Story of the Week
Olipop raises $50 million at $1.85 billion valuation
Prebiotic soda brand Olipop is valued at $1.85 billion after raising $50 million in its latest funding round led by JP Morgan Private Capital’s Growth Equity Partners. The money will be used by Olipop to expand marketing, add flavors and increase availability in spaces traditionally dominated by legacy sodas. Healthier soda brands such as Olipop and competitor Poppi have surged in popularity as people look to curtail their sugar intake and increase their consumption of better-for-you products that contain functional ingredients. Olipop, valued at just $200 million in 2022, turned profitable in 2024, with sales doubling to $400 million year-over-year, according to the company.
Apparel & Footwear
Liberated Brands to close all stores, sell its wholesale inventory following bankruptcy
Closing sales have begun at 122 retail stores operated by Liberated Brands after the company filed for bankruptcy last week. The move affects all of Liberated’s retail fleet, including retail locations for Billabong, Roxy, RVCA and Quiksilver, among other brands in the Boardriders portfolio, according to a news release from Gordon Brothers, the firm handling Liberated’s liquidation sale. Gordon Brothers is helping Liberated conduct a strategic review of its real estate and store leases. The company is also advising Liberated on selling its wholesale inventory including men’s, women’s and children’s apparel and accessories.
Bluestar Alliance Acquires Palm Angels
Bluestar Alliance has added another luxury streetwear label to its portfolio. On Feb 11th, the brand-management firm announced its acquisition of Palm Angels, adding to a portfolio that includes Off-White, which it purchased from LVMH late last year. Palm Angels’ founder, Francesco Ragazzi, will depart the brand he established in Milan in 2015. “As it enters a new chapter, I step away with confidence and wish them the greatest success ahead,” Ragazzi said in a statement. Palm Angels was part of the stable of brands managed by New Guards Group, the Farfetch-owned brand platform that also includes labels such as Marcelo Burlon County of Milan, Heron Preston, Ambush and holds the license for Off-White.
Former New York & Co. chief to lead Express, Bonobos
Former New York & Co. CEO Greg Scott will be CEO of Express and Bonobos owner Phoenix, effective Feb 19. Phoenix, a joint venture of Simon Property Group, Brookfield Properties, Centennial and brand equity and management firm WHP Global, bought the brands out of bankruptcy in June for $174 million. Scott led New York & Co., rebranded in 2018 as RTW Retailwinds, for a decade before leaving in 2020. In the past two and a half years he has been CEO of The Boutique Brands. Before that he was Fashion Nova’s chief merchant.
DTC bridal brand Birdy Grey names CEO
DTC bridal brand Birdy Grey has named Jill Layfield its new chief executive officer, per a news release. Layfield most recently was CEO of James Michelle Jewelry, a DTC jewelry brand. Before that, she co-founded and served as CEO of DTC luxury footwear brand Tamara Mellon from 2016 to 2021. She also was president and CEO of Backcountry, where she helped drive revenues to $500 million, which led to the sale of the brand to TSG Consumer Partners. Stepping down from their roles as CEO and president are company co-founders Grace Lee Chen and Monica Ashauer, who now become chief creative officer and chief strategy officer, respectively. They will continue as board members.
Crocs Shares Rise as Company Closes 2024 With $4.1 Billion in Revenue
Shares for Crocs Inc. jumped nearly 18 percent on Feb 13, the morning after the shoe company said it closed 2024 on a high note. According to the Broomfield, Colo.-based footwear brand, consolidated revenues in the fourth quarter of fiscal 2024 were $990 million, an increase of 3.1 percent from $960.1 million the same time last year. Net income in the quarter was $368.9 million, up from $253.6 million the prior year period, and diluted earnings per share were $6.36, a 52.9 percent increase from $4.16 last year.
Athletic & Sporting Goods
Barre3 Acquires San Diego-Based Studio Barre
Barre3 is off to a strong start this year, having just acquired San Diego-based barre brand Studio Barre. The move adds 11 studios across California, Montana, Rhode Island and South Carolina under the Barre3 banner. Last fall, the omnichannel Barre3 stuck a similar deal to convert three Barre Centric studios, a New York-based barre brand. Barre3 recently hit a new milestone: 200 studios open and in development and announced further international expansion is on the horizon, as well as acquisitions and studio conversions.
