Apparel & Footwear

Steven Madden Buys ATM, Tony Melillo’s Brand of Elevated Essentials

ATM is moving onto its next phase, with founder and creative director Tony Melillo now looking to realize his elevated essentials dreams with the brand’s new owner, Steven Madden Ltd. Melillo started ATM with Public Clothing Co. in 2012 and used his initials — his full name is Anthony Thomas Melillo — as its moniker. The brand began as a line of high-fashion T-shirts for men’s and women’s at Barneys New York and parlayed that exposure into other products and other stores in what Melillo described as a “great period” that lasted right up until COVID-19 hit. “I formed a very successful business by really hustling,” he said. “We had a position of power and wanted to make sure we were executed properly in all these points of distribution.”

Rare quarterly miss hits Zara owner Inditex shares

Zara owner Inditex posted a rare miss on quarterly sales and profit on Dec 11th, although the world’s biggest listed fast-fashion retailer said the holiday shopping season had got off to a good start. Shares in Inditex fell around 5% as investors digested results hit by currency fluctuations and floods in Spain, Inditex’s biggest market. Third-quarter sales of 9.36 billion euros ($9.84 billion) came in below the 9.51 billion expected by analysts. An 8.5% rise in nine-month net profit to 4.44 billion euros also lagged the 4.52 billion expected by analysts. “While the figures are not too bad, they do not meet the company’s growth line and show a bigger slowdown than we estimated,” said XTB analyst Javier Cabrera, adding that next year brings new risks such as U.S. trade tariffs likely to drive inflation up.

 

 

Athletic & Sporting Goods

Topgolf Acquires World Golf Tour, Launches New Media and International Divisions Plus Holding Company

Global golf entertainment leader Topgolf has acquired sports gaming company World Golf Tour (WGT), creating the world’s largest digital golf audience. In conjunction with the acquisition, Topgolf® is adding two new divisions and reorganizing its corporate structure with a holding company to support the organization’s rapid growth.  The deal represents a convergence of the offline and online golf experience. WGT is the leading web and mobile golf game, with more than 14 million players worldwide across online, social and mobile platforms. Topgolf has 24 venues worldwide and served 8 million guests in 2015. It is opening venues in Las Vegas and several other key markets in 2016, increasing its projected annual attendance to more than 12 million this year.

Rhino-Rack Acquires Colorado Based RockyMounts

Rhino-Rack, an industry leader in premium automotive roof racks and accessories is proud to announce the acquisition of Colorado based RockyMounts, a leader in bicycle transport products. For three decades, RockyMounts has been designing and manufacturing innovative roof and hitch rack solutions which have created a cult following in the market due to their style and durability.  RockyMounts, which was founded by Bobby Noyes in Boulder, Colorado in 1993, is known for making solid, well thought out and dependable racks which give the user peace of mind while

transporting their bikes. The award-winning products can be found in local and national retailers across North America, and many other international markets, including Rhino-Racks home market of Australia.

Nike renews its contract with the NFL after league briefly courted other bidders

Nike has renewed its partnership with the National Football League for another 10 years after the league briefly opened the bidding process to competitors and held talks with other companies.  Under the terms of the deal, Nike will continue to be the exclusive provider of uniforms and sideline, practice and base layer apparel for all 32 NFL teams through 2038. Nike has been the NFL’s exclusive apparel provider since 2012.  As part of the partnership, Nike said it will work to expand football’s global reach and use its sports research lab to address lower body injuries and boost footwear safety.

Cosmetics & Pharmacy

Bic Snaps Up Tangle Teezer for $210 Million

Bic has acquired Tangle Teezer, a premium detangling hair company, for 165 million pounds from Mayfair Equity Partners. Tangle Teezer, based in London, was launched in 2007 and was billed as the first expertly designed detangling tool. The brand designs a patented range of brushes. Its first brush out, The Original, gained a cult following and numerous awards, including the Queen’s Award for Innovation in 2012. Subsequently, the brand has been launched elsewhere in Europe and in North America. In a joint statement, the companies called Tangle Teezer the market leader in the U.K. and a growing player in the U.S. The company’s estimated net sales in 2024 will be more than 60 million pounds.

