Apparel & Footwear

Designer Brands Raises Full Year Guidance After Second Quarter Report

Shares of Designer Brands Inc. rose in pre-market trading after the company raised its full year guidance. For the second quarter ended Aug. 1, net income jumped 66.7 percent to $17.6 million, or 31 cents a diluted share, from $10.5 million, or 21 cents, a year ago. On an adjusted basis, diluted EPS was 34 cents. Net sales slipped 1.2 percent to $730.6 million from $739.8 million, while comparable sales fell by 2.4 percent. The company reported that retail sales for the quarter totaled $671.1 million and sales in the brand portfolio were $86.3 million. Total segment sales were $757.3 million, and total net sales were $730.6 million after the elimination of intersegment net sales of $26.7 million. Wall Street was expecting adjusted diluted EPS of 26 cents, on revenue of $744.7 million.

Francesca’s Ch. 11 liquidation plan confirmed

Francesca’s Chapter 11 wind-down plan was confirmed by a bankruptcy court judge. The amended plan outlines the retailer’s success over the past few months in resolving objections from landlords and other creditors regarding its store closing sales. The now-confirmed disclosure statement and joint plan of liquidation includes the retailer’s move to sell its IP to Altar’d State parent company Stand Out For Good for about $7 million. That sale to Stand Out For Good is inclusive of Francesca’s social media accounts, customer data, trademarks, branding assets and more. Although 28 parties accessed the data room to review the debtors’ holdings and financial information during the marketing sale of its IP, no other qualified bids were received outside of Stand Out For Good’s offer, per the joint plan.

Cosmetics & Pharmacy

Dollar Shave Club expands personal care reach with Truly Beauty acquisition

Dollar Shave Club has acquired Truly Beauty, marking its first acquisition and accelerating its expansion beyond men’s grooming into a broader multi-brand personal care portfolio. Founded in Los Angeles by Maxx Appelman in 2015, Truly Beauty offers hair, body and skincare products formulated with clean, plant-based ingredients and positioned to deliver luxury-grade results for everyday concerns. The move follows Dollar Shave Club’s recent push into women’s grooming and adds Truly’s Gen Z-focused, mass-premium body care business to its portfolio. While both brands will retain their distinct positioning and identities, they will share back-end operations, including supply chain, inventory management, marketing strategy and creative capabilities.

KKR-backed OPI nail polish owner Wella Co. files for U.S. IPO

KKR-backed OPI nail polish owner Wella Company filed for a U.S. IPO, adding to a growing list of consumer companies looking to tap investor interest in public markets. The hair and nail care firm has a presence in over 100 countries, employing over 6,000 people, with primary offices in Geneva, Switzerland, New York City, London, and Calabasas, California, and a large R&D facility in Darmstadt, Germany. Global investment firm KKR initially acquired a 60% stake in Wella from beauty conglomerate Coty in 2020, when Wella was carved out into a standalone company, valuing the business at $4.3 billion, including debt.

Discounters & Department Stores

Macy’s posts strong results, raises guidance as turnaround begins to take hold

Macy’s posted growth across the company in its fiscal second quarter and raised guidance as it continues its turnaround. The retailer said overall comparable sales rose 2.7% for the quarter, with comparable sales for its namesake brand up 1.1%. The company said that growth was largely driven by its so-called reimagined stores, locations it has revamped as one of the focuses of its turnaround. Macy’s said its higher-end store line Bloomingdale’s saw an 11.3% increase in comparable sales, while beauty brand Bluemercury was up 6.2%. The company also raised its full-year guidance and now projects net sales to be between $21.68 billion and $21.83 billion, compared with a prior expectation of between $21.5 billion and $21.75 billion. It also raised its comparable sales outlook range from between 0.5% and 1.2% growth to a 1% to 1.5% increase.

Saks who? Bloomingdale’s hits sales volume record

Bloomingdale’s continues to benefit from the struggles at Exemplar Luxury Group, formerly Saks Global, which emerged from bankruptcy this summer. Bloomingdale’s posted double-digit comp sales growth compared to Q2 last year and the best Q2 sales volume in its history. The department store has been revamping its assortment, adding Ulla Johnson, Proenza Schouler, Dries Van Noten and others, and expanding distribution of James Perse, Chanel fine jewelry and watches, Christian Louboutin and Prada shoes. During the quarter, the retailer held more of its widely popular in-store events at most of its locations and launched an AI-powered conversational e-commerce shopping assistant. Bloomingdale’s comparable sales growth topped 11%, up about 1,700 basis points over the last two years, buoyed by growth in all channels, markets, and categories. Sales of owned plus licensed goods reached $922 million.

