Story of the Week
Meta settles social media addiction case with California, other states for $16.7 billion
Meta and a coalition of state attorneys general have settled a major federal case centering on allegations that the social media giant misrepresented the extent of child mental health harms caused by apps like Facebook and Instagram. The settlement was revealed in a court filing that details several requirements Meta must make to its apps as part of a proposed consent judgement. The court officially approved the settlement, according to a legal filing signed by Northern District of California Judge Yvonne Gonzalez Rogers. Those changes include daily usage limits and nighttime blocks for teenagers who use the company’s apps, enhanced age assurance measures that would prevent children from using them, and the creation of additional tools for parents and guardians. As part of the settlement, Meta agreed to pay $16.7 billion.
Apparel & Footwear
OVO Sells Majority Stake to Authentic Brands Group, Drake Retains Significant Ownership
Authentic Brands Group has announced the acquisition of a majority stake in the intellectual property of October’s Very Own, also known as OVO, the lifestyle brand and apparel company co-founded by Drake. The Toronto rapper will retain a significant ownership stake and remain involved with the brand as its driving force, continuing to shape its creative vision. Vince Holding Corp., a longtime partner of Authentic, will be taking over OVO’s operating business, handling clothing design, product development, merchandising and retail stores. Announced as a partnership with Drake, Authentic will help scale the brand globally. In addition to its online store, OVO runs twelve flagship stores across Canada, the U.S. and the U.K., with locations in Toronto, New York, and London, England.
Urban Outfitters posted record sales as Free People led gains across all brands
Urban Outfitters reported record second-quarter net sales of $1.66 billion, up 10% from $1.50 billion a year earlier, as its Free People group drove comparable sales growth across every brand in its retail segment. Net income reached $240.7 million, or $2.78 per diluted share, compared with $143.9 million, or $1.58 per diluted share, in the same period last year. Adjusted earnings per share were $1.72, which excludes a one-time benefit from refunds of tariffs previously paid under the International Emergency Economic Powers Act. Analyst estimates had called for adjusted earnings of $1.72 per share and revenue of $1.65 billion, according to the Wall Street Journal.
Gap shares jump 12% after company names new Old Navy CEO to revive struggling brand
Gap announced a new CEO for its Old Navy banner, effective Nov. 2, as the retailer tries to reinvigorate sluggish sales performance at the brand. Michael Francis, who was appointed the chief customer officer at Old Navy in May, will take over the reins from current CEO Haio Barbeito, who will become an advisor to the company. Barbeito has held the position since 2022. Shares of Gap jumped 12% in extended trading as a result. In the company’s fiscal second-quarter earnings report, Old Navy posted net sales of $2.1 billion — down 4% year over year. Comparable sales were also down 4%, versus comparable sales growth of 2% during the same period last year. Wall Street analysts were expecting a decline of 2.4% for the most recent period.
Abercrombie & Fitch Q2 2026 earnings beat on tariff refunds
Abercrombie & Fitch reported fiscal second-quarter results that exceeded its own guidance by a wide margin, driven by approximately $100 million in refunds of International Emergency Economic Powers Act tariffs, and raised its full-year earnings outlook. The company posted net income of $4.17 per diluted share for the quarter ended August 1, compared with its prior guidance of $1.80 to $2.00 per diluted share. The tariff refunds, reflected as a reduction in cost of sales, added an estimated $1.75 per diluted share to the result. Net sales grew 5% to $1.27 billion, the company said, marking its 15th consecutive quarter of growth. Operating margin came in at 19.9%. Growth was spread across the company’s two brand families. The Abercrombie brands posted net sales of $596.8 million, up 8% from a year earlier. The Hollister brand generated $669.9 million in net sales, up 2%.
Cosmetics & Pharmacy
KKR acquires Japanese beauty and lifestyle group Ci Flavors
Global investment firm KKR has agreed to acquire leading Japanese cosmetics group Ci Flavors from all existing shareholders, including Ci Flavors founder Yusaku Horiuchi, L Catterton, eBeauty Group, and Yanagi Capital Partners. With roots dating back to 2011, Ci Flavors has grown into one of Japan’s leading beauty and lifestyle brand platforms, offering products across haircare, skincare, body care and lifestyle categories. Its portfolio includes brands such as &honey, 8 The Thalasso, Ahalo Honey, Amina Mason, unlabel, Sola Weather Care, Theratis, and Moroccan Beauty, among others.