Walgreens in talks for sale to PE firm

Walgreens is weighing a potential sale to a private equity firm, according to a report in The Wall Street Journal. The pharmacy giant is in talks with Sycamore Partners for a deal that would take the company private following years of financial woes. People familiar with the conversations told the WSJ the deal could come together early next year should discussions prove fruitful. Sycamore has been better known of late for smaller deals, the WSJ reported, and the New York-based firm focuses on investments in the retail and consumer spaces. It would likely sell parts of Walgreens, sources told the outlet, or “work with partners.”

Kosé Acquires Thai Beauty Brand Pañpuri

Japanese beauty conglomerate Kosé announced on Tuesday that it has acquired the Thai beauty brand Pañpuri. Financial terms of the deal were not disclosed, though Pañpuri said it generated revenues of $32 million in 2024.  Founded in Bangkok in 2003 by Vorravit Siripark, Pañpuri is known for its range of premium bath and body, hair care, skincare and fragrance products, which take inspiration from Thai indigenous wellness practices. In Thailand, the brand has 26 free-standing stores, and is stocked at luxury spas and malls like Central World and Emquartier.

Eternis Fine Chemicals acquires Sharon Personal Care

Eternis Fine Chemicals has announced the acquisition of beauty product supplier Sharon Personal Care. Financial terms of the deal were not disclosed. Sharon PC will maintain its product lines under the same brand name but with a modified identity infused with elements of Eternis. Both business units will cater to their current sectors, helping Eternis to diversify its offerings and widening the portfolio into the growing personal care segment. Eternis CEO, Wilfrid Gambade, reveals, “The addition of this large personal care pure-play and high-end manufacturer enhances our business and brings with it many strategic advantages… This acquisition will further establish ourselves in Europe and US, with the ability to service our customers with products under new segment from the sites, stock hubs and offices there.”

 

Discounters & Department Stores

Macy’s speeds up store closures to amp up turnaround

In a report delayed after the discovery of accounting irregularities, Macy’s Inc. on Wednesday said Q3 net sales fell 2.4% year over year to $4.7 billion, with comps — including owned, licensed and marketplace sales — down 1.3%. By banner, Macy’s net sales fell 3.1%, with comps down 3%; Bloomingdale’s rose 1.4%, with comps up 1%; and Bluemercury rose 3.2%, with comps up 3.3%. Macy’s fraud investigation found that, from Q4 2021 to Q3 2024, an employee hid some $151 million in small-package delivery expenses, a period when the company reported about $4.4 billion in delivery expenses. This affected some margin calculations but didn’t materially impact net cash flows, inventories or vendor payments, or overall financial results, per financial filings. Gross margin in the period contracted by 60 basis points to 39.6%, with merchandise margin down 70 basis points, due to product mix and an accounting shift. Net income dropped by nearly a third to $28 million.

Under new ownership, Lord & Taylor revives old logo and comeback dreams

Lord & Taylor’s new owners have barely embarked on a comeback plan for the nearly 200-year-old department store, but step one has already been accomplished: reinstating its iconic, sweeping cursive logo. Saadia Group, which acquired the department store during a bankruptcy auction four years ago and ran it until early this year, in 2022 had replaced the familiar, idiosyncratic logo with a Helvetica font. Saadia relinquished Lord & Taylor’s intellectual property, and that of other brands, after a New York County court in February found it was in default on more than $45 million in debt. Sina Yenel, chief strategy officer at Regal Brands Global, which now runs Lord & Taylor, calls the disposal of the classic logo in 2022 “the biggest betrayal of the brand.”

Walmart’s Bettergoods, Target’s Dealworthy are fastest-growing private labels

Nearly all (99.9%) U.S. households purchased at least one private label grocery item in the past 12 months, followed by health and beauty (99.2%), household products (98.9%) and home and garden (97.6%), according to a private label trend report from Numerator. Newly launched private-label offerings from Target and Walmart, including Target’s Dealworthy brand and Walmart’s Bettergoods, are gaining traction. Dealworthy and Bettergoods were the year’s two fastest growing private label brands, per the report, with the owned brands netting purchases from 6% and 9% of U.S. households, respectively. Private label accounted for the biggest share of sales at club retailers (33.9%), followed by mass (28.5%), office (28.3%), home improvement (27.9%) and pet (25.7%). Beauty and electronics stores saw 10% or less of unit volume coming from owned brand products, per the report.

