Apparel & Footwear

Authentic Brands Group Completes Acquisition of Lee

Authentic Brands Group has completed its acquisition of the Lee intellectual property from Kontoor Brands, Inc. Authentic signed the definitive agreement in May and has since signed operating partners to grow Lee through licensing: One Jeanswear Group in the U.S. and Canada, Experience Group in Europe, HiMaxx in China, Hong Kong and Macao, and Union Group in Mexico. More licensees are expected to expand Lee into adjacent categories, including activewear and workwear. Lee generates about $1.5 billion in annual retail-equivalent sales across 73 countries, nearly 40% of it outside the U.S. and Canada.

Rip Curl Parent KMD Brands Enters Exclusive Talks with Hurley Owner Bluestar Alliance

KMD Brands, parent of Rip Curl, Kathmandu and Oboz, entered an exclusivity agreement with Bluestar Alliance LLC, a U.S. consumer brand group that owns Hurley and Dickies, to conduct due diligence on a possible acquisition of all of KMD’s shares. Exclusivity can be extended if certain conditions are met, but not past Dec. 23. The agreement follows KMD’s fiscal 2026 results, in which the company said it had received indicative approaches from external parties during its business review. KMD said the process may not result in a binding proposal or completed transaction, and its board has made no recommendation.

The Children’s Place shakes up leadership amid bankruptcy rumors

The Children’s Place shook up its leadership amid reports, including from Bloomberg, that the retailer is weighing bankruptcy and possibly liquidation. Interim CEO Muhammad Asif Seemab, Chief Strategy Officer Muhammad Umair, Executive Chair Turki Saleh AlRajhi and director Kim Roy all left the company, according to a regulatory filing. Seemab is managing director of Mithaq Holding Company and Mithaq Capital, which own a majority stake, and became CEO. Chief Financial Officer John Szczepanski is now acting president and principal executive officer. In its most recent quarter, net sales fell nearly 20% year over year to $241.8 million and net loss widened nearly six-fold to $31 million.

Steve Madden Q3 sales jump 15.7%, lifts guidance

Steven Madden Ltd reported that third-quarter revenue rose 15.7% to $772.6 million. Wholesale revenue rose 19.4% to $528.7 million, with footwear up 21% and accessories and apparel up 17%, while direct-to-consumer revenue climbed 8% to $239.2 million. Net income was $52.4 million, or $0.72 per diluted share, compared with $20.5 million, or $0.29 per diluted share, a year earlier. The company now expects fiscal 2026 revenue growth of 12% to 13%, up from prior guidance of 11% to 13%, and diluted EPS of $2.58 to $2.63.

Canada Goose Faces Deeper Comparable Sales Declines as Winter Shoppers Delay Purchases

Canada Goose reported a 7.5% decline in global direct-to-consumer comparable sales in the second fiscal quarter ended Sept. 27, 2026, after a 3.2% decline in the prior quarter. Management said comparable sales remained negative in October as warmer weather delayed seasonal purchases. Quarterly revenue rose 5.9% to $274 million, and the adjusted EBIT loss widened to $21.6 million from $14.2 million a year earlier. The company maintained its fiscal 2027 outlook for low-single-digit revenue growth and an adjusted EBIT margin of 11% to 12%.

Cosmetics & Pharmacy

PAI Partners to acquire Elemis from L’Occitane

L’Occitane Group has agreed to sell British skincare brand Elemis to French private equity firm PAI Partners. Financial terms were not disclosed, and the deal is expected to close in the first quarter of 2027, subject to regulatory approvals. L’Occitane bought Elemis in 2019 for $900 million, and the brand has nearly doubled its net sales since then to more than $300 million. Almost half of Elemis’ revenue comes from online sales, and the U.S. accounts for about half of net sales. PAI plans to accelerate growth in the U.S. and in e-commerce while preserving the brand’s British identity. L’Occitane described the sale as a disciplined portfolio decision; its remaining brands include L’Occitane en Provence, Sol de Janeiro, Erborian and Melvita.

