Story of the Week
Report: Crumbl to Sell Minority Stake to TSG Consumer Partners
Private equity is now taking a bite out of Crumbl. TSG Consumer Partners has reportedly agreed to take a minority stake in the 1,100-unit dessert chain, according to Bloomberg. The investment is in the form of preferred equity. Private credit funds are also in talks to give Crumbl about $500 million of debt financing, sources told the publication. “We are confident that, in TSG, we have found a partner with a demonstrated track record of building industry-leading franchise food brands,” a Crumbl representative told Bloomberg. Bloomberg reported earlier this year that Crumbl is exploring a $2 billion sale. Private equity firms may be interested. Crumbl wants a valuation 10 times its annual EBITDA, which is around $150 million.
Apparel & Footwear
Vans Owner VF Corp. Confirms 400 More Layoffs Across the Company
Vans and Timberland owner VF Corporation is cutting more jobs, FN has learned. In a statement sent to FN on May 1, a representative affirmed the news. “Over the past few months, VF has been working to reorganize select commercial functions globally, as part of the company’s ongoing business turnaround,” the rep’s statement said. The rep also noted that the reorganization has impacted approximately 400 employees globally, across VF’s brands and throughout the Americas, Europe, and Asia regions.
OJ Holding Sweden AB acquires fashion brand Filippa K from Novax
OJ Holding Sweden AB has acquired the Swedish fashion brand Filippa K from Novax. Filippa K offers womenswear and menswear collections sold through its own stores, online, and selected international retailers. Filippa K and Oscar Jacobson will continue to operate as independent brands within the same group. “We are very pleased to welcome Filippa K to the Oscar Jacobson family. This acquisition aligns with our long-term strategy to grow both organically and through carefully selected acquisitions. Filippa K is a strong fashion brand with minimalist design, a clear Scandinavian heritage, and a commitment to more responsible production, all in line with our overarching ambition. We look forward to developing Filippa K, a brand which is firmly established in Swedish fashion”, said Richard Woodbridge, CEO of Oscar Jacobson.
Athletic & Sporting Goods
Riddell Snaps Up Xenith Assets
Riddell announced its acquisition of the assets of Detroit-based football helmet maker Xenith. The report that Xenith was “officially a part of Riddell Sports” was shared on the social media accounts of both companies and confirmed in a statement from a Riddell spokesperson. “As the market leader in football helmet technology and protective equipment, Riddell remains committed to advancing the game through innovation that prioritizes athlete protection and performance across all levels,” the statement reads from Riddell. “Earlier this year, Xenith announced plans to cease operations. Recognizing a shared commitment to athlete protection and product excellence, Riddell has acquired Xenith’s assets effective today. Xenith announced the pause in operations in mid-December 2024. The Detroit-based company was founded in 2004 by former Harvard University Quarterback and Physician Vin Ferrara, M.D., according to a 2010 editorial in Harvard Magazine.
Pure Hockey Expands Network to SD with Hockey Headquarters Acquisition
Pure Hockey, the destination retailer for hockey equipment, apparel and accessories, has acquired Hockey Headquarters, a specialty hockey retailer in Sioux Falls, SD. The move marks Pure Hockey’s first entry into the South Dakota market and is said to “underscore the company’s commitment to serving the needs of hockey players across the United States.” Pure Hockey, headquartered outside of Boston, MA, was founded in 1994 and acquired by David Nectow and Sal Tiano in 2008. The company has been on a growth surge of late after acquiring Off The Bench in Omaha, NE, in March to add to this new deal to bring its network to 82 retail locations across 31 states nationwide under the Pure Hockey and Pure Goalie brands.
OneTurn Acquires Liberated Brands Europe
Liberated Brands Europe is proud to announce its acquisition by OneTurn S.A.S., a company newly formed by members of its current leadership team – CEO Joost Grootswagers and COO Antoine Lanusse. The acquisition is the result of a determined effort by Liberated Brands Europe team to preserve and grow the business independently. Most importantly, this transition ensures total continuity: the operational structure remains intact. Driven by a clear ambition to build the future with trust, enthusiasm, and deep respect for brand heritage, the team remains steadfast in its commitment to the DNA, culture, and communities that define Volcom and Spyder. These iconic brands will continue to grow and evolve across the European market with authenticity and integrity.
