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 A.k.a. Brands opening three Princess Polly stores to H&M designing Met Gala red-carpet looks, here’s our closeout for the week.
What you may have missed
Joann exits bankruptcy after halving debt
Joann has exited bankruptcy. The craft and sewing retailer filed Chapter 11 on March 18 with about $1.1 billion in long-term debt. The restructuring, completed April 30, allowed the company to cancel about $505 million of debt, leaving it with its lowest level of debt in more than a decade. Joann said its lenders, creditors and stakeholders backed the bankruptcy decisions.
Under the bankruptcy exit plan, Joann receives $153 million in post-bankruptcy financing and is now a privately held company. The retailer’s restructuring avoided any store closures or layoffs, leaving Joann’s approximately 800-store footprint and 18,000-strong employee roster intact.
“There are still plenty of things that Joann needs to do to drive the business forward,” Neil Saunders, managing director of GlobalData, said in an email to Retail Dive. “The most important thing will be to improve sales and push up customer satisfaction, both of which have been falling. Turning these things around necessitates some investment in stores, a stronger competitive position on price, and engineering better results from e-commerce.”
H&M returns to the Met Gala
Retailer H&M returned to this year’s Met Gala on Monday, dressing celebrity guests Awkwafina, Adwoa Aboah, Paloma Elsesser, Quannah ChasingHorse, Hari Nef, Stefon Diggs and Victor Glemaud with custom designs.
"The Met Gala is a cultural phenomenon, and a moment for H&M to show off what we can do in terms of custom-made fashion,” Ann-Sofie Johansson, head of womenswear design and creative advisor at H&M, said in a statement. “This year's theme allowed us to create modern, one-of-a-kind designs inspired by our company's rich heritage, worn to stunning effect by our guests.”
The retailer’s in-house design team crafted the seven custom looks, pulling from brand archives as far back as 1947 to H&M’s roots as a small Swedish boutique. Two looks from the company’s special collection archives will be displayed in the spring show. On Friday through September 2, the “Sleeping Beauties: Reawakening Fashion” exhibit will be open to the public at The Metropolitan Museum of Art in New York.
The Honest Company narrows losses in Q1
The Honest Company on Wednesday reported first-quarter net revenue increased 3% year over year to $86 million, while its gross margin increased 1,275 basis points to 37%.
The beauty brand narrowed its losses during the period: Both operating loss and net loss declined by about 93% year over year to reach $1.3 million and $1.4 million, respectively. The company also reaffirmed its full-year outlook, projecting net revenue growth in the low-to-mid single digit range.
“Our clear focus on profitability, delivering sales growth and achieving record gross margin of 37% as a public company is attributable to continued execution of our Transformation Pillars of Brand Maximization, Margin Enhancement and Operating Discipline,” CEO Carla Vernón said in a statement. “These Pillars are deeply rooted in our operating practices and remain an enduring strategic element supporting our revenue growth and ongoing cost structure improvements in the first quarter.”
Last month, The Honest Company’s founder, Jessica Alba, stepped down as chief creative officer.
Retail Therapy
It’s Korn! It has the juice. I can’t imagine a more beautiful thing!
Korn and Adidas are following up on their 2023 collaboration with yet another partnership. Their second collection features footwear, apparel and accessories, according to an Adidas press release. Products include a green sequin track suit, a long sleeve graphic T-shirt, socks and a cap, among other items.
The collection launches on Wednesday and is available on the Adidas website, the Adidas website Confirmed, Korn’s website and in select retailers.
Talenti and Bradley Cooper enjoy some gelato
Talenti Gelato & Sorbetto announced in a press release on Monday that it has entered into a partnership with actor and director Bradley Cooper for a new ad campaign.
The “Raise the Jar” campaign stars the multi-Oscars-nominated Cooper as brand ambassador. In one of the video ads, Cooper gushes over Talenti’s slowly cooked salted caramel truffle gelato layers. The campaign was produced by LoLa MullenLowe.
“All of the Talenti gelato and sorbetto recipes have a unique twist that makes them taste as delicious as they look, and there is no one better suited to tell Talenti's story than Bradley Cooper,” Lisa Vortsman, chief marketing officer of U.S. Ice Cream at Unilever, said in the press release.
Cooper said he has been a fan of Talenti’s products for years. “It has now become our go-to indulgent dessert, so to be invited into their family has been a true pleasure,” Cooper said in a statement.
What we’re still thinking about
3
That’s how many Princess Polly stores A.k.a. Brands plans to open this year. The company said it was on track with those store openings, all of which will come to fruition in the third quarter, in an earnings release on Wednesday. The stores are planned for Newbury Street in Boston, Fashion Valley Mall in San Diego and Scottsdale Fashion Square in Scottsdale, Arizona, and follow Princess Polly’s “well-received” launch of an activewear collection.
A.k.a. Brands at the same time reported sales fell 3% to roughly $117 million in Q1 and said it reduced debt by 22%. Net loss narrowed slightly, to $8.9 million, and active customers grew by 5.5%. In addition to Princess Polly’s store openings, the apparel company highlighted double-digit sales growth at Culture Kings, as well as Petal & Pup’s expansion to Nordstrom’s website.
600%
That’s how much Beyond’s losses grew by in the first quarter as revenue remained flat year over year. The company, which owns Overstock, Bed Bath & Beyond and Zulily, is halfway to a cost-cutting goal of $45 million and recently named a slew of new executives in key positions to lead the banners.
Not long ago, Overstock was just Overstock. Then the retailer acquired Bed Bath & Beyond out of bankruptcy in June last year and later rebranded itself to Beyond. Zulily joined the group in March, after ceasing operations last year. Overstock relaunched in March this year and Zulily will relaunch in the third quarter. Marcus Lemonis, Beyond’s executive chairman, said each of the banners has the chance to become a billion-dollar business once again.
What we’re watching
Simon gets no-money-down offer for Express
A deal for Simon Property Group and others to acquire bankrupt apparel retailer Express Inc. would go through without requiring the REIT to put up any capital, according to CEO David Simon. Simon’s interest in the deal contrasts with some recent business moves to reduce its retail investment holdings.
Along with REIT Brookfield Properties and brand management firm WHP Global, Simon is one part of a three-part consortium that may buy Express after the retailer filed for Chapter 11 in April.
David Simon said this week that WHP, which has a majority stake in an intellectual property joint venture with Express, approached Simon Property Group with the offer. David Simon said the company “jumped at the opportunity.” A Brookfield spokesperson declined to comment when Retail Dive asked if it would be in line for an offer with similar terms. Brookfield acknowledged that Express is a major tenant with stores at 79 of its properties.