Estée Lauder sets 2030 growth and margin targets as turnaround advances

The Estée Lauder Companies reported a 7% increase in net sales for its fiscal first quarter, ahead of analyst expectations of about 5%. Organic growth was 6%, led by a 20% jump in fragrance from Le Labo, Tom Ford, Jo Malone London and Kilian Paris. Skincare grew 4% on the strength of La Mer and The Ordinary. Adjusted operating margin improved to 12.1% from 7.3% a year earlier, and adjusted EPS more than doubled to $0.72. The company raised its full-year guidance and set fiscal 2030 targets of mid-single-digit organic sales growth, double-digit adjusted EPS growth and an adjusted operating margin of 16.5% to 18.5%. China is expected to remain a key growth market.

Adventure Ready Brands acquires CleanLife No Rinse

Adventure Ready Brands, the Victor Capital Partners-backed owner of After Bite and Adventure Medical Kits, has acquired CleanLife No Rinse, an Ohio-based maker of waterless personal hygiene products. Terms were not disclosed. CleanLife has operated in the waterless hygiene category for more than 60 years. It makes rinse-free shampoos, body baths and bathing wipes in-house for healthcare, outdoor and consumer customers. Adventure Ready Brands plans to speed up product development and expand CleanLife’s distribution across outdoor and consumer retailers in the U.S. and abroad. The brand also complements Adventure Ready’s recently launched personal care line.

Discounters & Department Stores

Costco October Net Sales Rise

Costco reported net sales of $24.50 billion for the retail month of October, the four weeks ended November 1, up 12.6% from $21.75 billion a year earlier. Total company comparable sales rose 11.1%, or 7.3% excluding the impact of gasoline prices and foreign exchange, with U.S. comps up 12.6% (8.1% excluding gas and FX), Canada up 4.9% and other international markets up 9.4%. Digitally enabled sales climbed 22.5%. For the first nine weeks of fiscal 2027, net sales increased 12.8% to $54.52 billion. Higher pump prices contributed roughly 4.5 points of the U.S. comp, more than a third of the gain, a reminder that elevated gas prices continue to inflate the warehouse club’s reported growth. Shares slipped about 1.6% in after-hours trading following the release.

Walmart, Zipline reach agreement to add 300 drone delivery sites

Walmart has signed a multiyear agreement with drone delivery company Zipline to add 300 drone delivery sites across the U.S., with the potential to expand to additional locations. The deal builds on a partnership that began in 2021 and has completed more than 2 million deliveries, with the two companies currently operating 21 sites in Texas and Arkansas. Customers in eligible areas can order from tens of thousands of items through the Walmart app or website and receive them in as little as 30 minutes, with a tethered pod lowering orders into a yard or driveway. The expansion adds to Walmart’s growing menu of fast delivery options, including express delivery in an hour or less, and follows its work with Wing to add drone service at 150 more locations. Zipline separately raised $1.5 billion at a $21.5 billion valuation.

Canadian Tire putting $200 million into opening, revamping Mark’s stores

Canadian Tire Corp. is investing $200 million to open and refresh stores at its Mark’s apparel banner, with a goal of having at least 40 of an expected 387 Mark’s locations new or converted to an updated format by the end of 2028. The roughly 25,000-square-foot format, first tested in 2023 in five former Bed Bath & Beyond locations, features brighter layouts, expanded women’s and children’s sections and brand shop-in-shops, and has been adopted by 21 stores so far. Mark’s president PJ Czank said the larger stores have delivered double-digit increases in sales and stronger customer acquisition among women and younger shoppers, two groups the nearly 50-year-old workwear retailer is working to attract. Its largest store in the new format recently opened in Thunder Bay, Ontario, with shops for Columbia, Silver Jeans, Carhartt, Timberland and Levi’s.

Emerging Consumer Companies

Fragrance brand The Maker is shutting down

Fresh co-founders Lev Glazman and Alina Roytberg are shutting down their second beauty venture, fragrance brand The Maker, although they’re leaving open the possibility of bringing it back. Developed as an extension of their boutique luxury hotel in Hudson, N.Y., The Maker announced on its website that it has closed its e-commerce shop. Its wholesale business has ceased operations, too. The Maker, which received investment from True Beauty Ventures in 2024, secured distribution at prominent retailers such as Goop, Bluemercury, Mecca and Sephora, where nine of its products are currently marked down 30% online. The Maker’s site reads, “We don’t yet know when we’ll reopen, but we will share any news on our channels. Thank you for enjoying our fragrances – your enthusiasm means so much to us. We’re deeply grateful for your support.”