Activist firms demand Macy’s consider options for Bloomingdale’s

Macy’s Inc. investors Barington Capital Group and Thor Equities threw down a gauntlet last week, demanding a series of measures to boost shareholder value, including tamping down expenses and mulling strategic alternatives for Bloomingdale’s and Bluemercury. The activist investors, holding up rival Dillard’s as a model, urged Macy’s to cut capital expenditures from 4% of sales to 1.5% to 2%; repurchase at least $2 billion in shares in the next three years; create an “internal real estate subsidiary” to maximize returns for its property holdings; and add Barington and Thor representatives to its board. In a statement following the firms’ public demands, Macy’s expressed confidence in its “Bold New Chapter” turnaround, saying it would release details on its progress with its Q3 results, expected some time this week, and that it will work with Barington and Thor. “We have consistently demonstrated open-mindedness, including with respect to regularly reviewing the Company’s strategy and capital allocation framework and exploring all paths to enhance value,” Macy’s said.

Emerging Consumer Companies

Rent the Runway takes another shot at subscription retail

After focusing on cost-cutting and margin improvement from 2020 to 2023, Rent the Runway is now back in “growth mode,” according to CEO Jennifer Hyman. As 2024 winds down, Rent the Runway is focusing on its subscription business, with the November launch of a new $119/month subscription tier aimed at expanding its customer base and positioning the company for growth in 2025.

Gavan raises $8M to introduce clean babel “One-to-One” butter alternative in Europe

Israel’s Gavan, a food tech company focused on replacing animal fat with sustainable alternatives, announced it has raised $8 million in a Series A funding round. The funds will be used to establish a new European pilot production facility for its flagship ingredient, Fatrix, a plant protein-based fat that replaces butter “one-to-one” in bakery and dairy alternatives. The site is scheduled to commence operations in April 2025, aiming to debut its “cutting-edge” fat solution in the European food market. The round was led by MoreVC, with participation from Lever VC, EIT Food, and DarkBoot Group.

 

 

Food & Beverage

Mondelez reportedly seeking deal to acquire Hershey

Snacks and confections giant Mondelez International is reportedly eyeing a potential acquisition of chocolate and snacks maker The Hershey Co. Citing unnamed sources, Bloomberg reported that Chicago-based Mondelez has “made a preliminary approach about a possible combination.” No further details on a possible transaction were reported, as Bloomberg noted that “deliberations are in the early stages, and there’s no certainty that discussions will lead to a deal.” A combination of the two companies “would create a food giant with combined sales of almost $50 billion,” Bloomberg said.

OWS Foods acquires barbecue sauces, rubs company

OWS Foods, the maker of Championship BBQ sauces and rubs established in 1988, has acquired Lillie’s Q Sauces & Rubs, LLC. Terms of the acquisition were not disclosed. “With BGL’s guidance and advice, we were able to identify and negotiate with the right partner to accelerate the Lillie’s Q brand,” said Charlie McKenna, founder of Lillie’s Q. “When I launched Lillie’s over 14 years ago, the goal was to get the product into every household. We believe we have the best-tasting product in the market, and with the resources offered through a bigger platform, we are excited about the opportunities ahead.”

Egg prices may soon ‘flirt with record highs,’ supplier says

It’s déjà vu for grocery shoppers, as the price of Grade A eggs has spiked in recent months, just two years after egg prices soared to record highs. The average retail price of eggs in the U.S. has risen 38% since November 2023, according to consumer price index data issued Dec 11th. Prices rose 8% last month alone. A carton of a dozen large Grade A eggs cost $3.65 in November, up from $2.14 a year earlier, according to the U.S. Bureau of Labor Statistics. There are two primary reasons for the surge: bird flu, which has reduced egg supply, and the strong consumer demand that’s typical around the winter holiday season, according to economists and market analysts.

