Apparel & Footwear

Spanish retailer Mango to open 60 new U.S. stores as it looks to elevate the brand

Spanish retailer Mango is embarking on a bold expansion plan in the U.S. as it looks to shed its fast-fashion image and position itself as a premium brand. The privately held company, headquartered in Barcelona, plans to open 42 new storefronts in the U.S. by the end of the year and aims to launch 20 more in 2025, primarily in the Sun Belt and Northeast, Mango CEO Toni Ruiz told CNBC in an interview. The $70 million expansion plan includes a new logistics center outside of Los Angeles and about 600 new jobs, bringing the company’s U.S. headcount to about 1,200 employees by next year.

Dr. Martens Swings to Loss in First Fiscal Half, Confirms Start Date of New CEO

Dr. Martens has had a tough start to the fiscal year, swinging to a pre-tax loss of 28.7 million pounds on the back of an 18 percent decline in revenue to 324.6 million pounds in the first half. The company has been revamping its strategy in the wake of declining wholesale sales, inventory and supply chain problems in the U.S. It has also been looking to keep a lid on costs. The company said that in the six months ended Sept. 29, all regions performed in line with its modest expectations, with revenue in the EMEA region, which includes Europe, the Middle East and Africa, down 16 percent; the Americas revenue declining 22 percent; and Asia Pacific falling 12 percent.

Capri shuffles leadership at Michael Kors

Capri Holdings Limited has appointed its chairman and CEO, John D. Idol, to the role of CEO at Michael Kors, according to a Nov 26th press release. Idol will take on the role as an additional title, succeeding Cedric Wilmotte. Philippa Newman was promoted to chief product officer at Michael Kors, per the same release. Her appointment is effective Dec 2nd, and she will report to Idol. Newman will oversee merchandising, production, licensing and design across all product categories. Newman will work in partnership with designer Michael Kors, who is the brand’s chief creative officer. Wilmotte, who was named CEO of Michael Kors in April 2023, will leave the organization “as part of its reorganization plans and expense reduction initiatives,” per the release. In a statement, Idol thanked him “for his significant contributions over the last 16 years” and wished him “all the best in his future endeavors.”

Guess hits revenue of $738.5 mn in Q3 FY25, marking 13% YoY growth

Guess Inc, a Los Angeles-based clothing company, has reported a net revenue of $738.5 million in the third quarter of FY25 ended November 2, an increase of 13 per cent YoY. In constant currency, the net revenue increased by 14 per cent YoY. The company’s adjusted net earnings in Q3 were $17.7 million, a 35 per cent decrease from $27.0 million for the same quarter last fiscal. Adjusted diluted EPS decreased 31 per cent to $0.34, compared to $0.49 a fiscal prior, Guess said in a press release. The company recorded a GAAP net loss of $23.4 million, compared to GAAP net earnings of $55.7 million for the same quarter last fiscal. GAAP earnings from operations for Q3 FY25 decreased 22.8 per cent to $42.3 million, from $54.8 million in the same prior-fiscal year quarter.

Abercrombie & Fitch Co. taps new CFO as sales surge 14%

Abercrombie & Fitch Co.’s third-quarter net sales were $1.2 billion, up 14% from a year ago, the company said in a Nov 26th press release. Comparable sales rose 16%, while net income for the quarter was $133.9 million, up 37% from $97.7 million the prior year. By brand, Abercrombie’s net sales rose 15% from a year ago to $629.8 million, with comps rising 11%. The company’s Hollister brands saw comps rise 21% and a 14% year-over-year rise in net sales to $579.1 million. By the end of the year, the company plans to open 60 new stores (about 40 Abercrombie and 20 Hollister), close 40 locations, and complete 60 remodels and rightsizes. The company also announced the promotion of Robert Ball, the company’s senior vice president of corporate finance, investor relations and treasury, to chief financial officer.