Outdoor Voices inks licensing deal for UK and EU

Outdoor Voices has partnered with U.K.-based licensing and brand management company Focus Brands to expand across the U.K. and the EU. Focus Brands will work with some of its established regional partners on the development, sourcing, marketing and distribution of the activewear lifestyle brand across these new markets, beginning with wholesale and e-commerce channels. U.S.-based Outdoor Voices also recently announced its expansion into South Korea, China and Southeast Asia. The brand relaunched in 2025 following its 2024 acquisition by private equity firm Consortium Brand Partners.

Intake Breathing secures $62 million from Camino Partners

Intake Breathing, maker of a patented magnetic nasal dilator system, has received a $62 million investment from Camino Partners, the investment platform founded by Kind Snacks founder Daniel Lubetzky. This is Intake’s first institutional capital. The company has sold more than 100 million pairs of its breathing tabs, mainly direct to consumers and through Amazon. It reports triple-digit growth over the past three years and is approaching $100 million in annual sales. The funding will support expansion into big-box and specialty retail, key hires and broader marketing, and will also buy out early friends-and-family investors.

Sunshine Buns secures $7 million Series A

Orem, Utah-based frozen cinnamon roll brand Sunshine Buns has raised $7 million in Series A funding as it rolls out nationwide at Target. The fully baked, individually wrapped rolls warm in the microwave in 45 seconds and contain 8 grams of protein each. They come in three varieties with real cream cheese frosting. The brand was built on a family recipe and founded by two couples, Chrisi and Matt Hammer and Kass and Brian Martin. It previously launched at Costco in Southern California and with regional grocers. The funding will expand production capacity and inventory and support marketing, new products and team growth.

Food & Beverage

Mondelēz to take majority stake in Undercover Snacks

Mondelēz International has agreed to acquire a majority stake in Undercover Snacks, a New Jersey-based maker of chocolate-covered and frosted quinoa crisps. Terms were not disclosed, and the deal is expected to close in the first quarter of 2027. Undercover will run as a standalone business within Mondelēz’s North America Ventures unit, alongside Perfect Snacks, Tate’s Bake Shop and Hu Chocolate. Founder Diana Levy will remain CEO, and the Levy family will keep a significant minority stake. Mondelēz CEO Dirk Van de Put called the deal a step toward healthier snacks and said Mondelēz will use its retail reach to expand Undercover’s distribution. Undercover is currently sold at Target, Walmart, Whole Foods and Amazon.

Baker & Baker acquires free-from bakery brand Lazy Day Foods

European bakery manufacturer Baker & Baker has acquired Lazy Day Foods, a Scottish maker of cakes and baked treats free from gluten, milk, eggs and nuts. Terms were not disclosed. Founded in 2006, Lazy Day operates a dedicated free-from facility in Harthill, North Lanarkshire, with about 190 employees. It supplies branded and private-label products to major UK retailers and generated about £14.3 million in turnover in its latest fiscal year. Baker & Baker will keep the Lazy Day brand and plans to use its European customer network to expand the range and take it into international markets.

General Mills weighs separation of Häagen-Dazs business outside North America

General Mills is evaluating a potential separation of its Häagen-Dazs ice cream business outside North America, according to The Wall Street Journal. The move could lead to a sale of the brand’s international operations. General Mills runs Häagen-Dazs in markets including Europe, Thailand, Mexico and the United Arab Emirates. Froneri, which already operates the brand in the U.S., has been cited as a possible buyer, and no valuation has been disclosed. The review follows General Mills’ sale of its Häagen-Dazs shop business in mainland China to an investor group led by tea chain operator Ningji.

