Story of the Week
Trump limits tariffs on most nations for 90 days, raises taxes on Chinese imports
Facing a global market meltdown, President Donald Trump on Apr 9th abruptly backed off his tariffs on most nations for 90 days, even as he further jacked up the tax rate on Chinese imports to 125%. It was seemingly an attempt to narrow what had been an unprecedented trade war between the U.S. and most of the world to a showdown between the U.S. and China. The S&P 500 stock index jumped 9.5% after the announcement, but the drama over Trump’s tariffs is far from over as the administration prepares to engage in country-by-country negotiations. In the meantime, countries subject to the pause will now be tariffed at 10%. The president hit pause in the face of intense pressure created by volatile financial markets pushing Trump to reconsider his tariffs, even as some administration officials insisted that his reversal had always been the plan.
Apparel & Footwear
The Athlete’s Foot Elevates Matt Lafone to Global CEO
The Athlete’s Foot (TAF) has promoted Matt Lafone to the role of global chief executive officer, effective immediately. Lafone, who previously served as president and general manager of the Americas, joined TAF in 2021, and has driven positive results during his tenure, including a 45 percent increase in regional revenue—contributing $272.1 million to the 2024 overall performance. Prior to joining TAF, Lafone was COO for Payless ShoeSource where he oversaw design, development, supply chain, marketing and franchising for its 750 international stores.
Guess to close underperforming stores in North America
Guess plans to close underperforming stores in North America. Alberto Toni, group managing director and chief financial officer at luxury conglomerate Flos B&B Italia Group, will replace Guess Interim CFO Dennis Secor as chief financial officer. Toni will take the post in June after Guess files its Q1 earnings report, and Secor will remain as executive vice president through Sept 12. The company is working to shutter about 20 underperforming stores. “Traffic declines into our retail stores have persisted,” Guess CEO Carlos Alberini told analysts. The strong U.S. dollar hit Q4 revenue and margins, with gross margin dropping to 44.1% from 45.4% last year, Alberini said. Profits plunged, with net earnings down 30% year over year to $84 million. Net revenue rose 4.6% to $932.3 million, with product sales up 4.2% to $899 million and royalties up 17.6% to $33.3 million.
Levi Strauss exceeds revenue and profitability expectations in Q1 2025
US clothing company Levi Strauss & Co recorded a 3% rise in net revenues to $1.53bn in the first quarter (Q1) of fiscal 2025 (FY25), up from $1.48bn reported in Q1 FY24. The company reported that the figure and the rest of the results for the quarter reflect its ongoing operations, excluding around $67m in net revenues from the Dockers brand. The Dockers business has been reclassified as discontinued operations in Q1 FY25. During the quarter ending 2 March 2025, the company’s Levi’s brand witnessed an 8% surge in global organic net revenues. Levi Strauss has maintained guidance for fiscal 2025 based on continuing operations, excluding the impact of the recent tariffs. The company anticipates a slight decline in reported net revenue, ranging between 1% and 2%.
Fila Holdings Officially Changes Name to Misto Holdings
Fila Holdings Corp. shareholders approved renaming the company to Misto Holdings in the company’s March 31 general meeting. Misto Holdings manages a portfolio of brands, including Fila, Titleist, FootJoy, Scotty Cameron, and others; however, the name Fila Holdings was closely associated with the Fila brand, leading to a limited perception of its broader portfolio and global brand management role. Adopting the Misto Holdings name “better aligns with the company’s strategic portfolio approach while ensuring all brands under its umbrella retain their independence and unique identities.” The company identified in a media release that the word “Misto” is “derived from the Italian word for ‘harmony,’ ‘blend’ and ‘diversity,’ which symbolizes the company’s global brand portfolio” and “it represents a renewed vision for future growth.”
Athletic & Sporting Goods
ANTA Sports to buy German outdoor brand Jack Wolfskin for $290m
U.S. sports equipment maker Topgolf Callaway Brands has agreed to divest its German outdoor brand Jack Wolfskin to China-based sports apparel group ANTA Sports in a $290m cash deal. The acquisition is in line with ANTA Sports’ strategic approach focused on specialisation within a multi-brand framework and its international expansion goals. This move is expected to enhance its presence in the outdoor sports market. By incorporating Jack Wolfskin into its portfolio, ANTA Sports hopes to broaden its range of outdoor products, catering to both high-end and mainstream consumers across a wider spectrum of outdoor activities. Topgolf Callaway’s brand portfolio includes names such as Topgolf, Callaway Golf, TravisMathew, Toptracer, Odyssey, OGIO, and Jack Wolfskin. In February, Topgolf Callaway revealed right-sizing initiatives at Jack Wolfskin that led to decreases in the Active Lifestyle segment.