Regent to Acquire Avon North America, Reuniting Major Avon Businesses
LG H&H Co., Ltd, a leading Korean beauty and wellness company, announced that it has entered into a definitive agreement with Regent, to sell its interest in Avon North America. Regent will acquire the entirety of LG H&H’s interest in Avon North America. In the beauty and consumer space, Regent’s portfolio includes Avon’s international operations across Europe, Asia, Africa and the Middle East, acquired from Natura & Co. in January 2026.
TowerBrook invests in women’s wellness brand Rael
TowerBrook Capital Partners has announced a strategic partnership with women’s wellness brand Rael, as the investment firm looks to help expand the business across channels and international markets. Founded in 2017 by three Korean American women, Rael offers feminine care, skincare and hormonal wellness products designed to support women through different stages of life. As part of the partnership, Rael will work with TowerBrook to expand its distribution, continue developing its product portfolio and reach more consumers globally.
Bath & Body Works narrows guidance amid turnaround push
Bath & Body Works Inc. expects full-year sales to decline slightly less than it previously did, a sign that attempts to revive growth and turn around its business might be gaining traction. The Columbus, Ohio-based company now expects net sales to decline between 4% and 2.5% this year, compared with the 4.5% to 2.5% it saw previously. The personal care and fragrance retailer has been trying to turn around its business over the past few years, as the mall staple known for its scented candles, lotions and soaps has fallen out of favour with consumers. It kicked off a transformation push late last year, though the company said it expects the plan to have more of an impact in the second half of this year and into early 2027.
Discounters & Department Stores
Dollar General Q2 2026 earnings beat, full-year forecast raised
Dollar General reported second-quarter net income of $550.3 million, a 33.8% increase from $411.4 million a year earlier, and raised its full-year financial guidance on the strength of the results. Diluted earnings per share came in at $2.48 for the quarter ended July 31, up from $1.86 in the same period a year ago. Analysts had expected $2.01 per share, according to the Wall Street Journal. Net sales rose 5.2% to $11.29 billion, ahead of the $11.2 billion analyst consensus tracked by the Journal. Same-store sales grew 3.5%, driven by a 2.0% increase in customer traffic and a 1.5% rise in average transaction amount. The company said tariff refunds, after related reinvestments, contributed approximately 81 basis points to that improvement and an estimated $0.25 to diluted EPS.
Dollar Tree Attracts Higher-Income Customers as Sales Climb 7%
Dollar Tree continues to attract middle-income and higher-income shoppers as consumers deal with inflation. The discount retailer reported earnings showing its total sales for the second quarter climbing 7%. To stretch their dollars, shoppers are increasingly turning to Dollar Tree for everyday essentials and pack sizes that help them manage their budgets, management said. In response to these changing behaviors, Dollar Tree is expanding its multi-price strategy, allowing the retailer to sell items above its traditional opening price points. Multi-price merchandise rose to 17% of total sales, a year-over-year increase of approximately 400 basis points.
Department store chain Kohl’s misses quarterly sales estimates amid cautious spending
Kohl’s missed Wall Street estimates for second-quarter sales, as cautious consumer spending on discretionary items offset gains from the high-end department chain’s turnaround push, sending its shares down about 5 per cent before the bell. The company, however, raised its annual profit forecast after benefiting from US$150 million tariff refunds received during the reported quarter. Kohl’s also said it will resume its about US$100 million share repurchase program this year. U.S. consumer sentiment deteriorated in August and retail sales fell for the first time in nine months in July, underscoring an increasingly selective shopping trend among middle- and lower-income households in the face of stubborn inflation, even as wealthier shoppers remain resilient. Kohl’s quarterly revenue fell 0.9 per cent to US$3.32 billion from a year ago, compared with analysts’ estimates of about a 0.1 per cent decline to US$3.35 billion.