Grocery & Restaurants

Marc Lore’s Wonder confidentially files for IPO

Food startup Wonder has confidentially filed for an initial public offering, the company said. Created by serial entrepreneur Marc Lore in 2018, Wonder advertises itself as “the best restaurants from across the country, all in one place,” available for delivery and takeout on its vertically integrated app. Originally envisioned as a new take on food delivery through sprinter vans outfitted with mobile kitchens, Wonder has grown to roughly 170 brick-and-mortar locations throughout the U.S. Its locations serve menu items from more than two dozen restaurants across a variety of cuisines, some with branding from celebrity chefs. Wonder has spent at least $1 billion on acquisitions, such as delivery service Grubhub, meal kit brand Blue Apron and delivery and logistics provider Relay, along with some buzzy restaurant concepts. Wonder has been able to afford such expensive dealmaking thanks to more than $3 billion in venture funding.

Foodtastic makes aggressive $702M bid to acquire MTY Group, as CEO exits

The Canadian franchisor Foodtastic Inc. made a bid to acquire the multi-brand MTY Food Group Inc. for about $702 million (U.S.), or $43 per share (Canadian). The offer was made to shareholders after MTY’s board has rebuffed two previous attempts to acquire the Montreal-based company, which is the franchisor and operator of more than 80 brands in 40 countries, with nearly 7,000 units, including about 4,100 in the U.S. MTY is the franchisor of brands such as Wetzel’s Pretzels, Papa Murphy’s, Pinkberry, Planet Smoothie, Cold Stone Creamery and more. MTY announced it had initiated a strategic review process to explore options for enhancing shareholder value, including the possibility of a sale of part or all of the company. Foodtastic is another large Canadian franchisor with operations on both sides of the border, and also based in Montreal, with a portfolio of 30 brands and nearly 1,200 units, operating brands like Freshii, Pita Pit, Dunkin’, Milestones and more. Foodtastic said it first communicated an offer to acquire MTY on Oct. 15, which was reiterated five days later, only to be repeatedly rebuffed. As a result, Foodtastic said it is taking the bid directly to shareholders.

Wendy’s rejects $1.4 billion takeover proposal from Nelson Peltz’s Trian

Wendy’s said it is rejecting a $1.4 billion takeover offer from a group of investors led by Nelson Peltz’s Trian Fund Management. The group offered $7.35 per share in cash on Oct. 28 to take the struggling burger chain private. In addition to Trian, it included investment firms BlueFive Capital and Sixth Street Partners, plus Flynn Group, one of Wendy’s largest franchisees. In February, Wendy’s board formed a committee of independent directors to assess any potential bid from Trian in response to a regulatory filing from the firm. The committee found that the proposal substantially undervalues Wendy’s and does not reflect potential gains from the chain’s ongoing turnaround strategy, the company said in a press release. “Our confidence rests firmly in [CEO] Bob Wright’s proven track record of seasoned industry leadership, including restaurant business turnarounds,” Art Winkleblack, Wendy’s board chair and a member of the independent committee, said in a statement.

Home & Road

Ethan Allen CEO out as chair after activist board shakeup

Ethan Allen shareholders replaced three directors with nominees from activist investor Doug Bergeron, according to a preliminary vote count. Board chair and CEO Farooq Kathwari was not reelected, and just two of the company’s five nominees were chosen. Bergeron, who owns about 5% of Ethan Allen’s stock and is on the winning slate, has criticized Kathwari’s leadership since August and had nominated candidates to replace the entire board. Ethan Allen announced a CEO search in September and expects to name a new CEO by June 30, 2027, when Kathwari’s contract ends.

Wayfair’s Q3 delivers strongest growth since the pandemic

Wayfair reported that total net revenue for the quarter ended Sept. 30 rose 9.7% to $3.4 billion. U.S. net revenue jumped 11.4% to $3 billion, while international revenue fell 2.3% to $380 million. Net income was $62 million compared with a net loss of $99 million a year earlier, and adjusted diluted EPS was 93 cents compared with 70 cents. Orders delivered rose 12.2% to 11 million and active customers rose 4.7% to 22.2 million.

Arhaus Reports Third Quarter 2026 Financial Results

Arhaus reported that third-quarter net revenue rose 6.8% to $368 million, with comparable delivered sales up 2.6% and comparable written sales up 13.9%. Net income fell 36.0% to $8 million and adjusted EBITDA fell 12.3% to $27 million, as SG&A rose 14.8% to $134 million. The company raised its full-year net revenue outlook to $1.465 billion to $1.485 billion and its comparable delivered sales outlook to 2.5% to 4%, while maintaining its net income and adjusted EBITDA outlook.