Nike’s 30-Year Gamble on Vietnam Is Rattled by Trump Tariffs
At Nike Inc. headquarters in Beaverton, Oregon, executives are trying to figure out how to best spread the pain of new tariffs. Nike, the factories that produce its goods, the wholesalers that sell the goods and ultimately shoppers will all likely share portions of the cost, according to a person familiar with the matter who asked not to be named discussing private conversations. The backbone of Nike’s supply chain is being threatened by President Donald Trump’s global tariff campaign, straining a decades-long investment just as the world’s largest sneaker company tries to rebound under a new chief executive officer. Over the past 30 years, Nike has funneled billions of dollars of production into Vietnam, helping turn the southeast Asian nation into a powerhouse for footwear and apparel production. Last week, Trump imposed a 46% tariff on goods from Vietnam — among the steepest of the countries he targeted — that threatens to devastate its manufacturing industries.
Cosmetics & Pharmacy
KKR Outbids Competitors To Secure $2.9 Billion Karo Healthcare Takeover
KKR has agreed to acquire Karo Healthcare for approximately 2.65 billion euros, a deal that includes the assumption of debt. The acquisition, expected to close in the coming months pending regulatory approval, would bolster KKR’s investment portfolio. Karo Healthcare, headquartered in Stockholm, has expanded significantly under the ownership of EQT, which took the firm private in 2022 at a valuation of 1.4 billion euros. EQT initially took a majority stake in Karo back in 2019 when the business was still listed, Financial Times adds. The acquisition underscores KKR’s confidence in healthcare-focused investments even as overall merger activity has slowed due to uncertain interest rate policy and fluctuating debt markets.
Hailey Bieber Weighs Potential US$1 Billion Sale of Rhode Cosmetics
Hailey Bieber is reportedly exploring the sale of her cosmetics brand, Rhode, which was launched in 2022 and focuses on makeup and skincare. Sources estimate that Rhode could be valued at over US$1 billion. The brand is said to generate nearly US$200 million in annual sales. Former The Honest Company CEO Nick Vlahos was appointed to oversee day-to-day operations. Rhode’s reported move to find a buyer follows a pattern of celebrity-driven cosmetic labels evaluating their market positions and potential valuations.
Wellkasa Acquires Peak and Valley to Expand its Brain Health Support Supplement Portfolio
Wellkasa Inc., a next-generation supplement company combining science-backed nutraceuticals with AI-powered education, announced the acquisition of Peak and Valley on Apr 8th, a fast-growing wellness brand offering adaptogenic and mushroom-based supplements for brain health, stress support, and sleep. Founded by Nadine Joseph, a Johns Hopkins-trained neuroscientist, Peak and Valley was born from a deeply personal journey. Struggling with stress and burnout, Nadine turned to neuroscience and traditional medicine to craft blends that support modern mental wellness. Her brand quickly earned a loyal following for its transparency, integrity, and results-driven approach. Transaction details were not disclosed.
Taraji P. Henson Takes Full Ownership Of Namesake Beauty Brand
Taraji P. Henson has acquired her beauty brand for an undisclosed amount from Maesa. According to WWD, the What Men Want actress purchased the TPH By Taraji brand outright from the incubator, taking full ownership. “Over the past few months I have been in discussions with my partners at Maesa regarding the future of the TPH by Taraji brand, and am pleased to say we have reached a mutually beneficial agreement that has afforded me the opportunity to buy back TPH,” Henson shared with the outlet in an emailed statement. “From Day One, our shared vision was to create a brand that celebrates hair and scalp with high-performance products rooted in self care, efficacy and inclusivity.”
Discounters & Department Stores
Walmart pulls Q1 operating income forecast amid tariffs; affirms annual outlook
Walmart Inc. has pulled its outlook for operating income in the first quarter as it faces uncertainty about the potential impact of announced reciprocal tariffs. The retail giant, which previously forecast an increase of 0.5% to 2.0% in adjusted operating income in its first quarter, said in a release that the range of outcomes for first quarter operating income growth has widened “due to less favorable category mix, higher casualty claims expense and the desire to maintain flexibility to invest in price as tariffs are implemented.” Walmart, however, stood by its first-quarter sales outlook of 3% to 4% growth.