Cosmetics & Pharmacy
Unilever Shuts Skin Care Brand Ren
Unilever is shutting down one of its greenest brands, Ren Clean Skincare, blaming a combination of “internal factors, compounded by market challenges.” The consumer giant said that while there was no fixed date for final closure, the business is expected to shutter by the end of the third quarter. In March, WWD Beauty reported that Unilever had been speaking to Ren employees and representatives as part of a strategic review as it sought a path forward for the business. It is understood that Unilever failed to find a buyer for the British company it purchased 10 years ago.
L’Oréal to Cut Travel Retail Beauty Workforce in China Amid Sales Decline
L’Oréal is preparing to lay off up to half of its travel retail beauty workforce in China as the company responds to a sharp slowdown in duty-free cosmetics and personal care sales. The layoffs, not yet formally announced, are expected to affect up to 50% of the travel retail team, with some employees reportedly receiving “n+5” compensation packages (years of service plus five months’ salary). The deterioration of China’s travel retail market, triggered by declining domestic consumption, a weaker yuan, and increased overseas shopping, has forced L’Oréal to restructure its operations.
Puig beats luxury slump as Q1 2025 sales rise 7.5 percent
Puig has announced its results for the first quarter of fiscal 2025. The Spanish fragrance house said sales rose 7.5 percent like-for-like to €1,206 million, tracking above the wider premium beauty market. This healthy performance was driven by the Fragrances and Fashion segment, Puig said, across both Prestige and Niche. Drilling down by region, all markets recorded growth, with strong performances in the Americas (+11.5 percent reported) and APAC regions (+14.5 percent reported).
Oh My Cream Acquires U.K.-based Clean Beauty E-tailer Naturisimo
As part of its expansion strategy, Oh My Cream has acquired Naturisimo, the U.K.-based e-commerce site specializing in clean beauty. Financial terms of the deal were not disclosed. The deal was inked as Oh My Cream aims to become a leading clean beauty purveyor across Europe. Naturisimo carries brands such as Innersense, Evolve, Mádara, Dr. Hauschka, and Wild Nutrition, which will be part of Oh My Cream’s offer in the UK. Naturisimo’s social media accounts will also be switched.
Discounters & Department Stores
Kohl’s CEO fired over conflicts of interest
Kohl’s CEO Ashley Buchanan is out as CEO after just a few months, after the department store found he was involved in “vendor transactions that involved undisclosed conflicts of interest.” A press release provided no details on specific suppliers or deals. Board Chair Michael Bender is interim CEO, effective immediately, while the company finds Buchanan’s replacement. Buchanan, who previously was CEO of Michaels, is no longer a member of the board, and Kohl’s withdrew his nomination to continue as director. Buchanan was terminated for cause following an investigation by outside counsel and was found to be acting alone, the company said. He had been tapped to replace Tom Kingsbury as CEO in November and took the post in January.
Burlington snags 45 of Joann’s store leases out of bankruptcy
Through the Joann’s bankruptcy, Burlington will assume the leases of 45 Joann store locations, according to a court filing on May 28. Burlington will take over the leases in May and June, with locations across the country in states such as California and Texas. The proposed cure amounts (typically the amount needed to make good on a defaulted loan or contract) for the locations range from $0 to over $50,000, and a few other locations will be taken over by companies including Hobby Lobby and Boot Barn.
Big Lots to reopen 132 stores in May
Big Lots continues its comeback under its new owners. The discounter will reopen 132 stores across 14 states in May, with the first wave on May 1 and a second on May 15. North Carolina, Ohio, and Pennsylvania lead the list with the most reopenings. The openings, which come under the direction of new owners Variety Wholesales, build on the positive customer response to the initial reopenings of Big Lots stores in April, the company said. The stores are reopening in various markets ranging from major metropolitan areas to smaller towns and are being merchandised with treasure hunt items, closeouts, and “unbeatable bargains,” the company noted.
