Apparel & Footwear

Skechers to go private in $9.4B deal

Skechers has agreed to be acquired by 3G Capital and will cease trading on the New York Stock Exchange upon completion of the deal, according to a press release on May 5th. 3G Capital will acquire the footwear brand for $63 per share in cash, per the release. The purchase price implies an enterprise value of about $9.4 billion, according to an Evercore analysis, which also called the transaction one of the largest privatization deals in the softlines industry in years. Skechers will continue to be led by Chairman and CEO Robert Greenberg, President Michael Greenberg, and COO David Weinberg, per the release. The deal is expected to close in the third quarter.

Warby Parker posts first quarterly net profit since going public

As the company works to mitigate exposure to increased tariffs, Warby Parker’s first-quarter net revenue increased nearly 12% year over year to $223.8 million, according to a company press release on May 8th. Active customers jumped 8.7% to 2.57 million on a trailing 12-month basis. The direct-to-consumer company reported its first positive quarterly net income as a public company, generating $3.5 million compared to a loss of about $2.7 million in Q1 2024. It also opened 11 net new stores, ending the quarter with 287 locations in total. Warby Parker lowered its 2025 full-year guidance, now expecting net revenue from $869 million to $886 million. The company previously expected a range from $878 million to $893 million.

Saucony and Merrell See Double-Digit Growth in Q1 as Turnaround Takes Hold at Wolverine Worldwide

Shares for Wolverine Worldwide were up nearly 7 percent in morning trading on May 8th after the company’s Saucony and Merrell brands both posted double-digit growth in the first quarter. The Rockford, Mich.-based footwear company said total revenue in the first quarter of 2025 was $412.3 million, up 4.4 percent from $394.9 million the same time last year. Ongoing total revenue in Q1, which excludes the results of the Sperry business sold in January 2024, was also $412.3 million. This represents an increase of 5.5 percent from $390.8 million in the prior year period. By brand, Merrell and Saucony led the way in Q1 in terms of growth. At Merrell, net sales in the period were $150.6 million, a 13.2 percent increase from $133.0 million the prior year. At Saucony, net sales were $129.8 million, a 29.6 percent increase from $100.1 million a year ago.

VF lays off about 400 employees

VF Corp. has laid off about 400 employees globally, a company spokesperson confirmed to Fashion Dive. The cuts over the past few months impacted employees across the company’s brand portfolio and regions. They are part of the Vans owner’s turnaround plan, per the spokesperson. “VF has been working to reorganize select commercial functions globally,” the spokesperson said in an email.  This new round of layoffs is in addition to previously announced job cuts in January and job cuts at a VF subsidiary in November. “While these decisions are never easy, we are confident this work will result in a stronger foundation that supports the company’s growth and value creation objectives,” the spokesperson added.

Crocs Beats Q1 Forecasts, Withdraws Guidance on Tariff Uncertainty

Crocs Inc. bested Wall Street’s first quarter expectations, but its Hey Dude brand continues to struggle. “Both our Crocs and Hey Dude brands contributed to the outperformance with gross margins, operating margins, adjusted earnings per share, and cash flow coming in above plan,” said CEO Andrew Rees in a statement. He added that the company is “pleased by the performance of our overall business in April,” but that the new global trade environment has created business and consumer uncertainty that makes it challenging to predict how shoppers will respond in the future. But he also emphasized that the company has a “proven track record of coming out of periods of uncertainty stronger than when we entered them.”