Costco reports strong March sales as e-commerce surges
Costco Wholesale Corp. maintained its momentum in March, amid strong digital growth and a calendar shift that added an extra shopping day to its results. The membership warehouse club giant’s net sales rose 8.6% to $25.51 billion in the “retail” month of March (the five weeks ended April 6). Total comparable sales increased 6.4%, rising 7.5% in the United States, and 4.1% in Canada. International comp sales rose 2.9%. Comparable e-commerce sales at Costco rose 16.2% in March. Total comparable sales excluding the impacts from changes in gasoline prices and foreign exchange rose 9.1%, rising 8.7% in the U.S., and 10.6% in Canada. E-commerce comps rose 17.5%. March had one additional shopping day versus last year, due to the calendar shift of Easter, noted Costco. This positively impacted total and comparable sales by approximately one and one-half percent. Net sales for the first 31 weeks rose 8.3% to $158.87 billion. Comparable sales for the period are up 16.8%.
Emerging Consumer Companies
ButcherBox partners with Target
Online meat and seafood seller ButcherBox announced that its products are now available on Target’s third-party digital marketplace, Target Plus. ButcherBox’s Target Plus offerings, which are “occasion centered,” cost between $99 and $189 and include themes such as “Kid’s Favorites,” “Breakfast Essentials,” “Steak Lovers” and “Meal Prepping,” according to the announcement. The company’s presence on Target Plus also gives shoppers access to its offerings without a subscription. The tie-up builds on ButcherBox’s efforts to expand its reach with consumers by linking up with e-commerce partners like DoorDash and Instacart. For Target, working with ButcherBox further underscores the retailer’s growing focus on its food offerings.
Zozo acquires Lyst for $154 million
Japan’s Zozo is acquiring Lyst — the UK fashion platform best known for its shopping search engine and quarterly ranking of sought-out brands and products — for $154 million. Following the deal, Lyst will become a wholly owned subsidiary of Zozo while continuing to operate as a stand-alone business based in the UK, with Emma McFerran staying on as chief executive. Zozo operates Zozotown, one of Japan’s biggest fashion marketplaces with gross merchandise value of 141,885 million yen ($976 million) in its most recent fiscal year. Lyst was founded in 2010, and surfed surging interest in digital fashion concepts to raise an estimated $150 million from external investors (including an $85 million funding round in 2021 at a $700 million valuation, announced as a ‘pre-IPO’ injection).
Food & Beverage
Diageo swaps Cîroc US ownership for LeBron James-backed tequila
Diageo is trading its ownership of Cîroc Ultra-Premium Vodka in North America for a majority stake in Lobos 1707 Tequila, a brand backed by NBA star LeBron James. The transaction is the first from the company’s newly formed joint venture with financial investment firm Main Street Advisors. Terms of the deal were not disclosed. The Guinness owner said the joint venture will combine its supply chain expertise with Main Street’s success in accelerating the growth of “culturally disruptive consumer businesses.” Diageo will retain ownership rights for Cîroc outside of the U.S.
Cal-Maine to acquire Echo Lake Foods
Egg producer Cal-Maine Foods Inc. has agreed to acquire breakfast foods maker Echo Lake Foods Inc. in a $258 million deal. Ridgeland-based Cal-Maine announced the Echo Lake transaction after the April 8th market close in reporting results for fiscal 2025 third quarter ended March 1. The company said the deal, made after the quarter’s close, will be funded with available cash on hand, and the purchase price excludes expected tax assets from the transaction. Echo Lake Foods, based in Burlington, Wis., manufactures and distributes ready-to-eat egg products and breakfast foods, including waffles, pancakes, french toast, scrambled eggs, frozen cooked omelets, egg patties and diced eggs. The company generated revenue of about $240 million in 2024 and has a five-year compound annual growth rate of roughly 10%, Cal-Maine said.
PE firm Chequers Capital acquires Gourmet Italian Food
Private equity firm Chequers Capital has taken over Italy-based ready-meals maker Gourmet Italian Food. The financial terms of the transaction were not disclosed. Chequers Capital said it bought Gourmet Italian Food from investors the private equity firms Alcedo, and FVS, as well as unnamed minority shareholders. The new owner said it will support Gourmet Italian Food “in continuing its growth and strategic market positioning, including through targeted acquisitions”. Gourmet Italian Food was created as a platform to “aggregate leading companies” producing “high-quality” ready meals selling into retail and horeca (hotel, restaurant, and catering) clients.
Mondelēz investing $79M in Switzerland Toblerone factory
Mondelēz International plans to invest about $79 million (or roughly 65 million Swiss Francs) in its Toblerone manufacturing facility in Bern, Switzerland. Toblerone was founded in Switzerland in 1908, and Bern is where around 90% of the product is currently manufactured. The snacking giant, the No. 2 player in the $134 billion global chocolate segment, said the investment underscores Toblerone’s ambitions in the premium space and efforts to “build on its global awareness, uniqueness and leading position” in world travel retail. While cocoa prices have declined in recent weeks after reaching a record high in 2024, they remain elevated compared to their historical averages. This has led to higher prices and resulted in consumers cutting back on demand for some chocolate offerings.