Advance Auto Parts Reports Third Quarter 2026 Results; Updates Full Year 2026 Guidance

Advance Auto Parts reported third-quarter net sales of $2.01 billion compared with $2.04 billion a year earlier, with comparable store sales down 1.2% but turning positive in the final four weeks. Diluted EPS was $0.25 compared with a loss of $0.02, while adjusted diluted EPS fell to $0.79 from $0.92 and adjusted operating margin was 4.5% compared with 4.4%. The Pro channel grew at a low-single-digit rate, while DIY declined at a low-single-digit rate. The company narrowed its full-year adjusted diluted EPS guidance to $2.75 to $3.10 from $2.60 to $3.30, now expects comparable store sales of about 1.0%, down from its prior 1.0% to 2.0%, and raised its free cash flow guidance to about $150 million from about $100 million.

Q3 filled with gains for Havertys

Havertys reported that third-quarter net sales rose 4.47% to $203.2 million, bringing nine-month sales to $587.1 million, $30 million ahead of last year’s pace. Net income rose 34% to $6.3 million, or 39 cents per diluted share, compared with $4.7 million, or 28 cents. Gross profit was $126.6 million, or 62.3% of sales, including about $3.2 million of IEEPA tariff refunds (60.7% excluding them). The company expects a 2026 gross profit margin of 61.3% to 61.5% and plans five store openings in the fourth quarter, including its entry into Pittsburgh as its 18th state, to reach 133 stores by year end.

Jewelry & Luxury

Tapestry raises full-year outlook as Coach sales jump 16 percent

Tapestry, parent of Coach and Kate Spade New York, raised its fiscal 2027 outlook after first-quarter revenue rose 11% to $1.89 billion, led by 16% growth at Coach. Adjusted earnings of $1.82 per share beat analyst estimates of $1.56, and gross margin expanded 220 basis points on an adjusted basis as the company pulled back on promotions and raised handbag prices, with average unit retail up at a low-double-digit rate. Tapestry now expects full-year revenue of $8.5 billion to $8.6 billion and adjusted EPS of $8.25 to $8.35, and increased planned share repurchases by $350 million. The company added 2.6 million new customers in the quarter, roughly 35% of them Gen Z, and management pointed to resilient U.S. consumer demand heading into the holidays, a sign that accessible luxury handbags remain a bright spot as shoppers seek value at higher price points.

Ralph Lauren Tops Forecasts in Q2 and Raises its Outlook

Ralph Lauren beat expectations in its fiscal second quarter and raised its full-year outlook, with revenue up 9% to $2.19 billion and adjusted EPS of $4.64 versus the $4.26 analysts expected. North America revenue rose 6% to $885 million, with comparable store sales up 6% across stores and digital and wholesale up 8%, partly reflecting earlier shipment timing. Average unit retail rose 9% as the brand continued to lean into full-price selling, helping lift adjusted gross margin 250 basis points to 70.5%. The company now expects fiscal 2027 constant-currency revenue growth of 6% to 7%, up from 5% to 6%, but guided third-quarter growth of just 3% to 4%, citing wholesale timing and a deliberate reduction in off-price sales, which sent shares lower. CEO Patrice Louvet said core consumers remain resilient in North America despite a sector-wide luxury slowdown, suggesting brand strength and pricing power are holding up with U.S. shoppers heading into the holidays.

Brilliant Earth Continued to Resonate With High-Income Shoppers in Q3

Brilliant Earth posted third-quarter net sales of $112.8 million, up 2% year-over-year and ahead of its guidance for flat growth, as non-bridal fine jewelry continued to outperform. Total orders rose 6% while average order value slipped 3% to $2,140. CEO Beth Gerstein said higher average selling prices in fine jewelry and wedding bands reflect the retailer’s strength with higher-income consumers, while noting that engagement ring budgets are tightening under cost pressures and engagement ring prices declined year-over-year. Gross margin reached 60%, and the company, which operates 43 showrooms, expects full-year sales growth of 2.75% to 4% with adjusted EBITDA of $13 million to $15 million. Collaborations with the Elizabeth Taylor estate and Jane Goodall, along with a new bridal-focused Ring Pop capsule, are anchoring its holiday push as it leans on fashion jewelry to offset softer bridal spending.