Athletic & Sporting Goods

DICK’s Sporting Goods Leads $120 Million Investment In Unrivaled Sports

Unrivaled Sports, a youth athletics holding company co-founded by billionaires and professional team owners David Blitzer and Josh Harris, has raised $120 million to expand its presence in venues, leagues and competitions in baseball, flag football and other sports.  DICK’s Sporting Goods led the latest round, investing in Unrivaled through DSG Ventures, the company’s venture capital fund that it formed in 2022.  Unrivaled CEO Andy Campion would not disclose the company’s valuation following the $120 million round, but he noted that it represents a minority stake in the firm. As such, Unrivaled is valued at more than $240 million

Pro Padel League raises $10M seed round as it prepares for second full season

Pro Padel League, a North America-based padel league preparing for its second full season in 2025, has raised a $10M seed round led by Left Lane Capital and with investment from Kactus Capital, Gary Vaynerchuk, Epic Padel and the family office of H.I.G. Capital founder Tony Tamer.  With the funds, PPL hopes to fuel growth by raising player incentives, expanding its calendar of events and hiring several open executive positions, including CRO, CFO and commissioner.  Dorfman estimates the U.S. has 100,000 padel players and 500 padel courts — fractions of the sport’s global footprint (30 million players and 63,000 courts, per a report published by the International Padel Federation last year). But in the view of PPL leadership, the league’s inaugural season provided enough proof of demand in the region to ramp up its efforts.

Cosmetics & Pharmacy

Auréa Invests in Persimmon Life, a Pioneer in At-Home Medical Aesthetics

The Auréa Group, a specialist private equity firm focused on beauty, wellness, and longevity, announced its investment in Persimmon Life, a tech-enabled services company redefining access to medical aesthetics. Founded in 2022 by Mark Hadfield and Matthew Bartlett, Persimmon is the first mover in at-home medical aesthetics, allowing customers to book certified nurses for treatments such as Botox injections via its proprietary digital platform. In a market traditionally dominated by brick-and-mortar med spas, Persimmon stands apart by offering a more convenient, customer-centric approach to trusted, professional care. Since launch, the business has expanded its offering to include appointments at providers’ homes and partner locations, alongside an increasingly broad range of treatments.

Wonderskin Closes $50M Series A Round to Accelerate Retail Expansion and Product Innovation

Wonderskin, the innovative beauty brand behind TikTok’s viral peel-off Wonder Blading Lip Stain Masque and many other award-winning, disruptive, tech-infused cosmetic products, has secured a $50 million minority investment in its Series A funding round. The round was led by Insight Partners, a top-tier global venture capital and private equity firm known for backing high-growth companies, including Shopify, Quince, Prose, The Farmer’s Dog, and more. This investment marks a pivotal step in Wonderskin’s next chapter, enabling it to accelerate retail expansion and product innovation. The brand continues to disrupt traditional beauty models with a social-first mindset, out-of-the-box marketing, and a relentless focus on technology-driven performance. With headquarters in London, an in-house lab, and a majority of manufacturing based in the United States, Wonderskin continues to set a new standard for performance-led innovation in beauty.

Keystone Capital invests in Penta Fine Ingredients to support growth in fragrance sector

Private equity firm Keystone Capital has acquired a stake in Penta Fine Ingredients, a long-established supplier of specialty ingredients used in the fragrance, flavors, and personal care industries. Based in New Jersey, Penta Fine Ingredients supplies a broad portfolio of intermediate and specialty ingredients to global manufacturers and distributors. While the company serves multiple sectors, including pharmaceuticals, its materials are widely used in the development and production of fragrances and personal care products. As part of the investment, Keystone has appointed industry veteran Mike Size as CEO. Size previously held senior roles at companies including Mane Flavors and Givaudan, key players in fragrance and ingredient development.

Rite Aid pursuing a sale, files second bankruptcy proceedings

Rite Aid reportedly intends to file for bankruptcy protection for the second time in two years, and is also planning to cut jobs, per a Bloomberg News report on May 5, which cited an internal letter sent to employees. Rite Aid was unable to secure additional capital from lenders that was needed to continue operating the business, the report said, citing a letter from CEO Matthew Schroeder. The letter states that Rite Aid intends to reduce its workforce at its corporate offices in Pennsylvania, per the report. Following Bloomberg’s report, Rite Aid issued a press statement, which said that Rite Aid announced that it is pursuing a strategic and value-maximizing sale process for substantially all of its assets. To facilitate this process, the company and its subsidiaries commenced voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of New Jersey.

