Story of the Week
Caleres to Acquire Tapestry’s Stuart Weitzman for $105 Million
Caleres has inked a deal to acquire Stuart Weitzman from Tapestry Inc. for $105 million. The move strengthens Caleres’ position in women’s fashion footwear, particularly in the contemporary segment of the market, while enabling Tapestry to focus on its Coach and Kate Spade brands. WWD and FN first reported last September that Tapestry was looking to sell off Stuart Weitzman. “I have long admired Stuart Weitzman for the brand’s pivotal role in shaping the footwear industry. As we bring this iconic brand into the Caleres portfolio, we are committed to preserving its legacy of craftsmanship, quality and fit while driving it forward,” Jay Schmidt, president and chief executive officer of Caleres, said in a statement.
Apparel & Footwear
Kontoor Brands Acquires Helly Hansen from Canadian Tire Corp.
Kontoor Brands, Inc., the VF-offshoot parent of the Wrangler and Lee brands, has signed a definitive agreement to acquire Helly Hansen. Under the terms of the agreement, Kontoor Brands will acquire 100 percent of Helly Hansen from Canadian Tire Corporation. Helly Hansen worldwide revenue in 2024 was CN$894 million ($629 million), including sales to CTC. The company said 2024 EBITDA was CN$102 million ($72 million) on a Canadian IFRS basis. Adjusted EBITDA for 2024 was CN$76 million ($53.5 million) under the pre-IFRS 16 accounting standard employed by CTC at the time of the Helly Hansen acquisition.
Birkenstock Reverses Loss, Posts Q1 Sales Gains Following Strong Holiday Season
Birkenstock is starting off the year strong following a successful holiday season. Revenue in the first quarter of fiscal 2025 for the German footwear brand increased 19 percent to 362 million euros, up from 303 million euros the same time last year. Net income in Q1 was 20 million euros, or 11 cents a share, up from a loss of 7 million euros, or 4 cents a share, in the year-earlier period. The company said top-line growth was the result of strong consumer demand throughout the holiday season. What’s more, close-toe silhouettes grew at more than twice the pace of the group average, and revenue growth was supported by double-digit unit growth and mid-single-digit growth in average selling price, Birkenstock noted.
Wolverine Worldwide’s FY24 revenue falls, gross margin improves
Footwear manufacturer Wolverine Worldwide has reported a decline of 21.8 percent year-over-year (YoY) in total revenue, reaching $1,755.0 million in the full fiscal 2024 ended December 28. Despite the revenue decline, the gross margin of the company improved to 44.5 percent from 38.9 percent, and the operating margin rose to 5.8 percent from negative 3.0 percent. Gross margin improved significantly due to lower supply chain costs, product costs, and lower sales of end-of-life inventory, Wolverine said in a press release. The Active group saw a revenue drop of 13.4 percent YoY, while the Work group’s revenue declined by 5.3 percent. The other segment experienced a significant 83.4 percent revenue decrease. Among revenues of key brands, Merrell saw a decline of 11.5 percent, Saucony was down by 18.0 percent, Wolverine decreased 4.0 percent, and Sweaty Betty dropped 2.4 percent.
Forever 21 is in talks with liquidators, indicating it’s struggling to find a buyer
Beleaguered retailer Forever 21 is in talks with liquidators about future steps for the fast fashion company, according to people familiar with the matter — a sign that it’s struggling to find a buyer as it mulls a second bankruptcy filing. The company has been looking for a buyer for its U.S. leases and assets to stave off extinction, the people said, and in early January announced it was exploring strategic options. However, opening up the discussion to include liquidators gives Forever 21 the option to use those proceeds to pay back creditors if it can’t find a buyer. Forever 21′s struggles are primarily in its U.S. business. Its intellectual property, such as its brand name, is not up for sale. Brand management firm Authentic Brands Group currently owns Forever 21′s IP, and a separate entity operates the company.
