Apparel & Footwear

Mulberry appoints new CEO

Mulberry Group has appointed Andrea Baldo CEO, according to a press release. He will take on the role and join the company’s board on Sept. 1. Baldo replaces Thierry Andretta, who has left the company and the board, per the release. Andretta has been with Mulberry since 2015. Prior to joining the U.K.-based luxury fashion brand, Baldo was CEO and executive director of luxury fashion and lifestyle brand Ganni, where he oversaw the brand’s international growth by focusing on retail and product development and helped hone “the brand identity to increase customer engagement,” per the release.

WSG Brands acquires fashion brand Von Dutch

WSG Brands has announced the acquisition of fashion and lifestyle brand Von Dutch. Under its new ownership, Von Dutch will be headed by longtime industry veterans Jack Cheika and Marc Benitez, WSG’s CEO and COO. Von Dutch boasts a significant international presence in regions including the United States, Europe, Indonesia, Korea, Brazil, Argentina, Australia and New Zealand. Von Dutch will continue to expand globally under WSG’s new ownership. As part of its refocused investment, former owners Groupe Royer and its subsidiary Royer Brands International, advised by Brandthinktank Group, have transferred ownership of Von Dutch to WSG as of June 2024. “Only WSG Brands had both the cultural understanding of Von Dutch and the ambition and resources mix required to further deploy the brand going forward”, stated Jacques Royer, executive chairman of Groupe Royer.

American Exchange Group acquires Island Surf Company

American Exchange Group has acquired footwear brand Island Surf Company, the company announced in a press release. Joe O’Brien, current president and CEO of the nautical-themed footwear brand, will continue to lead it following the deal. “We are excited to join forces with American Exchange Group,” O’Brien said in the release. “This acquisition marks a new chapter for Island Surf Company, allowing us to expand our footprint and bring our coastal-inspired footwear to a broader audience.” Accessories conglomerate American Exchange Group oversees designing, manufacturing, licensing and wholesaling for multiple brands, including Aerosoles, which it acquired in 2022, and White Mountain Footwear, which it acquired last year.

Uniqlo owner lifts forecast again as weak yen powers sales from tourists

The Japanese operator of fashion giant Uniqlo raised its forecast for what would be its third consecutive year of record profits, buoyed by strong sales at home and some overseas markets. The domestic market was a bright spot for Fast Retailing, aided by a surge in duty-free sales from tourists taking advantage of the yen’s slide to a 38-year low. Meanwhile the company said there were signs of maturing in China, its largest overseas market. It lifted its full-year operating profit forecast to 475 billion yen ($2.94 billion) for the year ending in August from 450 billion yen, citing strong performance since the second half.

 

 

Athletic & Sporting Goods

Adidas set to benefit as Nike struggles

The success of Adidas’ low-rise multi-colored Samba and Gazelle sneakers, along with weaker sales at rival Nike, should help the German sportswear brand deliver strong second-quarter sales and its biggest profit margin in three years. Nike forecast a surprise drop in annual sales at the end of June, adding to investor worries about the sportswear giant falling behind established peers and newer rivals alike. Nike shares fell as much as 20% on the news, but shares in Adidas – which usually track the U.S. company’s moves – barely reacted, suggesting investors see Nike’s weakness as an opportunity for Adidas.  “Nike, in terms of product and message, is very much off its game and Adidas is having a bit of a moment,” said Simon Irwin, retail and sporting goods analyst at Tanyard Advisory.

PFL launches Africa league with investment from Helios

The Professional Fighters League (PFL) has launched its latest regional mixed martial arts (MMA) competition in Africa. PFL Africa will have regular season, playoffs and championship sport-season format. All events are to be hosted on the continent and available via regional media partners. Helios Sports & Entertainment Group (HSEG) has made an investment and will hold a stake in the promotion. The PFL has been working on the launch of its Africa league since partnering last year with MMA star Francis Ngannou, who will both fight for the promotion and serve as chairman of PFL Africa. The arrival of PFL Africa sees it join the organization’s other regional leagues in Europe and MENA. HSEG’s backing sees the firm add to an investment portfolio that includes both NBA Africa and the Basketball Africa League (BAL).

Cosmetics & Pharmacy

Seaweed Bath Co acquires Andalou Naturals and Mineral Fusion

Seaweed Bath Co has announced the acquisition of Andalou Naturals and Mineral Fusion from BWX. Financial terms of the deal were not disclosed; Natureza Growth Partners led financing for the acquisition and Managing Partner Collin Eckles will join Seaweed Bath Co’s board. The acquisition will increase operational efficiencies and allow the three brands to streamline product development. All three brands are sold via Whole Foods Market, Amazon, Sprouts Farmers market and Natural Grocers, among others. Allison Grossman, Co-Founder of Seaweed Bath Co, comments, “We have admired Andalou Naturals and Mineral Fusion for a long time, and we are thrilled to bring together the resources, knowledge and extensive experience of the teams.”