Emerging Consumer Companies
Gorgie, better-for-you energy drink brand, raises $24.5 million
Gorgie, the wellness-forward energy drink brand, announced the close of its $24.5 million Series A funding round, led by Notable Capital, an existing seed investor, bringing total funding to $37 million since launch. Coefficient Capital and individual investors and board members Jason Cohen and Yossi Nasser also participated and supported the round. The raise follows a year where the company scaled to over 1,900 Target stores nationwide this summer. Launched in 2023 by two-time entrepreneur Michelle Cordeiro Grant, Gorgie brings a fresh approach to the energy drink shelf with a clean, modern product centered on wellness, inclusivity, and community.
Flash Coffee raises $3 million, targets 70 stores by 2025
Flash Coffee, a Jakarta-based coffee chain, has raised $3 million in a funding round led by TA Ventures, with participation from White Star Capital. The funds will support its expansion across Indonesia. The company aims to operate over 70 stores nationwide by 2025 and enter two new cities. All existing locations are currently profitable, with revenues per store doubling in the past year. Flash Coffee reported an average EBITDA of 22% across its stores, while newer locations are achieving 36%. TA Ventures cited Indonesia’s changing consumer preferences as a key reason for its investment.
Truvani, organic nutrition brand, partners with RX3
RX3 Growth Partners, a consumer growth equity firm backed by athletes, celebrities, and influential investors, has led a strategic growth capital round in Truvani, a leading clean-label, organic nutrition brand. This marks Truvani’s first external investment since its 2017 launch, positioning the company for significant expansion. Truvani has quickly established itself as a leading protein brand in the natural channel, rapidly growing in the organic protein, bars, and supplement segments. The brand is widely celebrated for its commitment to minimal, high-quality formulations and complete ingredient transparency. Truvani is found nationwide at Sprouts, Whole Foods, Walmart, Target and more. The funding will enable Truvani to expand its product offerings, scale operations, enhance its distribution network, while accelerating growth and innovation.
AI companion Pallie AI raises $2 million to reduce loneliness and improve wellbeing
Pallie AI, a technology company developing an AI-powered companion supporting health and wellbeing, announced it has raised $2 million in pre-seed funding led by True Ventures, with participation from the health-tech investor Palta. The funding will accelerate the development of Pallie’s AI companion, who acts as a friend, confidant, and wellness coach providing users with their Apple Health data analysis and personalized wellness support in their favorite messaging app. Pallie’s technology combines AI with a personalized, human-like interaction to address two critical challenges in modern society: loneliness and unhealthy lifestyle behaviors. Pallie engages with users like a good friend to provide social and emotional support through natural conversation. It further delivers personalized health recommendations — informed by advanced AI algorithms and Apple Health data — designed to boost the user’s motivation for wellbeing.
Food & Beverage
Conagra to sell Chef Boyardee to private equity firm for $600M
Conagra Brands is selling the Chef Boyardee brand to Hometown Food company, part of private equity firm Brynwood Partners, for $600 million. Hometown will acquire a Pennsylvania plant and Chef Boyardee’s shelf-stable products with the exception of its frozen skillet meals, which will be licensed to Conagra. The Chef Boyardee products that are part of the transaction contributed approximately $450 million in net sales during Conagra’s fiscal year 2024. The sale is expected to close before its first quarter ends, which historically has been late August.
Ferraro Foods, a distributor of Italian specialty food products to pizzerias and Italian restaurants, has named Bill Stafford as its new chief executive officer. Stafford succeeds the company’s previous CEO, Dan Hill. Stafford joins the company from Flanagan Foodservice Inc., a Canada-based foodservice distributor, where he most recently was president and CEO. Previously, Stafford was senior vice president of foodservice at Shamrock Foods Co. Stafford also has been with companies including US Foods, Omstead Foods Limited, Kerry and J.D. Irving, Ltd.