Athletic & Sporting Goods
Nike teams up with Kim Kardashian shapewear brand Skims as it looks to reach more women
Nike has teamed up with Kim Kardashian’s intimates brand Skims to launch a new line of activewear as the legacy sneaker giant looks to win over more women and better compete with Lululemon, Alo Yoga and Vuori, the companies announced. The new brand, dubbed NikeSKIMS, will include apparel, footwear and accessories. It will debut its initial collection this spring, with a global rollout planned for 2026. It is not clear what exactly the products will look like or what items will be included in the initial collection. The only image contained in Nike’s announcement was a graphic of the new brand’s logo. Nike’s partnership with Skims, the buzzy shapewear brand created by Kardashian and Swedish entrepreneur Jens Grede, the brand’s CEO, comes as Nike looks to claw back the market share it has lost to upstart competitors and bring more women into the brand.
Soccer Post management acquires majority stake in Soccer Post
Soccer Post management, led by Chief Executive Officer Blake Sonnek-Schmelz, announced the acquisition of a majority stake in Soccer Post from TZP Group with the financial backing of York Capital Management’s private equity group and soccer specific strategic investors. Financial terms of the transaction were not disclosed. Founded in 1979 and headquartered in Eatontown, New Jersey, Soccer Post is the largest local-market-focused omni-channel soccer specialty retailer with over 60 store locations across the United States. Soccer Post provides a curated selection of soccer apparel, footwear, and gear to captive customers including local soccer clubs, organizations, enthusiasts, athletes and families.
Cosmetics & Pharmacy
Huda Beauty to sell stake in Kayali to General Atlantic (and buy back stake from TSG)
Huda Beauty has announced its intention to sell its share in fragrance brand Kayali to separate the brand from its parent. Kayali face Mona Kattan will partner with General Atlantic to jointly own Kayali post-sale, and to support the brand’s ambitious expansion plans. Following General Atlantic’s investment, Kayali will operate as an independent company. The new partnership will provide the necessary resources and expertise to accelerate the brand’s growth. Mona Kattan will remain in situ as CEO. Huda Beauty plans to use the proceeds from the sale to fully redeem the ownership interest held by TSG Consumer since 2017, returning the brand to full founder ownership.
Anonymous CPG Acquires Wander Beauty
Wander Beauty, the brand launched by Lindsay Ellingson and Divya Gugnani in 2015, has been acquired by the owner of Hilo, Wile Women, Awkward Essentials, Nakey and Ladybird Provisions. Terms of the deal were not disclosed, though it is the largest acquisition Nameless has done to date. Both Ellingson and Gugnani are staying on with the brand, with the latter helping Nameless identify potential acquisition targets as it looks to stake its claim on beauty. Gugnani declined to comment on the brand’s sales but did say, “We’re growing, we’re profitable and we’re in two of the biggest sectors in beauty,” pointing to its hero Baggage Claim eye masks as the top seller.
Sally Beauty Delivers Flat Q4 Sales but Surprises Investors
Sally Beauty’s latest quarterly results showed flat year-on-year sales of US$937.9 million, matching analysts’ estimates but failing to excite with lower-than-anticipated guidance for the next quarter. Despite the modest top-line performance, the company’s stock soared on expectations for continued operational improvements in its salon-focused beauty supply business. While overall sales have stagnated, the improvements in operating margins and free cash flow suggest a more focused approach to profitability. By closing underperforming stores and investing in core, higher-performing locations, Sally Beauty is aiming to improve same-store sales, streamline operations, and optimize its position within the competitive beauty and personal care market.
California Bill Would Ban the Sale of Anti-Ageing Skincare to Children
The next time so-called “Sephora tweens” make a trip to the LVMH-owned retailer, they may need to show some ID. On Tuesday, California Assemblymember Alex Lee introduced a bill that would bar the sale of anti-ageing products with “potent and harsh ingredients” such as retinol, glycolic acid and vitamin C to children under the age of 18. Several brands have sought to get ahead of the backlash to the tween skincare craze. Last year, Kiehl’s launched a campaign aimed at parents letting them know that their products are not suitable for Gen Alpha. Swedish label Mantle requires shoppers to state their age before accessing their site. The bill still has to pass a number of committees. If approved, it will be signed into law by October, with the new restrictions going into effect in 2026.