Superdrug reports robust financial performance for 2023

Superdrug, the leading high street pharmacy chain, has reported strong financial results for 2023, with sales rising by 11.8% to £1,528 million from £1,367 million in 2022. Market share also increased for the third consecutive year, reaching 10.6% compared to 8.9% in 2020. The company’s pre-tax profit surged by 43% to £111.6 million, up from £77.8 million the previous year. This growth was driven by strong retail store performance, increased sales volume, and continued expansion of its Own Brand products. Superdrug opened 14 new stores in key locations and modernized 45 existing stores, enhancing the customer shopping experience. The company’s financial success is attributed to strategic investments in store expansion and modernization, a strong focus on competitive pricing, and continued innovation in product offerings.

Huddled acquires surplus beauty seller Boop Beauty

Circular economy specialist Huddled has acquired Boop Beauty, a surplus beauty and cosmetics seller founded by former L’Oreal lawyer Yasmine Amr. London-listed Huddled will pay a “modest sum” for a 75% stake in Boop Beauty. This acquisition aligns with Huddled’s strategy to grow its presence in the e-commerce space while addressing the issue of excess stock in the beauty industry. The additional working capital will enable Boop Beauty to expand its inventory and enhance customer acquisition efforts, positioning it for substantial growth.

LG H&H announces Daiso collab

Daiso, Korea’s answer to the dollar store, has teamed up with LG Household & Health Care to launch a low-cost beauty brand. The line comprises Pure Derma body lotion and Care Zone pore-minimizing range. According to a report published by The Chosun, the discounter is rapidly becoming a beauty destination, having stocked its shelves with a number of sought-after products at a fraction of the price of its competitors. A beauty professional close to the matter told The Chosun Daily, “Daiso is rapidly expanding its range of cosmetics products and consumers perceive the product quality to be excellent given low prices. In an era of soaring living costs, Daiso is an attractive channel for both consumers and brands.”

Discounters & Department Stores

Big Lots to close up to 40 stores, and its survival is in doubt

Big Lots plans to shutter three times more stores than it will open in 2024, with the discount retailer pointing to a retreat in spending by its bargain-hunting base. “We currently expect to open three stores and close 35 to 40,” the Columbus, Ohio-based retailer stated in a regulatory filing with the Securities and Exchange Commission. The company also said it expects further operating losses and cited “substantial doubt” about its ability to continue as a going concern. The retailer’s distress call came amid other indications that inflation-weary Americans are tightening their belts and spending less, with U.S. economic growth slowing in the first three months of 2024.

Target to stop accepting personal checks

Target will stop accepting personal checks for in-store payments next week. In a statement to Retail Dive, the company said the change is “due to extremely low volumes.” The new policy is effective July 15.  A spokesperson said the retailer has “taken several measures to notify guests in advance to aid an easy and efficient checkout experience.” The decision takes about 1,950 stores – and another nearly 40 soon-to-open Target locations – out of the mix for customers who want to pay for their big box purchases by writing a paper check. The retailer highlighted other ways to pay in its statement.

 

 

Emerging Consumer Companies

NYX Partners With Gymnast Shilese Jones

More beauty brands seem to be looking for gymnasts to partner with as brand ambassadors. Kiss just recruited gymnastics champion Suni Lee, K18 tapped Simone Biles, and now NYX Professional Makeup is partnering with gymnast Shilese Jones. Jones will expand the brand’s presence in women’s sports. This is NYX’s first partnership with an individual athlete. NYX will feature Jones in a social media content series, highlighting her day-to-day life including training and competitions. The partnership includes over 30 new billboards across Washington and Minnesota, to support Jones’ career.

Global luxury platform Senser makes debut in North America, launches in the U.S.

Luxury online shopping platform Senser has launched in North America. Founded in 2017, Shanghai-based e-commerce platform and app works with more than 2,500 luxury brands from over 60 countries and offers a curated selection of more than 500,000 items. All products are shipped directly from European boutiques, allowing consumers to purchase at significantly reduced prices, while enjoying service that mirrors the physical store experience. All products are certified by CCIC before reaching the consumer. The Senser app is expected to offer American consumers access to both luxury brands and designer brands at prices ranging from 30% to 70% off U.S. retail prices.