 

 

Athletic & Sporting Goods

Vista Outdoor shareholders OK Czech ammo deal after yearlong saga

Vista Outdoor shareholders on Monday approved the sale of the company’s ammunition business to a Czech arms company for $2.2 billion.  Why it matters: The vote brings the company’s complex, two-part sale process one step closer to the finish line after a bidding war that lasted more than a year.  With the Czechoslovak Group now cleared to own the company’s ammo unit, Vista Outdoor will move onto the next phase of its corporate breakup.  After the CSG sale closes, Vista will spin off its outdoor gear business, Revelyst, into a public company, traded on the New York Stock Exchange.  That business will then be acquired by investment firm Strategic Value Partners for $1.1 billion. The deal is set to close in January 2025.

Frasers buys South Africa’s Holdsport to expand global sports retail footprint

Frasers has bought Holdsport. The acquisition agreement was concluded with Old Mutual Private Equity and the management of Holdsport, which specialises in sports, outdoor, and recreational products.  Holdsport operates a multifaceted business with interests in retail, wholesale, manufacturing, distribution, and online sales, primarily serving the sports and outdoor recreation markets in South Africa and Namibia.  The company’s portfolio includes Sportsmans Warehouse, which focuses on sporting goods and Outdoor Warehouse, a retailer catering to outdoor activities such as camping and hiking. It also owns Shelflife, which is a South African high-end sneaker and streetwear outlet.  This move follows Frasers Group’s recent investment in Hudson Group based in Malta, which manages sportswear, lifestyle, and fashion retail outlets as well as brand distribution across 36 countries in Europe and North Africa.

Cosmetics & Pharmacy

Galderma Backers Unload US$1.45 Billion Stake

Major shareholders in Swiss skincare giant Galderma Group AG, including EQT AB, the Abu Dhabi Investment Authority (ADIA), and Auba Investment Pte, are selling a 6.7% stake valued at approximately 1.28 billion Swiss francs (US$1.45 billion). The offering, priced at 80 Swiss francs per share, has been upsized to 16 million shares, following robust investor demand that oversubscribed the available shares multiple times. The upsized offering reflects confidence in Galderma’s growth trajectory and the increasing appetite for premium skincare investments.

Beauty Manufacturer Ancorotti Group Takes Over Cosmoproject

Italian beauty manufacturer Ancorotti Group has taken over Cosmoproject, a fellow beauty supplier that specializes in skin care and foundations, the firms said Nov 29th. Financial details of the deal were not disclosed but the acquisition is expected to close by the end of the first quarter of 2025. Cosmoproject’s acquisition marks another step in the upscale strategy of the company established by Renato Ancorotti and his daughter Enrica in 2009. The group began as Ancorotti Cosmetics, specializing in high-tech mascara, and soon expanded to other makeup and skin care products developed for international beauty labels. It currently serves over 300 customers worldwide and generates more than 85 percent of its revenues outside Italy. Its plant in Crema — located in the so-called Italian “Cosmetic Valley” — employs more than 500 people.

Nykaa snaps up personal care brand Earth Rhythm

Nykaa, India’s £4.73bn beauty retail powerhouse, has snapped up personal care brand Earth Rhythm. The retailer, which the Nayar family owns, acquired a majority stake in the Indian beauty business on 27 November. Earth Rhythm was founded in 2015 by Harini Sivakumar and sells hair and skin care, bath, make-up and sun protection products. “Earth Rhythm is an exciting new addition to our owned brands portfolio, providing a chance to deepen our presence in the clean beauty sector, which holds significant long-term promise,” said Adwaita Nayar, co-founder and CEO of Nykaa Fashion and Beauty Brands.

MY Imports Enters Agreement to Acquire Bain de Soleil

MY Imports USA LLC (AMG Brands) is pleased to announce it has entered into an agreement to acquire the iconic sun care brand, Bain de Soleil. The company plans to reintroduce the beloved brand to the market by Q2 of 2025, with products available across Mass, Drug, and Beauty channels, as well as online. Known for its luxurious formulations and signature scents, Bain de Soleil has long been a favorite among sun care enthusiasts. Details for the transaction were not disclosed.