Sporting Goods & Leisure

Osprey and Hydro Flask parent declines purchase offer

Helen of Troy, parent of Osprey and Hydro Flask, said its board unanimously rejected an unsolicited offer from Empower Brands Holdings Group, owned by Spectrum Brands Holdings Inc., to acquire the company for $37 per share in cash. The board said the proposal is opportunistic and substantially undervalues the company, and that it remains open to all credible opportunities that enhance shareholder value. Helen of Troy pointed to its new three-phase plan and net sales growth of 2.1% year over year in the quarter ended Aug. 31, led by demand for travel and lifestyle packs. Year-to-date net sales are up 4.9%, and the fiscal 2027 outlook was raised.

Planet Fitness, Inc. Announces Third Quarter 2026 Results

Planet Fitness began a strategic review of refranchising opportunities for its domestic corporate-owned clubs and reported third-quarter revenue up 9.0% to $360.0 million and system-wide same club sales up 1.5%. Net income attributable to the company was $52.0 million, or $0.70 per diluted share, compared with $58.8 million, or $0.70, a year earlier, and adjusted EBITDA rose to $146.2 million from $140.8 million. The company completed its acquisition of Be-Fit, a Portuguese platform with 25 clubs and about 80,000 members, for about €102.5 million ($114.8 million), including up to €2.5 million in contingent consideration. Its board authorized a new $500 million share repurchase program, and it raised its 2026 outlook to same club sales growth of about 1.5% to 2% and revenue growth of about 8%, from about 1% and 7%.

Peloton Announces Q1 FY2027 Financial Results

Peloton reported that first-quarter fiscal 2027 total revenue rose 2% year over year to $559 million, its third consecutive quarter of growth. Net income was $96 million compared with $13.9 million a year earlier, and adjusted EBITDA rose 42% to $168 million. Ending paid connected fitness subscriptions fell 9% to 2.475 million. After the quarter, Peloton paid down $280 million of its term loan, reducing gross principal debt by nearly $500 million, or 32%, in calendar 2026. The company maintained its fiscal 2027 outlook of $2.30 billion to $2.40 billion in revenue and $475 million to $525 million in adjusted EBITDA.

Columbia Sportswear raises full-year outlook following strong third-quarter results

Columbia Sportswear reported that third-quarter net sales rose 2% to $962.6 million, with U.S. sales down 1%, an improvement from a 4% decline in the prior quarter, while EMEA rose 7% and Latin America and Asia-Pacific rose 11%. Net income rose to $84.7 million, or $1.66 per diluted share, from $52.0 million, or $0.95, a year earlier. The company raised the low end of its full-year guidance, now expecting net sales of $3.46 billion to $3.50 billion, up from $3.42 billion to $3.50 billion, and diluted EPS of $4.65 to $4.90, up from $4.45 to $4.90.

Under Armour Reports Second Quarter Fiscal 2027 Results

Under Armour reported that second-quarter fiscal 2027 revenue fell 7% to $1.2 billion, with North America down 7% to $737 million and international down 7% to $509 million. Wholesale revenue fell 6% to $725 million and direct-to-consumer revenue fell 8% to $494 million. Operating income was $15 million, or $25 million adjusted, and net loss was $0.4 million. The company updated its fiscal 2027 outlook, still expecting a mid-single-digit revenue decline but lowering expected gross margin improvement to 170 to 220 basis points from 220 to 270 and raising operating income guidance to $99 million to $119 million from $96 million to $116 million.

