Story of the Week
Butterfly Equity to acquire The Duckhorn Portfolio for $1.95bn
Butterfly Equity, a private equity firm focused on the food and beverage sector, has announced a definitive agreement to acquire The Duckhorn Portfolio, a luxury wine producer, in an all-cash transaction valued at approximately $1.95 billion. This marks Butterfly’s first take-private acquisition and is expected to enhance its diverse portfolio, which includes brands such as Milk Specialties and QDOBA. Under the terms of the agreement, Duckhorn stockholders will receive $11.10 per share, representing a 65.3% premium over the company’s average share price over the past 90 days. Following the completion of the transaction, Duckhorn will transition to a privately held entity, maintaining its headquarters in St. Helena, California.
Apparel & Footwear
Go Global snaps up Hatch maternity brand
Go Global Retail, a brand investment platform, has acquired maternity brand Hatch Collection for an undisclosed amount, according to a company press release. Hatch will be operated by Janie and Jack, the upscale children’s apparel brand that Go Global acquired from Gap Inc. in 2021. Janie and Jack runs about 120 retail stores across the U.S. and Hatch runs two. Janie and Jack and Hatch aim to work in concert, not just as a destination for apparel for pregnancy and throughout childhood but also for resources, content and events for key milestones, executives said. Hatch products and its Babe platform, which bills itself as a support system for pregnancy, will ultimately join Janie and Jack in stores and online to some extent, they said.
Urban Outfitters drops prices on over 100 styles
Urban Outfitters is promoting new price drops in Q4 ahead of the height of the holiday season. A green banner at the top of a page of the retailer’s website reads: “We heard you. We were a lot. We’re lowering prices on over a hundred of your favorite styles.” The offering is centered on men’s and women’s apparel, including graphic T-shirts, pants, dresses, sweaters, sweatshirts and jackets. More than 100 items were listed online as of Oct 10th. They included a $25 plain T-shirt in nearly a dozen color options; a $29 mesh cropped cami, a $39 short sleeve polo T-shirt; and a $69 strapless midi dress. While the company did not immediately respond to Retail Dive’s request for more information, Urban Outfitters has previously acknowledged it needed to respond to perceptions about the price points of its namesake brand.
W&D Investment Design proposed to acquire stake in RIGHT ON Co.
W&D Investment Design proposed to acquire 52.96% stake in Japanese casual wear retailer RIGHT ON Co., Ltd. for ¥2.07 billion on October 8, 2024. A cash consideration of ¥2.07 billion valued at ¥110 per share will be paid by W&D Investment Design. As part of consideration, ¥2.07 billion is paid towards common equity of RIGHT ON. Anderson Mori & Tomotsune LPC acted as legal advisor for W&D Investment Design. EY Strategy and Consulting acted as financial advisor for RIGHT ON. Nishimura & Asahi acted as legal advisor for RIGHT ON.
Athletic & Sporting Goods
Vista Outdoor Agrees to Sell Revelyst, The Kinetic Group to Two Buyers for $3.4 Billion
Vista Outdoor’s uncertain and hotly debated plan to separate its outdoor and ammunition branches may finally be reaching a resolution after the company inked an agreement to sell Revelyst and amended its agreement to sell The Kinetic Group to Czechoslovak Group (CSG) a sixth time. Investment firm Strategic Value Partners (SVP) and its affiliates agreed to buy Revelyst in an all-cash transaction based on an enterprise value of $1.125 billion. SVP would take the company – which includes Foresight Sports, Bushnell Golf, Fox, Bell, CamelBak, Giro, and Simms Fishing – private in the deal that would close in January 2025. The SVP acquisition of Revelyst is contingent on the sale of The Kinetic Group, Vista’s ammunition branch, to CSG.