Top U.S. liquor distributor favored Costco, Kroger, other chains over small businesses: FTC

The Federal Trade Commission in a new lawsuit accuses the largest U.S. distributor of wine and spirits of illegal price discrimination that gave large chains — among them Costco, Kroger and Total Wine & More — much better prices than those offered to small “mom and pop” businesses such as independent liquor stores. The distributor, Southern Glazer’s Wine and Spirits, is the 10th-largest privately held company in the U.S., generating about $26 billion in revenue from sales to retail customers in 2023, the FTC said in announcing the suit on Dec 12th. “At present, Southern sells one out of every three bottles of wine and spirits purchased in the United States,” the suit filed in Los Angeles federal court notes.

 

 

Grocery & Restaurants

Wings ‘N More acquired by PE firm Goode Partners

New York-based private equity firm Goode Partners LLC has announced a strategic investment in Texas-based Wings ‘N More Restaurants LLC to help accelerate the chain’s expansion. Currently, Wings ‘N More operates seven restaurants in College Station/Bryan, Corpus Christi, and Houston. “We are delighted to be partnering with Mark Dennard, the founder and current owner of Wings ‘N More,” Goode partner David Oddi said in a statement. “Mark and the company’s management team have done an outstanding job offering their customers incredible food at a great value. Most of the company’s leaders have grown up with the brand, building a culture that is passionate about exceeding customer expectations. We think there are so many similarities to Chuy’s, which grew from eight to over 75 restaurants during our investment. We look forward to working with this outstanding team and providing the added resources to help take the company to the next level in its growth strategy.” The investment by Goode Partners is combined with debt financing from Gladstone Capital Corporation to drive the company’s geographic expansion.

SPB Hospitality sells five brewery brands to Kelly Companies

SPB Hospitality – parent company to Krystal and Logan’s Roadhouse — has sold five of its brewery brands to Kelly Companies of Southern California for an undisclosed amount. The sale includes Rock Bottom Restaurant & Brewery, Gordon Biersch Brewery Restaurant, ChopHouse & Brewery, Ragtime Tavern and Seven Bridges Grille & Brewery. The Houston-based SPB Hospitality said that the sale of these five brands will allow the company to focus on its remaining flagship brands, which also include Old Chicago Pizza & Taproom, J. Alexander’s, Stoney River Steakhouse and Grill, Amada Vino + Tapas, and Village Whiskey. Kelly Companies of Southern California is a multi-concept restaurant operator, with concepts that include Fox & Hound Bar + Grill, Craft Republic Bar & Grill, Lucky Bastard Saloon, and Whiskey River Saloon. The company said that it views this acquisition as an opportunity to “strengthen and deepen” its portfolio, while honoring the brands’ legacies.

Home & Road

RH revenues ahead 8% in third quarter

Top 100 retailer RH beat its year-over-year sales figures by 8.1% in the third quarter of FY2024 and posted a profit, reversing a loss from a year ago. For the three months ended Nov. 2, the Corte Madera, Calif.-based retailer recorded net revenues of $811.732 million, up 8.1% compared with $751.225 million in the third quarter of 2023. Its net income for the quarter was $33.168 million, or $1.66 per diluted share vs. a loss of $2.187 million, or 12 cents per diluted share last year. For the quarter, RH’s adjusted EBITDA was $168.547 million, giving it an adjusted EBITDA margin of 20.8%. “The positive inflection of our business continued to gain momentum with third quarter demand increasing 13% despite operating in the worst housing market in 30 years,” Chairman and CEO Gary Friedman wrote in an executive letter accompanying the financial results. “Our vector is increasing in both magnitude and direction with November demand up 18%, as the most prolific product transformation and platform expansion in the history of our industry continues to unfold.”

Upholstery, bedding continue to lead the way at retail

Furniture retailers weathered a turbulent 2024 by sticking with a sure thing, as stationary upholstery sales — the No. 1 category for the past two years — grew to account for 23% of sales this year, up from 20% in 2023, according to Furniture Today’s Furniture Store Performance Report. Bedding retained second place with a 17% share of store sales and grew by one percentage point to match its 2022 figure. Both categories were among the leaders as well when retailers were asked to estimate where growth in their business came from this year. Just more than 16% said stationary upholstery grew by more than 3%, while 13% put the growth rate between 1% and 3%. Bedding, which encompasses mattresses, adjustable bases and foundations, was up more than 3%, according to 13% of respondents, and rose as a category by 1% to 3% by the same percentage. The category cited for the fastest growth was motion upholstery, with nearly 20% saying it grew by more than 3% this year and another 8% putting its growth in the 1% to 3% range. In the share of sales, motion upholstery ranked third, with 15% of the total.