Burlington Stores Q2 2026 earnings: tariff refunds to lower prices
Burlington Stores reported second-quarter net income of $184 million, or $2.88 per diluted share, and said it plans to reinvest $55 million in tariff refunds into lower prices for shoppers rather than booking them as a profit windfall. Total revenue climbed 11% to $3.00 billion, and comparable-store sales edged up 2%. Stripping out tariff refunds and costs related to bankruptcy-acquired leases, adjusted EPS landed at $2.37, a 38% jump from $1.72 in the same period last year. Analysts had expected adjusted EPS of $2.19 and revenue of $3.03 billion, according to The Wall Street Journal. Burlington plans to reinvest roughly 40% of the $55 million in the third quarter and the remaining 60% in the fourth quarter, the company said. Burlington’s decision to put all $55 million back into the business means the refunds wash out of the full-year earnings picture entirely.
Emerging Consumer Companies
Beekeeper Coffee receives backing from NBA stars
Beekeeper Coffee, ready-to-drink coffee brand, has received investment from a group of NBA players including Draymond Green and Anthony Davis. The investment size and other financial terms were not disclosed. New investors in the brand include NBA players Zach LaVine, Fred VanVleet and De’Aaron Fox. The funding round also drew in founder and CEO of sports agency Klutch Sports Group Rich Paul, golfer Min Woo Lee, entrepreneur Matthew Pritzker and NFL player Jared Goff. Its retail footprint includes Wegmans and The Fresh Market. It also sells online through Thrive Market and Gopuff.
Dolce Glow raises $11 million Series A
Dolce Glow, a Los Angeles-based sunless tanning and skincare brand, raised $11 million in Series A funding. The round was led by CAVU Consumer Partners with participation from Miley Cyrus, Sofia Richie Grainge, Olivia Culpo, Jaclyn Hill, Brianna LaPaglia, and Ash Holm. The company will use the capital to scale its retail product inventory, expand brick-and-mortar retail distribution pipelines, accelerate product research and formulation innovation, and expand its core corporate operational and marketing teams. Founded by tanning artist Isabel Alysa Vita, Dolce Glow develops premium, Italian-inspired sunless self-tanning products formulated with active skincare benefits, positioning its entire catalog as clean, vegan, and cruelty-free. Featuring 20 core stockkeeping units (SKUs), the brand’s portfolio includes the Dolce Self-Tanning Mist, Lusso Self-Tanning Mousse, and Blush Me Flushed—a specialized self-tanning blush contour stick. The company drives the majority of its sales through major retailers like Sephora, Nordstrom, Ulta Beauty, Revolve, Macy’s, and QVC.
Food & Beverage
Following Unilever split, Magnum Ice Cream takes new approach to innovation
More than six months after its separation from Unilever, The Magnum Ice Cream Company is turning up the heat on innovating its portfolio of frozen treats. The goal is to identify new formats and occasions, such as snacking, to increase the likelihood that its novelties could be eaten by a consumer inundated with choice. Recently, Magnum extended Ben and Jerry’s into bars, bringing the late-night couch indulgence to a portable format and increasing its competitiveness with other foods people often turn to, such as candy bars. It also allowed Ben and Jerry’s to offer a portion-controlled option for the health-conscious shoppers.
Sapporo USA to close craft brewing facilities following sale
Sapporo USA is shuttering three Stone Brewing facilities as the pioneering craft beer brand transitions to new ownership. The Stone facilities in Escondido, California, are closing following Sapporo’s sale of the brand to Firestone Walker. Sapporo bought Stone in 2022 for about $165 million. The Japan-based company’s initial goal with the deal was to increase U.S. distribution for its namesake beer with the help of Stone’s existing facilities. Since then, however, the craft beer market has changed, and Sapporo sales grew robustly while demand for craft options decreased.