Discounters & Department Stores
Dollar Tree, Five Below gobble up properties at Party City auction
Discount chains Five Below and Dollar Tree are snapping up former Party City locations amid a tight market for brick-and-mortar retail space. The party supply store auctioned off 250 locations this month as part of its ongoing bankruptcy process, and the dueling discount chains successfully bid on a combined 148 leases, according to CoStar. The rest of the leases went to off-price retailers such as Rack Room Shoes, Books-A-Million, and Burlington Stores, as well as specialty retailers such as Barnes & Noble and La-Z-Boy. The auction preceded the $20 million sale last week of Party City’s intellectual property and wholesale operations to New Amscan, an affiliate of Ad Populum, which sells pop culture goods and costumes globally.
Walmart is getting a bump from a surprising cohort: Wealthier shoppers
Walmart is known for its low prices and no frills approach. So it may come as a surprise that wealthier shoppers are helping to fuel the retailer’s growth. For more than two years, the discounter has noticed more customers with six-figure incomes shopping on its website and in its stores. Households earning more than $100,000 made up 75% of the company’s market share gains in the fiscal third quarter, Walmart CEO Doug McMillon said on the company’s earnings call in November. Those newer and more frequent customers have helped support the company’s aspirations to sell more higher-margin items, such as clothing and home goods.
Neiman Marcus’s Flagship Dallas Store Is Closing After 117 Years
It’s an end of an era for Neiman Marcus. Nearly 120 years after its opening, the luxury department store’s historic Dallas headquarters is shuttering, Saks Global, the new owner of Neiman Marcus, revealed in a statement. The headquarters will be closing its doors for good on March 31. According to the Dallas Morning News, the statement revealed that Neiman Marcus received a notice from its landlord to terminate the occupancy, “forcing” it to close effective immediately. Per an internal memo acquired by the publication, Saks Global Operating Group CEO Marc Metrick told employees that the closing is not a reflection of business performance nor is it tied to the recent acquisition. (Saks completed the $2.7 billion purchase of Neiman Marcus in December 2024.) “From as early as 2011 and as recently as December 2024, there have been several attempts to come to a commercially reasonable agreement with this landlord,” Metrick said in the memo. “All of these attempts have been rejected by the landlord who has now terminated our occupancy.”
Emerging Consumer Companies
Snuggs, menstrual underwear brand, raises $5.2 million
Snuggs, Europe’s leading period underwear brand, has raised $5.2 million in a funding round led by Amsterdam-based investment group TripleB, bringing its total funding to US $12.5 million. The company plans to use the investment to further its mission of making period care more comfortable, sustainable, and accessible by expanding its retail presence, growing its customer base, and establishing premium period underwear as a mainstream alternative to disposable products. Since its launch in 2019, Snuggs has experienced rapid growth, attracting over 700,000 customers and selling more than 3 million products. The brand is now present in nearly 3,000 retail stores, including drugstores and food retailers.
Aura Bora acquired by Next in Natural
Aura Bora, maker of Aura Bora craft sparkling waters, announced that Next In Natural, a Brooklyn-based investment firm, has acquired a majority stake in the company. As part of the transition, Paul Voge, Aura Bora’s CEO, will focus on future product innovation. Jeff Lichtenstein, Next in Natural’s CEO, will serve as Chairman of the Board. Aura Bora was founded by Paul and Madeleine Voge in 2019. The company is an alternative to alcohol and sugar-filled soft drinks in the sparkling water category. In recent years, Aura Bora has also partnered with Graza Olive Oil, Magnolia Bakery, and PF Candle on a variety of innovative product launches.