Riser Fitness Secures $72 Million Growth Capital Commitment from Fortress Investment Group
Riser Fitness, LLC, a leading operator of Club Pilates studios across the western United States, announced today that it has secured a $72 million growth capital commitment from funds managed by affiliates of Fortress Investment Group LLC. The structured financing will fuel additional construction of new units as well as the acquisition of existing Club Pilates properties as the Company strengthens its leadership position in the rapidly growing boutique fitness industry. With over 60 operational units in the western U.S. and more than 100 additional territories in development, Riser Fitness is the largest franchisee in the Club Pilates system.
Cosmetics & Pharmacy
Unilever sells its business in Russia
Unilever, owner of brands including Dove soap and Hellmann’s mayonnaise, said that it has completed the sale of its Russian business to Arnest Group, a local manufacturer of perfume, cosmetics and household products, for an undisclosed amount. The British consumer goods company said the sale includes all of its business and four factories in Russia as well as its business in Belarus. The terms of the transaction were not disclosed. In addition to the Russian exit, Unilever’s CEO Hein Schumacher has, in his first year at the helm, overseen plans to spin off the group’s ice cream business, lay off up to 7,500 staff and focus on 30 key brands to reverse years of underperformance.
Amway has announced that its Board of Directors has appointed Michael Nelson as President and Chief Executive Officer, effective immediately. Nelson succeeds Milind Pant, who has held the role since January 2019. Nelson brings three decades of experience at Amway, across critical leadership roles in strategy, supply chain, human resources and technology to this new position. Board Co-Chair Steve Van Andel, explains, “We’re ready to build on the momentum of recent years, grow from our strengths and answer market needs of today in a way that only we can. The Board is thrilled to welcome Michael to this crucial position, and we’re certain that he brings exactly what Amway needs to continue leading, growing and thriving in the industry – now and well into the future.”
Bravo Sierra Launches Prestige Range, Announces New Funding
Military-themed personal care brand Bravo Sierra, which targeted the mass market when it debuted in 2019, is relaunching with a line of prestige hair and skin products designed for high-performance lifestyles. Its existing mass line will be sold exclusively at Amazon. As part of the relaunch, Bravo Sierra secured $2.5 million in funding from its historical investors. The prestige collection introduces new scents, modernized packaging and formulations tailored exclusively for the prestige and specialty channels. It will be sold direct-to-consumer.
Voyant Beauty has announced the appointment of Ed Byczynski as CEO, effective immediately. Byczynski joins from Duraco where he served as CEO and brings 15+ years’ experience as a private equity-backed CEO to this new position. Byczynski succeeds Richard McEvoy, who served as CEO of Voyant since 2018, leading the organization through multiple acquisitions and stages of growth. Voyant Board Chairman, Jamie Egasti, commented, “We are excited to partner with Ed, a seasoned industry veteran who has operated high-growth supply chain organizations with an impressive track record of success.”
Discounters & Department Stores
Walmart wants to create a unique homepage for each shopper
Walmart is accelerating its Adaptive Retail strategy, aiming to combine generative AI, augmented reality and personalization to create immersive experiences in Walmart and Sam’s Club stores, apps and websites, the company said Wednesday. The retailer has developed a series of large language models called Wallaby and plans to use the technology to support customer-facing assistants and experiences. Walmart has trained Wallaby on decades of internal data, which lets it work with other LLMs to create responses that are highly tailored to the Walmart environment. Walmart also created an AI-powered Content Decision Platform that tries to predict what customers want to see on its website to create unique homepages for every customer based on their interests. The updated website is expected to launch in the United States by the end of 2025.
Another rough year for department stores
It’s been another rough year at U.S. department stores so far, at least for those making their financial filings public. Several of them — public and private — have embarked on turnarounds or are contemplating changes that could be a final test of a challenged retail model. Department stores face many of the same obstacles, including competition from discount players and waning interest from younger generations, but their go-forward plans differ. Macy’s Inc., after a drastic reduction in its namesake’s footprint a few years ago, plans to shutter another 150 of those stores. The Nordstrom family has bid $3.8 billion to take the company private, as they oversee a major expansion of its Rack off-price business. J.C. Penney is in the midst of a $1 billion overhaul of its merchandising, supply chain, customer experience and other areas, though it’s keeping its fleet largely intact. Kohl’s is taking similar steps while also tightening its budget, prompting its CEO earlier this year to warn that “efforts of this scale take time.”
