It’s been another week with far more retail news than there is time in the day. Below, we break down some things you may have missed during the week and what we’re still thinking about.
From Abercrombie & Fitch Co.’s continued sales growth to Duke’s Mayonnaise merchandise, here’s our closeout for the week.
What you may have missed
L’Oréal sells Carol’s Daughter
L’Oréal announced this week plans to sell Carol’s Daughter to its founder, Lisa Price, and an independent beauty entrepreneur for an undisclosed sum. L’Oréal in 2014 announced its plans to acquire the beauty brand, which specializes in products designed for textured hair.
Price — who created the brand in 1993 with her mother, Carol — will step into a new role as president and hold an equity stake in the company.
“Ten years ago, I made a decision to take Carol’s Daughter — my brand, my vision, my passion — to heights I had once only dreamed of. Being a part of the L’Oréal family gave us the ability to touch so many lives. This journey has been nothing short of extraordinary,” Price said in a video posted to the brand’s Instagram page. “But my dreams are not finished. Today I begin a new chapter and reclaim the indie spirit of my brand as its forever founder, and newly appointed president. … This next chapter: It’s bolder. It’s fearless. It’s about innovation that doesn’t just follow trends, but sets them.”
Halara goes offline with Austin event
DTC activewear brand Halara is continuing to test out in-person retail, this time with an RSVP-only experience in Austin, Texas. The brand, which calls its Active Dress a “viral TikTok sensation,” is planning a scenic trail walk on March 15, in partnership with Hot Girl Walk.
The first 50 participants to sign up for the event will receive a free Halara Active Dress, according to a company press release. The brand will also give away gifts at the in-person event.
Halara’s Active Dress will be given away at the event.
Courtesy of Halara
While a small effort, Halara’s Austin experience comes as the brand considers other options for meeting its customers IRL. The activewear brand opened its first pop-up shop last summer in New York City and is planning to open permanent stores within the next three years.
The activewear space is a popular one for DTC entrants, but some formerly buzzy brands have since fallen off the radar. Outdoor Voice, once a DTC darling, rose to popularity for its casual view on “doing things” and, you guessed it, an exercise dress. In recent years, however, the brand struggled financially and eventually shuttered its entire store footprint and was sold to Draper James-owner Consortium Brand Partners.
Victoria’s Secret comps up 5% in Q4
Victoria’s Secret on Wednesday reported fourth-quarter net sales increased 1% — with one fewer week compared to the year-ago quarter — to about $2.1 billion, while comparable sales grew 5%.
“I am pleased with the strength of our fourth quarter holiday results, which saw sales up in both our Victoria’s Secret and Pink brands and our powerhouse beauty business,” VS&Co CEO Hillary Super said in a statement. “Sales increased across most major merchandise categories, in our stores and digital channels, and in both our North America and International businesses. We won in the big moments of the quarter and gained more than our fair share of the traffic in the mall and online.”
The retailer’s operating income grew 3.6% year over year to $267.7 million, while net income increased 5.7% to about $194 million.
For the full year, net sales grew 1% from the prior year to $6.2 billion, while comps were flat. Operating income grew 26% to $309.6 million and net income expanded 46% to $169 million.
Looking ahead, Victoria’s Secret expects net sales for the full year to be between $6.2 billion and $6.3 billion and adjusted operating income to be between $300 million and $350 million.
Retail Therapy
Get your mayonnaise merch
In partnership with clothing brand Girl Tribe Co., Duke’s Mayonnaise is offering five exclusive pieces as part of a collection for mayonnaise enthusiasts, including a crewneck sweatshirt, a T-shirt, a trucker hat, a tote bag and a sticker. The items will be available online and at Girl Tribe’s flagship store.
Duke’s Mayonnaise merch.
Courtesy of Girl Tribe Co.
“It may look like a non-serious collection, but in fact our love for Duke’s is intensely serious,” Girl Tribe co-founder Sarah Baucom said in a statement. “The little yellow jar has been present for many of our fondest memories and celebrations growing up in the south.”
Duke’s Mayo mascot, Tubby, will attend the collection launch party on Saturday at Girl Tribe’s Charlotte, North Carolina, store.
Who doesn’t want to eat glow-in-the-dark candy?
Sour Patch Kids released gummies online on Wednesday that glow under blacklight in a strawberry-watermelon flavor. The glow comes from flavorless turmeric extract infused in the candy through edible confetti.
The candy, perfect for eating in the dark, will be in stores later this month. For those that don’t have a blacklight, Sour Patch Kids is offering a Snapchat filter that shows off the candy’s glow. Also later in March, Swedish Fish will feature a similar glow-in-the-dark candy offering.
What we’re still thinking about
9%
That’s how much Abercrombie & Fitch Co grew its net sales in Q4, reaching $1.6 billion, with comparable sales up 14%. For the quarter, the company’s namesake brand was up 2%, a slowdown for the banner. For the full year, net sales for the overall company were up 16% to nearly $5 billion.
The apparel retailer expects its full-year net sales growth to be in the range of 3% to 5%, and Q1 to be between 4% to 6%.
“Last year, we did have a bit of a flawless transition into spring, and, this year, it’s a bit more normalized,” CEO Fran Horowitz said on an earnings call. “Hollister came in very strong off of a very, very strong Q4, and Abercrombie is a bit negative.”
$250,000
That’s the cash bonus Stewart Glendinning will receive from Dollar Tree upon achievement of performance objectives related to the ongoing review of strategic alternatives for Family Dollar. That’s alongside a one-time additional equity award with an aggregate value of $975,000, according to a filing with the Securities and Exchange Commission.
Glendinning has been with Dollar Tree since January in a senior role focused on transformation initiatives, and this week was announced as the company’s next CFO.
What we’re watching
Trade organizations say tariffs will hurt industry stability, growth
Three retail industry groups issued statements on Monday regarding the negative impact of tariffs implemented against Canada, Mexico and China. President Trump on Tuesday implemented 25% tariffs on Canadian and Mexican imports, and doubled tariffs on Chinese products to 20%.
But the situation continues evolving. The Trump administration on Thursday afternoon said that Mexico and Canada won’t have to pay tariffs on products that fall under the United States-Mexico-Canada Agreement until April 2. Ahead of the unexpected reversal, the Retail Industry Leaders Association urged the Trump administration to reconsider tariffs in pursuit of economic growth and lower prices.
“Tariffs on Canada and Mexico put those goals in serious jeopardy and risk destabilizing the North American economy,” Michael Hanson, RILA’s senior executive vice president of public affairs, said. “Stacking tariffs on household goods will also raise costs on American families, millions of whom have struggled through the worst bout of inflation in forty years.”
The American Apparel & Footwear Association issued a similar statement, saying in part that tariffs will escalate “into a growing — and potentially crushing — burden on American businesses and hardworking American families,” Steve Lamar, the association’s president and CEO, said. “Uncertainty and instability are corrosive, undermining the vitality of our consumer driven economy, and the 3.5 million American jobs created by our industry,”
The National Retail Federation, in its statement, echoed RILA, saying tariffs negatively impact the U.S.’s largest trading partners and allies. “The decision to impose tariffs on our North American neighbors and two of our largest trading partners is a significant measure,” David French, the NRF’s executive vice president of government relations, said. “Unfortunately, it is one that will only hurt hardworking Americans and the businesses that strive to provide customers with the products they want and need on a daily basis.”