 

Discounters & Department Stores

Kohl’s names new CEO

Michaels CEO Ashley Buchanan is taking over as chief executive officer of Kohl’s, effective Jan. 15, the department store said Monday. He will replace Kohl’s Chief Executive Officer Tom Kingsbury, who has led the company since December 2022, when then-CEO Michelle Gass left for Levi’s. Kingsbury was named permanent CEO in February 2023. A year ago, Kingsbury said the struggling department store would shift its focus back to its stores, but the company continued to struggle all year. In its most recent quarter, net sales fell 4.2% year over year to $3.5 billion, as comparable sales fell 5.1%, though profits and margins were up thanks in part to a tight grip on expenses.

Big Lots sold to private equity

Big Lots on Friday received court approval from a Delaware-based bankruptcy judge to sell most of its assets and business operations to an affiliate of private equity firm Nexus Capital Management, the companies announced in a press release. Nexus agreed to pay $2.5 million in cash, pay off debts to entities to be identified by Big Lots and to assume certain liabilities, court documents show. Nexus was the company’s previously announced stalking horse bidder. It won the bankruptcy auction after no other qualified bids were submitted. The sale is expected to close in early December. Big Lots filed for Chapter 11 on Sept. 9, claiming assets and liabilities of $1 billion to $10 billion. On the same day, the retailer said it had reached an agreement for $707.5 million in post-bankruptcy commitments including $35 million in new financing from lenders.

 

Nordstrom nervous about the holidays despite healthy Q3

A slowdown early in Q4 led to a very conservative upgrade in the retailer’s expectations. Meanwhile, there is still no update on the Nordstrom family’s take-private offer. Nordstrom on Tuesday said that Q3 net sales rose 4.6% year over year to $3.3 billion, with total comps up 4%. E-commerce rose 6.4%. By banner, Nordstrom net sales rose 1.3%, comps rose 4% and gross merchandise value rose 2.4%. Nordstrom Rack sales rose 10.6%, with comps up 3.9%. Gross margin expanded by 60 basis points to 35.6%. Inventory rose 5.9%. Net earnings fell 31.3% to $46 million.

 

 

Emerging Consumer Companies

Bogg, tote bag brand, expands into Target

As part of its wholesale expansion, Bogg, known for its tote bags, is expanding into Target. To coincide with Bogg’s launch into nearly 2,000 Target stores and its website, the two companies will launch an exclusive, limited-edition Bullseye logo tote from Bogg. Target will also carry the Original tote (priced between $90 and $100) and Bitty bags ($60) in two new colorways — Beach Hydrangea, a Target exclusive, and For Shore White. The bags, which are made from EVA, will be housed in the retailer’s outdoor recreation section.

Eyewa, eyewear brand, raises $100 million

Eyewa, based in Dubai and Riyadh, sells a wide range of eyewear products, including prescription glasses, sunglasses, blue light glasses, and contact lenses, through a direct-to-consumer (DTC) e-commerce and retail platform across five Middle East markets. Now the company has raised a $100 million Series C round. The round, led by global growth investor General Atlantic, brings Eyewa’s total funding to $130 million since its 2017 launch. Eyewa raised a $21 million Series B in 2021, and since then, it has grown to 150 stores, all wholly owned and operated — no franchises. The startup, which now employs 1,300 people, claims to be the largest eyewear brand in Saudi Arabia by store count and the fastest-growing eyewear retailer globally.

 

Food & Beverage

Hint raises undisclosed additional capital and unveils new leadership

Hint, Inc., a flavored water company, is adding to its leadership team. Michael Pengue has been hired as chief executive officer and Kevin Benmoussa has been named chief financial officer. Pengue brings more than 30 years of experience to his new role, most recently as CEO of ZOA Energy. He has held executive titles at Keurig Dr Pepper, BAI Brands and Nestle Waters. “The chance to join Hint — a great brand and a leader in the healthy hydration sector — is incredibly exciting for me,” Pengue said. “As consumers continue to look for and engage with healthier beverage options, I see tremendous opportunity to drive the growth of the Hint brand.”