Technology & Internet

Shopify falls over 8% after Q3 revenue and merchandise volume miss estimates

Shares of e-commerce platform Shopify fell 8.74% after the company missed estimates on subscription gross profit and gross merchandise volume. Shopify reported before the bell and posted adjusted earnings of 49 cents per share, topping estimates of 46 cents per share. Overall, quarterly revenue of $3.74 billion came in just below estimates of $3.75 billion. Shopify said it sees revenue growth in the low thirties range year over year for the fourth quarter, versus estimates of 32.1%. Gross merchandise volume, which came in at $119.15 billion, missed analyst estimates of $120.03 billion for the quarter, according to StreetAccount. Subscription gross profit also missed estimates by nearly $20 million, coming in at $661 million compared with StreetAccount estimates of $680.3 million. Merchant gross profit beat estimates.

Apple stock sinks as global memory crisis hurts profits, giving Ternus his first big test

John Ternus’ first earnings report as Apple CEO was going fine until it was time to issue a forecast for the company’s gross margin, one of the key metrics followed by investors. Apple reported better-than-expected earnings and revenue, including in the company’s core iPhone unit, and even projected sales in the current period that topped estimates. But just before Ternus opened the earnings call up to analysts’ questions, CFO Kevan Parekh came forward with the first real piece of bad news. Parekh said that for the December quarter, which goes through the holiday season, Apple’s gross margin will be between 45% and 46%, trailing the 46.3% average analyst estimate. This includes primarily the impact of higher memory costs, as well as some costs related to the ramp of Siri AI, Parekh said.

Tesla to wind down Cybertruck production in Texas next year to ramp Cybercab, Musk says

Tesla CEO Elon Musk said the electric vehicle maker will be winding down production of the Cybertruck at its Texas gigafactory around the middle of next year. Musk, who hailed the Cybertruck as the future of the pickup truck segment, said in a post on X that the end of production at the massive facility would make room for manufacturing of its Cybercab robotaxi. The Cybertruck is exclusively produced at the company’s plant in Texas alongside the Tesla Model Y and two-seat Cybercab, which Musk has touted as a crucial product for the automaker moving forward. The Cybertruck and its polarizing design gained a niche following, but it did not achieve mass-market sales, despite Musk’s pre-launch prediction that annual sales would eventually total 250,000.

Finance & Economy

U.S. economy added 165,000 jobs in October, way more than expected; unemployment rate slips to 4.1%

Nonfarm payrolls rose a seasonally adjusted 165,000 in October, nearly triple the 59,000 economists expected, the Bureau of Labor Statistics reported, and the unemployment rate slipped to 4.1% from 4.2%. Revisions added a combined 84,000 jobs to August and September. Hiring was broad, led by professional and business services (70,000), health care (42,000), transportation and warehousing (25,000) and manufacturing (19,000), while construction shed jobs. The labor force participation rate rose to 61.9%, its highest since March, though the broader U-6 underemployment rate climbed to 7.9% from 7.6%. Average hourly earnings rose 0.4% for the month and 3.1% from a year earlier, both above forecasts. Principal Asset Management’s Seema Shah called the report a strong rebuttal to fears that the economy is heading into a meaningful slowdown. The report pushed Treasury yields higher, with traders now seeing about a 78% chance of a Fed rate hike in December. For workers, jobs are available, but 3.1% wage growth still trails consumer inflation of 3.7%, so paychecks continue to lose ground to prices.

Massive tech sell-off wipes $2.5 trillion from the stock market

A punishing sell-off on Nov. 5 erased roughly $2.5 trillion in market value from the Nasdaq Composite on fears that Democrats’ midterm gains, including in data center hubs like Texas, could slow the AI buildout. The Nasdaq fell 5.52% for its worst day since April 2025 and closed in correction territory, more than 10% below its Oct. 6 record. The Nasdaq 100 sank 6.36%, its worst day since March 2020. The S&P 500 lost 4.4% and the Dow dropped 1,833 points, or 3.4%, both their worst days since April 2025, and all 11 S&P sectors closed lower. Chipmakers took the heaviest hit: the semiconductor index fell 12.3%, and Nvidia dropped more than 9%, losing almost $450 billion in market value, while Qualcomm slid more than 9% on a weak forecast. Truist’s Keith Lerner called the move more of a knee-jerk reaction than a real signal of how tech will fare under a Democratic Congress. For households, the rout hits 401(k)s and index funds heavily weighted toward big tech, and a prolonged slide could weigh on spending by wealthier households.