Belk, Inc. a leading department store with nearly 300 stores across the Southeastern United States, has announced its new Board of Directors, led by Chairman Steve Sadove. Bringing a wealth of retail knowledge and diverse operational experience to the Company, the new appointees, in addition to Steve, Joel Bines, Bob Hull, and Jon Zinman, will join Don Hendricks, Belk’s Chief Executive Officer, in reinforcing Belk’s momentum as it focuses on deepening national brand partnerships, creating a more personalized shopping experience, and further increasing customer engagement.
After scrapping health clinics for people, Walmart is expanding pet care
Walmart shut its doctor offices for people. But the nation’s largest retailer is expanding its pet care business. On Tuesday, the company announced it will open five more pet services centers in October and early November. The new locations in Arizona and Georgia will include veterinary care and grooming. Walmart opened its first pet services center last year in the Atlanta area. Walmart’s pet category is an attractive growth opportunity because it drives frequent purchases, resonates with customers across age groups and tends to hold up even when customers’ budgets are stretched, said Kaitlyn Shadiow, vice president of merchandising for pets for Walmart U.S. Walmart’s pet services centers will have their own dedicated entrance next to a store. They will be under the Walmart name, but staffed by employees of vet care and pet product company PetIQ. The centers will offer routine vet care, such as wellness exams, vaccines and minor medical services, and grooming for cats and dogs.
Emerging Consumer Companies
Maven Clinic, a virtual clinic for women’s health, raises $125 million
Maven Clinic, the world’s largest virtual clinic for women’s and family health, announced that it has raised a $125 million Series F funding round led by StepStone Group, with participation from existing investors General Catalyst, Sequoia, Oak HC/FT, Icon Ventures, Dragoneer Investment Group, and Lux Capital. This brings Maven’s total funding to more than $425 million. Maven Clinic offers the only global benefit to cover the entire reproductive life cycle on one platform, from preconception and family building to pregnancy, parenting, menopause and midlife. More than 2,000 clients in 175 countries trust Maven to support their employees, including Amazon, Microsoft, AT&T, Morgan Stanley and L’Oreal.
Claim, brand discovery platform for Gen Z, raises $12 million
Claim, a viral social app transforming how Gen Z discovers brands, today announced a $12 million Series A funding round led by VMG Technology, with participation from prior leads Sequoia Capital and Susa Ventures, as well as new investor, Lightbank. Since launching in 2023, Claim helped Gen Z shoppers discover new brands. During The Claim Drop, consumers are matched with a high-intent brands to try, while earning cash back directly to their Venmo accounts after making purchases. Claim has high penetration spanning more than 70 campuses nationwide and is poised to redefine how brands reach Gen Z.
Windmill launches high-performance air purifier, raises $5 million
Windmill, the high-performance air care brand best known for modernizing the window air conditioner, announced the launch of its latest innovation: The Windmill Air Purifier. Designed to elevate the rapidly-growing air purifier category, this first-of-its-kind product combines cutting-edge technology with contemporary, minimalist design, setting a new standard for indoor air care. In parallel, Windmill announces the closing of a $5M Series A funding round, backed by YETI CapitaI1, Pentland Ventures, Dot Capital, SuperAngel.Fund, and various other investors. The capital will support brand-building and marketing efforts, sales & distribution initiatives, as well as the continued build-out of its smart product suite, starting with The Windmill Air Purifier.