Hearthside Food Solutions declares bankruptcy

H-Food Holdings LLC, the parent company of contract manufacturer Hearthside Food Solutions, has filed for Chapter 11 bankruptcy protection. The process will allow Hearthside to eliminate more than $1.9 billion of its debt and secure $200 million of new capital at exit, according to the company. Company management said they have “widespread support” from “significant majorities” of its first lien and second lien lenders as well as from unsecured noteholders and equity holders. Hearthside has filed a number of customary “first day motions” with the court to facilitate a smooth transition into Chapter 11 and operate without disruption during the process, including continuing to pay employee wages and benefits, maintaining customer programs, and honoring obligations to vendors,” the company said.

Oishii nabs another $16M as it prepares to take its luxury strawberries worldwide

Oishii has secured an additional $16 million in investor financing, expanding the indoor strawberry farm’s total fundraising to $150 million as it looks to grow its reach both in the U.S. and beyond. The Jersey City, New Jersey-based company announced a $134 million fundraising round in February, but continued interest from investors led to an increase in capital for growth and expansion into new markets. The additional funds come as Oishii enters the Chicago market and prepares to open its first international facility in Tokyo, Japan. The latest fundraising was led by climate tech fund Resilience Reserve, co-founded by Chris Anderson, the founder behind Ted Talks, and writer and entrepreneur Rob Reid. Japanese venture firm Miyako Capital also joined the round just before closing.

 

 

Grocery & Restaurants

Subway CEO John Chidsey to retire at year’s end

John Chidsey, global CEO of Subway, will retire at the end of 2024 after five years in the role, the company said Tuesday. Carrie Walsh, Subway’s president of Europe, Middle East, and Africa and former global chief marketing officer, will assume the role of interim CEO. Subway, which has headquarters in Miami and Shelton, Conn., said it would conduct a search for a permanent CEO successor. Chidsey joined Subway in 2019 as the brand’s first CEO outside of the founding family. Walsh has worked with Yum! Brands, Pizza Hut, and PepsiCo. She joined Subway in 2019. Most recently, Walsh served as president EMEA, Subways second-largest region, where she oversaw operations, finance, marketing, and development across 50 countries and territories.

Home & Road

Furniture, décor bump up online sales over the holiday but order volumes lag

Global online spending on Black Friday rose to $74.4 billion this year, up about 5% from $71 billion in 2023, but furniture order volume lagged, despite some modest discounting. Salesforce, a software company that tracks online spending, found U.S. online sales grew by 7% on Black Friday, rising to $17.5 billion, while Thanksgiving Day produced $8.1 billion in U.S. sales for an 8% increase. Within the home furniture category, online sales were up on Black Friday, growing by 4% year-over-year, while online order volume was down 1%. Average order volume (AOV) and number of units per transactions during Cyber Week, which includes Thanksgiving and Black Friday but not Cyber Monday, were both down compared with 2023 for furniture. AOV from Tuesday through Saturday was $394, down 0.4% from 2023, with Black Friday recording the highest AOV for the week at $449. Units sold averaged 2.1 per transaction, which was down 3% year-over-year, and off by 4% on Black Friday.

 

TJX Cos. remains bullish on home after strong Q3

The home business was healthy across the board at TJX Cos. in the third quarter, including in international regions and stores that carry a mix of home and apparel. In the U.S., HomeGoods comped up 3% on top of a 9% increase in the year-ago quarter. The chain’s sales for the quarter ended Nov. 3 climbed 7% to $2.4 billion. At the 67-unit U.S. Home Sense chain – whose financial results are included in the HomeGoods figures – sales have also picked up as the company has tweaked the mix. Home assortments in the company’s nameplates are benefitting from the collaboration between merchants in the Marmaxx, HomeGoods and international divisions, company CEO and president Ernie Herrman told investors during this morning’s quarterly call. Consolidated net sales for Q3 climbed 6% to $14.1 billion, with company comp up 3% on top of a 6% increase in the year-ago quarter. Same-store sales rose in every division, driven in each case by higher transactions.