Emerging Consumer Companies

Belle Brands acquires hair wellness brand Vegamour

Belle Brands, the beauty platform backed by consumer-focused private investment firm Windsong Global, has acquired hair wellness brand Vegamour. Founded around a biotech-powered approach to hair wellness, Vegamour develops clean, clinically backed products focused on hair health and longevity. The brand has an exclusive retail distribution relationship with Sephora. The acquisition will support further investment in Vegamour’s product development and retail strategy. Notably, Belle Brands said it intends to strengthen the brand’s relationship with Sephora while continuing to build on its positioning in the hair category.

System, peptides brand, raises $20 million

System, the vertically integrated peptide platform connecting patients with licensed U.S. clinicians and pharmacy-grade compound treatments, announced $20 million in new funding to accelerate its mission of becoming the definitive, trusted name in peptides. Funding comes from Patron Fund, Will Ventures, Vine, Courtside, Daybreak, SV Angel, and RiverPark Ventures. The fresh capital will give more people access to what has historically been reserved for a select group of patients.

Food & Beverage

Barilla expands pasta portfolio with Goodles acquisition

Barilla Group is growing its pasta portfolio by agreeing to acquire macaroni and cheese manufacturer Goodles. Financial terms of the deal were not disclosed. After the acquisition, Goodles will operate independently as a standalone brand, its team will remain in place, and it will remain headquartered in Santa Cruz. Goodles was founded in October 2020 to provide health-conscious consumers and later adult consumers with a classic comfort food formulated to be better-for-you. The company makes several product lines, including a traditional line with such flavors as Mover & Shaker, Twist My Parm, Cheddy Mac, and Shella Good; a deluxe line featuring squeezable cheese; a microwavable cup line; gluten-free and vegan offerings; and several varieties of dry pasta noodles.

Keurig Dr Pepper to sell stake – and factory – to Chobani

Keurig Dr Pepper has agreed to exit its shareholding in Chobani and sell a manufacturing and warehousing site to the dairy group. In a statement, the Dr Pepper and Keurig owner said it will divest its full equity stake in Chobani back to the business for $800m. Separately, Chobani will also buy KDP’s plant and warehouse in Allentown, Pennsylvania, for around $125m, covering the lease, operations and machinery. KDP said it plans to use the net proceeds from the deals to reduce debt as it positions its two future businesses, Beverage Co. and Global Coffee Co., for long-term success.

Medici Brands raises $250 million in Series B funding

Medici Brands, the parent company of David Protein and HallPass, has raised $250 million in a Series B funding round. The funding round was co-led by Greenoaks and Valor Equity Partners. The proceeds will be used to expand the retail presence and product portfolio for HallPass, a maker of low-calorie, low-sugar peanut butter-based snacks that launched nationwide at Walmart, to spread David into new formats and categories, and to deepen ongoing product innovation and building infrastructure to support launching and scaling new brands such as Rowdy.

Kendall Jenner invests in Trip

Kendall Jenner has acquired an undisclosed stake in Trip and will become a global ambassador for its namesake brand, which is on sale in Europe and North America, including in the US. Trip was set up in 2019, launching a range of CBD-infused drinks in the UK. The company, which says it has listings with every major US retailer, is forecasting that it will generate revenue of $200m in 2026. Since its launch seven years ago, Trip has expanded with a broader range of drinks, oils, gummies and powders.

Grocery & Restaurants

Pollo Tropical, P.J. Whelihan’s owner gets $325M investment

The owner of Pollo Tropical, P.J. Whelihan’s, and other regional restaurant brands has landed a $325 million investment to help it grow. London-based asset manager Trimontium is providing the “flexible capital solution” to Authentic Restaurant Brands, which will use it to open more locations and acquire more brands. Austin-based Authentic also owns Primanti Bros, Tavern in the Square, and Mambo Seafood. Its strategy is to grow these “hometown hero” brands within their existing markets while also modernizing them with investments in technology and analytics. It was founded in 2021 as a subsidiary of private-equity firm Garnett Station Partners. It currently spans 225 locations and more than $1 billion in combined annual revenue, and has recorded four straight years of positive same-store sales growth.

