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 the story of how Old Navy got its name to KFC’s drumstick purse, here’s our closeout for the week.
What you may have missed
Coty to cut 700 jobs in transformation initiative
Coty is eliminating around 700 positions as part of the next phase of its strategic transformation, the beauty conglomerate announced Thursday.
The “All-in to Win” program aims to simplify and scale the company’s operating model, reduce complexities across markets and functions, and focus on innovation.
“We are committed to building a stronger, more resilient Coty that is well-positioned for sustainable growth. When we first announced our All-in to Win Program in FY20, at the peak of COVID disruptions, our goal was to boost our margin profile and brand reinvestment firepower through a significantly lower fixed cost structure, supply chain simplification, procurement savings and strategic revenue management initiatives,” Coty CEO Sue Nabi said in a statement.
The company generated over $700 million in savings between fiscal year 2021 and 2024, expanded gross margin by over 400 basis points and delivered over 130 basis points of EBITDA margin expansion.
The next phase of its transformation, which should occur through the first half of fiscal 2027, is expected to generate annual fixed cost savings of about $130 million before taxes, which includes $80 million in 2026 and $50 million in 2027.
Zales’ latest tactic to dazzle Gen Z
The jewelry retailer this week launched a campaign dubbed “Own It,” which aims to court “a new generation of confident, fashion-forward consumers who are redefining what it means to wear jewelry – no occasion needed.”
The campaign, directed by filmmaker Marie Schüller, highlights fine jewelry that can be worn every day. Coinciding with the campaign, Zales has revamped its assortment with trend-driven pieces that feature lab-grown diamonds at “accessible price points.”
“Jewelry is for every occasion — morning coffee, dog walks, even the gym. We’re here to make fine jewelry effortless, wearable, and unapologetically you,” Lionel Cipriano, Zales’ creative director, said in a statement. “No rules — just stunning pieces that fit your life. Diamonds with denim? Absolutely. Gold hoops for the morning commute? Why not! When you wear what makes you feel good, you shine. So, own it.”
Charles and Colvard delisted from Nasdaq
Fine jewelry company Charles and Colvard on Tuesday announced that it has been delisted from the Nasdaq. The company was out of compliance with the stock exchange for failure to file quarterly forms with the U.S. Securities and Exchange Commission, according to a company press release.
Charles and Colvard could appeal the decision, but has determined not to take action. “This decision was based on a careful review of numerous factors, including the potential for limiting the significant costs associated with remaining listed on Nasdaq and complying with Nasdaq listing standards,” the company said.
Suspension of its stock will take place Friday.
Retail therapy
It’s poultry in motion
Funko brand Loungefly launched an accessories collection in collaboration with KFC. The Original Recipe inspired collection includes a sherpa drumstick crossbody bag for $75, a mini backpack for $80 and a Colonel Sanders wallet at $40.
Image courtesy of Loungefly
The collection is available at Loungefly’s website starting Friday.
Here’s how Old Navy got its name
If you ever wondered how Old Navy arrived at its name, Mickey Drexler solved the mystery this week.
In a LinkedIn post, the former CEO of Gap Inc and Old Navy founder said that he “borrowed” it.
“I was on my way to the airport in Paris ….daydreaming looking out the window – and there it was. A neon-lit marquee with the name ‘Old Navy’ – (it happened to be a dive bar).”
Drexler said he registered the name as a trademark in the U.S. the next morning.
What we’re still thinking about
17%
That’s how much Adidas’ sales grew on a currency-neutral basis in Q1, excluding Yeezy sales last year. With Yeezy sales included, the company’s sales were still up 13% year over year, reaching 6.2 billion euros (about $7 billion), per a preliminary earnings report. The retailer sold off the last of its Yeezy inventory at the end of 2024, meaning the brand will no longer factor into Adidas’ sales results.
Adidas also saw an operating margin of 9.9% after operating profit nearly doubled, to 610 million euros.
“Double-digit growth across all markets and channels in today’s volatile environment shows the strength of our brand and underlines the great job our people are doing,” CEO Bjørn Gulden said in a statement.
90%
That’s how many of Puma’s products were made with recycled or certified materials last year, a goal it hit one year ahead of schedule, according to a company press release. In order to meet the goal, set in 2021, Puma used 13% recycled content and about 75% recycled polyester in its products last year.
The company also decreased emissions from its operations by 86% compared to 2017 and decreased emissions from purchased goods and services by 17% over the same time frame. That’s on a goal of reducing operations emissions by 90% and supply chain emissions by 33% come 2030.
“We will take this momentum and continue to look for ways to reduce our environmental footprint as part of our Vision 2030 sustainability goals,” Chief Product Officer Maria Valdes said in a statement.
What we’re watching
Tariffs start to push up prices, with Shein and Temu leading the way
Walmart and Target have made a point of saying that they are working to keep prices low despite various new import duties from the Trump administration, though not all retailers can afford that.
With the steepest levies slapped on goods from China, it’s unsurprising that Chinese fast-fashion players Shein and Temu are among the first to warn customers that their prices would go up. Consumers will increasingly encounter such messages in coming months as retailers replenish inventories with goods tagged with new levies, and the timing is leading some observers to view tariffs as a “holiday tax.” For an exploration of pricing strategies in the tariff era, look for our Deep Dive on the topic next week.