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 Kate Spade’s tie-up with Heinz to Mattel’s plan to make products colorblind accessible, here’s our closeout for the week.
What you may have missed
Lowe’s grants to fund 100 community improvement projects
Lowe’s Hometowns awarded $10 million in grants to 100 nonprofit projects, the retailer said Tuesday. The funding will support initiatives in 88 communities in 44 states and Washington, D.C.
The projects include helping build a community of homes for veterans in South Dakota; expanding a kitchenette into a full-size kitchen to provide healthy meals for children entering foster care in Tennessee; kickstarting a tiny home community in Hawaii after last year’s wildfires; and transforming an abandoned lot in Detroit into a fresh food garden and market space.
“Lowe's Hometowns is all about bringing neighbors together to improve shared spaces and our communities," CEO Marvin Ellison said.
Lowe's Hometowns is a five-year, $100 million community impact program launched in 2022.
Mattel champions colorblind accessibility
Mattel on Tuesday announced that 80% of its global games portfolio will be colorblind accessible by the end of the year. The company anticipates it to be 90% accessible by 2025. Games impacted include the Uno brand, Phase 10, Dos, Blokus and Tumblin’ Monkeys.
“At Mattel, we are proud that our portfolio of games continues to bring people together — transcending languages and cultures — and this initiative to offer more colorblind accessible games is another proof point on our inclusivity journey,” Ray Adler, global head of games at Mattel, said in a statement.
About 300 million people globally experience some form of colorblindness, the company said, citing Cleveland Clinic.
True Religion anticipates the holidays with jewelry collections
For the 2024 holiday season, True Religion will introduce two new jewelry collections. The brand on Tuesday announced its jewelry licensees, K&M Accessories for women’s and NES Group for its men’s category, according to a company press release.
“Women’s and Men’s jewelry are key lifestyle categories which are important to True Religion’s expansion strategy,” Michael Buckley, True Religion CEO, said in a statement. “We know that our customer loves to stand out and look their best. With this jewelry collection, we know they won’t be disappointed.”
True Religion Jewelry will include necklaces, bracelets, charms and earrings for women and chains, charms and bracelets for men. The collections come in gold and silver finishes with “embossed and enameled logo details, accent stones and braided fabrications,” per the release.
Both of the collections are priced from $28 to $62 and will be at stores, online and in select wholesale retailers.
Conn's receives delinquency notification from Nasdaq
Home goods retailer Conn’s on Wednesday said the company received a delinquency notice from the Nasdaq Stock Market. The letter stated that Conn’s is not in compliance with Nasdaq rules because the company hasn’t filed its quarterly report for the fiscal quarter ending on April 30 by the date required by the U.S. Securities and Exchange Commission. The company has until Aug. 19 to submit a plan to regain compliance. The notice doesn’t currently impact Conn’s trading on Nasdaq.
Retail Therapy
Kate Spade brings ketchup to the catwalk
There’s a difference between brand like and brand love. Because you can like Heinz ketchup, but you have to love Heinz ketchup to spend between $45 and $398 on condiment-inspired fashion items. Heinz is leaning into the irrational brand of love for its new partnership with Kate Spade.
“It’s the thoughtful details that bring this collection with Heinz to life — from the embellishments on the tee and the way our 3D ketchup bag looks just like that classic red and white packet,” Jennifer Lyu, head of design at Kate Spade New York, said in a statement. “The playful designs are perfect for all of summer’s special moments, capturing the spirit of the season.”
Kate Spade seems to be leaning into food culture more broadly, with a hot sauce keychain and silk scarf already for sale on its website. The new collection with Heinz will be available online and in select Kate Spade New York stores as well, in addition to some wholesale partners.
So if you’re still unsure, now is the time to ask yourself: Do you truly love your current handbags, or is it just because you don’t have a Heinz ketchup packet bag yet?
Ollie’s wants to crown America's Biggest Cheapskate
Ollie’s nationwide search for "America's Biggest Cheapskate" returned this year and is accepting submissions through July 28. To enter the competition, shoppers are encouraged to take a selfie at any Ollie’s location and complete an entry form.
Each week during the sweepstakes, the company randomly selects 25 weekly winners to earn gifts cards and Ollie’s merchandise. One person will win the $2,500 grand prize in Ollie’s gift cards, alongside “the right to call themselves America's Biggest Cheapskate,” according to the company.
Ollie’s will announce its grand prize winner during National Bargain Hunting Week, Aug. 12 to Aug. 18.
What we’re still thinking about
$434 million
That’s how much Under Armour plans to pay to buyers of its stock between Sept. 16, 2015, and Nov. 1, 2019, to settle a class action lawsuit from 2017.
The suit alleged that CEO Kevin Plank and former CFO Chip Molloy misled investors by making “false and misleading statements” about the retailer’s financial health.
As part of the settlement, Under Armour agrees to keep the CEO and board chair roles separate for at least three years and install a performance-based vesting condition for some executive stock benefits. The settlement, which is still awaiting court approval, does not acknowledge guilt on Under Armour’s part.
$500 million
That’s the aggregate price of the shares Chewy agreed to repurchase from Buddy Chester Sub, an affiliated entity with funds advised by BC Partners Advisors, the online pet retailer’s largest shareholder. The repurchased shares — about 17.6 million — will be canceled and retired following the transaction, Chewy said in an announcement Wednesday.
“Chewy believes today’s repurchase is an accretive use of capital and provides an efficient mechanism to repurchase shares at a discount to the current market price, while further reducing the ownership position of the company’s largest shareholder,” the company said.
Chewy said the deal is separate from the company’s existing $500 million share repurchase program that was authorized on May 24.
What we’re watching
What will Nike, Lululemon do about the ‘loose fit’ trend?
Levi’s continues its global reign as the No. 1 denim brand, and the general trend toward more casual apparel has only helped. Lululemon and Nike also benefit from that, but an emerging consumer preference for looser fits could spell trouble for them, Jefferies analysts led by Randal Konik warned this week.
Year to date, search for wide leg pants grew 9%, while declining 13% for flare-leg pants and 16% for skinny pants, Jefferies noted, citing Google Trends. During Levi’s most recent quarter, sales of “loose fits” increased by 21%, according to CEO Michelle Gass.
To meet the rising demand, Levi’s will soon release a women’s baggy fit and a men’s relaxed fit, she said. Such a pivot could be a challenge for other retailers though – particularly Lululemon, because a looser fit is “outside of [its] core and overall expertise,” according to Konik.
“To this end, we visited a [Lululemon] location in early April, and its wide-leg offering appeared to be garnering minimal interest,” Konik said.