New York City’s Los Tacos No. 1 nabs private-equity investment

Los Tacos No. 1 — the Tijuana-style taco brand that got its start in 2013 at a stand in New York City’s Chelsea Market — announced it received a strategic investment from private-equity firm TSG Consumer. It is unknown if TSG Consumer will act as a majority or minority investor in the emerging brand. Los Tacos No. 1 confirmed that cofounder and CEO, Christian Pineda, along with chief operating partner, Jacobo Ackerman, will continue to lead day-to-day operations while TSG will be both a financial investor and strategic partner. The taco brand currently operates 10 locations across Manhattan, as well as Los Mariscos, its sister seafood concept in Chelsea Market that is known for Baja-style fish tacos, shrimp tacos, and ceviche.

Abu Dhabi buys into China’s Luckin Coffee with $1bn deal

Abu Dhabi’s Mubadala has invested in China’s Luckin Coffee as part of a $1bn transaction, widening the sovereign wealth fund’s presence in the world’s second-largest consumer market. The $385bn sovereign investor on Thursday said it would join Luckin’s controlling shareholder, the private equity firm Centurium Capital, in backing the coffee chain that operates about 36,000 stores globally. Mubadala did not disclose the size of its minority investment, which puts Emirati capital in the company that became embroiled in an accounting scandal six years ago. That led to Luckin filing for bankruptcy in the US, being delisted from Nasdaq and a settlement with the Securities and Exchange Commission. The Luckin transaction extends Mubadala’s run as one of the world’s most acquisitive sovereign wealth funds.

Home & Road

Bed Bath & Beyond Parent Nixes Planned Purchase of F9 Brands

Neighborhood Intelligence, formerly Bed Bath & Beyond, announced that it has terminated the company’s proposed acquisition of F9 Brands, parent of Lumber Liquidators and related retail banners. Neighborhood Intelligence said it determined F9 couldn’t satisfy all closing requirements under terms of the acquisition agreement within the set timeframe. As such, Neighborhood Intelligence added, it will not proceed with the acquisition or enter into a commercial or strategic collaboration with F9. F9 operates Lumber Liquidators, Cabinets To Go, Gracious Home/Thos. Baker and Southwind Building Products. Neighborhood Intelligence, upon initially announcing its intent to acquire F9, said it planned to incorporate the F9 enterprises into the Home Services segment of its business, complementing existing Elfa and Closet Works operations as it extends its whole home business strategy. Marcus Lemonis, executive chairman of Neighborhood Intelligence, said disciplined capital allocation and protecting shareholder value are central to how the company evaluates every transaction, and that it determined the seller was unable to satisfy the closing conditions.

Tariff refunds help lift RH past $900 million in Q2 revenues

Top 100 retailer RH eclipsed $900 million in net revenues in the second quarter of FY2026, with $55.1 million of that as a result of IEEPA tariff refunds. For the three months ended Aug. 1, the Corte Madera, Calif.-based retailer posted net revenues of $922.15 million, up 2.56% compared with $899.15 million in the same three months of FY2025. Net income totaled $60.17 million, or $3.06 per diluted share, an increase of 16.36% vs. net income of $51.71 million, or $2.62 per diluted share, in the second quarter of the prior year. RH recognized a tariff benefit of $55.1 million in the second quarter and expects to recognize an additional $13.9 million tariff benefit in the second half of the year, which Chairman and CEO Gary Friedman said it plans to use to offset $50 million of unplanned cost increases across the supply chain due to the significant and sustained spike in oil prices; the remaining $19 million of tariff proceeds will benefit earnings and is included in its updated adjusted EBITDA margin outlook for fiscal 2026. For the third quarter, RH projects revenue growth of 5% to 6% and an adjusted EBITDA margin of 12.5% to 13.5%, and for the full fiscal year its guidance includes revenue growth of 5.5% to 7% and an adjusted EBITDA margin of 15% to 16.2%.