Borntostandout closes Series A funding round
Borntostandout has closed a Series A funding round led by Touch Capital. L’Oreal’s venture capital arm, BOLD, also participated in the round. Financial terms were not disclosed, but the brand is hoping to benefit from the French beauty giant’s expertise in global brand building. According to a report published by WWD, the Seoul-based luxury fragrance brand will use the investment to grow its offline presence more rapidly, particularly in Europe and the US; it currently has a flagship store in Seoul. Jun Lim, Founder and Managing Director of Borntostandout, told WWD, “Receiving backing from such prominent investors is more than an infusion of capital; it’s powerful validation that fragrances infused with originality are one of life’s greatest luxuries.”
Children-focused plant-based beverage startup valued at $20 million
PlantBaby has closed its series seed equity financing round, led by B2 partners, to expand distribution and continue its R&D efforts in the plant-based milk categories and beyond. Other investors included Big Idea Ventures, Everywhere Ventures, X Factor Ventures, Women’s Equity Lab Silicon Valley, and Babylist. The series seed equity financing round gives the startup a valuation of $20 million. PlantBaby represents the kind of forward-thinking, mission-driven company we look to support at B2 Partners,” said Matt Behrens, founder of B2 Partners. “Their commitment to creating clean, plant-based nutrition solutions aligns perfectly with our belief in backing businesses that prioritize both health and sustainability. We’re proud to contribute to their journey and help them reach even more families in need of innovative nutrition options.” In 2022, the company raised $4 million in seed funding for the development of new plant-based products.
Food & Beverage
Celsius to buy energy drink brand Alani Nutrition in $1.8 billion deal
Celsius Holdings said on Feb 20th that it would buy health and wellness drinks brand Alani Nutrition in a $1.8 billion deal through a combination of cash and stock, boosting its portfolio to build on the growing demand for sports and energy beverages. Alani Nutrition, a female-focused brand that delivers functional beverages and wellness products, was founded in 2018 and will be acquired from its co-founders, Katy and Haydn Schneider, and its operator, Congo Brands, Celsius said. Energy drinks have largely become a popular beverage among the younger population in the U.S. in recent years as more people turn to fitness and lifestyle products, prompting companies to pursue deals in the sector. PepsiCo paid $550 million in 2022 for an 8.5% stake in Celsius.
Coca-Cola enters trendy prebiotic soda market with Simply Pop
Coca-Cola is making its first foray into the prebiotic soda market with the launch of Simply Pop. The beverage will be in retail stores in select regions and online nationwide through Amazon Fresh later this month. The beverage, which will be available in Strawberry, Pineapple Mango, Fruit Punch, Lime, and Citrus Punch flavors, contains six grams of fiber for gut health, plus Vitamin C and zinc for immunity support. Better-for-you sodas have surged in popularity as consumers cut back on sugar consumption while turning to functional beverages that provide them with more than hydration.
General Mills reins in outlook
General Mills Inc. expects a slowdown in reaping the benefits of its Accelerate growth strategy, top executives said at the Consumer Analyst Group of New York (CAGNY) annual conference in Orlando. “I’m pleased with how we’ve executed on our Accelerate strategy since its launch five years ago, and I’m proud of the strong financial results we’ve delivered during that time,” Jeffrey Harmening, chairman and chief executive officer of Minneapolis-based General Mills, said on Feb 18th. “Between fiscal 2019 and fiscal 2024, we generated compound annual growth of 5% in organic net sales, 5% in constant currency adjusted operating profit, and 7% in constant currency adjusted diluted EPS, all of which were in line or ahead of our long-term goals. In its presentation at the event, General Mills forecasted organic net sales growth of 2% to 3% under its long-term algorithm, with adjusted operating profit rising by mid-single digits and adjusted diluted earnings per share (EPS) increasing by mid-to-high single digits in constant currency.
