Apparel & Footwear

Birkenstock Closes Out 2024 on a High Note, Driven By Solid Wholesale and DTC Sales

Birkenstock shares were up over 7 percent in pre-market trading on December 18th after the brand reported a strong close to its 2024 fiscal year and Q4 results that beat its expectations. For the fourth quarter of 2024, revenue increased 22 percent to 456 million euros, which was ahead of prior guidance from the company. Net income was 52 million euros, or 28 cents per share, up from a loss of 15 cents in the same quarter the prior year. Birkenstock said top-line growth was the result of strong consumer demand across several channels and categories. Birkenstock chief executive officer Oliver Reichert in a statement called out the brand’s progress of expanding into “white space opportunities” like closed-toe silhouettes, orthopedics, and outdoor, as well as in strength in the APMA (Asia Pacific, Middle East, and Africa) region and via owned retail.

Joybees Names New Balance, Finish Line Alum Ken Dayley as CEO

Joybees has named Ken Dayley as its new chief executive officer. According to the Denver-based casual lifestyle footwear brand, Dayley has more than 15 years of experience in marketing and growing direct-to-consumer brands through strategic digital transformations, achieving profitable growth and thriving in an entrepreneurial environment. “We are thrilled to have Ken lead our company and welcome him into this role at such a pivotal time,” Joey Separzadeh, chairman of the board of Joybees, said in a statement. “His ability to quickly assess and identify the growth potential for Joybees has been impressive. Ken’s roots in the casual footwear industry and his direct-to-consumer expertise are exactly what we have been seeking. His global experience and business acumen will ignite our financial performance through broader brand collaborations, expanded distribution, and consumer awareness.”

G-III Apparel reports $1.09 bn Q3 sales, 1.8% growth

G-III Apparel Group, an American clothing company, has reported net sales of $1.09 billion in the third quarter Q3 of fiscal 2025 ended October 31, 2024, an increase of 1.8 percent year-over-year. The net income for Q3 was $114.8 million, or $2.55 per diluted share, compared to $127.6 million, or $2.74 per diluted share, in Q3 FY24. The gross profit of the company stood at $432.1 million, slightly down from $433.4 million in Q3 FY24. Selling, general, and administrative expenses were $259.2 million, up from $236.3 million in Q3 FY24. The operating profit was $166.3 million, compared to $190.3 million in the prior fiscal, and net income attributable to G-III Apparel Group was $114.8 million, down from $127.6 million in Q3 FY24. The results for GAAP and non-GAAP net income per diluted share exceed guidance for Q3.

 

Athletic & Sporting Goods

Advantage Sport & Fitness Announces Acquisition by The Amenity Collective

Advantage Sport & Fitness Inc., a trusted leader in the commercial fitness industry for 37 years, is proud to announce that it has been acquired by The Amenity Collective, a wholly owned subsidiary of FirstService Corporation. The Amenity Collective is North America’s leading provider of full-service facilities management across the fitness, aquatics, and recreation industries. This partnership marks an exciting new chapter for ASF, enabling enhanced capabilities and expanded market reach while reinforcing the company’s commitment to providing concept-to-completion commercial fitness equipment solutions; and after the sale, customer services, that create “best-in-class” fitness facilities.

Reebok Returns to Golf Category

Reebok, Bryson DeChambeau and his LIV Golf team, Crushers GC, announced a long-term partnership designating the brand as the “official apparel and footwear sponsor” of DeChambeau and the team, marking the brand’s re-entry into the Performance Golf category.  In March 2025, Reebok will tap DeChambeau as the official face of Reebok Golf apparel and footwear offerings, including Nano Golf, the brand’s new on-course performance golf shoe.  Committed to growing the game of golf beyond the traditional consumer, Reebok will launch various digital and social creative content and consumer activations highlighting the partnership with DeChambeau and its new approach to golf. Focusing on accessibly priced products for the newer and younger golf consumer, plus support to those with limited access to the game.