Discounters & Department Stores

Walmart Debuts Store of the Future in Texas

Walmart has opened a supercenter location in Cypress, Texas, which is its first ground-up supercenter in four years and its first new-construction “store of the future” in the US. Walmart plans to build or convert more than 150 stores to its new superstore model over the next several years. In addition, in 2025 the Company plans to open new supercenters in Frisco and Melissa, Texas; Eagle Mountain, Utah, and Eastvale, California. Neighborhood markets will debut in Tuscaloosa, Alabama; Milton, Florida; and Pace, Florida, while stores in Mountain View, California and East Windsor, New Jersey will be converted into full supercenters. Designed to make shopping faster, easier, and more connected, the Cypress supercenter features reimagined layouts, expanded services, and in-store technology.

Family Dollar, Uber Eats launch delivery partnership

A new discount retailer has joined the Uber Eats platform. More than 5,000 Family Dollar locations are now live on Uber Eats across the United States. Customers can shop for a wide variety of everyday items, including cleaning supplies, pantry staples, beauty products, baby care items, and more, delivered directly to their door, on-demand or scheduled. “By partnering with Uber Eats, it’s now even easier to access essentials from the comfort of home,” said Bonita Price, chief merchandising officer for Family Dollar. “Expanded access at an incredible value goes a long way in helping our customers save time and do more, especially in underserved communities.” Uber says the new partnership marks a milestone for the company’s mission to make everyday essentials “more accessible and affordable.”

Emerging Consumer Companies

Cleancult raises $5 million, launches nationwide at Target

Clean Cult, the first company to package cleaning products in paper-based cartons, announced its nationwide launch in as many as 1,800 Target stores and on Target.com, alongside the close of a $5 million Series B extension. Together, the milestones mark a pivotal moment in Clean Cult’s rapid growth—bringing its refillable, low-waste system to millions of households while fueling the next phase of national expansion. Clean Cult’s Target launch includes 17 SKUs across hand soap, dish soap, laundry detergent, and all-purpose cleaner—featuring its patented paper-based cartons, first-to-market aluminum spray bottles, multi-enzyme sheets, and more. In tandem with the launch, Clean Cult is debuting three new signature scents—Pink Grapefruit, Water Blossom, and Fresh Rain—crafted to complement the refined packaging and enhance the feel of each room in the home. Launched in 2019, Clean Cult is tackling the cleaning industry’s biggest mess – plastic waste.

Meati to sell for $4 million after raising $450 million

Boulder-based alternative protein startup Meati is preparing to sell its business for $4 million, despite having raised nearly $450 million in funding. The company disclosed the planned sale in filings submitted to the Adams County District Court last Friday. Meati CEO Phil Graves assigned the company’s assets to attorney Aaron Garber, who filed a request seeking permission for the buyer—identified only as Meati Holdings Inc.—to take over operations prior to the deal’s closure. Further details about the buyer have not been made public. Garber stated in the filings that selling the company as a whole, rather than liquidating its assets, would provide the best outcome for creditors and reduce broader financial fallout. As of last week, a judge had not yet ruled on the request.

Food & Beverage

Beyond Meat secures $100M to pay down debt as plant-based sales suffer

Beyond Meat raised $100 million from a plant-based nonprofit, providing the alternative meat company with much-needed cash as it struggles with declining sales, distribution hiccups, and a dimmed consumer outlook. Unprocessed Foods will provide the debt financing loan in exchange for the right to purchase up to 12.5% of Beyond’s shares. Unprocessed is an affiliate of Ahimsa Foundation, which focuses “on advocating for plant-based diets,” Beyond said in a statement. The loan comes as Beyond reported a “disappointing” first quarter, according to founder and CEO Ethan Brown, with U.S. retail sales falling 15.4% to $31.4 million and product volume slumping 23.3%. The California company noted declining consumer confidence and other headwinds, including lost distribution at retailers, contributed to a $1.1 million loss during the period.