Advent International, a leading global private equity investor, announced that it has signed a definitive agreement to acquire Sauer Brands Inc, a scaled platform of leading condiments and seasonings brands, from Falfurrias Capital Partners. Terms of the transaction were not disclosed. Sauer Brands is a portfolio of leading brands, including Duke’s Mayo, Mateo’s Gourmet Salsa, and Kernel Season’s, among others. The Company is best known for Duke’s Mayo, a beloved mayonnaise brand with a rich history dating back to its founding in 1917. Today, Duke’s is the fastest-growing scaled player in the mayo category and the seventh fastest-growing brand in the center-of-store.
Grocery & Restaurants
Hooters is reportedly preparing a bankruptcy filing
Hooters of America is getting ready to file for bankruptcy in the coming months, according to a Bloomberg report. The 293-unit casual-dining chain operator has hired law firm Ropes & Gray to prepare a filing, though the plans are not final, Bloomberg said, citing sources with knowledge of the situation. There have been signs that the chain, known for its chicken wings and scantily clad waitresses, has been struggling financially. In September, credit rating agency KBRA downgraded two tranches of securities issued by Hooters, citing revenue declines at its restaurants.
RBI buys out Burger King China for $158M
Restaurant Brands International Inc., parent to the Burger King quick-service brand and others, has acquired from TFI Asia Holdings BV and Cartesian’s Pangaea Two Acquisition Holdings XXIII Ltd. all their equity interests in Burger King China for about $158 million in an all-cash transaction. Toronto-based RBI now owns nearly 100% of the China business and will engage advisers to identify a new local partner to inject primary capital and become the controlling shareholder. The company said the move aligns with RBI’s long-term strategy of partnering with local operators while maintaining a primarily franchised business.
Home & Road
La-Z-Boy results buoyed by broad-based sales gains in Q3
With revenue growth in both its retail and wholesale divisions, La-Z-Boy reported $522 million in consolidated sales for the third quarter ended Jan. 25, up 4% year-over-year. The gain was primarily driven by strong same-store sales, acquisitions and new stores in the company’s retail business, momentum in the core North America La-Z-Boy wholesale brand and healthy sales growth in the Joybird business. “Our third quarter results reflect the steady progress we have made to build a more agile business, create our own momentum, and drive growth in what is still a challenged environment,” said Melinda Whittington, board chair, president and CEO. She noted that the company saw year-over-year improvements in conversion rates, average ticket and design sales during the quarter.
Kirkland’s finalizes deal that will return Bed Bath & Beyond to physical retail
Kirkland’s Inc. has finalized its $25 million investment from Beyond, parent company of Bed, Bath & Beyond, Overstock and Zulily. At a special Kirkland’s shareholders meeting, 97% of the votes were cast in favor of the proposal to issue common stock shares pursuant to its term loan credit agreement and subscription agreement with Beyond. Following the meeting, Beyond completed an $8 million equity purchase under the subscription agreement and the mandatory conversion of an $8.5 million convertible term loan as part of the term loan credit agreement. With the completion of the transaction, Beyond has now provided Kirkland’s with a total of $25 million of capital and now owns approximately 40% of Kirkland’s outstanding shares of common stock. As part of the deal, which was announced in October, Kirkland’s will become Beyond’s exclusive brick-and-mortar operator and licensee for new, smaller-format “neighborhood” Bed Bath & Beyond locations nationwide. The first Bed Bath & Beyond store is expected to open later this year, Kirkland’s CEO Amy Sullivan said in a release announcing the finalization of the transaction.
Jewelry & Luxury
1686 Partners invests in luxury eyewear brand Ahlem to drive global expansion
Ahlem, the Los Angeles-based luxury eyewear brand, has secured its first external investment from Luxembourg-based private equity firm 1686 Partners. The firm, which specializes in purpose-driven lifestyle companies, will support Ahlem’s global growth by enhancing its retail footprint, client services, wholesale operations, marketing, and production capacity. While the financial details of the transaction remain undisclosed, Ahlem stated that the partnership marks a new era of expansion while maintaining the brand’s core values and commitment to craftsmanship. The investment follows the appointment of luxury eyewear veteran Enrico Sanavia as Ahlem’s global CEO in January. Previously at Thelios, LVMH’s eyewear division, Sanavia has been tasked with doubling the company’s business within three years and solidifying its position as a leading name in high-end eyewear. Founded in 2014, Ahlem has built a reputation for timeless, handcrafted frames and a strong sustainability ethos.