The Jackfruit Company, parent of jack & annie’s, raises $5 million
The Jackfruit Company, based in Boulder, Colorado, has secured a $5 million Series B extension funding round led by existing investors InvestEco, Creadev, and Grosvenor Food & AgTech. This latest round of capital will support the company’s efforts to enhance its plant-based meat offerings made from whole jackfruit, as well as fuel continued market expansion. This Series B extension follows a previous $23 million Series B round closed in 2021, which enabled the company to expand its distribution across retail and foodservice channels in the United States. The Jackfruit Company operates under two brands: TJC, which focuses on jackfruit ingredients for industrial and foodservice markets, and jack & annie’s, a consumer-facing brand offering products like burgers, breakfast sausage patties, and nuggets. CEO and founder Annie Ryu commented, “The aim for this is to be the last round.”
ClayCo Cosmetics raises $2 million from Unilever Ventures
Skincare brand ClayCo Cosmetics has raised $2 million in a funding round from Unilever Ventures, the venture and growth capital arm of Unilever. The funds will be used for expanding the product portfolio, investing in branding and marketing, and supporting working capital needs. The brand aims to bring premium and high-performance skincare solutions to the Indian market, the company said in a statement. Founded in March 2024 by Niharika Jhunjhunwala, ClayCo is a premium skincare brand that blends ancient beauty rituals from around the world with modern science.
Food & Beverage
La Vie Raises €25M, Reports €19M in Revenue and Significant UK Retail Growth
French plant-based pork and deli brand La Vie has secured €25 million in a new funding round, taking the total amount it has raised over the past three years to €50 million. The round saw participation from historical shareholders and new specialized investors such as Zintinus and Sparkfood. A crowdequity campaign with over 3,000 investors, claimed to be France’s largest, also contributed to the €25 million total. La Vie will use the funding to improve its existing plant-based deli products and develop new ones. The funding round was successful despite the current economic situation, which has seen food tech investments fall significantly.
One Rock Capital Partners Completes Strategic Investment in Lewis Brothers Bakeries
One Rock Capital Partners, LLC (“One Rock”) announced that one of its affiliates has completed a strategic investment in Lewis Brothers Bakeries, Inc., a third generation, family-owned bread and baked goods manufacturer headquartered in Evansville, Indiana, selling its products under market-leading brands including Lewis Bake Shop, Bunny Bread, Butternut and Healthy Life. Founded in 1925 by three brothers, Lewis Bakeries is the largest wholesale bakery in Indiana, employing approximately 2,000 people across its five bakeries in Indiana and Tennessee. The company’s products are distributed in 17 states, predominantly in the Midwest, where Bunny Bread and Butternut are longstanding, highly recognizable brands.
Simulate Announces Acquisition by Ahimsa Companies
Simulate, the company best known for producing plant-based nugget brand NUGGS, has announced an acquisition by plant-based investor Ahimsa Companies. As reported by Axios, Simulate required significant capital and opted to find a buyer rather than attempting to raise the funding. The deal was a combination of cash and equity, though the valuation of the company has not been disclosed. “Ahimsa is very values-aligned, and they’ve been committed to this space and mission for a long time,” Sam Terris, co-founder and CEO at Simulate, tells vegconomist. “We were looking for a partner that balances pragmatism and optimism — a group that could help get alt protein economics to work on a large scale, while also willing to invest in higher upside technology.”
Pet Food Experts Appoints New CEO
Pet Food Experts (PFX) has appointed Greg Cyr as CEO. After 25 years at the helm, Michael Baker will step into the role of vice chair of the board of directors, continuing to shape the company’s vision, company officials said. This leadership change marks an exciting new chapter for PFX as the company continues to foster its legacy of partnership and growth, officials added. “Building PFX alongside such a remarkably talented and dedicated team has truly been the honor of a lifetime,” Baker said. “We’ve grown PFX into more than just a business—it’s a passionate community built on trust, relationships, and shared values. Today, PFX stands as a leader in the industry, defined by our unwavering commitment to the well-being and growth of our employees, retailers and vendor partners. I’m proud of what we’ve achieved together, and I know that with Greg’s leadership, we’re ready to fuel the next chapter of our journey.”