Interest rates, tariffs could be boon for slower case goods segment

The outlook for the case goods segment leans weaker heading into 2025. The segment is expected to remain in the shadow of its upholstery counterpart, a place it’s been in for some time. Case good sales are more connected to the housing market, which remains stagnant. But it’s not all negative: Interest rates have dropped, spurring some optimism that housing will improve. It’ll take some time for that to happen, but industry executives are hopeful. “Overall, the economy is good, but the furniture business is soft,” said Gat Caperton, president of case good specialist Gat Creek. “The slogan ‘Survive to 2025’ should be recast as ‘Survive to late 2025.’  Housing (new, remodeling and transactions) is starting to improve after the Fed rate drop, but our industry will need at least another six months before feeling any benefit.”

Jewelry & Luxury

Nivoda Secures Additional Funding

Business-to-business diamond and colored gemstone marketplace Nivoda has closed on another round of funding. The London-based company announced Monday that it has secured $51 million in a Series C round of funding led by Northzone, a venture capital fund with a portfolio that includes Kahoot!, Spotify, and Klarna. Northzone’s investment follows the $30 million Nivoda secured earlier this year in a Series B round of funding led by Avenir Growth Capital. Nivoda said it will use this latest round of funding to expand its global diamond supply chain network and invest in “cutting-edge” tools for jewelers worldwide.

De Beers Stays With ‘A Diamond Is Forever’ for 2024 Holiday Campaign

De Beers Group launched its U.S. holiday marketing campaign last week, a campaign that combines a classic tagline with modern elements in an effort to convince consumers to celebrate with natural diamonds. “Forever Present” uses the “A Diamond Is Forever” tagline first penned by Frances Gerety in 1947 and reintroduced in 2023 after being put on the shelf for 15 years. The campaign is meant to increase demand for natural diamonds this holiday season by reinforcing the belief that, “natural diamonds are a stone of emotional value that enable precious memories to remain ‘forever present,’” De Beers said. Throughout the campaign, an array of gifting opportunities for natural diamonds are highlighted, celebrating familial, friendship, and romantic relationships because “natural connections deserve natural diamonds.”

Office & Leisure

Canopy Growth taps Mars veteran Luc Mongeau as CEO

Cannabis producer Canopy Growth named Luc Mongeau, a CPG veteran with more than 25 years of experience, as its new CEO. He will replace David Klein who has led the Canadian company since 2020. Mongeau previously served as the president of Weston Foods for five years and held various roles at Mars in the company’s pet products division, including president of its U.S. division for four years. Most recently, he served as the president and CEO of eSolutions Furniture. David Lazzarato, Canopy’s chairman, said in a statement Mongeau can help the company maintain its momentum as it grows its business. Mongeau is no stranger to Canopy, having served as an observer on the board since early 2023 and a member since February.

Pittsburgh Pet Retailer Petagogy Acquires Healthy Pet Products

Petagogy, a pet specialty retailer with two stores in Pittsburgh, is acquiring Healthy Pet Products, a pet store with three locations in Pittsburgh. The sale will be official as of Jan. 1, company officials reported. With more than 15 years of serving Pittsburgh and its surrounding communities, Healthy Pet Products has long been a go-to for pet health and nutrition, officials added. “Healthy Pet Products has built an incredible community over the years, and we’re honored to take their leash,” said Heather Blum, co-owner of Petagogy. “This step allows us to bring an even wider selection of trusted pet products, resources and services to a larger group of customers across the Pittsburgh region.”