OTB reports 2024 sales drop despite gains at key brands
The OTB Group reported 2024 net sales of 1.7 billion euros, or about $1.78 billion, a nearly 5% decrease year over year, according to a press release on Feb 18. The decrease contrasts with the company’s 2023 financial results, which saw 9% sales growth compared to the prior year. The Diesel and Maison Margiela holding company attributed the 2024 downturn to an industry-wide slowdown in the wholesale channel. The company is focused on expanding its DTC channel by opening 61 new stores and saw the segment’s revenue increase 7.4% at constant exchange rates year over year.
Prada Works With Advisers to Evaluate Possible Versace Bid
Prada is working with advisers to evaluate the Versace brand as it weighs a bid for the Italian fashion company owned by Capri Holdings Ltd. Milan-based Prada, a rare standout amid the luxury sector’s recent downturn, has kicked off a full review of Versace after gaining access to its latest financial and sales figures, people familiar with the matter said. Shares of Capri rose as much as 7.5% in premarket trading in New York on Feb 19th. Prada is evaluating a possible bid, said the people, asking not to be identified discussing private deliberations, adding there is no guarantee that the review would result in any formal offer. Prada declined to comment. Capri didn’t respond to requests for comments outside business hours.
Office & Leisure
Who bought Joann? New ownership group is partnership between GA Group, Joann lenders
A winner in the auction of Joann was announced at about 6:20 p.m. Feb 22nd. Winning bidder GA Joann Retail Partnership is a partnership between financial services company GA Group and Joann’s term lenders, an attorney for Joann said. Term loans are payments of lump upfront cash sums to borrowers who agree to specific terms, such as following a repayment schedule that includes interest payments, according to Investopedia. Scott Carpenter, CEO of GA Group’s Retail Solutions and Wholesale & Industrial Solutions teams, said Saturday evening that most closing Joann stores will remain open until the end of May. As for Joann employees, Carpenter said new ownership will roll out a “multimillion-dollar retention plan,” grant time off to employees who need to interview for other jobs and try to organize job fairs.
Michaels names Staples Canada vet CEO
On Feb 18th, Michaels named Staples Canada veteran David Boone its new CEO, effective Feb 28. Boone arrives from e-commerce and third-party logistics company Essendant, where he is serving as interim CEO. Boone, who will also join the company’s board of directors, succeeds Ashley Buchanan, who stepped down from Michaels in January to become CEO of Kohl’s. Boone takes over from an interim office of the CEO team that consists of Michaels’ president, chief financial officer, and chief merchant. That three-person team has led the privately held company’s daily operations since mid-January.
Niantic reportedly in talks to sell video game business in $3.5bn deal with Scopely
Pokémon Go developer Niantic is reportedly considering selling its video game portfolio to Savvy Games Group subsidiary Scopely. While the deal has yet to be confirmed, Bloomberg claims the sale may include Niantic’s tent-pole augmented reality game, Pokémon Go. If completed, the deal could be worth as much as $3.5 billion and announced formally within a matter of weeks. Scopely was acquired by Saudi Arabian multinational game investment group Savvy Games Group back in July 2023 for $4.9 billion. Last month, the company appointed Nika Nour as SVP and head of international business development.
Tariffs could cause price hikes in toys, Hasbro CEO warns
Hasbro shares climbed on Feb 20th after the board game and toy maker reported fourth-quarter earnings results that beat top and bottom line estimates. The upward stock move comes despite a weaker-than-expected forecast due to potential tariff impacts. Hasbro CEO Chris Cocks said the company would “like to minimize” the impact of tariffs, explaining, “The toy industry in general thrives on sub-$10 and sub-$20 price points. A company like Hasbro has been working very hard to take costs out of our mix and push more value into the channel.”