No mattress recovery yet, but Culp Q1 bedding sales surge 13%

Culp Inc. is not calling a recovery in the mattress business, but the fabric supplier says its double-digit bedding growth in a still-pressured market is evidence that its two-year restructuring and commercial strategy are paying off. For the fiscal 2027 first quarter ended Aug. 2, Culp reported consolidated sales of $54 million, up 6.5% from $50.7 million in the comparable quarter of the prior year, an increase that came despite one fewer selling week. Bedding led the growth, with segment sales increasing 13.2% to $31.8 million, while upholstery fabric sales totaled $22.2 million, compared with $22.7 million a year ago. Gross profit was $15.4 million, or 28.5% of sales, compared with $7.2 million, or 14.3%, a year ago; excluding recoveries associated with previously incurred IEEPA tariff costs, adjusted gross profit was $8.4 million, or 15.6% of sales. Net income was $6 million, or 47 cents per diluted share, compared with a net loss of $231,000, or 2 cents per diluted share, in the year-ago quarter, and net debt fell more than 70% to $3.1 million from $10.9 million at the end of fiscal 2026. Iv Culp, president and CEO, attributed the gains to the company’s commercial strategy and to a restructuring undertaken during the past two years that included closing the company’s Canadian manufacturing operation and consolidating production in the U.S.

Jewelry & Luxury

Affordable Luxury Is Gaining Ground in Department Stores

Reflecting how luxury remains under pressure, contemporary and premium brands are now dominating women’s fashion floors, according to a new report from the International Association of Department Stores, or IADS. According to its tallies, the contemporary and premium segment accounts for 31 percent of the women’s fashion business, high-street and mid-range brands 22 percent and advanced contemporary 21 percent. At Tryano in Abu Dhabi, operator Chalhoub cited the 400- to 800-euro price bracket as attracting the strongest sell-throughs, while El Palacio de Hierro in Mexico has redirected part of its open-to-buy to affordable luxury and entry price points to offset declines at the higher end. Across markets as diverse as the U.S., Germany, Ukraine and the Middle East, the IADS said the same names recur among members’ bestsellers: Sandro, Maje, Max Mara and Self-Portrait in contemporary, and Victoria Beckham, Ami Paris and Jacquemus higher up the ladder. Women’s fashion continues to grow in the online channel, generating about 22 percent of department store sales in 2025 versus 20 percent in the prior year. IADS members represent more than 563 stores in 32 countries.

Signet Posts 2.2% Same-Store Sales Gain as Bridal and Services Drive Q2 Growth

Signet Jewelers reported that total sales decreased by 0.5% to $1.53 billion during the second quarter, partly because of its decommission of the James Allen website and transition into Blue Nile in May. Same-store sales increased 2.2% for the three months ending Aug. 1, with that growth coming from bridal and services, while fashion saw a 1% comp decline from decreases at Banter by Piercing Pagoda and from lower price points in general. Signet raised its outlook for the rest of fiscal 2027, saying it anticipates same-store sales of flat to up 2.5% for its overall fiscal year, and it repurchased approximately 1 million shares for $87 million during the quarter. Analysts applauded the company’s continued success under J.K. Symancyk, chief executive officer of Signet Jewelers, noting that his Grow Brand Love strategy shows depth and consistency, and Signet’s shares rose 19% to $98.58. Symancyk told analysts that brand refreshes at Kay and Jared are now complete, with Zales next, and that timepieces continued to deliver strong category comp growth, up almost double digits to last year. Joan Hilson, chief operating and financial officer, said Signet signed an early renewal with its primary consumer credit partner, Bread Financial, and plans to offer Bread Financial credit to Blue Nile customers for the first time ahead of the holiday season.

Sporting Goods & Leisure

Nike, Simon Property Group dropped from S&P 100

Nike and Simon Property Group will soon lose their places on the S&P 100, according to a list from the S&P Dow Jones Indices. The companies being added to the cohort are largely from the tech sector. The changes take effect ahead of trading on Sept. 21, a Monday, and are designed to ensure that each index is more representative of its market capitalization range, according to a press release. Both remain on the larger S&P 500. Nike, Simon and other stocks that will be removed from the S&P 100 could see their share prices dip as funds based on that list sell them. Nike has been toiling away at a turnaround that has tested the patience of its investors. Following its most recent quarter, which showed some progress, analysts couldn’t agree on how meaningful the improvement was.

Academy’s Shares Rise on Q2 Report

Shares of Academy Sports & Outdoors Inc. rose in pre-market trading after the sports retailer posted a second quarter earnings report that gains in both profits and sales. For the second quarter ended Aug. 1, net income was up 10 percent to $137.9 million, or $2.17 a diluted share, from $125.4 million, or $1.85, in the same year-ago quarter. On an adjusted basis, earnings per share (EPS) was $1.94. Net sales were up 3.0 percent to $1.65 billion from $1.6 billion. Comparable sales slipped 0.4 percent in the quarter. Wall Street was expecting adjusted diluted EPS of $2.08 on net sales of $1.65 billion. For the six months, net income rose 11.1 percent to $190.6 million, or $2.94 a diluted share, from $171.5 million, or $2.52, in the prior year period. Net sales rose 4.7 percent to $3.09 billion from $2.95 billion. Comparable sales rose 1.1 percent.