Hain Celestial CEO exits as Sleepytime tea maker conducts portfolio review

Hain Celestial is searching for a new CEO after Wendy Davidson left the company after just over two years in the top role. Alison Lewis, who joined the board in September, is serving as interim president and CEO. The natural and organic food and beverage maker, known for Terra Chips and its Celestial Seasonings teas, also announced a “comprehensive review” of its portfolio as it considers “a broad range of strategic options to enhance value.” Despite its presence in healthier foods and beverages, Hain has struggled with falling revenue and mounting losses. The New Jersey company posted a net loss of $135 million during its most recent quarter, with sales down 11% compared to a year ago, due to a “worse-than-expected performance” in North America.

WK Kellogg cites tariffs, weak Q1 in guidance cut

Tariffs and a weaker-than-anticipated first quarter led cereal maker WK Kellogg Co to lower its outlook for fiscal 2025. “We are in a challenging operating environment, and the business did not perform as we had expected when we entered the year,” Gary Pilnick, chairman and chief executive officer, said in reporting first-quarter results. “We have revised our outlook for the year accordingly.” Battle Creek-based WK Kellogg cut its guidance for both organic net sales and adjusted EBITDA. Fiscal 2025 organic sales are now projected to decline 2% to 3%, down from the previous forecast of 1%. The estimate for adjusted EBITDA was reduced even more, to a decrease of 2% to flat from the prior outlook for growth of 4% to 6%.

Grocery & Restaurants

Wonder, food-hall inspired concept from Marc Lore, raises $600 million

Wonder has secured $600 million in funding to support its ongoing growth. The food hall company, which completed its acquisition of Grubhub for $650 million about four months ago, is now valued at over $7 billion. The company received participation from existing shareholders led by New Enterprise Associates, Accel, Google Ventures and Forerunner, as well as additional funds from strategic investors including Amex Ventures. The company will use the money to ramp up the expansion of its food hall locations, aiming to grow from 46 locations to over 90 by the end of the year, at a rate of opening one per week. It will target expansion in the Northeast with additional plans for Philadelphia and Washington, D.C. The company creates food halls that feature about 30 restaurants with cuisine from chefs like Bobby Flay, Jose Andres, Nancy Silverton and Marcus Samuelsson. The food halls offer dine-in, takeout and delivery, and typically fulfills delivery orders within 30 minutes.

Restaurant Brands Earnings Miss as Burger King, Popeyes, and Tim Hortons Post Same-Store Sales Declines

Restaurant Brands International on Thursday reported quarterly earnings and revenue that missed analysts’ expectations as same-store sales of Popeyes, Burger King and Tim Hortons declined. But the restaurant company is seeing sales turn around already. “As we come into [the second quarter], that momentum has improved meaningfully, so we’re seeing some better absolute results as we get into the second quarter that give us confidence in how we’re going to navigate the rest of the year,” CEO Josh Kobza told CNBC. Net sales climbed 21% to $2.11 billion, fueled by higher revenue from Popeyes and Firehouse Subs.

Home & Road

Mattress Warehouse surpasses 500 stores with new acquisition

Mattress Warehouse has reached its goal to have more than 500 store locations in the U.S. by closing on the acquisition of 176 new store locations. The specialty sleep retailer struck a deal with the former Tempur Sealy International (now known as Somnigroup International) as part of the conglomerate’s divestiture of stores ahead of its multi-billion dollar acquisition of Mattress Firm. Mattress Warehouse picked up 73 former Mattress Firm stores and 103 Sleep Outfitters stores taking the retailer’s store count beyond the 500 locations. The company has said for the past several years that its goal was to surpass the 500-store mark. In addition to the acquisition of the stores, the deal included seven distribution centers, and corporate offices in Lexington, Ky. Mattress Warehouse did not disclose terms of the deal. Mattress Warehouse has been in expansion mode opening new stores in new markets at breakneck speed, sometimes opening multiple stores on the same day. The new stores expand Mattress Warehouse’s footprint from New Hampshire to southern Florida and westward to Chicago and Milwaukee.