Technology & Internet
Amazon surpasses Walmart in revenue for the first time
Amazon has dethroned Walmart in quarterly revenue for the first time ever. Amazon said earlier this month that it brought in $187.8 billion in revenue during the fourth quarter. That beat Walmart’s sales for the period, which came in at $180.5 billion, the company reported on Thursday. Since 2012, Walmart has held the distinction of being the top revenue generator each quarter, a title it gained after overtaking oil giant Exxon Mobil. Walmart still leads the way in annual sales, though Amazon is gaining ground. Walmart is projected to reel in $708.7 billion in the fiscal year ahead while Amazon’s full-year revenue for 2025 is expected to reach $700.8 billion, according to FactSet. Amazon’s core retail unit remains its biggest revenue generator, but its top line is also being fueled by its massive cloud computing, advertising and seller services businesses. Third-party seller services, which includes commissions and fees collected by Amazon on fulfillment and shipping, advertising and customer support, accounted for 24.5% of the company’s total sales last year. Amazon Web Services was responsible for nearly 17%.
Etsy stock tumbles on revenue miss, company reports drop in goods sold
Etsy missed on revenue and gross merchandise sales for the fourth quarter, with the company citing “significant headwinds,” including a pullback in consumer spending. Gross merchandise sales, or the total volume of goods sold on the platform, came in at $3.74 billion, a decline of 6.8% year over year. Wall Street had forecast fourth-quarter GMS of $3.8 billion, according to analysts surveyed by FactSet. The fourth quarter includes the holiday shopping period. Etsy said the GMS slump was a result of “pressure on consumer discretionary product spending,” tough comparisons due to the shortened holiday shopping season and “category mix,” as well as a competitive retail and marketing environment. Etsy operates an online marketplace that connects buyers and sellers with mostly artisan and handcrafted goods. The company has been working to strengthen its image as a destination for unique gifts and products as it combats a fiercely competitive e-commerce market dominated by Amazon and, more recently, Chinese online retailers Temu, Shein and TikTok Shop.
Finance & Economy
Mortgage rates stay below 7% for fifth straight week
Mortgage rates ticked down slightly again this week during a quieter period for economic data releases. The average 30-year fixed-rate mortgage was 6.85% this week through Feb 19th, according to Freddie Mac data, compared with 6.87% a week earlier. The average 15-year mortgage rate was 6.04%, down from 6.09%. Financial markets largely brushed off hotter-than-expected inflation data released last week, and there were no major releases this week to change investors’ thinking on the path of inflation and the Fed’s rate cuts. Despite some daily fluctuations, 10-year Treasury yields — which closely track mortgage rates, are little changed from a week ago at around 4.5%.
Fed’s Bostic Sees Two Cuts in 2025 Amid Uncertain Outlook
Federal Reserve Bank of Atlanta President Raphael Bostic said he expects the US central bank will lower interest rates twice in 2025, though uncertainty around that projection has risen. “While that’s my baseline expectation, there’s a lot that is going to happen that could influence that really in both directions,” Bostic said on a Feb 20th call with reporters. In an essay also released Feb 20th, Bostic wrote that monetary policy was well positioned for the moment, but he cautioned that officials must remain vigilant amid heightened policy uncertainty that could affect the labor market and inflation.
US labor market stable; hit from federal government belt tightening awaited
The number of Americans filing new applications for unemployment benefits increased moderately last week, suggesting that the labor market remained on solid ground in February. There were no signs yet in the report from the Labor Department of the mass layoffs of federal government workers and deep spending cuts being pursued by Republican President Donald Trump’s administration impacting the economy. Economists, who expect a spillover to the private sector, said it was too early for the negative effects to be felt. Thousands of federal government workers from scientists to park rangers, mostly those on probation, have been fired in recent days by billionaire Elon Musk’s Department of Government Efficiency, or DOGE – an entity created by Trump.