Planet Fitness franchise group Excel Fitness acquires Texas Family Fitness

Planet Fitness franchise group Excel Fitness have acquired Texas Family Fitness and their fitness center locations in Dallas/Fort Worth.  Excel Fitness will acquire eleven clubs as part of the agreement, with some being immediately converted into Planet Fitness locations and renovations already underway. They plan to continue operating these locations with many of the amenities and services the former Texas Family Fitness members have enjoyed for years. Excel has grown to 55 locations in DFW, a total of 77 locations in Texas, with 163 locations total across the US. The franchise group was founded in 2008 in Austin.

Cosmetics & Pharmacy

Weinberg Capital Partners buys majority stake in Cosmogen

Weinberg Capital Partners (WCP) has announced a majority investment in French beauty packaging supplier, Cosmogen. Financial terms of the deal were not disclosed; Cosmogen has experienced strong organic growth, with a turnover of nearly €25 million in 2024. “The teams are thrilled, fully committed, and motivated to drive this new phase of growth with Weinberg Capital Partners,” says Priscille Allais, President and CEO of Cosmogen. “Their investment endorses our vision and strategy. It will allow us to accelerate Cosmogen’s development leveraging on what makes us successful today: our culture, our values, our innovation capacity, our high standards, and our dedication to our clients.” WCP director Paul Cordahi, comments, “Priscille Allais has done an outstanding job positioning Cosmogen as a unique player in a dynamic market. Its reputation among major brands and its wealth of expertise will enable Cosmogen to continue its strong growth trajectory.”

L’Oréal Sells Decléor and Saint-Gervais Mont Blanc to Cospal in Portfolio Streamlining Move

L’Oréal has sold cosmetics brands Decléor and Saint-Gervais Mont Blanc to the newly formed French group Cospal for an undisclosed amount. Led by Matthieu Lesieur, Cospal aims to rejuvenate the iconic brands and expand its footprint in the beauty and wellness market. The acquisition marks a new chapter for Decléor, an aromatherapy-focused brand founded in the 1970s, and Saint-Gervais Mont Blanc, a dermocosmetics brand tied to its namesake spa center in the French Alps. Lesieur, president of Cospal, has strong ties to Decléor; his father acquired the brand in the 1980s before selling it to Shiseido. L’Oréal later acquired the brand in 2014 as part of a €230 million deal. The sale aligns with L’Oréal’s strategy to streamline its brand portfolio and prioritize its core dermocosmetics offerings.

Serruya Private Equity to acquire The Body Shop Canada

Serruya Private Equity has agreed to buy The Body Shop Canada. Financial terms of the deal were redacted from the court documents, but the same papers reveal that The Body Shop Canada owes some CAD$11.5 million and CAD$12.5 million to its creditors. According to a report published by BNN Bloomberg, Serruya was one of four bidders for the Canadian branch of the ethical beauty retailer. It has agreed to enter into a franchise agreement with the current owner Aurea before taking ownership. Neither The Body Shop Canada nor Serruya Private Equity responded to requests for comment when contacted by Bloomberg. However, it is well documented that The Body Shop has had a rocky year.

 

Discounters & Department Stores

Big Lots to start going-out-of-business sales

Big Lots will start going out of business sales at all of its stores after a failed deal to sell itself to private equity firm Nexus Capital Management, the retailer said Thursday. Additionally, according to a Worker Adjustment and Retraining Notice, 555 employees at the company’s corporate headquarters in Columbus, Ohio, will be permanently laid off starting Dec. 29. The company sought Chapter 11 protection in September.  Big Lots said it’s pursuing a going concern sale with Nexus or another entity and wants to complete a sale by early January.

Should Macy’s be more like Dillard’s? Maybe.

In a public treatise last week outlining steps Macy’s Inc. should take in order to boost shareholder value, investment firms Barington Capital Group and Thor Equities covered a lot of familiar ground, but added a twist. Among the firms’ well-worn ideas is taking steps to unlock value from real estate and better-performing business units. They reiterate the longstanding theme of many investors that more Macy’s property should be monetized and also say the retailer should explore “strategic alternatives” for its luxury businesses, Bloomingdale’s and Bluemercury. As activists often do, they are advocating for their representatives to be added to Macy’s board. Less run-of-the-mill, though, is their paragraph dedicated to the superiority of rival department store Dillard’s.