3 takeaways from Hooker’s Q3 earnings report

Hooker Furnishings reported $104.4 million in third quarter net sales last week, a 10.7% decrease from last year. It also reported an operating loss of $7.3 million for the quarter and a $15.4 million operating loss for the first nine months of the year. Positives shine through, despite low demand plaguing all segments. Sales fell in all three of the company’s segments, with low consumer demand being the primary reason for each. Like last quarter, each segment suffered a loss. Still, there were positives. Sunset West, the company’s outdoor division, saw sales increase by 9.1%. Sunset West has seen quarterly sales growth now for three consecutive quarters.

Jewelry & Luxury

Movado’s Q3 Sales Down 3% Amid ‘Challenging’ Environment

Movado Group posted declining sales in its third-quarter results, adjusting its full-year guidance to reflect an expected continuation of the current “challenging” environment. In the third quarter ending Oct. 31, net sales fell 3 percent year-over-year (4 percent on a constant dollar basis) to $182.7 million. Net sales year-to-date were down 3 percent to $478.7 million. “As a team, we recognize this year has not delivered our desired results. Together, we are energized on returning the company to a higher level of profitability while improving revenue trends,” said CEO Efraim Grinberg on an earnings call on Dec. 5.

IGI Set to Go Public Next Week

The International Gemological Institute is one step closer to becoming a public company. The company filed for an initial public offering (IPO) in India on Aug. 22 and is now looking to raise 42.25 billion rupees ($497 million), an increase from its initial goal of 40 billion rupees ($477 million). IGI is expected to begin trading on Dec. 20, with IPO bids open from Dec. 13 through Dec. 17, according to a red herring prospectus filed Dec. 6. The price ranges from 397 to 417 rupees per share with a lot size of 35 shares. The stock would be listed on the National Stock Exchange of India and the Bombay Stock Exchange. Private equity giant Blackstone acquired IGI in May 2023 from a subsidiary of Chinese conglomerate Fosun and former CEO Roland Lorie, paying nearly $570 million for the lab.

U.S. Treasury Sanctions Gold-Smuggling Network

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has sanctioned 28 individuals and businesses it claims are involved in a global gold-smuggling and money-laundering network based in Zimbabwe. OFAC said this global network is led by Kamlesh Pattni, a Kenyan businessman who was implicated in the Goldenberg gold-trading scandal that rocked Kenya in the 1990s. Pattni later fled to Zimbabwe, where he was also accused of illicitly importing gold and diamonds, and became an associate of Zimbabwe’s former ruler Robert Mugabe.

De Beers Jewelers Hires Tiffany Vet as Chief Marketing Officer

De Beers Jewelers, the miner’s retail chain, has appointed former Tiffany marketing exec Henry Jun Liu its new chief marketing officer. Liu joined De Beers in September and is based out of the company’s London headquarters. In his new role, Liu is leading De Beers Jewelers’ global marketing strategy and ambitious growth plan. De Beers CEO Al Cook has said he expects the brand to expand to 100 stores. (It currently has 30.) As Tiffany & Co.’s senior director of global marketing in New York City, Liu was instrumental in creating experiential events, high-profile exhibitions, and concept stores, including overseeing the reopening of the historic Landmark flagship on Fifth Avenue. Somewhat ironically, Tiffany is now owned by LVMH, De Beers’ original partner in its retail chain. Liu has also worked at McCann Erickson, Procter & Gamble, and Estée Lauder.

Office & Leisure

Petco narrows net loss to $16.7M in Q3 as turnaround efforts gain momentum

Petco on Dec 12th reported third-quarter net revenue grew 1.2% from a year ago to $1.51 billion, driven by a 2.7% increase in its consumables business and a 5% gain in its services and other businesses. That growth was partially offset by a 2.8% decline in the company’s supplies and companion animal business. Comparable sales during the period grew 1.8%, beating analyst expectations. Gross profit rose 4.7% to $575.8 million, from $550 million last year, and gross margin was up 38.1%, or nearly 130 basis points from a year ago. The company’s net loss for the quarter narrowed to $16.7 million from $1.2 billion a year ago. Operating income was $3.97 million versus a $1.23 billion operating loss for the year-ago period.