Nike Wins Super Bowl 59 With More Screen Time Than Any Other Brand
With all due respect to the Philadelphia Eagles, there was another big winner at Sunday’s Super Bowl. The Nike logo was shown onscreen more than any other brand during Sunday’s Big Game between the Eagles and the Kansas City Chiefs, measurement and technology company Samba TV tells ADWEEK. Nike’s logo appeared 819 times across 521 unique frames of footage, including the brand’s 60-second Super Bowl ad and the logo appearing in-game, according to company data. Samba TV analyzes logo detection as part of its efforts to quantify brand exposure and ROI during major live televised events, including the Super Bowl. According to the company, a total of 37 million U.S. households saw the Nike logo—which the company said was 99% of the Super Bowl’s total audience—at an average frequency of 371 times.
Cosmetics & Pharmacy
Unilever goes Wild for £230m refillable cosmetics producer
Unilever is apparently closing in on a £230m deal to snap up Wild, a premium producer of refillable personal care products backed by the founders of Innocent Drinks. Unilever has apparently agreed the terms of a transaction to acquire Wild from its founders and early-stage investors. If confirmed, it would be one of Unilever’s most significant acquisitions in the personal care space for some years, and comes as chief executive Hein Schumacher accelerates efforts to revamp its portfolio.
DBG Group Acquires Full Ownership of MCoBeauty
Australian beauty brand MCoBeauty, best known for its affordable dupes, is now fully owned by billionaire Dennis Bastas’ DBG Group, valuing it at $1 billion, according to multiple reports. The skin care and cosmetics brand was founded by Shelley Sullivan in 2020 as a more affordable spin-off of her company Model Co, with DBG taking a 50 percent stake of MCoBeauty in 2022. After generating a reported $63 million in sales in 2023 – up 241 percent from 2022’s $18.5 million in sales – MCoBeauty launched Stateside in 2024 with Kroger’s Family of Stores, entering roughly 1,850 doors. It subsequently entered Target Corp.
Gemspring Capital Acquires Creative Labs
An affiliate of Gemspring Capital Management, a middle-market private equity firm, has acquired Creative Labs and United Hair Care in partnership with the Company’s CEO, Brett Simmons. Creative Labs is a manufacturer and developer of branded and contract-manufactured haircare and skincare products. Financial terms of the transaction were not disclosed. Creative Labs owns and operates a diverse portfolio of growing brands sold through multiple channels, including retail, e-commerce, and hair salons.
L’Oréal Reports Slowest Quarterly Sales Growth Since Pandemic Amid China Weakness
L’Oréal’s fourth-quarter sales rose 2.5%, marking its slowest growth since 2020 and missing analyst expectations of 4.4%. Q4 sales reached €11.08 billion (US$11.49 billion), up 2.5% on a like-for-like basis, down from 3.4% growth in Q3. North America’s growth slowed to 1.4%, well below the 5.2% growth in Q3, as inflation impacted demand for skincare and makeup. North Asia sales declined by 3.6%, marking another quarter of contraction due to weak consumer spending in China. The Luxe division, including Valentino and Yves Saint Laurent beauty, grew by just 1%, falling short of the 5% growth analysts expected. The company cited weak demand in China and slowing growth in North America, two of its largest markets, as key factors behind the slowdown. Despite challenges, full-year sales grew by 5.1%, with L’Oréal maintaining confidence in its ability to outperform the global beauty market in 2025.
e.l.f. Beauty Shares Plunge Over 20% as Mass Beauty Demand Slows
e.l.f. Beauty’s shares dropped more than 20% in extended trading after the brand cut its annual sales and profit forecasts due to weakening demand in the mass beauty category. e.l.f. now expects annual sales between US$1.30 billion and US$1.31 billion, down from its previous forecast of up to US$1.335 billion. Profit expectations were also reduced to a range of US$3.27 to US$3.32 per share, down from US$3.47 to US$3.53. CEO Tarang Amin noted that demand in the mass beauty channel was softer in January, with some newer product launches off to a slower start. The imposition of a 10% tariff on imports from China may force price increases, as 80% of e.l.f.’s products are still manufactured there. Despite strong growth in previous quarters, slower-than-expected launches and economic uncertainty have impacted performance, prompting a lower revenue outlook for the fiscal year.