Dollar Tree names Michael Creedon permanent CEO

Dollar Tree Inc. said Thursday that its board of directors appointed Michael Creedon as the company’s new CEO following an internal and external candidate search. Creedon led the company as the interim chief executive officer since early November. He joined the retailer in 2022 as chief operating officer. Earlier this year, he took on expanded responsibilities in that role, overseeing merchandising and supply chain for the retailer’s Dollar Tree and Family Dollar banners. Creedon succeeds Rick Dreiling as CEO. Dreiling resigned in November due to personal health reasons. He had served as the company’s CEO for about two years.

J.C. Penney loss narrows in Q3 as sales declines continue

J.C. Penney’s Q3 net sales fell 8% to $1.4 billion, according to financial filings Monday. With credit card income up nearly 33%, total revenue fell 6.2% to $1.5 billion. Gross margin was essentially flat at 38.7%, from 38.5% last year. Net loss narrowed 43.3% to $17 million. Inventory was flat year over year. For the first nine months of the fiscal year, consolidated adjusted EBITDA plunged nearly 64% to $66 million. The company reported that in Q3 signups to its new loyalty program rose by nearly a quarter compared to last year, “with customers earning and redeeming rewards at much faster rates.”

 

 

Emerging Consumer Companies

Couples Wellness Platform Arya Raises $8.5M Series A

Arya, a couples wellness platform using AI technology to help partners improve intimacy, announced an $8.5 million Series A funding round, bringing its total funding to $16 million in under two years. The round was led by Ibex Investors, with participation from Play Ventures, Patron Fund, and BigBets.vc. The platform, which serves more than 200,000 users across all U.S. states, uses AI technology as an “experienced best friend” to provide personalized recommendations and curated subscription boxes. Eighty percent of Arya’s customers are millennial women seeking to explore their sexuality with their partners.

ŌURA Secures $200 Million in Series D Funding

ŌURA, the company behind Oura Ring, announced the completion of a $200 million Series D funding round. Fidelity Management & Research Company and Dexcom, the global leader in glucose biosensing, participated in the round. The investment raises the company’s valuation to $5.2 billion. ŌURA delivers personalized health data, insights, and daily guidance with Oura Ring, the leading smart ring that helps you live healthier, longer. The company recently surpassed 2.5 million rings sold and has seen its member base and revenue more than double over the past year. This year, ŌURA expanded its retail presence globally with new retail partnerships such as Amazon and Target and grew its commercial business with expanded military partnerships.

 

 

Food & Beverage

General Mills looks to build on strong first-half finish

General Mills Inc. finished the first half of fiscal 2025 strong as efforts to spur volume and market share growth bore fruit in the second quarter. With the improved performance, the Minneapolis-based food company now aims to bolster its value proposition to consumers to drive longer-term gains, though that will come with a cost, said Jeffrey Harmening, chairman and chief executive officer. For the quarter ended Nov. 24, net income climbed 34% to $795.7 million, equal to $1.42 per share on the common stock, from $595.5 million, or $1.02 per share, a year earlier. Adjusted earnings per share in constant currency came in at $1.40, compared with $1.25 in the prior-year period. On average, analysts had forecast adjusted EPS of $1.22.

Paine Schwartz Partners acquires nutritional food company

Paine Schwartz Partners, an investor in sustainable food chains, said its Paine Schwartz Food Chain Fund VI has acquired Promix LLC. Financial terms of the transaction were not disclosed. Promix, Gainesville, Fla., was founded in 2014 by Albert Matheny and produces nutritional products such as low sugar high protein bars, supplements, vitamins, and meal replacements. Promix said it develops its formulas in-house and said its products are free of fillers, gums, hormones, glyphosate, GMOs, gluten, soy, and antibiotics, according to the company. “As a leading investor in high quality brands, Paine Schwartz brings significant expertise and resources — particularly in the consumer and wellness space — that will help us grow our business, including launching new innovative products, improving our operational capabilities, and expanding into new markets and channels,” Matheny said.