 

LVMH acquires stake in Les Domaines de Fontenille

LVMH Moët Hennessy Louis Vuitton (LVMH) has acquired a significant stake in the France-based upscale boutique hospitality group Les Domaines de Fontenille. The size of the investment remains undisclosed as both parties have maintained confidentiality regarding the extent of the acquired stake. According to a report by Bloomberg, which cites an anonymous source familiar with the deal’s specifics, LVMH has secured approximately 20% ownership in the hotel group. This figure, however, has not been officially confirmed due to the non-disclosure of the transaction’s valuation. The fresh capital from this transaction is earmarked for the acquisition and refurbishment of new properties.

MCR buys Hyatt Regency O’Hare for undisclosed sum

New York-based hotel owner-operator MCR acquired Hyatt Regency O’Hare Chicago, the company announced. Hyatt Hotels and MCR both declined to share the terms of the deal. The hotel, which underwent a $13 million renovation of its guest rooms in 2020, is MCR’s first Hyatt Regency, and its fifth property in Illinois. The sale is part of Hyatt’s ongoing strategy to sell owned properties and “reinvest the proceeds in asset-light platforms that accelerate growth,” a Hyatt spokesperson told Hotel Dive. Earlier this year, the hotel company sold Hyatt Regency Orlando for $1 billion.

Technology & Internet

Federal appeals court declines to temporarily block ban on TikTok, teeing up showdown at SCOTUS over controversial law

A federal appeals court on Friday declined to temporarily block a ban on TikTok, teeing up a showdown at the Supreme Court over whether the law should take effect while the social media platform’s challenge to it plays out. Last week, the DC Circuit Court of Appeals unanimously upheld the law, clearing the way for it to take effect on January 19. Days later, TikTok asked the court to issue a temporary pause on the ban while the company asks the Supreme Court to review its challenge to the law. The appeals court unanimously rejected that bid in a brief, unsigned order that called such a block “unwarranted.” The TikTok ban has been one of the most closely watched pieces of federal legislation in recent years, and it’s been widely expected that the law would eventually land before the conservative-majority Supreme Court. The law requires the platform be sold to a new, non-Chinese owner or be banned in the United States. After the January deadline, US app stores and internet services could face hefty fines for hosting TikTok if it is not sold.

 

Finance & Economy

Annual inflation rate accelerates to 2.7% in November, as expected

Consumer prices rose at a faster annual pace in November, a reminder that inflation remains an issue both for households and policymakers. The consumer price index showed a 12-month inflation rate of 2.7% after increasing 0.3% on the month, the Bureau of Labor Statistics reported Dec 11th. The annual rate was 0.1 percentage point higher than October. Excluding food and energy costs, the core CPI was at 3.3% on an annual basis and 0.3% monthly. The 12-month core reading was unchanged from a month ago. All of the numbers were in line with the Dow Jones consensus estimates.

Wholesale prices rose 0.4% in November, more than expected

A measure of wholesale prices rose more than expected in November as questions percolated over whether progress in bringing down inflation has slowed, the Bureau of Labor Statistics reported Dec 12th. The producer price index, or PPI, which measures what producers get for their products at the final-demand stage, increased 0.4% for the month, higher than the Dow Jones consensus estimate for 0.2%. On an annual basis, PPI rose 3%, the biggest advance since February 2023. However, excluding food and energy, core PPI increased 0.2%, meeting the forecast. Also, subtracting trade services left the PPI increase at just 0.1%. The year-over-year increase of 3.5% also was the most since February 2023.

Mortgage refinance demand surges 27%, as interest rates drop for the third straight week

Mortgage rates fell again last week, and while the drop wasn’t huge, it was enough to spur current homeowners to look for some savings. The surge in refinances was behind a 5.4% increase in total mortgage demand compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) decreased to 6.67% from 6.69%, with points falling to 0.66 from 0.67 (including the origination fee) for loans with a 20% down payment. That was the third straight weekly decline. Applications to refinance a home loan surged 27% week to week and were 42% higher than the same week one year ago.