Ethan Allen’s sales and profit fall but margins hold steady in Q3

Top 100 retailer Ethan Allen reported a low single-digit decline in Q3 net sales and a much steeper drop-off in net income. Consolidated net sales dipped 2.5% to $142.7 million for the quarter ended March 31. Wholesale net sales climbed 10.2% to $99 million. That upswing was offset a 4.01% decline in retail net sales, which rang in at $117.6 million. Written orders fell back in both the wholesale segment (down 11.2%) and the retail segment (down 13.0%). Although bottom-line results contracted during the quarter, consolidated gross margin held fairly steady at 61.2% compared with 61.3% in the prior-year quarter. Farooq Kathwari, Ethan Allen‘s chairman, president and CEO, pointed to gross margin as a positive sign – along with the company’s positive operating cash flow, lack of outstanding debt and cash/investments of $183.9 million. “These results reflect our ability to operate in an industry faced with reciprocal and retaliatory tariffs, uncertainty in the economy, elevated interest rates and a challenging housing market, that together, have impacted consumer confidence and interest in the home,” he said.

Revenues up for growth-minded Arhaus in Q1

In its first quarter earnings results for fiscal year 2025, Top 100 retailer Arhaus reported an increase in net revenues for the three months ended March 31. For the quarter, the Boston Heights, Ohio-based retailer totaled $311.37 million in net revenues, a 5.5% increase vs. $295.16 million over the same three-month span in 2024. Net income for the quarter totaled $4.88 million, or three cents per diluted share, a decrease of 67.7% matched up with Q1 ‘24’s $15.01 million in net income, or 11 cents per diluted share. “We’re pleased with our first quarter performance, which met our expectations despite continued macroeconomic volatility — underscoring the strength of our brand and the resilience of our business model,” said John Reed, co-founder and CEO. With tariffs in mind, Arhaus revised its full year guidance to reflect the landscape. It now projects net revenues of $1.29 billion to $1.38 billion, down from its previous expectations of $1.36 billion to $1.4 billion. Net income expectations were revised to $48 million to $68 million, down from the $63 million to $73 million range.

Jewelry & Luxury

Hugo Boss beats expectations with 2% revenue decline

Hugo Boss group sales fell 2% in the first quarter of 2025 to 999 million euros, or about $1.1 billion, according to a May 5th earnings release. The company attributed the decline in part to increased global macroeconomic uncertainties, particularly in China, and a notable deterioration in U.S. consumer spending. Brick-and-mortar retail revenue fell 4% to 473 million euros year-over-year, and wholesale revenue was down 3% to 296 million euros for the period. Digital sales rose 5% to 204 million euros, and licensing sales, which include fragrances, watches, and eyewear, jumped 10% to 20 million euros. The company’s Boss menswear brand posted a 1% year-over-year revenue decline to 766 million euros, while Boss womenswear remained flat at 70 million euros, and Hugo brand revenue fell 2% to 163 million euros for the quarter.

De Beers to shut down its lab-grown diamond jewellery brand Lightbox

De Beers plans to shut down its lab-grown diamond jewellery brand, Lightbox, and focus on natural diamonds, it said on May 8th, as the company battles weak diamond prices due to low demand and tariff uncertainties. “As part of the closure process, De Beers is discussing the sale of certain assets, including inventory, with potential buyers,” the company said. De Beers began selling synthetic stones for jewellery in September 2018, reversing a decades-old policy of selling them for industrial use only. In June last year, it said it would stop producing lab-grown diamonds for the Lightbox brand to focus on natural diamonds, which fetch much higher prices. De Beers, owned by miner Anglo American, has been looking to streamline its business and reduce costs as it moves towards becoming a standalone company.

Hermès Hikes Prices in the U.S.

As the business world adjusts to the Trump administration’s tariffs, Hermès International has followed through with the price increases promised during its most recent round of financial results. Bernstein analysts examined prices on the brand’s U.S. website across women’s bags, jewelry, ready-to-wear, silks and accessories, watches, fragrances, makeup and home, concluding that prices have been bumped up an average of 4 to 5 percent across the board. “These will likely cover for a worst-case scenario of 10 percent tariffs and compensate for the recent weakening of the U.S. dollar against the euro,” Bernstein analyst Luca Solca wrote in a report this week.

