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 H&M’s Q1 store closures to Michelle Obama and Steph Curry partnering on a sports hydration drink, here’s our closeout for the week.
What you may have missed
Williams-Sonoma keeps it 500
Home retailer Williams-Sonoma on Monday announced the company’s inclusion in the S&P 500.
“Being included in the S&P 500 is a significant milestone that acknowledges the power of our brand portfolio and growth strategies,” CEO Laura Alber said in a statement. “We remain committed to driving innovation, delivering exceptional products and experiences to our customers, and creating long-term value for our stakeholders.”
The company’s portfolio includes its namesake brand, Williams Sonoma Home, Pottery Barn, Pottery Barn Kids, Pottery Barn Teen, West Elm, Rejuvenation, Mark & Graham and GreenRow.
Weaker gross margin hurts H&M’s profitability in Q1
H&M on Thursday reported first-quarter net sales increased 3% year over year to 55.3 billion Swedish Krona (about $5.5 billion).
The company’s profitability during Q1 was negatively impacted by weaker gross margin that was affected by increased markdowns, customer investments and external factors, according to an earnings announcement. Gross margin was 49.1% compared to 51.5% last year.
CEO Daniel Ervér said it continued to “optimise the store portfolio” through store closures, 40 net of which shuttered during the quarter.
“Although we have made important progress in our plan and have good cost control, our sales and earnings in the quarter were somewhat weaker than planned – but the first quarter is the smallest quarter of the year for us in terms of sales and margin, and we are confident going forward,” Ervér said in a statement.
Sally Beauty partners with Uber Eats
Sally Beauty entered the Uber Eats platform on Tuesday, making its products available for delivery nationwide. This is Uber Eats first national beauty partnership and, to honor it, customers can get half off purchases $50 or more through March 31.
“Being the first beauty retailer to partner with Uber Eats allows us to take convenience to the next level, further expanding our same-day delivery reach nationwide, making our quality products more accessible than ever before,” Natalie Lockhart, group vice president of strategy, customer insights and digital experience at Sally Beauty Holdings, said in a statement.
Retail Therapy
Michelle Obama, Steph Curry partner to launch Plezi Hydration
Plezi Nutrition, the company co-founded by former First Lady Michelle Obama, announced this week that it teamed up with NBA star Steph Curry to create a healthier sports hydration drink.
“I’m excited to team up with Plezi to launch Plezii Hydration, a game-changing hydration beverage that I believe can make a real difference for anyone looking to perform at their best,” Curry said in a statement. “We’ve created something with smart ingredients and unbeatable flavor, so people can fuel their bodies the right way. No nonsense, no shortcuts — because the next generation deserves better.”
Plezi said the beverage touts qualities like two-times the electrolytes, half the sugar, seven-times the potassium and less sodium compared to other sports drinks. The beverage comes in three flavors — lemon lime, tropical punch and orange mango twist — and is available in 16.9-ounce bottles for $2.29. The product is available nationwide on Amazon, as well as in California at Walmart, Albertsons, Safeway, Vons and Pavilions locations.
“At Plezi, we’re always thinking about how we can change the game when it comes to nutrition,” Obama said in a statement. “We’re excited to provide a delicious, healthier option for everyone who’s trying to get active and stay hydrated.”
7-Eleven reintroduces an April Fool’s Day sweet treat
7-Eleven’s Mystery Donut for April Fool’s Day is returning for a limited time.
Image courtesy of 7-Eleven
The Bismark-style donut features an unknown flavor filling. Customers can take their guess at the Mystery Donut flavor at participating 7-Eleven, Speedway and Stripes locations from Tuesday through April 29.
“Every April, we like to add a little mischief to our bakery offerings with the Mystery Donut as an unexpected twist that’s all about surprising our customers in the spirit of April Fool’s Day,” Brandon Brown, senior vice president of Fresh Foods at 7-Eleven, said in a statement. “It may seem like a prank, but it’s no joke!”
What we’re still thinking about
$268,553
That’s how much GameStop paid to provide executive security services for CEO Ryan Cohen for the fiscal year ending on Feb. 1.
“We believe these arrangements and costs are reasonable, appropriate, necessary and in the best interests of the company and its stockholders, as they enable Mr. Cohen to carry out his responsibilities,” the company wrote in a document filed with the U.S. Securities and Exchange Commission.
GameStop doesn’t consider the securities to be a personal benefit or compensation paid to Cohen.
120
That’s how many employees Mattel will lay off at its headquarters, according to a March 17 notice filed in California in accordance with the Worker Adjustment and Retraining Notification Act.
The permanent layoffs are effective on May 19. Mattel did not immediately respond to Retail Dive’s requests for comment.
The company said last year it was targeting $200 million in cost savings by 2026.
What we’re watching
Retailers face prolonged stretch of downbeat consumer sentiment
The Conference Board said this week that its measure of consumer expectations for employment, business conditions and personal finance fell to its lowest point in 12 years and uncomfortably below the threshold that can signal a recession. Its measure of consumers’ confidence in the economy fell for the fourth straight month.
This tracks with other research, including last week’s University of Michigan’s monthly consumer survey, which one economist called “a horrific report.” Much of the anxiety is fueled by the tariffs imposed by the Trump administration, which announced auto levies earlier this week.
“If there was a silver lining in [The Conference Board’s] March report, it was that consumer perceptions of the labor market held steady relative to February,” Wells Fargo economists Tim Quinlan and Jeremiah Koh said in a research note this week. “Even so, an overall theme of uncertainty is broadly setting in for the consumer, and the short term policy outlook does not portend an end to this uncertainty with new tariffs on the horizon in April.”