Discounters & Department Stores
Dollar Tree, Five Below emerge as top bidders for Party City leases
Discount giant Dollar Tree and Five Below have emerged as the top takers for Party City store leases, but hundreds of the chain’s brick-and-mortar locations have so far failed to attract bidders in its bankruptcy. Chesapeake, Virginia-based Dollar Tree successfully bid on 148 Party City leases, according to a document filed with the U.S. Bankruptcy Court for the Southern District of Texas in Houston. Dollar Tree was followed by Philadelphia-based teen discounter Five Below’s successful bids for 44 of Party City’s leases, according to an analysis by Bill Read, executive vice president at the brokerage Retail Specialists. At the bankruptcy auction there were bids for about 250 stores. But A&G Real Estate Partners had put nearly 700 leases — over 400 more than received bids — up for auction on behalf of Party City, the Woodliff Lake, New Jersey-based retailer that’s liquidating after filing for Chapter 11 bankruptcy protection in December.
Emerging Consumer Companies
Fashion brand Quince secures A$191.3M in Series C funding…and launches a Wellness Product
Quince, a US-based fashion brand known for its manufacturing-to-consumer (M2C) retail model, has raised US$120 million ($182.4M) in a Series C funding round. The company focuses on offering high-quality, affordable fashion and home essentials. The funding round was co-led by Notable Capital and Wellington Management, with additional participation from DST Global, Basis Set Ventures, and 8VC. Quince stated on LinkedIn that the funds will help scale its mission of providing high-quality essentials at “radically fair prices.” Quince is expanding its product categories while maintaining its focus on affordability. This expansion even includes a new wellness product focused on electrolytes.
Via 313, Detroit-style pizza concept, raises $32.5 million
Lehi, Utah-based Via 313 Pizzeria, which dishes up genuine Detroit-style pizza in 23 locations across three states, announced a capital raise of $32.5 million, led by Asilia Investments and Brightwood Capital Advisors. The capital will be used to execute Via 313’s ambitious growth strategy, which includes a target 100% growth of unit count by adding 20-plus stores within the next three years. Currently in five major metros, the plan prioritizes doubling down on its current geography, and adding additional seasoned leadership with increased focus in marketing, loyalty, and experience.
Food & Beverage
Coca-Cola revenue, volume rise in fiscal year
Increases in volume and revenue in the fiscal year ended Dec. 31, 2024, pleased both Coca-Cola Co. executives and shareholders. While net income decreased 1% to $10.63 billion, equal to $2.47 per share on the common stock, from $10.71 billion, or $2.48 per share, in the previous fiscal year, net operating revenues increased 3% to $47.06 billion from $45.75 billion. Unit case volume increased 1%, led by Brazil, India and Mexico. Price/mix increased 11%.
Kraft Heinz continues to struggle
Volume growth remains elusive for Kraft Heinz Co. For fiscal year 2024, volume/mix fell 3.5% with North America leading the way with a decline of 4.2%. Company-wide organic net sales fell 2.1% to $25.9 billion for the year. Carlos Abrams-Rivera, chief executive officer, attributed the weak North America performance to four brands: Lunchables, Kraft Mayonnaise, Kraft Mac & Cheese and Capri Sun. “Across each of these brands, we have kicked off the ‘brand growth system’ — running deep, forensic-like assessments that will uncover the most meaningful opportunities to drive brand superiority,” Abrams-Rivera said during a Feb. 12 conference call to discuss the company’s full-year and fourth-quarter results.
Grocery & Restaurants
Restaurant chain Dave’s Hot Chicken explores sale, sources say
Dave’s Hot Chicken, which counts rapper Drake among its investors, is exploring a potential sale that could value the popular restaurant chain at about $1 billion, including debt, people familiar with the matter said. The Pasadena, California-based fried-chicken chain is working with an investment bank on a sale process, which is attracting interest from private equity firms, the sources said, requesting anonymity as the discussions are confidential. The deliberations come at a time when restaurant operators like Dave’s are facing increased labor costs and are attempting to pass on some of the recent bout of inflation to consumers by increasing menu prices. Dave’s, which is known for its Nashville-style hot chicken, has capitalized on the growing consumer demand for chicken in recent years. It currently operates over 250 locations globally and generates roughly $1 billion in annual sales, the sources said.
McDonald’s Revenue Disappoints; U.S. Sales See Worst Drop Since Pandemic
McDonald’s reported disappointing quarterly revenue, dragged down by weaker-than-expected sales at its U.S. restaurants following an E. coli outbreak just weeks into the quarter. But shares of the company rose nearly 5% as executives predicted sales would improve in 2025. Net sales of $6.39 billion were roughly flat compared with the year-ago period. The company’s overall same-store sales growth of 0.4% outperformed Wall Street’s expectations of same-store sales declines of 1%, according to StreetAccount estimates. But McDonald’s U.S. business reported a steeper-than-expected drop in its same-store sales. Same-store sales at the company’s domestic restaurants fell 1.4% in the quarter; Wall Street was projecting same-store sales declines of 0.6%. McDonald’s said traffic was slightly positive, but customers spent less than usual during the quarter.