Pandora Posts Strong Q1, Plans for Tariffs

Pandora started off its fiscal year on a high note, reporting revenue growth that the company attributed to its Valentine’s Day performance and star-studded marketing campaigns. On a May 7th earnings call, the jewelry company also shared details about its expansion plans and the potential effects of tariffs on its business. First-quarter revenue was up 8 percent year-over-year at actual exchange rates (7 percent on an organic basis) to 7.35 billion Danish kroner ($1.12 billion), with like-for-like sales growth of 6 percent. “We are pleased with how we’ve started the year, especially given the very high volatility in the world around us. We do not control the external factors, but we do control how we execute on an already proven strategy that is growing our business,” Pandora CEO Alexander Lacik said in a statement.

Office & Leisure

GameStop Canada Rebrands as EB Games Under New Ownership

Entrepreneur Stephan Tetrault has acquired Electronic Boutique Canada. Known as GameStop Canada, stores will rebrand as EB Games Canada and offer Canadian gamers a customer-focused experience.  Canadians know EB Games as a beloved and iconic name foundational to their early gaming experiences. “This is about bringing something back that Canadians truly loved,” says Tetrault, owner and CEO. EB Games was rebranded to GameStop Canada in 2021. “We’re building more than a store, we’re building a cultural cornerstone.”  More than 185 stores will transition over the coming months, with new branding, updated digital platforms, and a relaunch strategy.

Great Rail Journeys acquired by Vitruvian

Great Rail Journeys, a leading provider of picturesque luxury tours through the Tuscany hills and along the Amalfi coast, has been acquired by Vitruvian Partners in a buyout valued at more than £200 million.  The tour operator, which offers escorted holidays worldwide, was previously acquired by the private equity firm Duke Street Capital in 2018 for about £100 million.  Under Duke Street’s ownership, the operator focused on expansion in the US market and its total sales have grown from £88 million in the 2018 financial year to £175 million this year.  Based in York, a city known for its rich railway heritage, Great Rail Journeys was initially a family-run business founded in 1973. Its expansion has led to the company offering a range of 400 itineraries, including boat tours, in more than 40 countries globally.

Nite Ize Acquires Orange Screw

Nite Ize, a leading manufacturer of innovative solution-based outdoor and everyday carry products, announced its acquisition of Orange Screw. The company is known for its proprietary design of ground anchors for various outdoor applications, including securing tents, canopies, landscape elements, and anchoring other items during outdoor activities.  Orange Screw is a family-owned company based in Bingen, Washington, in the heart of the Columbia River Gorge. Founded in 2015 by outdoor enthusiasts, the company designs and manufactures high-performance ground anchors that stand up to the elements, especially wind.  Founded in 1989 and headquartered in Boulder, Colorado, Nite Ize designs, manufactures, and globally distributes innovative, inventor-driven products that creatively solve everyday challenges. Nite Ize offers more than 500 products across various channels.

Technology & Internet

Amazon adds pet prescriptions, expanding online pharmacy offerings

Amazon said Thursday that it’s allowing pet owners to order prescriptions online for their dogs and cats through a partnership with online pet pharmacy Vetsource. In a blog post, Amazon said it has added “hundreds of commonly prescribed pet medications” to its U.S. site, ranging from flea and tick solutions to treatments for chronic conditions. Prescriptions are purchased via Amazon’s storefront and must be approved by a veterinarian. Amazon launched a digital drugstore in 2020 with the added perk of discounts and free delivery for Prime members. The new pet medication offerings put Amazon into more direct competition with online pet pharmacy Chewy, as well as Walmart, which offers pet prescription delivery.