Apex Capital acquires Mexican food manufacturer
Apex Capital, a private equity firm affiliated with Guatemalan food and beverage manufacturer Grupo Mariposa, has acquired a majority stake in Juanita’s Foods. Terms of the acquisition were not disclosed. The De La Torre family, which founded Juanita’s Foods in 1946, will retain an ownership interest and continue their involvement in the business following the acquisition. Juanita’s portfolio features shelf-stable Mexican products, including menudo, pozole, hominy, albondigas and nacho cheese.
Pernod Ricard completes wine sale to Vinarchy
Pernod Ricard has completed the scheduled sale of its international wine portfolio to the owner of Accolade Wines, now renamed Vinarchy. Although the transaction value remains undisclosed, the proceeds will contribute to Pernod Ricard’s FY25 results before the financial year closes on June 30th. The sale, first announced in July 2024, closed April 30th and transfers a wide range of wine brands from Pernod Ricard to Australian Wine Holdco Limited (AWL), a consortium behind Accolade Wines. The brands include Jacob’s Creek, Orlando and St Hugo in Australia, Brancott Estate, Stoneleigh and Church Road in New Zealand and Campo Viejo, Ysios, Tarsus and Azpilicueta from Spain.
Grocery & Restaurants
Domino’s notes economic headwinds as sales dip
Domino’s Pizza’s “Hungry for More” operational strategy is progressing more slowly than expected amid slowing consumer spending, particularly for low-income customers. The Ann Arbor, Mich.-based pizza chain reported mixed results for the first quarter 2025, ended April 23, including a 0.5% same-store sales decline, but with 2.5% revenue growth primarily driven by higher franchise advertising revenues. “I’m proud of how our team effectively executed our Hungry for More strategy,” Domino’s CEO Russell Weiner said. “Against the backdrop of consumer and industry headwinds, we drove market share gains across both our U.S. and international businesses. Sustained market share growth reflects the company’s ability to control what’s under its control, a key to long-term success.” Two of the biggest challenges Domino’s faced this quarter are what Sandeep Reddy, the company’s chief financial officer, called, a “challenging macroeconomic backdrop” and the news that the company’s largest global master franchisee, Domino’s Pizza Enterprises (DPE), is closing 200 stores.
McDonald’s reports largest U.S. same-store sales decline since 2020
McDonald’s on Thursday reported mixed quarterly results as its U.S. same-store sales fell for the second straight quarter, posting their largest domestic decline since the onset of the Covid pandemic. Net sales dropped 3% to $5.96 billion. The company’s same-store sales fell 1% during the quarter, hurt by last year’s Leap Day and weaker-than-expected performance in the U.S. McDonald’s U.S. same-store sales shrank 3.6% as the chain faced bad weather and a more cautious consumer. That drop is the worst in McDonald’s home market since the 8.7% plunge during the second quarter of 2020, when states imposed lockdowns to slow the spread of Covid. For its part, McDonald’s has already said that it plans to lean into value meals and buzzy menu items, like the return of its snack wraps, to bring diners back to its restaurants this year. Outside the U.S., McDonald’s saw same-store sales fall 1% in its international operated markets, which include Australia and France. The segment includes McDonald’s largest international markets and accounts for roughly half of its revenue.
Home & Road
Beyond Cuts Q1 Loss as Turnaround Bid Progresses
Beyond, Inc. beat Wall Street on earnings for its first quarter ended March 31, but revenue fell short of expectations as the company reset operations in an effort to return to growth. Beyond posted a net loss of $39.9 million, or 74 cents per diluted share, versus a net loss of $73.9 million, or $1.62 per diluted share, in the year-prior quarter. Adjusted for one-time events, net loss was $22.8 million, or 42 cents per diluted share, versus a net loss of $55.5 million, or $1.22 per diluted share, in the year-earlier period, the company maintained. An analyst consensus estimate published by Yahoo Finance called for an adjusted diluted earnings per share loss of 63 cents on revenue of $288.1 million. Net revenue was $231.7 million versus $382.3 million in the year-previous quarter. Operating loss was $23.5 million versus $57.5 million in the year-before period. Marcus Lemonis, Beyond executive chairman and principal executive officer, said, “Our first quarter results illustrate our team’s progress against the mandate to return to profitability including margin optimization, SKU rationalization and fixed cost restructuring.”
