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 layoffs at Careismatic Brands to Donald Duck’s 90th anniversary, here’s our closeout for the week.
What you may have missed
Wayfair officially opens large-format store in Chicago area
After months of anticipation, Wayfair has opened its first large-format store located in Wilmette, Illinois. The two-story space spans 150,000 square feet compared to its other retail stores, which are typically between 8,000 and 15,000 square feet.
The store has 19 departments, featuring furniture, home decor, housewares, appliances and home improvement products, according to a company press release.
“The opening of our Wilmette location marks an exciting chapter for Wayfair, reinforcing our position as the premier destination for home goods," Liza Lefkowski, vice president of merchandising and stores, said in a statement. "Our store is thoughtfully designed to be both inspirational and practical, empowering shoppers to create spaces that are just right for them."
The store offers features like an on-site restaurant, design services and fast delivery.
Sonos to launch headphones
Sonos makes speakers and soundbars, and is now adding headphones to its product line. The sound company announced on Tuesday in a press release that it is entering the massive personal listening category with Sonos Ace, the brand’s first ever-headphones.
Sonos Ace will be available starting on June 5 for $449 in either black or soft white.
“They’re here! Fans have asked us for years to bring the Sonos experience to headphones — and we knew our first foray into the category needed to champion the type of innovation and sound experience Sonos has become synonymous with,” Sonos CEO Patrick Spence said in a statement.
Careismatic lays off 400
Scrubs maker Careismatic Brands is laying off over 400 employees and closing two distribution facilities, according to a Worker Adjustment and Retraining Notification Act notice obtained by sister publication Supply Chain Dive.
“We are taking steps to enhance our distribution model to better meet our business’ needs,” a spokesperson told Supply Chain Dive in an email. “In connection with this process, we have made the difficult decision to wind down operations at our distribution centers facilities.”
Careismatic has over 2,000 wholesale customers including Walmart.
Retail therapy
9 rivets link 151 years of Levi’s history Levis jeans
Levi Strauss & Co. has released a reproduction of its oldest pairs of jeans.
The company said in a Monday blog post that it’s recreated the 9Rivet, the oldest pairs of jeans in the Levi’s archives. The 9Rivet has nine rivets instead of the typical 11. Levi’s says the new 9Rivet jeans are a historically accurate recreation that capture all the features of the originals.
According to the company, they’re made with 9-ounce plain selvedge cone mills white oak denim and feature exposed rivets and an unriveted center-back cinch. Levi’s is offering a limited run of 800 pairs of 9Rivet jeans online, in its app and at select Levi’s stores.
Levi’s marked its 150th anniversary last year. Designers began digging into its apparel archive to recreate the 9Rivet. “Of the various 1870s blue jeans in the Levi’s archives, I always suspected 9Rivet was the oldest,” said Paul O’Neill, the Design director for Levi’s vintage clothing. “After confirming it is in fact the oldest we have, we were thrilled to reproduce all of its quirks and details that collectively capture a unique piece of denim history.”
Oh Phooey! Donald Duck turns 90
Donald Duck turns 90 in June and Disney on Wednesday announced collection collaborations with brands like Adidas, Asos, Funko and Pandora, among others, to celebrate. Items from the collaborations range from apparel, plushies, watches, shoes and more with many featuring a 90-year milestone logo.
"Donald Duck's relatable and endearing frustrations with everyday life have made him one of the world's most famous personalities, so we knew we had to make sure to celebrate him in a big way," said Liz Shortreed, senior VP of Disney’s global softlines and global brand strategy, said in a statement. "We are thrilled to collaborate with some of retail's biggest brands to bring fans an array of Donald Duck products like never before."
Disney added that more collections will be revealed throughout the summer.
What we’re still thinking about
$1B
That’s what E.l.f Beauty’s net sales reached in its latest fiscal year, representing a 77% year-over-year increase.
The beauty company’s operating income for the year was $149.7 million, up nearly 120% from the year-ago period, while net income was $127.7 million, up 107%, according to a company press release. For the year ahead, the company expects net sales to be between $1.23 billion and $1.25 billion and adjusted net income to be between $187 million and $191 million.
The company also announced its Naturium brand, which it agreed to purchase last August for $355 million, will soon enter Ulta Beauty, E.l.f. Beauty CEO Tarang Amin said on a call with analysts Wednesday. Naturium is currently sold in Target, Amazon and its own website.
44%
That’s how much Amer Sports’ technical apparel segment grew by in the first quarter. The category, which is already the largest of the company’s three operating segments, is led by Arc’teryx. That brand alone is producing double-digit new store growth and the segment as a whole opened 19 net new stores in the quarter, according to a company press release.
Revenue for Amer Sports overall was up only 13% to $1.2 billion, due to a 14% decline in the ball and racquet sports segment, “as Wilson continues to be constrained by challenges in its core market compared to strong growth and profitability last year.” The DTC channel expanded 41% in Q1, while wholesale revenues declined 1% across the company’s portfolio. Net income at the company tumbled nearly 64%, to $6.9 million.
“The momentum behind our strong financial performance has continued through the first quarter of 2024, as we delivered sales and profitability above our guidance,” CEO James Zheng said in a statement. “Our transformation to a brand-direct business model four years ago continues to fuel profitable growth today, and our high-performance technical products are resonating with consumers globally. We are gaining share in the premium sports and outdoor market and are well positioned to deliver another great year in 2024.”
What we’re watching
Foot traffic to surpass pre-pandemic levels by 2025
Naturally, COVID-19’s shelter-in-place orders meant shoppers were staying at home, leading to a boost in online sales with physical stores temporarily shuttering left and right. But there’s still hope for street retail. A recent report by CBRE suggests that retail foot traffic will surpass pre-pandemic levels by 2025.
In 2023, the average monthly foot traffic for 10 prime retail districts recovered to 81% of 2019’s levels, CBRE found.
Physical stores are still needed to drive digital sales. CBRE referenced an ICSC report saying opening stores will temporarily increase a brand’s digital sales by 6.9%. Closing one would decrease online sales by 11.5%
