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 J. Crew’s deal with U.S. Ski & Snowboard to Destination XL’s double-digit sales decline, here’s our closeout for the week.
What you may have missed
Michaels launches subscription-based digital creative platform
As Michaels embarks on an omnichannel customer experience transformation, the craft retailer launched a subscription-based digital platform for creators on Wednesday.
Michaels Digital Downloads offers more than 150,000 digital assets, such as fonts, illustrations, knitting and embroidery patterns, illustrations, laser cutting files and PNGs. The retailer is offering the digital environment in partnership with Creative Fabrica.
The subscription is $9.99 a month or an annual price of $83.88 if billed upfront. A free 30-day trial with up to 10 downloads is available. Michaels is touting the digital subscription as a way for customers to buy everything they need for a project in one place.
Michaels President Heather Bennett said 70% of its creators wanted a digital platform. “As we continue to innovate to support our customers' creative passions, we're excited to deliver a seamless and convenient digital download experience that sparks inspiration and fuels the joy of creativity.”
J. Crew named lifestyle apparel partner for U.S. Ski & Snowboard
J. Crew signed a three-year deal to become the lifestyle apparel partner for U.S. Ski & Snowboard, the governing body responsible for the 10 Olympic and Paralympic teams in those sports in the U.S. J. Crew will partner with sports including alpine skiing, cross-country skiing and snowboarding, and will kick off the partnership with an event next week in Idaho, according to a company press release.
As a part of the partnership, which J. Crew says is its longest to date, the apparel retailer will provide products in its signature categories that have been “reimagined through an aspirational ski lens.” That includes sweaters, loungewear and cold-weather accessories featuring vintage logos and Olympic patches.
"J. Crew has a long-standing connection to alpine culture, and we are thrilled to build on that legacy through our partnership with U.S. Ski & Snowboard," J. Crew Group CEO Libby Wadle said in a statement, noting that competitive snow sports are continuing to grow in popularity in the U.S.
Vera Bradley sells Pura Vida
Vera Bradley CEO Jackie Ardrey announced on a recent earnings call that the company sold DTC bracelet brand Pura Vida. The company did not give details regarding the sale on the call and did not immediately answer Retail Dive regarding the terms of the sale. However, Ardrey did say that Vera Bradley expects to close on the deal by the end of the first quarter.
“The sale of Pura Vida represents a significant step in our strategic evolution,” Ardrey said.
Vera Bradley acquired a 75% stake in the DTC brand in 2019 for over $75 million and then took full ownership in 2023 for $10 million.
Retail Therapy
NYX announces Minecraft movie makeup collection
NYX Professional Makeup’s latest collection merges beauty and gaming ahead of the release of “A Minecraft Movie” from Warner Bros. Pictures.
The collection offers blush and highlight balms in stackable cube packaging, lip glosses and a compact mirror. A limited-edition 10-piece bundle is sold on NYX’s website for $106.
NYX’s Minecraft movie collection is currently available online and will be sold globally starting Monday.
The beauty brand previously entered the gaming world through partnerships with eSports team Dignitas and virtual storefronts on Roblox, to name a few.
Edible Arrangements owner enters hemp industry
Edible Brands — parent company of Edible Arrangements, the company known for its chocolate-covered strawberries and fruit baskets — launched an e-commerce marketplace for hemp and THC-infused products.
Edibles.com features multiple brands, including Cann, Wana and 1906. The platform launched in Texas on Thursday and plans to expand to legal markets in Florida, Georgia and other areas of the Southeast. Select items will be eligible for nationwide shipping where legally permitted.
What we’re still thinking about
$18.5M
That’s the net income Lands End recorded in the fourth quarter, swinging to a profit from a loss of $8.6 million in the year-ago period.
“Lands’ End had a strong finish to a year defined by continued positive momentum across the business. We increased gross profit dollars, expanded gross margins and grew [gross merchandise value] each quarter of fiscal 2024, excluding the 53rd week, resulting in a return to profitability for the full year,” CEO Andrew McLean said in a statement.
The retailer, however, reported revenue fell 14.2% year over year to $441.7 million in the fourth quarter, which was driven in part by the company transitioning its kids and footwear product lines to licensing arrangements. For the full year, revenue fell 7.4% to $1.36 billion.
In the year ahead, Lands End is focused on improving its digital business and operations.
“Through our amazing products, robust product franchises and our evolved marketing approach, it’s clear that our strategic evolution, including considerable growth from licensing, is driving strong progress and expanding the reach of our brand,” McLean added.
13.1%
That’s how much sales fell at Destination XL in the fourth quarter, reaching $119.2 million. The retailer also swung into the red, reporting a $1.3 million net loss in Q4 from a profit of $5.2 million a year ago.
“Our sales results reflect a difficult year for the men’s apparel sector where DXL has been challenged by lower traffic levels to our stores and lower conversion online,” CEO Harvey Kanter said in a statement. “Men’s retail remains volatile, and we believe the Big + Tall consumer cut back on spending for himself in fiscal 2024. Despite this challenge, we maintained a strong operating regimen with our merchandise margin and controlled operating expenses to drive positive net earnings, positive free cash flow, and an adjusted EBITDA margin of 4.3%.”
Destination XL declined to provide full-year guidance as a result of market volatility and macroeconomic uncertainties, namely around tariffs. The retailer said its exposure to tariffs on goods from China, Mexico and Canada represents less than 5% of its sourced products, and it expects gross margin to be impacted by less than 10 basis points.
What we’re watching
Saks Global execs to lay their cards down in Texas
Saks Global executives have agreed to meet with a consortium of Dallas city and business leaders Monday morning at the downtown Neiman Marcus store that is slated to close March 31.
The Dallas group has wanted a parley ever since they resolved a lease dispute that Saks said was forcing it to shut the location because, despite the breakthrough, Saks has repeatedly doubled down. About a week ago, Dallas City Manager Kimberly Bizor Tolbert upped the ante with a cryptic letter to Saks Global Executive Chairman Richard Baker, offering a financially beneficial opportunity that would also foster “loyalty and goodwill with your Texas clientele.”
Saks Global was formed in December after Saks owner HBC, also led by Baker, acquired Neiman Marcus for $2.7 billion. In a statement to Retail Dive, a Saks Global spokesperson confirmed Monday’s meeting but reiterated that the “plans for the Dallas downtown store have not changed.”
HBC is closing stores up north as well: Its Canadian department store business is in the midst of bankruptcy, with plans to liquidate and shutter 80 Hudson’s Bay, 13 Saks Off 5th and three Saks Fifth Avenue locations.
