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 Reebok’s Juicy Couture collection to Ace Hardware’s store opening plans, here’s our closeout for the week.
What you may have missed
Mango posts strongest first-half revenue in its history as it plots expansion
Fashion retailer Mango reported the best first-half revenue in its history this week, reaching 1.5 billion euros (about $1.7 billion), an increase of 6.3% versus the same period last year. Mango Man grew 21% in the first half, while the company’s kids and teen business grew 11%. Women’s, which makes up the vast majority (79%) of total revenue, grew a more modest 4%, but also hit a revenue record.
The brand opened 57 net new stores in the first six months of the year, with plans for around the same amount in the second half of the year, per a company press release. All told, that will cause the brand’s footprint to hit 2,800 stores globally by the end of 2024. Mango is pursuing an ambitious long-term growth plan that sees revenues exceeding 4 billion euros by 2026, and the opening of 500 stores in three years.
The U.S. is among its growth markets, with the company saying earlier this year it planned to open 40 stores in the country this year alone. Mango in the first half of the year entered the states of Pennsylvania, Massachusetts and Virginia, and also opened stores in San Diego and New York City.
“In a very competitive environment, the company has achieved the best six months in its history, with growth above the market average,” CEO Toni Ruiz said in a statement. “The excellent performance in revenue during the first half of the year reinforces our commitment to our value proposition, our business model and the international expansion plan with which we want to continue to inspire the world with our passion for fashion.”
Pacsun launches "Better in Baggy" fall campaign
Ahead of back to school season, teen retailer Pacsun on Thursday launched its denim campaign "Better in Baggy," in partnership with social media platform Pinterest. The company is partnering with the platform to create interactive store window displays, social media marketing and events to promote trending denim styles and showcase the fashion “movement towards comfort and individuality,” Richard Cox, vice president of Men’s Merchandising and Global Partnerships, said in a press release. “Denim is the cornerstone of the Pacsun brand,” Cox said.
Pacsun and Pinterest will host several influencers for a day in upstate New York where they will customize denim and shoes.
The brand additionally plans to host an in-store event at its SoHo flagship for the campaign’s launch with activities and exclusive offerings.
“Bringing together two powerhouses in fashion and digital creativity enables Pacsun to leverage Pinterest's visual platform to inspire and engage its audience, integrating shoppable content and making it easier for customers to discover the latest styles directly from their Pinterest feed,” the company said.
The retailer said denim continues to be a significant category with baggy denim becoming a major sales driver. Pacsun reports that baggy and loose-fit jeans consist of over 80% of its denim sales.
Ikea debuts a Spanish language website
Ikea U.S. this month announced that it has launched its Spanish language e-commerce website. Customers can now also receive support from a Spanish-speaking customer service worker when calling its support phone line.
"At Ikea, we are committed to creating an inclusive and accessible shopping experience for all our customers,” Jessica Santiago Byrd, multicultural marketing communications manager for Ikea U.S., said in a statement. “With this new platform, we hope to make it easier than ever for our Spanish-speaking customers to shop with us and become part of the Ikea Family."
Retail therapy
Reebok partners with Juicy Couture
Reebok and Juicy Couture on Wednesday announced that the companies partnered to release a limited edition footwear and apparel collection. The line includes tracksuits, sneakers with Juicy Couture touches and “archival-inspired” apparel. Authentic Brands Company owns both the Reebok and Juicy Couture brands.
"We continue to see consumer excitement around products with a nod to nostalgia and an emphasis on trends from the 90s and early 2000s,” Stefani Fleurant, executive vice president of sports and lifestyle marketing at Authentic, said in a statement. "By blending Reebok’s athletic heritage with Juicy Couture’s bold style, we're creating something totally new for consumers. It goes to show the lasting impact of both these iconic brands."
The Reebok x Juicy Couture collection will be available on Reebok’s website and at select retailers starting Wednesday.
Kraft releases Mario Mac and Cheese
Super Mario fans can now enjoy a cheesy bowl of noodles shaped just like their favorite characters. Kraft Mac and Cheese released a collaboration on Wednesday with Nintendo for a Super Mario noodles box. The noodles are in power-up shapes including Fire Flower, Super Star and Super Mushroom.
The Super Mario Kraft Mac and Cheese collab is available at major retailers nationwide in its classic blue box and Easy Mac cup packs of four. Kraft Mac and Cheese has released fan-favorite noodles in over 300 shapes and 30 patents from iconic movies, TV shows, video games and more.
What we’re still thinking about
200
That’s how many new stores Ace Hardware plans to open by the end of the year. In an announcement celebrating the retailer’s 100-year history, Ace highlighted how it’s already opened 111 stores in the first six months of 2024.
The company credited the store growth to existing retailers opening more locations, competitors being converted to Ace stores and new investors opening Ace stores. “Interest in owning and operating a local Ace Hardware store continues to be at historically high levels,” the company said in a Tuesday announcement.
100
That’s about how many roles were eliminated at Rodan and Fields as a result of a corporate structure reconfiguration.
The skin care and hair care brand also announced changes to its business model, shifting away from its multi-level direct selling model. Beginning Sept. 1, current Rodan and Fields consultants will become part of the company’s affiliate program. The changes — which include eliminating commissions made through product sales via recruitments — are part of an effort to access new customers and streamline its operations, according to the company.
What we’re watching
VF Corp unloads Supreme – and probably a lot of debt
VF Corp will take quite a hit selling Supreme to Ray-Ban and Sunglass Hut owner EssilorLuxottica for $1.5 billion — the apparel conglomerate shelled out more than $2 billion for the cult brand in 2020. But the sale could go far in improving VF’s debt load, including upcoming maturities, S&P Global Ratings analysts said in a research note this week.
In fact, VF may have made the move in part to allay analyst skepticism around its ability to pay down two upcoming tranches of debt: a $1 billion term loan due in December as well as about $750 million in notes due next April, according to BMO Capital Markets Managing Director Simeon Siegel. Instead, BMO analysts expect VF to put existing cash plus proceeds from this sale toward those debts, which could drive annualized interest savings of around $80 million and boost earnings. If there’s any cash left over, VF could also pay down commercial paper borrowings of about $250 million and buoy earnings further, per BMO.
“While headlines will likely portray Supreme's sale to EssilorLuxottica for $1.5B as a loss… we believe this a material win for VFC, believing it comes meaningfully above investor expectations and provides a breathe-out relief moment,” Siegel said, adding that this allows “management to move past liquidity concerns and focus on improving the business.”