Grocery & Restaurants
Biglari Capital offers to acquire El Pollo Loco
Investment firm Biglari Capital, owned by Sardar Biglari, has made an unsolicited offer to buy El Pollo Loco. According to an SEC filing Monday, Biglari, which also owns Steak ‘n Shake, among several other companies, currently holds 4.1 million shares and has offered to acquire the approximately 85% of outstanding shares it doesn’t own. Details of the offer are not public; El Pollo Loco entered a confidentiality agreement with Biglari earlier this week and “is in the process of carefully evaluating the proposal.” In August 2023, El Pollo Loco adopted a limited-duration poison pill after Biglari began acquiring shares. The poison pill was amended last year to include an increase to a necessary 15% ownership threshold to be considered an acquiring person (from 12.5% previously), which Biglari has now crossed with ownership of 15.1% of shares.
Bain Capital to buy mega franchisee Sizzling Platter in $1B deal, report says
The giant multi-brand franchisee Sizzling Platter has been acquired by private-equity firm Bain Capital in a $1 billion deal, according to a Bloomberg report on Thursday. Sizzling Platter is the operator of more than 750 restaurants across eight brands, including Little Caesars, Jamba, Wingstop, Dunkin’, Jersey Mike’s, Cinnabon, Red Robin and Sizzler. Little Caesars is the largest of the brands the group operates, with about 450 units in the U.S. and Mexico. The group was owned by CapitalSpring, which has been working on a sale process for several months.
Home & Road
Wayfair to vendors: Hold off on tariff increases
In a letter to vendors, Niraj Shah, CEO and co-founder of digitally native home furnishings retailer Wayfair, urged patience and timing as it relates to any tariff-related price increases. The letter, sent on April 8 and obtained by Furniture Today, highlighted Shah’s thoughts on how to navigate the landscape, impacted by the Trump administration’s tariff announcements this month. On April 9, President Trump announced a 90-day pause and a reciprocal tariff rate reduction to 10% for more than 75 countries, but a 125% immediate tariff rate on China, which means many of the strategies outlined by Shah still likely apply to goods imported from China. Shah asked vendors who are considering price increases to hold off for now, noting that early movers might see sharp drops in demand that aren’t offset by higher market prices.
Jewelry & Luxury
Prada Acquires Versace for 1.25 Billion Euros
After months of speculation, Prada finally confirmed it is acquiring 100 percent of Versace from Capri Holdings for 1.25 billion euros. On Apr 10th, the day Prada’s exclusive talks with Capri Holdings were set to end, the Italian luxury company publicly traded in Hong Kong said the deal is subject to adjustments at closing. The transaction will be funded by 1.5 billion euros of new debt, composed of a 1-billion-euro term loan and a 500-million-euro bridge facility. “The acquisition of Versace marks another step in the evolutionary journey of our Group, adding a new dimension, different and complementary,” said Andrea Guerra, the group’s chief executive officer.
LVMH has named Ramon Ros CEO of Fendi, effective July 1, according to an Apr 7th announcement. He succeeds Pierre-Emmanuel Angeloglou. Ros was previously president and CEO of Louis Vuitton in China. Angeloglou will become deputy CEO of Dior Couture effective April 15, according to a prior announcement. Daniel DiCicco will succeed Ros, effective April 28th, and will be based in Shanghai. He joins LVMH from Apple, where he led global retail, per the Apr 7th release. On the same day, Charlotte Coupé was appointed CEO of Kenzo, effective May 1st. She succeeds Sylvain Blanc and previously managed the men’s ready-to-wear business unit at Louis Vuitton.
Famed Jeweler David Webb Acquired by Investment Firm
Middle West Partners, a Boston-based investment firm, has acquired David Webb, the noted American jewelry designer. Terms were not disclosed. POP Capital co-invested with Middle West Partners on the purchase of David Webb Holdings. Prior owner Mark Emanuel will retain a stake in the jewelry brand. As a result of the acquisition, James Weiss will become CEO of David Webb. The former Bain & Company principal and Palantir Technologies executive advised David Webb on the transaction and has been involved with the company since 2017.