Post Holdings to buy potato company for undisclosed amount

Consumer packaged goods company Post Holdings is buying Potato Products of Idaho, a manufacturer and packager of refrigerated and frozen potato products, for an undisclosed amount. The acquisition, which is expected to close in the first quarter of 2025, includes a manufacturing facility in Rigby, Idaho. The purchase will complement Post’s existing presence in potatoes. The St. Louis company owns Michael Foods, a manufacturer of egg products and refrigerated potatoes for the foodservice industry, as well as branded items such as Bob Evans sides and Simply Potatoes. Since Post was spun off as a cereal-only company in 2012, it has completed more than 20 acquisitions that have broadened its reach into everything from peanut butter and mashed potatoes to liquid eggs and dog food.

 

 

Grocery & Restaurants

Darden Restaurants Stock Climbs as Olive Garden, LongHorn Steakhouse Fuel Sales

Darden Restaurants on Thursday reported quarterly earnings and revenue that met analysts’ expectations and better-than-expected same-store sales growth at Olive Garden and LongHorn Steakhouse. Darden reported fiscal second-quarter net income of $215.1 million, or $1.82 per share, up from $212.1 million, or $1.76 per share, a year earlier. Excluding costs related to its acquisition of Chuy’s, the restaurant company earned $2.03 per share. Net sales rose 6% to $2.89 billion. Darden’s same-store sales rose 2.4%, beating StreetAccount estimates of 1.5%. “It looks like the consumer is starting to feel a little bit better than they were in prior quarters,” CEO Rick Cardenas said on the company’s conference call.

Starbucks baristas launch strikes just ahead of Christmas

Starbucks Workers United announced that baristas at unionized Starbucks cafes across the country are going on strike during the busiest days leading up to Christmas in response to stalled union contract negotiations. The Starbucks union is launching five days of walkouts at unionized cafes, beginning in Los Angeles, Chicago, and Seattle, and spreading around the country, leading up to Christmas Eve. The walkouts will continue to escalate over the next five days unless Starbucks executives agree to honor their commitment to work with the union made in February, and then reiterated by new CEO Brian Niccol in September. According to Starbucks Workers United, unionized baristas have been presented with an economic package proposal with no new wage increases for unionized baristas and a guarantee of only a 1.5% increase in future years. This, according to the union, is not enough, and also leaves dozens of other unresolved issues on the table. Starbucks executives claim that the union has called for “an immediate 64% increase” in hourly wages for baristas and 77% over the course of a three-year contract, which the company said is “not sustainable.”

Home & Road

Kirkland’s Announces Extension of Voting Deadline for Upcoming Special Meeting of Shareholders

Kirkland’s, Inc., a specialty retailer of home décor and furnishings, announced its decision to extend the voting deadline for its upcoming special meeting of shareholders originally scheduled for December 23, 2024. The special meeting will be convened as scheduled and adjourned to a later date in order to allow for additional time to satisfy applicable quorum requirements. Based on the preliminary reports from the votes submitted as of December 19, 2024, approximately 94.3% of votes represented in person or by proxy at the Special Meeting were voted “For” the proposal to approve the issuance of shares of Kirkland’s common stock to Beyond, Inc. in connection with the strategic partnership between the companies and in accordance with applicable Nasdaq Listing Rules, indicating an overwhelming level of support from participating shareholders.  However, at this time, the Company has received proxies representing approximately 37.2% of total shares outstanding as of the record date, less than the majority needed under applicable law and the Company’s bylaws.

