Club, net sales jumped 4.6% to $129.2 billion, and comps were about flat year over year. The retailer’s revenue for the full fiscal year 2026 increased 4.7% to $713.2 billion, while net sales grew by the same percentage to $706.4 billion. Walmart Inc. expects fiscal year 2027 net sales to grow in a range from 3.5% to 4.5% on a constant currency basis. Operating income is expected to grow between 6% and 8%.

Nordstrom builds sourcing strategy, spend visibility with AI

Nordstrom has started using artificial intelligence “quite heavily” within its procurement spend analytics software, Vice President and Chief Procurement Officer Karoline Dygas said. The technology is helping the retailer build sourcing category strategies, Dygas said during a panel at Manifest 2026 in Las Vegas. AI is also providing Nordstrom’s procurement team with more visibility into spending, while helping the chief procurement officer research suppliers before meetings. “It spits out so much information that it would really take me hours to compile,” Dygas said, adding that she bases the value of AI today on speed and time saved.

Emerging Consumer Companies

Home goods platform Havenly acquires The Expert

Since 2022, Havenly has been on something of a buying spree, snapping up five furniture and decor brands in under four years. Now, the company moves into a new category with another deal: an agreement to acquire design platform The Expert in an all-equity transaction. Terms were not disclosed. The acquisition was set into motion late last year, when Havenly CEO Lee Mayer met The Expert’s CEO, Lee Anne Blake, through a professional connection. The two hit it off, and quickly began exploring a deal. “It was clear that we had complementary offerings—they had things we couldn’t do on our own, and we had things they couldn’t do on their own,” Mayer tells Business of Home. “We realized we’d be more together than apart.” Following completion of the transaction, Blake will join Havenly as chief commercial officer. Most of The Expert’s staff will remain on board, but a few roles will be eliminated in the merger.

Wellness Brand Epetōme Lands Multimillion-Pound Investment

Epetōme, the British gut health brand founded by nutritionist and author Emily English, has secured a multimillion-pound investment to fund its international expansion and clinical research. The funding round was co-led by Active Partners and Redrice Ventures. The capital will be used to scale the brand globally and increase investment in clinical testing for probiotics and prebiotics, specifically to advance understanding of their relationship with the human microbiome. Founded in 2023, Epetōme has reported rapid growth within the UK supplements market, a sector often scrutinized for its lack of regulation. The brand has positioned itself on integrity and evidence-led outcomes, securing a subscription-based customer base and celebrity backing in its first year of operation.

Food & Beverage

Hormel to sell off Thanksgiving turkey assets

Hormel Foods is selling its whole-bird turkey business to Life-Science Innovations (LSI) for an undisclosed amount, while retaining the Jennie-O brand. LSI is acquiring Hormel’s production facility and feed mill in Minnesota, plus associated transportation assets. It will also assume farmer supply contracts and provide co-manufacturing services to Hormel through the end of fiscal 2026. The deal, set to close at the end of Hormel’s second quarter, includes assets associated with hen turkeys, the birds used during Thanksgiving. President John Ghingo said the sale is “an important next step in our evolution” to focus its turkey portfolio on value-added offerings such as lunch meats.

Clean-label food brand The Whole Truth closes $51 million funding round

Clean-label food startup The Whole Truth has raised about $51 million in a funding round led by Sofina and Sauce.vc. The round, comprising primary and secondary capital, also saw participation from existing investors Peak XV Partners and Rainmatter Health, along with Ayra Ventures. Early backers of the brand include Z47 (formerly Matrix Partners). The startup said the funding marks the beginning of its IPO journey, with profitability as the next key milestone. The fresh capital will be used to expand in-house manufacturing, strengthen working capital, and build systems required for public market readiness.

Craft brewer Tilray inks licensing agreement for Carlsberg beer in the US

Cannabis and craft beer producer Tilray Brands has landed a licensing agreement with Carlsberg Group for the production, marketing, and selling of the Danish brewing giant’s beer portfolio in the U.S. The five-year agreement is set to begin in 2027, with an automatic renewal option for another five years subject to performance criteria, according to a press release on February 18. The agreement includes Carlsberg’s namesake brew, Carlsberg Elephant, 1664, and Kronenbourg 1664 Blanc.

Cerealto to divest pasta unit to Cerealis in shift towards snacks and breakfast

Agri-food company Cerealto has agreed to sell its pasta business and related manufacturing assets in Spain to Portuguese food producer Cerealis, as the European private-label supplier sharpens its focus on higher-growth snacking and breakfast categories. The transaction, which includes the company’s pasta facility in Venta de Baños (Palencia), is subject to approval by Spain’s CNMC and Portugal’s AdC. The divestment marks a portfolio pivot for Cerealto, which generates around €570 million in annual revenue and manufactures biscuits, cereals, snack bars, and corn and rice cakes for major retailers and brand owners across Europe, the UK, the US, and Mexico.