Lululemon’s incoming CEO has a mountain of problems to fix

When incoming Lululemon CEO Heidi O’Neill starts her new job, she will have a lot of heavy lifting to do. The struggling athleisure brand reported another dismal earnings report, posting a 12% drop in sales in North America and slashing its full-year outlook for the second time in three months. Shares fell roughly 20%, with the stock hovering at an eight-year low. Lululemon pinned the slowdown on a decline in products it’s best known for, like leggings, which saw a 20% plunge in sales. The disappointing quarter only further underscored the company’s years-long decline due to a litany of problems: customers defecting to trendier rivals, a public fight with founder Chip Wilson that’s been put on ice and a broader pullback in consumer spending.

Technology & Internet

Apple enters Ternus era as AI challenges and memory crunch intensify

When incoming Apple CEO John Ternus spoke to CNBC in late 2023, he was all about the technology. Custom chips, device battery life and memory architecture were among his primary interests. “If we build the right products with the right components within them, right silicon and other technologies, people love them,” Ternus, who took over as head of hardware two years earlier, said in the interview. Ternus’ job gets a whole lot bigger on Tuesday, when he succeeds Tim Cook and becomes just the second CEO of Apple since Steve Jobs left in 2011, shortly before his death. The 25-year company veteran will be responsible for everything from software and devices to finance and legal, while also having to articulate a vision for a $4.7 trillion company that hasn’t yet fully executed its strategy in artificial intelligence. Apple representatives have said the transition from the 65-year-old Cook to the 51-year-old Ternus will be “thoughtful” and “smooth.” Ternus said, when the succession was announced in April, that he would carry on Apple’s “values and vision.”

GoPro pivots into AI data centers as shares skyrocket 40%

GoPro is joining the artificial intelligence craze. The action camera maker announced on Tuesday it would enter into a definitive merger with Starman Optical, a private photonics company, and expand into AI data center and defense markets, according to a release. “We expect this merger to enable GoPro to grow across consumer, commercial and defense markets as a leading American imaging and optical solutions company, addressing important areas of national security related to cameras, optics and AI infrastructure,” said GoPro CEO Nicholas Woodman in the release. Shares closed up 40% following the news.

Uber to cut 10% of workforce in bid to move ‘simpler and faster’

Uber on Wednesday announced plans to slash 10% of its workforce in a move to consolidate management layers and trim costs. “The changes we’re making today are designed to do two things: make Uber simpler and faster, and create more capacity to invest in our future,” CEO Dara Khosrowshahi wrote in an email to employees. That includes its previous plans to commit more than $10 billion to autonomous vehicles in the coming years. The ride-hailing company’s shares rose nearly 2%.

Finance & Economy

Inflation persisted in August, potentially locking in a Fed interest rate hike

Prices for a wide swath of goods and services continued to climb in August, according to a report that raises the specter of a Federal Reserve interest rate hike. The consumer price index rose a seasonally adjusted 0.4% for the month, putting the 12-month increase at 3.4%, the Bureau of Labor Statistics reported. However, stripping out volatile food and energy prices, the core CPI posted a 0.3% monthly gain, or 0.1 percentage point higher than forecast. The core annual rate came in at 2.4%, matching the estimate. Traders responded to the numbers by ramping up bets that the Federal Open Market Committee will increase its benchmark interest rate by a quarter percentage point. Odds for a hike jumped to nearly 90%.

Wholesale prices rose 0.4% in August, as expected

U.S. wholesale prices rose in August, according to a report that could play a key role in the Federal Reserve’s upcoming interest rate decision. The producer price index, a measure of final demand costs for goods and services, increased a seasonally adjusted 0.4% for the month, in line with the Dow Jones consensus, the Bureau of Labor Statistics reported. On an annual basis, that put the PPI at 5.4%, still well above the Fed’s 2% inflation target and 0.1 percentage point higher than expected. The PPI rose 0.1% in July, a slight upward revision from the original estimate of no change. Excluding food and energy, the core PPI accelerated by 0.2%, against the forecast for a 0.3% increase. Core less trade services, another volatile category, was up 0.3%, in line with estimates.