Grocery & Restaurants
McDonald’s is suing beef suppliers over price fixing
McDonald’s is suing some of its suppliers over allegations they violated antitrust law by collaborating to sell beef to the chain at artificially inflated prices. The lawsuit names Cargill, JBS USA Food Company, Swift Beef Company, JBS Packerland, National Beef Packing Company, Tyson Foods, and Tyson Fresh Meats as the defendants, claiming their price fixing actions date back to “at least as early as Jan. 1, 2015.” “The goal of their conspiracy was to fix, raise, stabilize, and/or maintain the price of beef sold to (McDonald’s) and others at supra-competitive levels – prices artificially higher than beef prices would have been in the absence of their conspiracy,” McDonald’s claims. The quick-service giant added that the conspiracy was “effective and achieved that goal.” Together, the defendants listed make up the vast majority of the fresh and frozen beef supplier market in the United States, at about 80%, according to the lawsuit. The next largest has 2%-3% of share.
7-Eleven to Close 444 C-Stores in North America
Convenience-store giant 7-Eleven plans to close 444 underperforming stores in North America, parent company 7 & i Holdings revealed in an earnings presentation Thursday. The chain is struggling with the same inflationary pressures that are impacting traffic and sales at restaurants, plus a decline in demand for cigarettes. Traffic at North American 7-Eleven locations has been negative since early last year and fell 7.3% in August. As a result, the company downgraded its U.S. profit guidance for the year and said it will close weaker stores. The closures are expected to deliver a $30 million operating income benefit this year and a $110 million boost to annualized run rate, according to the presentation. The closures come amid a broader strategic shift for Tokyo-based 7 & i as it works to fend off a takeover bid by rival Alimentation Couche-Tard, the owner of Circle K.
Home & Road
The Aaron’s Company acquired for $504 million
The Aaron’s Company has gone private. Fintech company IQVentures Holdings has completed its acquisition of the retailer of lease-to-own and purchase solutions for appliances, electronics, furniture and other home goods for $10.10 per share in cash, in a deal valued at approximately $504 million. With the completion of the deal, Aaron’s common stock will cease trading as of Oct. 3 and will no longer be listed on the NYSE. Aaron’s offers a direct-to-consumer lease-to-own solution through its approximately 1,210 company-operated and franchised stores in 47 states and Canada, as well as its e-commerce platform. In 2022, it acquired appliance and consumer electronics retailer BrandsMart U.S.A., which has 12 stores in Florida and Georgia.
With stalking horse in place, Conn’s enters new auction timeline
With the disclosure that Jefferson Capital Systems has emerged as the stalking horse bidder for the assets of Top 100 retailers Conn’s HomePlus and Badcock Home Furniture &more, a modified bidding procedures timeline has been entered into the court. An asset purchase agreement for $360 million was delivered on Sept. 30 by Jefferson Capital and was filed on Oct. 2 in the U.S. Bankruptcy Court for the Southern District of Texas. Counsel for Conn’s filed a modified timeline into the docket on Oct. 6. The deadline to file objections to the stalking horse designation, bid protections and stalking horse asset purchase agreement is slated for Oct. 8 at 4 p.m. CT, with a stalking horse approval hearing set for Oct. 9 at 1:45 p.m. CT. The deadline to file form of proposed sale order is Oct. 5, and an auction is scheduled to take place Oct. 15 at 12:30 p.m. Eastern. A second auction, for real estate and lease designations only, is set for Oct. 17 at 10 a.m. ET. After any objections are filed and replied to, a sale hearing will take place Oct. 24 at 1 p.m. CT. The acquisition has a completion date of no later than Feb. 20, 2025.