Office & Leisure
OpenGate Capital to Sell Player One Amusement Group to GENDA
OpenGate Capital, a global private equity firm, announced that it has entered into a binding agreement for the sale of Player One Amusement Group, a best-in-class experiential entertainment company for consumers, to GENDA. OpenGate acquired Player One from Cineplex in 2024 through a corporate carve-out. Player One is an amusement services provider based in Toronto, Ontario serving customers across Canada and the US. The business provides amusement gaming equipment and outsourced operations and maintenance support to customers seeking to drive superior location profitability and create a best-in-class consumer experience. In addition, the business sources, distributes, and maintains amusement gaming equipment for commercial and retail venues across North America. Customers include theater chains, resorts, golf entertainment centers, trampoline parks, and bowling centers.
Technology & Internet
Meta vs. the FTC: The blockbuster antitrust trial kicks off
Meta will face off against the U.S. Federal Trade Commission on Monday in a high-stakes antitrust trial that could result in the company divesting Instagram and WhatsApp. The trial in Washington is expected to last weeks and centers around the FTC’s allegations that Meta monopolizes the personal social networking market. CEO Mark Zuckerberg, former COO Sheryl Sandberg, Instagram co-founder Kevin Systrom and other current and former Meta executives are expected to testify, along with top brass from rivals TikTok, Snap and Google’s YouTube, according to a legal filing. The FTC claims Meta shouldn’t have been allowed to buy Instagram for $1 billion in 2012 and WhatsApp for $19 billion in 2014, and the agency is calling for those units to be sliced off from the Menlo Park, California, company. “Acquiring these competitive threats has enabled Facebook to sustain its dominance—to the detriment of competition and users—not by competing on the merits, but by avoiding competition,” the FTC said in a legal filing. Meta disagrees and filed a pretrial brief last week reiterating its arguments that it is not a monopoly and that acquiring Instagram and WhatsApp has not harmed competition.
Amazon CEO Andy Jassy says he believes sellers will pass increased tariff costs on to consumers
Amazon CEO Andy Jassy said Thursday the company is still digesting the impact of President Donald Trump’s sweeping tariffs, but that its vast network of third-party sellers may “pass that cost on” to consumers. “I understand why, I mean, depending on which country you’re in, you don’t have 50% extra margin that you can play with,” Jassy said in an interview with CNBC’s Andrew Ross Sorkin. “I think they’ll try and pass the cost on.” Amazon’s third-party marketplace is made up of millions of sellers, many of which are based in China or source their products from the region. Third-party sellers now account for about 60% of all products sold on Amazon’s website. Jassy, who released his annual shareholder letter earlier in the morning, said the company has done some “strategic forward inventory buys” and looked to renegotiate terms on some purchase orders in an effort to keep prices low.
Finance & Economy
CPI inflation falls in March as annual core consumer prices rise at slowest rate in four years
March’s Consumer Price Index (CPI) report showed inflation pressures eased considerably last month, with annual core prices rising at their slowest pace since March 2021. But it could be the last time investors see moderating price growth as President Trump’s tariff spree threatens to upend recent easing trends. The latest data from the Bureau of Labor Statistics showed that the Consumer Price Index (CPI) increased 2.4% over the prior year in March, a slowdown from February’s 2.8% annual gain and a beat compared to economists’ expectations of a 2.5% annual increase. On a month-over-month basis, prices declined 0.1% — the first time monthly CPI prices have fallen since May 2020. This was also below the 0.2% increase seen in February and a beat compared to economists’ estimates of a 0.1% monthly uptick.
Egg prices soar to record high as DOJ investigates America’s largest egg producer
Egg prices are still rising at the store, even as wholesale costs declined in recent weeks. The price of a dozen large, white eggs clocked in at a record high of $6.23 in March, up from the previous record high of $5.90 in February. “Wholesale prices were moving up in February, so higher retail prices in March do not seem a surprise. The decline in wholesale prices really started in March, so maybe the next report will have some lower prices,” Texas A&M University professor David Anderson told Yahoo Finance. According to the latest CPI data, egg prices brought overall food at home inflation higher (up 2.4% year over year). Other stubbornly higher items include instant coffee and uncooked ground beef.
US 30-year bond auction abates worst fears of a buyers’ strike
Investors in the $29 trillion Treasury market got a welcome dose of stability after an auction of 30-year bonds was met with strong demand. Longer-dated Treasuries pared their earlier losses after investors snapped up $22 billion of US government debt sold on Apr 9th, with 30-year yields lingering near 4.83%. Shorter-term notes, meanwhile, kept up a rally spurred by evidence that underlying US inflation ebbed last month. For investors, the solid auction result is a signal that there are still plenty of buyers of Treasuries, even after this week’s intense volatility tied to President Donald Trump’s evolving trade policy eroded appetite for US assets and prompted questions about whether the nation’s debt remains the world’s favored haven.