Grocery & Restaurants

Judge allows Buffalo Wild Wings to keep ‘boneless’ chicken on menu

Are boneless wings any different from chicken nuggets? A federal judge weighed in Tuesday in a lawsuit against Buffalo Wild Wings. In a 10-page ruling, U.S. District Judge John Tharp in Illinois said the sports bar franchise can continue to call its popular menu item “boneless wings,” even though they are “essentially chicken nuggets.” A wing lover by the name of Aimen Halim filed a lawsuit in March 2023 claiming violations of the Illinois Consumer Fraud Act over Buffalo Wild Wings’ calling them “boneless wings” instead of “chicken nuggets.” Tharp decided Tuesday there wasn’t enough meat on the bones of his argument. “Boneless wings are not a niche product for which a consumer would need to do extensive research to figure out the truth,” Tharp wrote. “Instead, ‘boneless wings’ is a common term that has existed for over two decades.” Halim said in his lawsuit that he went to a Buffalo Wild Wings restaurant in January 2023 and expected to receive “wings that were deboned.” He argued that Buffalo Wild Wings’ product should be called something different, like “chicken poppers.” Buffalo Wild Wings on Thursday praised the ruling on X, writing, “They’re called boneless wings and will forever be called boneless wings.”

Home & Road

Wayfair records first annual revenue gain since the pandemic

Wayfair recorded its first annual revenue gain since 2020, with total revenue increasing 5.1% year over year to $12.5 billion in 2025. U.S. revenue grew nearly 6% to $11 billion, while international revenue inched up 0.4% to $1.5 billion. “We are in a dramatically different position than we were two years ago, and the numbers clearly reflect that,” co-founder, co-Chairman and CEO Niraj Shah and co-founder and co-Chairman Steve Conine wrote in a shareholder letter. “And while we are proud of the progress, we believe there is significantly more ahead of us.” In the fourth quarter, total net revenue grew nearly 7% year over year to $3.3 billion. Gross margin was 30.3% compared to 30.2% last year.

Mattress Firm acquisition fuels Somnigroup Q4 to 55% revenue surge

Somnigroup International Inc. reported record fourth-quarter net sales Tuesday, crediting the first full quarter of results from its Mattress Firm acquisition for a more-than-50% surge in revenue as the company issued bullish long-term earnings guidance. The Dallas-based company said fourth-quarter net sales climbed 54.7% to $1.87 billion, compared with $1.21 billion in the same period a year earlier. The increase was primarily driven by the addition of $892.1 million in Mattress Firm sales, partly offset by a $269 million accounting elimination of intersegment sales between the Tempur Sealy North America and Mattress Firm divisions. Operating income jumped 93.7% to $247.1 million, up from $127.6 million in the fourth quarter of 2024. Adjusted earnings per share rose 20% to $0.72. Gross margin improved to 44% from 40.1% in the year-ago period. For the full year, Somnigroup posted net sales of nearly $7.5 billion, a 51.6% increase from net sales of $4.9 billion in the prior year. Net income for the 2025 was $384.1 million, a 0.1% dip from $384.3 million in 2024.

Jewelry & Luxury

Moncler Group Exceeds Expectations in 2025, Eyes Strong Growth in U.S. and Asia

Moncler Group closed 2025 with results well above market expectations, and management was upbeat about prospects, seeing an acceleration in the fourth quarter last year and positive current trading. In the 12 months ended December 31, the group’s consolidated revenues rose 1 percent to 3.13 billion euros compared with 3.1 billion euros in 2024. In constant currency, they were up 3 percent. In the fourth quarter, group revenues totaled 1.3 billion euros, up 7 percent in constant currency, compared with the same period of 2024.

American Exchange Group Acquires Watch Company E. Gluck

American Exchange Group has acquired E. Gluck Corp., the noted watchmaker that owns the Armitron, Danecraft, iTOUCH, and Torgoen brands. Terms were not disclosed. The acquisition will form E. Gluck Holdings LLC, the “largest wholesale fashion watch and jewelry company in the industry,” according to a corporate statement. Bobbie Weichselbaum, E. Gluck Corp.’s CEO, has been named president of E. Gluck Holdings. In addition to owning several watch lines, E. Gluck also creates timepieces for fashion labels such as Anne Klein, Nine West, Vince Camuto, and Steve Madden.

Antonio Marras, Intimissimi Owner, Reports 4.8% Revenue Growth in 2025

On February 16th, Italian fashion and lifestyle company Oniverse, formerly Gruppo Calzedonia, reported a 4.8 percent increase in 2025 revenues to 3.7 billion euros, up from 3.5 billion euros at the end of December 2024. Exports amounted to 2.3 billion euros, compared to 2.2 billion euros in 2024. In December 2023, Gruppo Calzedonia adopted the Oniverse moniker, reflecting the company’s transformation from an innerwear and hosiery specialist to an international, diversified group that now spans luxury fashion and the label Antonio Marras to bridal, food, and wine.