France’s Bernardaud Acquires Haviland, Uniting Two Leaders of Limoges Porcelain

Bernardaud, the porcelain maker founded in 1863, said Monday it has acquired fellow Limoges porcelain maker Haviland. Both companies are based in Limoges, France, a region thick with forests and fresh waterways, ideal for producing fine porcelain. In a statement, Bernardaud said it acquired 100 percent of Haviland’s shares. The purchase price was not disclosed. “This merger represents a historic opportunity for both companies to combine their skills, know-how and resources, ensuring the preservation of an exceptional legacy while preparing for a prosperous future that respects their distinct identities,” said the company, which was an early exporter to new markets like the United States and remains a family-run firm. Haviland will continue to produce its collections in its Limoges workshops, while benefiting from Bernardaud’s resources and expertise, the firm added.

3Z Brands acquires Southerland

Vertically integrated mattress company 3Z Brands has acquired Southerland allowing it to expand its operations to a national footprint. This marks the company’s first acquisition of a traditional mattress manufacturer. The other buys have been direct-to-consumer sleep brands. The Southerland deal is 3Z’s fourth acquisition since July 2022 when 3Z, Brooklyn Bedding at the time, acquired Bear Mattress.  That deal was followed by the purchase of Nolah and then Leesa last year. The buying spree followed private equity firm Cerberus’ acquisition of Brooklyn Bedding and Helix Sleep in 2021. Terms of the deal were not disclosed, but the acquisition nets 3Z four manufacturing facilities from which Southerland serves retail partners in 43 states. The facilities — located in Nashville, Tenn.; Phoenix; Oklahoma City; and Tualatin, Ore. — are now part of the 3Z manufacturing base that includes the headquarters, factory and foam pouring operation that 3Z operates in Phoenix.

What’s the opposite of recession? DOC report shows another gain

The furniture and home furnishings category showed growth for the third month in a row in November according to the Department of Commerce’s advance monthly estimates. After it showed a year-over-year gain last month in the advance estimates for October, and after September’s figures proved to be higher with revisions, November saw the furniture and home furnishings category post adjusted estimated sales of $11.324 billion, up 0.7% compared with $11.246 billion in November 2023. The November numbers were also 0.3% higher than October’s preliminary adjusted total of $11.292 billion. For the three months from September through November, furniture and home furnishings sales are up 1.5% year-over-year, although overall the category’s $122.665 billion through 11 months remains 3.3% off 2023’s pace. The overall retail snapshot showed an adjusted $724.609 billion in sales in November, up 3.8% vs. $698.105 billion a year ago and up 0.7% against October’s adjusted $719.676 billion.

Jewelry & Luxury

Bloomingdale’s adds fulfillment option for luxury DTC brands

To build up its e-commerce operations, Bloomingdale’s has partnered with retail connectivity platform Lucky, according to a press release. With the integration, online shoppers can check whether their desired items are available at a nearby Bloomingdale’s location while browsing various brands’ DTC websites and buy the products for same-day delivery or pickup, per the press release. Through the partnership, brands will be able to track conversions via their online stores.

As bitcoin soars, luxury brands consider accepting crypto payments

Bitcoin’s soaring value has caught the attention of high-end fashion brands and retailers, prompting further interest in offering cryptocurrencies as a means of payment to tap in to fresh pockets of wealth and build loyalty with crypto investors. Until recently, only a handful of luxury brands have experimented with crypto payment offers. In recent weeks, upscale French luxury department store Printemps announced it was teaming up with the world’s largest crypto exchange, Binance, and French financial tech company Lyzi to accept cryptocurrencies including bitcoin and ethereum in its stores in France – becoming the first European department store to do so.

Sequoia Capital-backed Kurly sells luxury goods to uplift profit

Kurly Inc. backed by US venture capital Sequoia Capital has invited a third-party online retailer to sell luxury goods on its platform to boost profit after years of posting losses to gird up for its much-delayed initial public offering. The pioneer in South Korea’s dawn delivery service market on Thursday started selling luxury fashion items on its marketplace Kurly through Reebonz, a Seoul-based online luxury goods retailer. This is the first time for the Korean e-commerce unicorn to sell luxury fashion items through its platform, which started as an online gourmet food and fresh produce shopping site.