Domino’s Pizza enterprises to shut almost 200 stores
Domino’s Pizza Enterprises — the largest global master franchisee of the Ann Arbor, Mich.-based pizza chain, which owns 18% of Domino’s stores — is closing 205 restaurants, the franchisee said in a company update last week. The majority (172) of these “loss-making” stores are in Japan, and according to DPE, are closing in order “to sharpen market focus and improve profitability” of the overall portfolio. These store closures are the result of Domino’s Pizza Enterprises’ operational review to improve long-term profitability and shareholder profits. Many of the affected stores were opened during the sales surge of the COVID-19 pandemic but have since struggled in the aftermath of decreased demand, DPE confirmed.
Restaurant Brands Reports 2.5% Same-Store-Sales Growth, Fueled by Burger King and Popeyes
Restaurant Brands International on Wednesday reported same-store sales growth of 2.5%, fueled by the better-than-expected performance from Burger King’s and Popeyes’ restaurants. Net sales climbed 26% to $2.3 billion, fueled largely by its acquisitions of its largest U.S. Burger King franchisee and Popeyes China, both which occurred last year. Still, the company saw better-than-expected sales across all of its segments during the quarter. “If you look compared to all of our big, traditional [quick-service restaurant] peers, that 2.5% comp across the board was a pretty good outperformance for the quarter,” Restaurant Brands CEO Josh Kobza told CNBC.
Home & Road
SharkNinja Reports Q4 Gains Across Its Housewares Segments
SharkNinja capped off its fiscal year with a strong fourth quarter, posting sales gains across its business, notably in its Food Preparation Appliances segment. Net income for the quarter was $128.7 million, or 91 cents per diluted share, versus $49.3 million, or 35 cents per diluted share, in the prior-year period. Adjusted for one-time events, the company reported that net income was $197.6 million, or $1.40 per diluted share, versus $132.1 million, or 94 cents per diluted share, in the year-earlier quarter. A Yahoo Finance-published analyst consensus estimate called for earnings of $1.28 per adjusted diluted share and revenues of $1.63 billion. SharkNinja’s net sales advanced 29.7% to $1.79 billion from the year before quarter, with growth in all four company product segments.
Ace Rides New Stores, Comp Gains to Record Q4 Revenue, Earnings
Ace Hardware Corp. recorded record revenue and earnings in its fourth quarter as comparable sales advanced and the coop added new stores to its network during the period. Company net income was $53.8 million versus $2.1 million in the year-before quarter. Ace total revenue came in at $2.29 billion with wholesale revenue at $2.08 billion and retail revenue at $202.4 million at versus $2.12 billion, $1.94 billion and $182.6 million, respectively, in the year-earlier quarter, the company stated. Operating income was $38.6 million versus $7 million in the year-prior period. The approximately 3,700 Ace retailers who share daily retail sales data with the company reported a 1.6% fourth-quarter comparable sales advance in the United States. The company cited a 1.9% increase in average ticket at stores partially offset by a 0.3% decrease in comp transactions.
Jewelry & Luxury
Steve Madden Snaps Up Kurt Geiger for $360 Million
In a surprise move, Steve Madden is snapping up Kurt Geiger for 289 million pounds in cash, or $360 million at current exchange. Kurt Geiger’s private equity parent Cinven was first said to be considering a sale of the company back in 2023. “With this acquisition, we are excited to add Kurt Geiger London, a brand that has exhibited exceptional growth over the last several years. [Its] unique brand image, high-quality and statement-making styles and compelling value proposition have driven success across multiple product categories, led by handbags,” said Edward Rosenfeld, chairman and chief executive officer of Steve Madden in a statement.
Prada Group Confirms Silvia Onofri as Miu Miu CEO
On Feb 13, Prada Group confirmed the appointment of Silvia Onofri as chief executive officer of the Miu Miu brand, effective Feb 26. She succeeds Benedetta Petruzzo, who joined Christian Dior Couture as managing director in October. Onofri began her career in Bulgari and moved to Bally in 2008, rising through the ranks from global travel retail trade marketing manager before being named in July 2018 CEO for the brand’s Europe, Middle East and Africa region, and then chief commercial global wholesale.