Mark Wahlberg’s Municipal brand opens first permanent store in LA

Actor Mark Wahlberg’s Municipal performance-driven clothing brand has opened its first permanent brick-and-mortar location in West Hollywood, California. The Municipal Pro Shop, which spans more than 1,000 square feet, comes after the brand ran a seven-month pop-up shop in New York City’s Hudson Yards. The Municipal Pro Shop is designed to have the feel of a sports club. It showcases the brand’s collection of performance apparel and footwear for men and women and takes its inspiration from tennis, golf and pickleball. In addition to the Municipal label, the store features apparel and accessories from emerging brands in the Los Angeles market, including Les Monts eyewear, LAB Putters and Sub 70 golf.

 

 

Food & Beverage

Danish brewer Carlsberg to buy soft drinks maker Britvic in $4 billion deal after improved offer

Soft drinks maker Britvic has agreed to a sweetened takeover bid of £3.28 billion ($4.2 billion) from Carlsberg, the companies said. The deal agreed offered 1,290 pence per share for Britvic, with a small dividend that gives shareholders 1,315 pence per share. Britvic in June refused an improved cash takeover bid from Carlsberg offering 1,250 pence per share of the British soft drinks maker. It said at the time that the proposal “significantly undervalues Britvic, and its current and future prospects.” Carlsberg’s previous June 6 offer price of 1,200 pence per Britvic share was also declined. Ian Durant, the nonexecutive chair of Britvic, said the proposed deal “creates an enlarged international group that is well-placed to capture the growth opportunities in multiple drinks sectors.”

Athletic Brewing raises $50 million as nonalcoholic wave sweeps beer making

Leading nonalcoholic brewer Athletic Brewing Company announced it’s raised an additional $50 million in equity financing in a round led by General Atlantic. The company expects General Atlantic to “ultimately invest significantly beyond that,” Athletic CEO and founder Bill Shufelt said. The brewer plans to use the latest investment to increase production capacity and expand its offerings at global retailers to meet rising consumer demand for nonalcoholic beer. “We are passionate about transforming the way modern adults drink and converting critics into believers. We’re at the start of a long-term trend, and we couldn’t be more excited to have General Atlantic by our side as Athletic begins its next phase of growth,” the company said in a press release.

PepsiCo earnings beat estimates, but U.S. demand weakens

PepsiCo reported mixed quarterly results, hurt by declining demand in North America for its drinks and snacks. The company also narrowed its revenue outlook for the full year. Pepsi now expects organic revenue growth of approximately 4%, a more cautious outlook than its previous forecast of at least 4%. The company reiterated its guidance for core constant currency earnings growth of at least 8%. “When we’re saying at least 4[%], we were talking more about around 5% in our minds,” CEO Ramon Laguarta told analysts on the company’s conference call. “Now we’re talking around 4 … it’s related specifically to the consumer in the U.S.”

Maple Leaf Foods spins off its pork business

Maple Leaf Foods, one of Canada’s largest food companies, plans to spin off its pork division. The move will create two public companies, each “with a sharper focus to execute its own growth strategy and pursue its uncompromising commitment to best-in-class sustainability practices,” according to the announcement. “This transaction is the start of a new era to unlock the full potential of two outstanding businesses, each with a distinct value proposition and growth opportunities,” Curtis Frank, president and CEO of Maple Leaf Foods, said in a press release.

Seaboard appoints company insider as president and CEO

Seaboard Foods has tapped its vice president of sales to be president and chief executive officer of the U.S.-based pork company. Chad Groves took over executive responsibilities July 1, succeeding retiring President and CEO Peter Brown. Groves has served as Seaboard’s senior vice president of global sales, marketing and innovation since July 2021, leading retail, food service, export and processor sales teams. Before joining the Kansas City-based pork company, Groves led sales teams at coffee ingredient maker Trilliant Foods and High Liner Foods, a value-added frozen seafood provider. He also worked at Cargill for nine years.

 

 

Grocery & Restaurants

MOD Pizza agrees to sale to Elite Restaurant Group

MOD Pizza, one of the once-growing group of fast-casual pizza concepts, has agreed sell to Elite Restaurant Group, the companies announced. Bellevue, Wash.-based MOD Super Fast Pizza Holdings LLC said Chatsworth, Calif.-based Elite Restaurant Group had acquired 100% MOD’s equity in a merger agreement between the company and an Elite affiliate, a press release said. Terms were not disclosed. “MOD has an outstanding culture and passionate, loyal guests and employees,” said Michael Nakhleh, president of Elite Restaurant Group, said in a statement. “We recognize the inherent value this represents and look forward to helping MOD write the next chapter in its history.”