Newell Brands Beats Wall Street in Q1, Foresees U.S. Manufacturing Advantages
Newell Brands posted better first-quarter financial results than Wall Street expected as it has focused on improving fundamentals while anticipating the advantages of expanding domestic manufacturing investment across its businesses. Reported net loss was $37 million, or nine cents per diluted share, compared with $9 million, or two cents per diluted share, in the prior-year period. Adjusted for one-time events, net loss was $6 million, or one cent per diluted share, versus effectively flat net income for the year earlier, the company noted. A Zacks Investment Research analyst consensus estimate had loss per adjusted diluted share at seven cents and revenue at $1.55 billion. Net sales were $1.57 billion versus $1.65 billion in the year-before quarter, a 5.3% decrease.
With bump in revenue, Wayfair sees improving numbers for Q1 2025
With net revenue virtually flat year-over-year, Wayfair did see a small bump in total revenue and a larger one in U.S. revenue for the first quarter ended March 31. Total net revenue for the quarter came in at $2.73 billion, up from $2.729 billion in last year’s first quarter. U.S. net revenue was $2.4 billion, an increase of 1.6% or $38 million year-over-year. International net revenue for the period was down 10.9%, partially attributed to a negative currency growth of 7.1%. Wayfair reported a gross profit of $837 million, 30.7% of total net revenue. Net loss for the period was $113 million or 89 cents per diluted share. “Despite persistent category volatility which marked a fourth consecutive year beginning with contraction, we were able to once again outperform our peers and take healthy market share while driving meaningful improvements in profitability,” said Niraj Shah, CEO, co-founder and co-chairman, adding, “Tariffs are clearly top of mind for everyone; while there’s a lot of uncertainty in the broader economy, we have direct line of sight and strong conviction on what we need to do for both our customers and our suppliers.”
Tariff strategy top-of-mind in Havertys’ Q1 call
Top 100 retailer Havertys outlined how it’s planning for and dealing with import tariffs during its first quarter conference call with investors on May 1. The day after it released its Q1 earnings report, President and CEO Steve Burdette told investors that, looking at the current landscape, most tariff-related impacts for the Atlanta-based retailer look to be minimal, but that remains subject to change. “What will happen after the 90 days expires in early July is a guessing game right now, making supply chain planning very difficult,” Burdette said. “We need the administration to provide clarity around these tariffs to prevent further disruption for the consumer.” Burdette said Havertys has been working with its supply partners to address the issue, which has helped keep inventory flowing smoothly. While supply has been moving, Burdette said he’s forecasting price increases on products from Vietnam, Cambodia, India, Indonesia and Europe, but he said they should be minimal. Some domestic upholstery suppliers will have price increases due to parts and fabrics coming from China. Most products Havertys imports from Mexico are exempt, as they fall under the 2020 USMCA agreement.
Jewelry & Luxury
Saks Bondholders Prove to Be a Tough Sell
Debtholders are feeling shakier about Saks, which sold $2.2 billion in junk-rated bonds in December to help it buy Neiman Marcus Group. Those bonds were trading at as high as 97.75 cents on the dollar at the start of the year, according to S&P Capital IQ. However, trouble in the retail outlook, declines in consumer confidence, and tariffs spooked the market, which, as of Friday, had bondholders selling the IOUs from Saks for 63.88 cents on the dollar. That decline was fast and sharp enough to prompt Saks Global chief executive officer Marc Metrick to step in and try to reassure the market in a call on Apr 28. In addition to some updates on money saved as Neiman’s is melded with Saks, Metrick said the company had between $350 million and $400 million of liquidity now. Additionally, it’s not planning on taking on more debt, but might carve out part of its $1.8 billion asset-backed loan for what’s known as a FILO facility that could be quickly tapped to cover any needs.