Kering revenue plummets as Gucci losses deepen
Kering posted full year 2024 revenue of 17.2 billion euros, or about $17.8 billion, representing a 12% year-over-year decline, according to a Feb 11 release. Retail sales, including e-commerce, fell 13% year over year, which the company attributed to lower store traffic in adverse market conditions. Wholesale revenue for the company’s fashion houses dropped 22% “as they continued to heighten the exclusivity of their distribution,” per the release. Gucci revenue was down 23% year over year to 7.7 billion euros. Revenue dropped 9% at Yves Saint Laurent and 8% cumulatively at the company’s other houses, which include Balenciaga, Alexander McQueen and Brioni. Meanwhile, revenue was up 4% at Bottega Veneta.
Rolex Calling Time on Carl F. Bucherer Watch Brand, Report Says
Rolex is shutting down 136-year-old watch brand Carl F. Bucherer (CFB), which it has owned since its 2023 purchase of parent company Bucherer, according to a report in Swiss business publication Bilanz. Around 100 employees are likely to be affected, though Rolex hopes to offer some of them jobs with its other brands, said Bilanz. One jeweler who has carried Carl F. Bucherer tells JCK they were recently notified that the brand was being pulled from their store and would become a “boutique-only exclusive.” However, according to the Swiss report, the line is being shut down completely.
Office & Leisure
Party City IP, wholesale operations to be acquired for $20M
Party City Holdco is set to have a new owner following a bankruptcy auction. New Amscan, an affiliate of producer, manufacturer and distributor Ad Populum, is buying Party City’s IP and wholesale operations for $20 million. New Amscan’s bid includes related Amscan operating assets. Amscan is a wholesale maker and supplier of balloons, costumes and other party products. New Amscan was named the stalking horse bidder last month. Court documents show Michaels is the backup bidder for Party City’s IP. The auction is subject to a bankruptcy court judge’s approval, which is tentatively set for Feb 26.
Hyatt Hotels Corporation announced that Hyatt has entered into an agreement to acquire all outstanding shares of Playa Hotels & Resorts N.V for $13.50 per share, or approximately $2.6 billion, including approximately $900 million of debt, net of cash. Playa is a leading owner and operator of all-inclusive resorts in Mexico, the Dominican Republic and Jamaica and Hyatt is currently the beneficial owner of 9.4% of Playa’s outstanding shares. Playa’s portfolio includes high-quality resorts in iconic locations and strategically important markets. The pending acquisition provides an opportunity to secure long-term management agreements for Hyatt’s luxury all-inclusive Hyatt Ziva and Hyatt Zilara branded properties. It also will expand Hyatt’s distribution channels, including ALG Vacations and Unlimited Vacation Club, to Playa’s portfolio, offering additional benefits to guests of Playa hotels.
FanDuel Took 16.6M Super Bowl Bets, 19% Increase from 2024
Flutter Entertainment’s FanDuel processed 16.6 million bets on Super Bowl LIX, marking a 19% year-over-year increase. FanDuel, the largest online sportsbook operator in the US, noted that those 16.6 million wagers on the big game were placed by nearly three million active clients. At peak activity, the operator was taking 70K bets per minute. The economics of how Super Bowl betting will affect Flutter’s first-quarter results wasn’t addressed, but the consensus is the game was a low-hold affair for operators because the Philadelphia Eagles won and the total went over 48.5 points scored. Gaming companies wanted the Kansas City Chiefs to win a low-scoring game.
PS5 experiences record sales during holiday period, PlayStation revenues reach $11bn
Sony has published its financial results for the nine months ending December 31, 2024, which saw growth across the board but especially during the holiday period. The platform holder saw major increases in revenue in its Games & Network Services segment, with the PS5 experiencing its best quarter so far. The firm has increased its sales forecasts for PlayStation as a result. Sony shipped 9.5 million PS5 units over the holiday period (Q3) compared to last year. This total includes sales of the PlayStation Pro, which launched in November 2024. The holiday season proved to be the best quarter for the PS5 so far, with the firm noting that it was “essentially the same level as the cumulative sales for the PS4 for the same period since launch.”