Tempur Sealy files case to enjoin FTC’s administrative merger challenge
In a new action related to its proposed acquisition of retailer Mattress Firm, Tempur Sealy International says that the Federal Trade Commission (FTC) is violating constitutional protections. The world’s largest mattress supplier and manufacturer filed a complaint in the United States District Court for the Southern District of Texas seeking an injunction against the FTC’s administrative proceeding challenging the company’s $4 billion merger with Mattress Firm Group Inc. Tempur Sealy’s agreement to acquire Mattress Firm is already being challenged in federal court by the FTC, with the hearing scheduled to begin on Nov. 12, 2024, and expected to last two weeks. Tempur Sealy is now asking the Southern District of Texas to prevent the FTC from challenging the merger via its own separate administrative proceeding in addition to the federal court proceeding that is pending in the Southern District of Texas, as it violates constitutional protections. The company said it continues to believe that a successful litigation process can be completed in the coming months, which would allow the transaction to close in late 2024 or early 2025.
Jewelry & Luxury
Authentic Brands Group, Saks team up on luxury joint venture
Authentic Brands Group and Saks Global will launch a joint venture dubbed Authentic Luxury Group that includes Barneys New York, Judith Leiber Couture, Hervé Léger and Vince, all brands owned by Authentic. Saks Global is an entity formed earlier this year that encompasses Saks Fifth Avenue, Saks Off 5th, Neiman Marcus and Bergdorf Goodman, pending finalization of Saks owner HBC’s takeover of Neiman Marcus Group. Authentic plans to make a minority investment in Saks Global, per the companies’ press release Wednesday. ALG’s formation is “subject to the finalization of definitive documentation,” the companies said. The new entity will be “an incubator for brand growth,” including not just fashion and retail but also hospitality, real estate, art and travel, they also said.
European Watch Company Buys Crown & Caliber From Hodinkee
European Watch Company, a Boston-based retailer of pre-owned timepieces that also sells online, has purchased Crown & Caliber, the secondhand site previously owned by Hodinkee. European Watch paid in “the low six figures” for Crown & Caliber, a spokesperson tells JCK. Hodinkee had purchased the Atlanta-based site in 2021 for a reported $46 million. According to Bloomberg, no inventory was included in the European Watch deal. Hodinkee itself was acquired last week by Watches of Switzerland, though Crown & Caliber was not part of the sale.
Is Current Diamond Industry Turbulence Shaping a ‘New Normal’?
The Indian diamond industry enters the fourth quarter having been on a roller coaster ride for much of the last two years. There have been multiple twists and turns, and ups and downs, with the most recent dip spanning the past few months. During this period, polished inventories rose despite some improvement in demand for diamond jewelry in the United States, and prices remained flat or fell further, with trends varying across sizes and qualities. “In July/August we witnessed another wave of turbulence,” said Vipul Shah, chairman of India’s Gem & Jewellery Export Promotion Council (GJEPC). While earlier downturns saw a coordinated response from the Indian industry, companies are now being encouraged to chart their own paths.
Office & Leisure
Roblox Inflated Data And Doesn’t Protect Underage Gamers, Short Seller Alleges—Stock Falls 6%
Hindenburg, the investment research firm known for making short bets against public companies which profit if the company’s share price plummets, outlined a host of allegations against Roblox in its more than 15,000-word report, largely centered around allegations of manipulated user data and insufficient child safety safeguards. Roblox, which is an amalgamation of millions of user-created games and is arguably as much a social media company as a gaming one due to its community nature, “massively inflates” user activity metrics such as time on the platform and daily active users, an issue for investors as user engagement and total user base is considered among the most important metrics for social media companies.
Spirit Halloween tests Christmas stores
Spirit Halloween is ready to exchange goblins for elves this upcoming holiday season. The specialty retailer is testing 10 Spirit Christmas locations as a new store concept in the Northeast this fall. Shoppers can expect holiday apparel, gifts, decor, stocking stuffers and “all the special trimmings for creating an unforgettable Christmas,” according to the company. A Spirit Christmas flagship store will open in Mays Landing, New Jersey, on Oct. 18, with all other locations opening in early November. Some, but not all, locations will transform from Spirit Halloween to Spirit Christmas stores, according to a company spokesperson. “Spirit Christmas is a new concept for us, and we’re hopeful it will resonate with our customers,” a company spokesperson said in an email to Retail Dive.