Office & Leisure

PlayPower to Acquire BCI Burke

PlayPower, one of the world’s leading designers and manufacturers of recreational and outdoor living systems, announced today that it has signed a definitive agreement to acquire BCI Burke, an established leader in commercial playground equipment.  Headquartered in Fond du Lac, WI, BCI Burke designs and manufactures high-quality play environments for parks, schools, early childhood centers, residential communities and other segments. The company has a strong brand legacy, a differentiated manufacturing approach, and a national network of experienced independent sales representatives.  Headquartered in Huntersville, North Carolina, PlayPower designs and manufactures a wide range of products for outdoor recreation and living, including playground systems, recreational equipment, and related solutions, serving key end markets such as schools, parks and recreation, commercial and industrial facilities, residential communities, marine environments, and hospitality venues.

Organigram to buy Berlin-based Sanity Group in €113.4M upfront deal

Organigram Global announced it will acquire Berlin-based Sanity Group for up-front consideration of €113.4 million plus a maximum earnout of up to €113.8 million tied to financial performance, expanding its network of supply-chain partners.  Sanity Group operates Europe’s first two legal cannabis specialty stores as part of scientific pilot projects in Switzerland, and is strategically expanding its European footprint beyond Germany and Switzerland including Poland, the UK, the UK, and Czechia.  The acquisition is expected to be financed by a combination of cash on hand, proceeds from a new credit facility, and an expected C$65.2 million equity investment by BAT.  The German medical cannabis market was valued at over €2 billion in 2025, serving approximately 800,000 patients. The market is forecast to surpass €4.5 billion by 2028, a 50% year-over-year growth rate.

Technology & Internet

Etsy stock pops 14% on sale of Depop to eBay for $1.2 billion

Etsy shares skyrocketed more than 14% in extended trading on Wednesday after the company announced eBay would acquire its secondhand clothing reseller Depop for about $1.2 billion in cash. The deal comes almost five years after Etsy bought Depop for roughly $1.62 billion, giving the online marketplace an edge into younger consumers who flocked to the U.K.-founded app to hawk their used clothing, shoes, accessories and other goods. About 90% of Depop’s users are under the age of 34, Etsy said. In recent years, Etsy snapped up several niche online marketplaces as part of a “house of brands” strategy to compete with bigger, faster-growing rivals like Amazon. But it’s since unwound many of those deals, including Brazilian e-commerce company Elo7 in 2023 and musical instrument marketplace Reverb last year. Etsy has struggled to grow its business since the pandemic e-commerce boom, while it contends with stiff competition from Amazon, Shopify and ultracheap online marketplaces like Temu, Shein and TikTok Shop.

TikTok halts plan to end independent shipping for U.S. sellers

TikTok’s e-commerce arm, Shop, has reversed course on its plan to end seller-fulfilled shipping in the U.S., telling merchants that previously announced deadlines will no longer go into effect. In an email sent to sellers Tuesday evening and reviewed by Modern Retail, TikTok Shop said, “At this time, Seller Shipping remains unchanged, and previously shared deadlines are not going into effect.” The company told merchants to continue operating as usual while it provides further details. The decision halts a policy that would have required most U.S. sellers to route orders through TikTok-controlled logistics services, including Fulfilled by TikTok, or approved shipping tools fully integrated with TikTok’s systems. The reversal comes after Modern Retail reported last month that some brands were pulling back from TikTok Shop in response to the proposed changes. Merchants and agency executives said the shift would raise fulfillment costs, squeeze margins and make it harder to offer the steep discounts TikTok shoppers expect.

Finance & Economy

U.S. trade deficit totaled $901 billion in 2025, barely budging despite Trump’s tariffs

The U.S. trade deficit swelled in December, closing out a year in which the imbalance was essentially unchanged despite efforts by the Trump administration to close the wide gap. Closing out a tumultuous year in the global marketplace, the goods and services shortfall in December totaled $70.3 billion, the Commerce Department reported February 19. That marked an increase of $17.3 billion from November and was well above the Dow Jones consensus estimate of $55.5 billion. For the full year, the U.S. ran a $901.5 billion deficit, down slightly from 2024 but only by 0.2%, or $2.1 billion. The total was also slightly lower than the record $923.7 billion shortfall in 2022.

Incentives are dimming for workers to change jobs

With the upheaval of the Covid pandemic came opportunity, as a shift in the labor market gave workers unprecedented opportunities for mobility and a chance to climb the pay scale. The “great resignation,” as it came to be known, saw record numbers of employees quit in favor of better opportunities, as companies couldn’t hire workers fast enough to fill the vacancies that the pandemic helped create. A record 4.5 million left their jobs for greener pastures in March 2022. But that is changing. The level of “quits” as measured by the Bureau of Labor Statistics has contracted by nearly one-third since hitting its peak in early 2022, a period during which job openings have nearly halved.