Technology & Internet

Most Black Friday shoppers bagged their deals online this year, with record spending

Many shoppers on Black Friday ditched the mall crowds the day after Thanksgiving and spent more money online than ever before. And big retailers relied on deep discounts to draw in sizeable traffic. Shoppers spent a record $10.8 billion online on Nov 29th, over 10% more than they did last Black Friday, according to data from Adobe Analytics, which tracks retail transactions. That’s more than double what consumers spent in 2017. Online shoppers shelled out some $11.3 million per minute between 10 a.m. and 2 p.m., Adobe said. “Crossing the $10 billion mark is a big e-commerce milestone for Black Friday, for a day that in the past was more anchored towards in-store shopping,” Vivek Pandya, a lead analyst with Adobe Digital Insights, said in a statement. More people have grown comfortable with shopping on smartphones — and with the use of mobile wallets, buy now pay later options, and AI-powered chatbots that serve as shopping assistants to help consumers hunt for specific items. According to Pandya, the embrace of these digital shopping tools is producing “tailwinds that can prop up online growth for Black Friday moving forward.”

Best Buy Cuts Full Year Sales Forecast Due to Soft Demand for Electronics

Best Buy on Tuesday cut its full-year sales forecast and missed Wall Street’s quarterly revenue expectations, as early holiday shopping and a fresh batch of iPhones and AI-enabled laptops weren’t enough to drive higher sales. The consumer electronics retailer said it now expects full-year revenue to range from $41.1 billion to $41.5 billion, compared with prior guidance of $41.3 billion to $41.9 billion. It expects full-year comparable sales to decline by between 2.5% and 3.5%, compared with its prior expectations of a 1.5% to 3% drop. Shares of Best Buy closed on Tuesday at $88.48, down nearly 5%. On an earnings call, CEO Corie Barry said the retailer saw “softer than expected sales,” particularly in September and October. “We attribute this to a combination of overall ongoing macro uncertainty, customers waiting for deals and sales and distraction during the run-up to the election, particularly in nonessential categories, [and] expected lower demand between sales events,” she said. “But the impact was even steeper than we estimated.” Barry added that in recent weeks demand has picked up again as holiday sales gain momentum and election concerns ease. Still, for the holiday quarter, Best Buy has muted expectations. The company expects comparable sales to range from flat to a decline of 3% in its fiscal fourth quarter.

 

Finance & Economy

The US labor market has become ‘low-hire, low-fire’

The US labor market entered a new gear in the second half of 2024. “We are in a ‘low-hire, low-fire’ environment,” Bank of America’s lead economist Aditya Bhave said in a note on Nov 26. “In the spring of 2022, there were two open jobs for every unemployed person. Now that figure is just a little more than one. In other words, there aren’t as many opportunities out there.” Job openings for the month of September fell to their lowest level since January 2021, while the quits rate, a sign of confidence among workers, also dropped to 1.9% from a revised 2% in August. The number of open jobs per unemployed worker stood at 1.09. “The low level of quits is consistent with a decline in the availability of employment opportunities,” Oxford Economics lead US economist Nancy Vanden Houten said at the time.

Home contract activity jumps for third straight month as consumers shrug off higher rates

Home contract signings rose in October for the third consecutive month as homebuyers took advantage of growing inventory levels and shook off higher mortgage rates. The Pending Home Sales index, which measures signed real estate contracts for existing single-family homes, condos, and co-ops, rose 2% to 77.4 from a month earlier. An index of 100 is equal to the level of contract activity in 2001. Activity rose in all parts of the country, led by the Northeast, which saw a 4.7% month-over-month gain. Contract signings in the Midwest rose 4%, while gains in the South and West were smaller.

US economy holds firm in early Q4; inflation stuck above Fed’s target

U.S. consumer spending increased slightly more than expected in October, suggesting the economy retained much of its solid growth momentum early in the fourth quarter, but progress on lowering inflation appears to have stalled in recent months. The lack of success in bringing inflation back to the Federal Reserve’s 2% target, together with the prospect of higher tariffs on imported goods from the incoming Trump administration, could narrow the scope for interest rate cuts from the U.S. central bank next year. The Fed is still widely expected to deliver a third rate cut in December, with other data on Nov 27th showing more unemployed people were experiencing long bouts of joblessness in mid-November. Minutes of the Fed’s Nov. 6-7 policy meeting published on Nov 26th showed officials appeared divided over how much farther they may need to cut rates.