Trix maker General Mills removes synthetic dyes from US cereals
General Mills’ U.S. cereals are now made without artificial colors, the Trix maker said in a statement. The food giant had set a goal of removing the controversial ingredients from its cereals, which comes five months after synthetic dyes were removed from all food General Mills sells in K-12 schools. The Cheerios maker attempted to remove artificial colors from Trix in 2016 but brought it back after about a year following consumer complaints about the duller appearance.
Grocery & Restaurants
7 Brew, Dutch Bros appear set to bid over closed Salad and Go sites
Dutch Bros’ purchase of more than 50 Salad and Go sites is not a done deal. The defunct salad chain asked a court to approve procedures for an auction that will pit Dutch Bros against its fast-growing rival 7 Brew for about 130 unexpired leases of drive-thru sites. The winner of the auction would get some presumably valuable real estate while also keeping a rival from getting those locations. In reality, the winner of the auction will most certainly be vendors and equity holders of Salad and Go, which shuttered all its locations and declared bankruptcy. Dutch Bros was then revealed to be the proposed buyer for up to 65 of the sites, including 51 in Arizona and Nevada for which it agreed to pay $105 million. 7 Brew, however, submitted an alternative bid deemed sufficient enough for the company to rethink the Dutch Bros deal and seek an auction.
Blank Street Coffee raises $105 million, expands to LA
New York-born coffee and matcha chain Blank Street has closed an approximately $105 million equity deal, including $75 million in new financing, as it begins expanding onto the West Coast. An Aug. 24 filing with the Securities and Exchange Commission lists a total offering of $104,999,981, all of which had been sold to six investors. The filing lists Aug. 7 as the date of the first sale. The filing does not identify the investors. General Atlantic led the deal, which included $75 million in new capital for Blank Street and $30 million in secondary transactions for existing shareholders. The Financial Times previously reported the $75 million investment, placing Blank Street’s valuation at approximately $650 million. The financing comes as Blank Street begins a long-planned push into California. The company opened its first shop in Los Angeles in Studio City.
Home & Road
Everything up for Williams-Sonoma in second quarter
Powered by its home furnishings brands, Top 100 retailer Williams-Sonoma Inc. posted gains across its key metrics for the second quarter of FY2026. For the three months ended Aug. 2, the San Francisco-based retailer, which owns and operates Pottery Barn and West Elm, reported net revenues of $1.96 billion, up 6.7% compared with $1.84 billion in the same quarter of 2025, with a comparable sales gain of 6.2% and an operating margin of 17.3%. Net earnings for the period came in at $338.1 million, or $2.84 per diluted share, an increase of 36.58% against $247.6 million, or $2 per diluted share, while gross profit increased from 47.1% to 51.6%. By category, Pottery Barn totaled $770.8 million in the quarter and West Elm added $496.3 million, together accounting for almost two thirds of net revenues. The retailer also reported that substantially all of its initial IEEPA tariff refund claim of $197.8 million had been collected as of Aug. 2, with a remaining tariff refund receivable of $3.2 million.
It’s official: Somnigroup completes $2.3B Leggett & Platt acquisition
Somnigroup International has completed its $2.3 billion acquisition of Leggett & Platt, bringing one of the bedding industry’s largest component suppliers under the same corporate umbrella as Tempur-Pedic, Sealy, Stearns & Foster and Mattress Firm. The all-stock deal, announced in April, creates a combined company with more than 170 manufacturing facilities across 37 countries and a global workforce of more than 36,000 employees, and was valued at approximately $2.3 billion based on Somnigroup’s Aug. 25 closing stock price, including Leggett & Platt’s existing debt. Under terms of the deal, Leggett & Platt shareholders received 0.1455 shares of Somnigroup common stock for each Leggett & Platt share they owned, leaving former Leggett & Platt shareholders with approximately 9% of the combined company on a fully diluted basis. Somnigroup now projects $75 million in annual run-rate synergies, up 50% from its original estimate of $50 million, and said the transaction reduced its net financial leverage by approximately 0.2 times, with further reduction toward the midpoint of its target range of 2 to 3 times adjusted EBITDA expected by the end of the year.