Prada Group Gains 13% in Q1 as Miu Miu Surges
The difficult current scenario did not thwart Prada Group’s sales growth in the first three months of the year. In the period ended March 31, revenues rose 13 percent to 1.34 billion euros, compared with 1.19 billion euros in the first quarter last year. A 60 percent jump in Miu Miu sales, gains across all the group’s markets, and a strong retail performance contributed to the increase. Prada’s retail sales remained stable, “a resilient performance against the highest quarterly comps of 2024,” the company said in a release issued on Apr 30. Miu Miu sales climbed 60 percent at constant exchange rates, showing strength across categories and regions.
Luxury, Streetwear Retailer End. Names Sebastian Suhl CEO
The buzzy British retailer End. has tapped fashion management veteran Sebastian Suhl as chief executive officer. Suhl will join the company this summer as it embarks on a new chapter focused on “sustainable growth and continued innovation” in a rapidly evolving retail landscape. As part of the transition, the current CEO Parker Gundersen has stepped down from the role with immediate effect. Chief financial officer Karen Dracou will serve as interim CEO until Suhl arrives. Company chairman Martin Brok said, “Suhl brings exceptional leadership, a strong strategic vision, and a deep understanding of our industry. We would also like to sincerely thank Parker for his contributions and leadership during his tenure, and we wish him the very best in his future endeavors.”
Office & Leisure
Fun Town RV Announces Acquisition of Larry’s RV in Michigan
Fun Town RV, the No. 1 selling towable RV dealer in the nation, announced the asset acquisition of Larry’s RV in Jackson, Michigan. This new location strengthens Fun Town RV’s existing footprint in the Michigan market and expands access to its unmatched inventory, pricing, and customer service in the Midwest. Jackson represents Fun Town RV’s third location in Michigan and a key step in expanding service to new communities throughout the state. With the acquisition of Larry’s RV, Fun Town RV now operates 28 Retail locations across Texas, Oklahoma, Indiana, Illinois, Kansas, and Arkansas.
Hachette Acquires Game Distributor
Hachette Boardgames has acquired a game distributor 999 Games, based in the Netherlands and serving the Netherlands and Belgium. It sells approximately 2.5 million games each year, and serves over 1,000 retail locations, according to the announcement. Hachette Boardgames operates in France, The United Kingdom, and the Benelux. Hachette also acquired majority control of French distributor Blackrock Games in 2019.
Technology & Internet
Trump White House blasts Amazon on tariff cost report
The White House on Tuesday slammed Amazon for reportedly planning to display the cost of President Donald Trump’s tariffs next to the total price of products on its site. “This is a hostile and political act by Amazon,” White House press secretary Karoline Leavitt told reporters. She added, “This is another reason why Americans should buy American.” Shares of the online retail giant founded by Jeff Bezos dropped more than 2% in premarket trading immediately following the remarks. An Amazon spokesperson told CNBC later Tuesday morning that the company was only ever considering listing tariff charges on some products for Amazon Haul, its budget-focused shopping section. In a follow-up statement, the spokesperson clarified that the plan to show tariff surcharges was “never approved” and is “not going to happen.”
Amazon Issues Light Guidance, Noting ‘Tariffs and Trade Policies’
Amazon reported better-than-expected results for the first quarter, but it gave soft guidance for the current period as the company navigates uncertainty around President Donald Trump’s sweeping tariffs. The company expects sales this quarter to be between $159 billion and $164 billion, representing growth of 7% to 11%. Amazon noted “tariffs and trade policies” and “recessionary fears” are among a range of factors that could make its guidance subject to change. The company did not refer to tariffs in its forward-looking guidance last quarter. The topic of tariffs is a major focus among investors this quarter. Amazon faces significant exposure to Trump’s tariffs, primarily through its retail unit. Amazon sources some products from China, which was hit with an aggressive 145% levy. Many sellers on Amazon’s third-party marketplace, which accounts for more than half the company’s total sales, rely on the world’s second-largest economy to make or assemble their products. Some sellers have already raised prices and cut back on advertising spend as they confront higher import costs.