Shopify Stock Slips on Light Guidance, Company Notes Tariff ‘Uncertainty’

Shopify posted mixed first-quarter results and issued soft guidance for the current period. For the second quarter, Shopify said it expects gross profit to grow at a high-teens percentage rate, while analysts had forecast a rate of 20.1%, according to StreetAccount. The company expects revenue to expand at a mid-20s percentage rate compared with a year earlier. Wall Street had forecast roughly 22% growth. Shopify sells software for merchants who run online businesses as well as services such as advertising and payment processing tools. Many of Shopify’s merchants are small- to medium-sized businesses, giving it some exposure to President Donald Trump’s sweeping tariffs on Chinese imports, which total 145%. As part of Trump’s tariffs, the president last week closed a trade loophole favorable to many online businesses that allowed shipments from China under $800 to enter the U.S. duty-free.

Pinterest Shares Rise 15% on Better-Than-Expected Guidance

Pinterest shares rose 15% in extended trading Thursday after the company reported first-quarter earnings and provided better-than-expected guidance. The social media company said second-quarter sales should come in the range of $960 million to $980 million, which at the midpoint is higher than analysts expectations of $966 million. Pinterest had 570 million monthly active users in the first quarter, ahead of Wall Street estimates of 565 million. First quarter sales stemming from the U.S. and Canada came in at $663 million, missing analysts estimates of $664 million. Its first-quarter Europe revenue was $147 million, topping analysts projections of $141 million. Pinterest logged $172 million in first quarter adjusted earnings before interest, taxes, depreciation and amortization, or EBIDTA, which was higher than the $164 million that Wall Street was expecting. First quarter EBIDTA margin was 20% compared to analysts expectations of 19.4%. Pinterest’s finance chief Julia Brau Donnelly told analysts during an earnings call that while the company is “not immune to the macro environment,” executives are optimistic about its advertising products and that its overall business is healthy.

Finance & Economy

Trump hails framework of U.K. trade deal, but 10% tariffs will remain on some items

On May 8th, President Trump announced the broad terms of a trade deal with Britain, which could lower the burden of his sweeping tariffs and potentially deliver a political victory for Prime Minister Keir Starmer. The president said in remarks from the Oval Office that the two countries are “affirming that reciprocity and fairness is an essential and vital principle of international trade.” The deal was first rolled out in Mr. Trump’s second term, and the president has used tariffs — and the threat of the levies — as leverage to bring other countries to the table to negotiate trade deals with his administration. Mr. Trump said the details of the agreement are still being finalized and expects it to be finished in the coming weeks. But he said it includes “billions of dollars” of increased access for the U.S. to the U.K. market, including for American agricultural products like beef and ethanol. Britain will also “reduce or eliminate” non-tariff barriers that Mr. Trump said discriminate against U.S. products, and fast-track American imports through U.K. customs, the president announced.

The Fed will ‘wait and see’ if something bad happens in US economy

Federal Reserve Chair Jerome Powell offered investors a consistent message on May 7th: patience. Time and again, the chair came back to the idea that the Fed has an ability, and an obligation, to wait and see how developments evolve on tariff policy and any economic distortions that follow. The first distortion, as the Fed noted in its policy statement, came from export data that dragged down first quarter GDP. Powell also noted survey data reflects considerable uncertainty among businesses and households. And ongoing trade negotiations make the outlook hard to peg, too. “For the time being, we’re well-positioned to wait for greater clarity before considering any adjustments to our policy stance,” Powell said in prepared remarks. And as the Fed chair’s Q&A evolved, the theme recurred.

US labor market stays resilient, but workers less productive in Q1
The number of Americans filing new applications for unemployment benefits fell sharply last week as the spring break-related boost from the prior week faded, suggesting the labor market continued to chug along, though risks are mounting from tariffs. Employers are hoarding workers after difficulties finding labor during and after the COVID-19 pandemic. However, that could become tougher as other data from the Labor Department on May 8th showed worker productivity dropping for the first time in almost three years in the first quarter, lifting labor costs. Though productivity was likely distorted by President Donald Trump’s sweeping import duties, which depressed output last quarter, it nonetheless highlighted the economic risks wrought by the ever-shifting trade policy.