Costco hikes membership fee for the first time since 2017

You will soon have to pay more if you want to shop at Costco. The membership-based warehouse club said July 10th that it will increase its membership fee by $5 in the U.S. and Canada as of Sept. 1. That is an increase to $65 from $60 for annual memberships. Its higher-tier plan, called “Executive Membership,” will increase to $130 a year from $120. Costco said the fee increases would affect about 52 million memberships, a little over half of which are executive memberships. It marks Costco’s first membership rate increase since June 2017. On average, the company has raised rates roughly every five and a half years, which would have put Costco on track to raise the fee in late 2022 or early 2023. However, Costco held off on raising fees prior to now.

Kroger and Albertsons release list of stores to be divested under merger

Kroger and Albertsons have released a list of hundreds of stores that would be divested to C&S Wholesale Grocers if federal regulators approve its proposed $24.6 billion merger deal, and the states with the largest numbers include Washington, Arizona, and Colorado. Kroger also revealed the locations of six distribution centers that would be divested to C&S under the plan. It’s been a few months since Kroger updated its proposal to add 166 stores to its original divestiture plan, bringing the total number to 579 that would go to C&S. At the time of that announcement, Kroger said the updated list included the banners QFC, Mariano’s, Carrs, and Haggen.

Home & Road

Helen of Troy Looks To Reset After Challenging Q1

Lower sales in hair appliances and prestige hair care products combined with lower replenishment of home and outdoor items will impact Helen of Troy results in its first quarter. Helen of Troy develops and markets personal care appliances, home environment appliances, housewares, beverageware and outdoor gear under such brands as Revlon, Honeywell, Pur, Braun, Vicks, Oxo, Hydro Flask and Osprey. Net income was $6.2 million, or 26 cents per diluted share, versus $22.6 million, or 94 cents per diluted share, in the year-previous quarter. Adjusted for one-time events, net income was $23.3 million, or 99 cents per diluted share, versus $46.7 million, or $1.94 per diluted share, in the year-before period, the company stated.

With fourth consecutive loss, Bassett announces restructuring, closes Noa Home

Bassett Furniture reported $83.4 million in consolidated second quarter sales, a 17% drop from last year. It also recorded an operating loss of $8.5 million, its fourth consecutive loss. That loss included asset impairment charges of $5.5 million and additional inventory valuation charges of $2.7 million, the company said. Wholesale sales were $52.6 million, a decline of 14.9%. Retail sales were $50.5 million, a decline of 16.9%. Gross margin was 52.5%, which included the increased inventory valuation charges. Excluding those charges, gross profit margin would have been 55.7%.

Jewelry & Luxury

Richemont Names New CEOs for Cartier, Van Cleef & Arpels

Richemont announced major changes to its executive team, appointing two of its watch brand CEOs to lead Cartier and Van Cleef & Arpels. Cyrille Vigneron, CEO of Cartier, will step down on Sept. 1. He is retiring after eight years as head of Cartier and decades in the luxury industry. Vigneron will take on the role of chairman of Cartier Culture and Philanthropy and help with the transition period. Louis Ferla, currently CEO of Vacheron Constantin, will take over as CEO of Cartier. Ferla joined Richemont in 2001, starting at Alfred Dunhill as area sales manager in Hong Kong and then as general manager in Taipei, Taiwan.

Rocksbox to End Rental Model, Transition to Online Store

Jewelry subscription service Rocksbox is ending its rental service next month. Launched in 2012 by then-CEO Meghan Rose, the company allows subscribers to rent up to three different pieces of jewelry every month for $21, with the option to swap out their picks for something new or buy the pieces. It was acquired by Signet Jewelers in 2021 for an undisclosed amount, later expanding its fashion jewelry offerings to include demi-fine jewelry and pre-owned fine jewelry. In December 2022, the company introduced a “buy it now” option to sell jewelry to non-subscribers.  Starting this month, the company plans to evolve into a solely e-commerce site with no subscriptions involved.

US Customs Seizes $10M in Counterfeit Jewelry

U.S. Customs and Border Protection (CBP) officers at the Port of Louisville seized three packages containing fake jewelry within the span of 24 hours last week. The packages were stopped for containing items that infringed on designers’ protected trademarks which had been recorded with CBP for border enforcement through the e-Recordation program. The packages were handed over to Homeland Security Investigations for further analysis. If the jewelry had been genuine, all three shipments would have had a combined retail value of more than $10.1 million. The first package was halted on July 1, originating from China and heading to a residence in Brooklyn, New York.