Apple shares fall as Cook says ‘very difficult’ to predict tariff costs beyond June
Apple reported second fiscal-quarter earnings Thursday that beat Wall Street expectations, but the company’s closely-watched Services division came up light versus estimates. Cook provided Apple’s first comments on the impact of tariffs on its business on an earnings call with analysts, saying the company saw “limited impact” in the March quarter because it was able to optimize its supply chain. Apple expects overall revenue to grow “low to mid-single digits” on an annual basis during the current quarter, ending in June, finance chief Kevan Parekh said on the call. Apple expects tariffs to add $900 million to its costs for the current quarter, assuming no new tariffs or other major changes occur, Cook said on the call. However, he added that it is “very difficult” to predict beyond June “because I’m not sure what will happen with tariffs. We will manage the company the way we always have with thoughtful and deliberate decisions, with a focus on investing for the long term and with dedication to innovation and the possibilities it creates. As we look ahead, we remain confident.”
Meta shares rise on stronger-than-expected revenue for Q1
Meta shares rose as much as 5% Wednesday after the company reported stronger-than-expected revenue in the first quarter and provided second-quarter guidance that was in line with Wall Street’s expectations. Meta’s first-quarter sales rose 16% year over year while net income jumped 35% to $16.64 billion, up from $12.37 billion a year earlier. Second-quarter sales will be in the range of $42.5 billion to $45.5 billion, said Meta finance chief Susan Li. That was in line with analysts’ expectations of $44.03 billion. However, Li also added that the company has begun to see some reduced ad spend from Asia e-commerce exporters. “Our business is also performing very well, and I think we’re well positioned to navigate the macroeconomic uncertainty,” Meta CEO Mark Zuckerberg told analysts on an earnings call on Wednesday.
Finance & Economy
Employers added 177,000 jobs in April, topping analyst forecasts
Employers across the U.S. added 177,000 jobs in April, new federal data shows, a sign the labor market is still humming despite ongoing economic uncertainty caused by the Trump administration’s trade policies. Job growth was stronger than expected in April, the Labor Department said Friday in its monthly employment report. Payroll gains exceeded economist forecasts of 135,000 last month, according to financial data firm FactSet. The nation’s unemployment rate held steady at 4.2%, matching forecasts from analysts polled by FactSet.
US manufacturing activity slid to a five-month low in April as President Trump’s tariffs continued to create uncertainty for businesses. The Institute for Supply Management’s manufacturing PMI fell to 48.7 in April, below the 49 seen the month prior. Readings below 50 indicate contraction in the sector. The ISM’s prices paid index for the sector came in at 69.8, roughly flat compared to the prior month. Meanwhile, new orders increased to a reading of 47.2, above the 45.2 seen in March.
US economy contracts at 0.3% rate in Q1, first GDP pullback in 3 years
The US economy contracted for the first time in three years to start 2025 as a surge in imports dragged down GDP, and prices increased more than forecast. The Bureau of Economic Analysis’ advance estimate of first quarter US gross domestic product (GDP) showed economic growth contracted at an annualized rate of 0.3% during the year’s first three months, more than the 0.2% decline expected by economists surveyed by Bloomberg. The reading came in significantly lower than the 2.4% rate of growth seen in the fourth quarter of 2024. This marked the first quarter of negative GDP growth since the first quarter of 2022.
China Shipping Loophole Closed by Trump, Raising Prices for US Consumers
Small-value packages shipped to the US from China will no longer be exempted from tariffs starting May 2, when President Donald Trump’s move against an exception he called a “big scam” takes effect. The decision to end the so-called “de minimis” exception is expected to have wide-ranging effects on American consumers who have increasingly purchased cheap clothing, household goods and other products from discount Chinese marketplaces such as Temu and Shein Group Ltd. It could also deal a heavy blow to independent online sellers who rely on Chinese imports.