Office & Leisure

OYO completes acquisition of G6 Hospitality, names CEO

Travel and hospitality firm OYO has completed its $525 million acquisition of G6 Hospitality, the firm that owns the Motel 6 and Studio 6 brands, OYO parent company Oravel Stays announced Dec 17th. OYO plans to “accelerate growth” of G6 Hospitality’s operations through technology integration, property upgrades and market expansion, according to the Company. It also plans to add more than 150 hotels under the Motel 6 and Studio 6 brands in 2025. The deal completion comes with leadership changes, with OYO’s Sonal Sinha taking over for departing G6 CEO Julie Arrowsmith. The acquisition is set to expand the Indian company’s presence in the U.S. after a shaky initial start in the market in 2019.

Vegas Sphere Earned More in ’24 than Any Concert Venue in Any Year

The Sphere’s $420.5 million gross from 1.3 million tickets sold makes it not only the No. 1 money-earning large concert venue on this year’s Billboard annual Boxscore list but the No. 1 money-earning concert venue of all time. Not only is the Sphere the first venue to make more than $400 million in a year, but it’s also the first to make more than $300 million.

Technology & Internet

TikTok ban case will be heard by Supreme Court

The Supreme Court on Wednesday agreed to hear arguments that a law that would effectively ban TikTok if its parent company does not sell the popular social media app violates the U.S. Constitution’s free speech protections. The Supreme Court scheduled oral arguments in the case for Jan. 10. That is nine days before the law targeting the app, which is used by an estimated 170 million Americans, is set to take effect. The law would require TikTok’s Chinese parent company, ByteDance, to sell the app or force Google, Apple, and other platforms to stop supporting the app in the United States. Congress passed the law, the Foreign Adversary Controlled Applications Act, due to concerns that TikTok’s Chinese ownership presented a national security risk. The U.S. Court of Appeals for the District of Columbia Circuit upheld the law on Dec. 6, ruling that the DOJ had “offered persuasive evidence demonstrating that” the divestment law “is narrowly tailored to protect national security.”

Amazon workers strike across seven facilities during holiday shopping

Amazon workers across seven facilities in New York, Georgia, California and Illinois went on strike Thursday to lobby for better benefits, higher wages and safer working conditions. The strike, organized by members of the Teamsters union, is intended to pressure Amazon to come to the negotiating table and avoid disruptions during the peak of the holiday shopping season. The union had previously given Amazon until Sunday to agree to bargaining dates for a contract. The Teamsters website says that nearly 10,000 Amazon workers have joined the organization. That represents less than 1% of the company’s workforce of 1.53 million, as of Dec. 31, 2023. The union said Thursday’s campaign is the largest strike against Amazon in American history.

 

Finance & Economy

U.S. economy grows at 3.1% pace in third quarter, an upgrade from previous estimate

The American economy grew at a healthy 3.1% annual clip from July through September, propelled by vigorous consumer spending and an uptick in exports, the government said in an upgrade to its previous estimate. Third-quarter growth in U.S. gross domestic product — the economy’s output of goods and services — accelerated from the April-July rate of 3% and continued to look sturdy despite high interest rates, the Commerce Department said on December 19th. GDP growth has now topped 2% in eight of the last nine quarters. Consumer spending, which accounts for about two-thirds of U.S. economic activity, expanded at a 3.7% pace, the fastest since the first quarter of 2023 and an uptick from Commerce’s previous third-quarter estimate of 3.5%.

US applications for unemployment benefits come back down after last week’s big rise

The number of Americans applying for unemployment benefits fell markedly last week following a big increase the week before. Jobless claim applications declined by 22,000 to 220,000 for the week of Dec. 14, the Labor Department reported Dec 19th. That’s fewer than the 229,000 analysts were forecasting. Continuing claims, the total number of Americans collecting jobless benefits, fell by 5,000 to 1.87 million for the week of Dec 7th. That was also fewer than analysts had projected. The four-week average of weekly claims, which quiets some of the week-to-week volatility, rose by 1,250 to 225,500. Weekly applications for jobless benefits are considered representative of U.S. layoffs.