Office & Leisure

Etsy CEO says company is escaping ‘race to the bottom’ and getting back to its artisan roots

When Etsy launched almost two decades ago, the site attracted artisans and craft makers, who finally had a place online where they could sell their niche products and reach a large audience. But in recent years, Etsy has found itself overrun with mass-produced, generic items from resellers who have learned how to game the website and crowd out handcrafted products. Now Etsy CEO Josh Silverman wants the company, whose stated mission is to “keep commerce human,” to get back to its roots. The company is launching a major overhaul of the policies that govern its site to make it “crystal clear” to shoppers what products belong on Etsy, Silverman said in an interview with CNBC.

Bally’s Plugs Chicago Casino Funding Gap in $2B Deal with GLPI

Shares of Bally’s surged July 12th after the gaming company announced it will strike deals with Gaming and Leisure Properties for an aggregate of $2.07 billion in financing. That closes an $800 million shortfall the operator faced on its Chicago casino hotel project. An affiliate of Gaming and Leisure — one of the largest owners of gaming real estate — is acquiring the property assets associated with Bally’s Chicago venture and will “fund construction hard costs of up to $940 million at an 8.5% initial cash yield.” That funding will be delivered from August 2024 through December 2026.

Technology & Internet

Samsung launches the Galaxy Ring — a first-of-its-kind product for the tech giant

Samsung launched the Galaxy Ring on July 10, its first foray into “smart rings.” The South Korean tech giant is looking to integrate its products — such as smartphones and wearables — and offer health-tracking features to rival Apple’s push into the space. The Galaxy Ring, which Samsung has teased for the past few months, is a lightweight ring equipped with sensors designed for health monitoring 24 hours a day, the company said at its Galaxy Unpacked event in Paris. Samsung’s push into a new product category comes at a time when smartphone sales are making a slight recovery but users are holding on to their handsets for longer. Device makers are looking for add-on electronics products to sell. For Samsung, the Galaxy Ring adds a new device to its portfolio that can track health features alongside its smartphones and smartwatches.

Best Buy Express Opens 1st Store in Canada, Plans 167 Small-Format Locations

Best Buy Canada and Bell Canada are partnering to launch 167 small-format consumer technology retail stores across Canada branded Best Buy Express. “Opening 167 stores in five months may be a North American first. It’s certainly bold in retail today. We’re excited to see these new stores come to life as we double our store count, expanding our presence across Canada. We’re proud to be able to offer our ultimate shopping convenience to new and existing customers,” said Ron Wilson, President, Best Buy Canada, in a statement. The launch of the new concept will be a phased rollout over the next six months, with all stores expected to open by the end of 2024, following completion of renovations.

Finance & Economy

Inflation falls 0.1% in June from prior month, helping case for lower rates

The monthly inflation rate dipped in June for the first time in more than four years, providing further cover for the Federal Reserve to start lowering interest rates later this year. The consumer price index, a broad measure of costs for goods and services across the U.S. economy, declined 0.1% from May, putting the 12-month rate at 3%, around its lowest level in more than three years, the Labor Department reported July 11th. The all-items index rate fell from 3.3% in May, when it was flat on a monthly basis. This was the first time since May 2020 that the monthly rate showed a decrease. Excluding volatile food and energy costs, so-called core CPI increased 0.1% monthly and 3.3% from a year ago, compared with respective forecasts for 0.2% and 3.4%, according to the report from the Bureau of Labor Statistics.

One-third of consumers cut spending in Q2: report

One-third of consumers decreased their overall spending during the second quarter, while about a quarter said they increased their spending, according to a Q2 trend report from Jungle Scout. The report, which measured Q2 versus Q1 2024, found that across generations, Gen Z consumers increased their spending the most, both overall and online specifically. Baby Boomers were the least likely to alter their spending this quarter, while Gen X were the most likely to cut their spending overall and Millennials were most likely to cut their spending online, per the report. Jungle Scout also found that consumers increased their use of social media to find and make purchases.

Fewer Americans apply for jobless claims last week as labor market remains sturdy

Fewer Americans filed for unemployment benefits last week as the labor market remains sturdy despite high interest rates. The Labor Department reported July 11th that jobless claims for the week ending July 6 fell by 17,000 to 222,000 from 239,000 the previous week. The total number of Americans collecting unemployment benefits declined for the first time in 10 weeks. About 1.85 million Americans were collecting jobless benefits for the week of June 29, around 4,000 fewer than the previous week. Weekly unemployment claims are widely considered as representative of layoffs.