Technology & Internet
Amazon makes big bet on selling cashierless tech to outside retailers
In 2012, Amazon founder Jeff Bezos was asked by TV host Charlie Rose whether his e-commerce company would ever venture into brick-and-mortar stores. Bezos said shoppers were well-served by existing physical retailers and that Amazon wasn’t interested in launching a “me-too” product. Six years later, Amazon landed on a revolutionary retail concept that it hoped would transform how people shop in brick-and-mortar stores. The company launched its first Amazon Go convenience store featuring a new kind of technology, called “Just Walk Out.” In practice, customers would be able to load up their cart and exit the store without standing in a checkout line. But the company has since taken a sideways turn. In April, Amazon announced it was removing cashierless checkout from its U.S. Fresh stores and Whole Foods locations, a move that coincided with CEO Andy Jassy’s efforts to rein in costs to meet rapidly changing macro conditions. While it’s no longer featuring Just Walk Out as prominently in its own stores, Amazon says it has inked deals with a growing list of customers.
Meta finally finds success in AR, VR three years after changing name
When Facebook changed its name to Meta in October 2021, CEO Mark Zuckerberg used the occasion to show the world his vision of a digital future of work and recreation accessible through a virtual reality headset. As the rebranding to Meta approaches its third anniversary, none of that stuff has gone mainstream. But the company appears to have found its footing in virtual and augmented reality through a different medium. After achieving surprise early success in the smart glasses market through a partnership with Ray-Ban, Meta is ginning up excitement for the prototype of a much more advanced pair of glasses called Orion, a project nearly a decade in the making. Zuckerberg’s reveal of Orion late last month has triggered a level of enthusiasm that’s unfamiliar in the metaverse.
Finance & Economy
Inflation rate hit 2.4% in September, topping expectations; jobless claims highest since August 2023
The pace of price increases over the past year was higher than forecast in September while jobless claims posted an unexpected jump following Hurricane Helene and the Boeing strike, the Labor Department reported Thursday. The consumer price index, a broad gauge measuring the costs of goods and services across the U.S. economy, increased a seasonally adjusted 0.2% for the month, putting the annual inflation rate at 2.4%. Both readings were 0.1 percentage point above the Dow Jones consensus. The annual inflation rate was 0.1 percentage point lower than August and is the lowest since February 2021. Excluding food and energy, core prices increased 0.3% on the month, putting the annual rate at 3.3%. Both core readings also were 0.1 percentage point above forecast.
Wholesale prices were flat in September, below expectations
A measure of wholesale prices showed no change in September, pointing to a continued easing in inflation, the Labor Department reported. The producer price index, which measures what producers get for their goods and services, was flat for the month and up 1.8% from a year ago. Economists surveyed by Dow Jones had been looking for a monthly gain of 0.1% after August’s increase of 0.2%. Excluding food and energy, the PPI rose 0.2%, meeting expectations, and was up 2.8% from a year ago. The report comes a day after the Labor Department reported that the consumer price index, a more widely followed inflation measure that shows what consumers actually pay for goods and services, had an increase of 0.2% for the month and 2.4% from a year ago.
Hurricane Milton deals estimated $160B blow in damage, economic loss
Hurricane Milton caused at least $160 billion in damage and economic loss, according to a preliminary estimate from AccuWeather. The Category 3 hurricane hit Florida the night of October 9th, leaving a trail of devastation in its wake. Total losses could be up to $180 billion, making it one of the most damaging storms in Florida history, AccuWeather said. Milton came on the heels of Hurricane Helene, which AccuWeather projected caused at least $225 billion in damage and economic loss. “With Hurricane Milton’s total damage and economic losses of $160-180 billion, the sum of two hurricanes in just three weeks elapsed time has a total damage and economic loss of near 2% of the country’s GDP,” AccuWeather founder and Executive Chairman Joel N. Myers said in a statement.