Domestic vendors say mid-to-high price range building momentum into Q4
Domestic furniture manufacturers say business in the mid-to-high price range is doing well despite geopolitical and economic headwinds, and that they are carrying momentum into the fourth quarter. According to these executives, a growing number of consumers are placing emphasis on craftsmanship and customization, and a new definition of value is emerging in the marketplace, one that moves beyond lowest price. Tom Zaliagiris, senior vice president of sales and marketing for Sherrill Furniture, said the company has experienced strong sales through 2026 and expects to carry that momentum through the end of the year, adding that value prevails in a climate defined by headwinds and uncertainty.
Jewelry & Luxury
Samsung Ordered to Pay Swatch $11.6M in Smartwatch Trademark Dispute
A London court has ordered Samsung Electronics to pay Swatch Group $11.6 million in damages over smartwatch watch-face apps that replicated the appearance of several Swatch-owned brands. The ruling stems from a long-running trademark dispute involving digital watch-face apps sold through Samsung’s Galaxy app store; the apps, created by third-party developers, mimicked the designs of brands including Omega, Longines, Tissot, Breguet and Blancpain. Samsung was previously found liable for trademark infringement by the High Court in London in 2022 for allowing the apps to be offered between 2015 and 2019; an appeal was later dismissed, and recent proceedings were focused on determining damages. Swatch had sought approximately $170 million in damages, arguing that Samsung had enabled widespread misuse of its trademarks, while Samsung contended that any harm was minimal and that only a nominal amount was owed. Samsung said it is reviewing the decision and is considering all possible countermeasures, including an appeal, while Swatch welcomed the ruling and noted that separate litigation involving the same Swatch brands remains pending in a U.S. court.
Tiffany & Co. and USTA Extend Nearly 40-year U.S. Open Partnership
Tiffany & Co. and the United States Tennis Association have renewed their nearly four-decade relationship with a new multiyear partnership, continuing Tiffany’s role as the U.S. Open’s official trophy crafter. The relationship dates to 1987, when Tiffany silversmiths began crafting the U.S. Open championship trophies, and the house is today responsible for several awards for the tournament, including the Men’s and Women’s Singles Championship trophies and the doubles trophies. Each unique trophy is handcrafted in sterling silver at Tiffany’s hollowware workshop in Cumberland, R.I., where artisans employ traditional techniques including spinning, silversmithing, chasing, hand engraving and polishing, with the 18-inch singles trophies produced over a period of about six months. Tiffany’s trophy-making history also includes the Vince Lombardi Trophy for the Super Bowl and trophies for the NBA, Major League Baseball and professional golf, with its Cumberland workshop producing more than 65 varieties of trophies each year.
Sporting Goods & Leisure
Dick’s Sporting Goods reported quarterly earnings that missed Wall Street expectations and lowered its outlook for Foot Locker amid what it called a challenging athletic footwear and apparel marketplace. Dick’s stock fell 30% as a result, its worst trading day since 2023. The company said Dick’s stores saw a 4.9% increase in comparable sales for the quarter driven by broad-based growth across categories, including strong results from the World Cup. However, Dick’s said Foot Locker saw comparable sales decline by 3.6%, leading the company to revise its full-year outlook for the Foot Locker business to a range of flat to down 2%. It still expects the Dick’s business to grow between 2.5% and 4%, but the company lowered its overall net sales outlook for the year from a range of between $22.1 billion and $22.4 billion to a range of between $21.9 billion and $22.2 billion.
West Marine Emerges from Bankruptcy After $265m Debt Reduction
West Marine, the U.S. marine-parts and accessories retailer, has emerged from Chapter 11 bankruptcy protection after completing a comprehensive financial restructuring that reduces its debt by more than $265 million and provides $10 million in exit financing. Financial terms were not disclosed. Since entering Chapter 11 in May 2026, West Marine has closed approximately 100 stores, renegotiated or rejected burdensome leases, and converted a significant portion of its debt into equity, resulting in a lighter balance sheet and improved liquidity. Following the transaction, the company will work with CEO Paulee Day and the existing management team to invest in its retail stores, e-commerce platform, and West Marine Pro business, while continuing to serve the boating community through around 100 locations and its online channel. The company’s headquarters and core operations will remain in Fort Lauderdale, Florida, as it moves forward as a reorganized, consumer-facing marine retailer.