Technology & Internet
Amazon Testing Search That Includes Products Beyond Its Platform
In a move that could put it on a more competitive footing with Google shopping functions, Amazon is beta testing a new version of search that will turn up select products sold outside its platform. Products that come up in the search that Amazon or its marketplace sellers don’t sell will include a See More link to the brand’s website, making it easy for customers to click through so they can consider and purchase them, the company reported in a blog post. Amazon has made the upgraded search live on the Amazon Shopping app for a subset of customers in the United States. The company pointed out that the expanded search will roll out to more U.S. customers and incorporate more brands based on user feedback.
Shopify beats on fourth-quarter revenue, but gives mixed guidance
Shopify reported better-than-expected sales for the fourth quarter but missed on earnings. Shopify forecast revenue in the first quarter to grow at a mid-20% percentage rate, which is roughly in line with analysts’ expectations of 24.4% revenue growth, according to LSEG. “We expect the strong merchant momentum from Q4 to carry over into Q1, recognizing that Q1 is consistently our lowest [gross merchandise volume] quarter seasonally,” the company said in its earnings release. Shopify’s earnings report comes as the e-commerce industry continues to digest the impact of President Donald Trump’s recently announced tariffs on the country’s top three trading partners. Trump also closed a nearly century-old trade loophole called de minimis that is frequently used by Chinese online retailers. On Friday, Trump signed an executive order that temporarily restored the de minimis trade rule, after the sudden shift disrupted customs processes and U.S. Postal Service operations. Shopify President Harley Finkelstein, on a call with investors, called the de minimis exception a “crucial” tool for small businesses that ship overseas to keep costs down and “compete on a much larger scale.” He also called for greater reforms to the de minimis rule.
Amazon opens its first beauty and personal care store in Italy
Amazon is opening a beauty and health products store in Milan, Italy, marking the company’s latest brick-and-mortar experiment. The store is located in the city center of Milan, and features a range of beauty and personal care items, as well as nonprescription drugs, Amazon said in a blog post. The first store, which is called Amazon Parafarmacia & Beauty, will open its doors to the public on Wednesday. The store will be stocked with products from beauty and skin-care brands including La Roche-Posay, Eucerin and Vichy. There are also “Derma-bars,” where shoppers can get a “complimentary digital skin analysis” of their skin type and condition, and receive product recommendations. Amazon says the store includes a section staffed by on-site pharmacists where shoppers can purchase “non-prescription, over-the-counter medications.” By launching its first “parapharmacy,” the e-commerce giant is hoping to parlay its online success in the beauty and personal care category into sales in the physical world. Beauty and personal care items, which include everything from hairspray and cosmetics to deodorants and Q-tips, make up one of the fastest-growing verticals on Amazon.
Finance & Economy
New inflation data out February 12th showed consumer prices rose more than forecast in January as core prices reversed last month’s easing with the Federal Reserve’s path forward in focus. The latest data from the Bureau of Labor Statistics showed that the Consumer Price Index (CPI) increased 3% over the prior year in January, an uptick from December’s 2.9% annual gain in prices. The index rose 0.5% over the previous month, the largest monthly headline increase since August 2023 and a slight acceleration from the 0.4% rise seen in December. Economists had expected a 0.3% increase. Seasonal factors like higher fuel costs and continued stickiness in food inflation kept the headline figures elevated. Notably, the index for eggs increased 15.2%, the largest increase since June 2015. It accounted for about two-thirds of the total monthly food-at-home increase, according to the BLS.
30-year mortgage rates creep lower again, to 6.87%
30-year mortgage rates inched slightly lower this week during a volatile period for bond markets but remained close to 6.9%. The average 30-year mortgage rate fell two basis points to 6.87% this week through Feb 12, from 6.89% a week earlier, according to Freddie Mac data. The average 15-year mortgage rate rose slightly to 6.09%, from 6.05%. The 6.87% level is the lowest seen so far in 2025, but mortgage rates have been stuck in an extremely narrow band after hitting a year-to-date high of 7.04% in mid-January. Housing market experts expect that mortgage rates may stay stuck around these levels as financial markets whipsaw in reaction to fast-changing presidential administration priorities and fresh economic data.
US Consumer Debt Delinquency Hits Highest in Almost Five Years
The share of outstanding US consumer debt that’s in delinquency rose in the fourth quarter to the highest in almost five years, according to a Federal Reserve Bank of New York report. Some 3.6% of debt was delinquent in the final three months of 2024, the most since the second quarter of 2020, the New York Fed said in its Quarterly Report on Household Debt and Credit. Total household debt — which is primarily composed of mortgages, student loans, auto loans and credit-card balances — rose 0.5% to a record $18 trillion.