Escalade, a U.S. manufacturer of sporting goods, safety, and indoor/outdoor recreation equipment, has acquired ASL Solutions, a leading producer of premium insulated dog and cat houses. Financial terms were not disclosed. Founded in 2000 and based in Ste. Marie, Illinois, ASL Solutions offers the Dog Palace, CRB Palace, RB Palace, and DP Hunter product lines, which are designed to keep pets warmer in cold weather and cooler in warm conditions. The acquisition adds rotational-molding manufacturing capability and a differentiated pet-housing platform to Escalade’s portfolio, expanding its domestic production base and providing a meaningful entry into the growing pet market. ASL’s products are viewed as a natural adjacency to Escalade’s existing sporting goods, recreation, and backyard product categories.
Technology & Internet
Best Buy beats quarterly estimates and hikes its outlook, but stock falls
Best Buy reported better-than-expected fiscal second-quarter results and raised its full-year outlook as the company’s recovery showed more signs of taking hold. The consumer electronics retailer said it saw comparable sales growth of 4.1% during the second quarter, compared with its previous outlook of just 1%, and saw a higher-than-expected adjusted operating income rate. Best Buy said it drove growth across all of its major categories, with a surge in computing contributing to that strength. Best Buy also raised its full fiscal-year financial guidance due to what incoming CEO Jason Bonfig called in the release its strong first half performance. The company now expects revenue of between $42.3 billion and $42.8 billion, compared with prior guidance of a range between $41.2 billion to $42.1 billion. It also anticipates comparable sales will climb 1.9% to 3%, compared with prior expectations of between a decline of 1% and an increase of 1%.
Report: Smart Ring Maker Oura Seeks to Raise $3B via IPO
Oura Health Oy, a Finnish maker of smart rings that track health, fitness and sleep, is seeking to raise up to $3 billion in a U.S. initial public offering (IPO) that could come as early as September, according to Bloomberg. Sources told Bloomberg that the IPO will target a company valuation of more than $16 billion. Existing investors are expected to sell a significant amount of stock in the offering, according to the report. In May, reports arrived that Oura filed confidentially for a U.S. IPO. The $16 billion valuation would mark a sizeable step-up from recent valuation levels. Last September, Oura achieved an $11 billion valuation following an $875 million Series E funding round.
Finance & Economy
Fed’s Preferred Inflation Gauge Shows Core Prices Rose 3.3% Annually in July
U.S. consumer prices rose slightly in July, with the Federal Reserve’s preferred inflation gauge increasing 0.2% for the month and 3.7% on an annual basis, both 0.1 percentage point above the Dow Jones consensus. Core PCE, which excludes volatile food and energy costs, rose 0.2% in July and 3.3% year over year, in line with expectations. Personal income increased 0.4% while spending rose 0.2%, both stronger than anticipated, as goods prices fell 0.1% and services prices rose 0.3%, led by gains in financial services, insurance, and housing. The report comes as Fed officials weigh their next policy move, with inflation still well above the central bank’s 2% goal and markets pricing in roughly a one-in-three probability of a rate hike at the September meeting.
What the US Trade War with Canada and New Tariffs Mean for Prices
A reignited trade war between the United States and Canada threatens to lift consumer prices in both countries after negotiations collapsed, prompting the Trump administration to impose 50% tariffs on select Canadian imports and threaten to double duties on all Canadian cars, trucks, automotive parts and steel to 50% next January. In response, Canadian Prime Minister Mark Carney announced dollar-for-dollar counter-tariffs scheduled to take effect September 8 covering steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics, with exemptions limiting the immediate impact to about 5% of the $382 billion in Canadian imports to the United States recorded in 2025. The escalation comes as U.S. inflation remains elevated at 3.7% annually, with economists warning that tariffs could add roughly 0.6 percentage point to the overall price level and push up costs for building materials, automobiles, and hundreds of other goods ranging from flowers and honey to hockey equipment and cameras.
