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 birthday cake-scented trash bags to the latest on tariffs, here’s our closeout for the week.
What you may have missed
Sally Beauty nails it
Sally Beauty is “investing in the future of nails,” the company announced Thursday in a press release. The nails category has been a catalyst which is driving new shoppers to the retailer, with the company seeing “significant” growth in the segment over the past year.
Courtesy of Sally Beauty
Sally Beauty is rolling out an expanded product line in June, and the overall nail collection will grow to over 1,400 curated products. The retailer wants to sharpen its focus on “nail innovation, accessibility and self-expression to attract and retain the next generation of beauty shoppers,” according to the announcement.
Foot Locker sales fall as it preps for Dick’s takeover
Days after Dick’s Sporting Goods reported sales growth of 5.2% in Q1, Foot Locker said sales fell 4.6% during its first quarter, per a Thursday earnings report. Comps declined 2.6% in the period and Foot Locker swung to a net loss of $363 million. The announcement came just a couple of weeks after the retailer said it would sell itself to Dick’s for $2.4 billion.
Because of the deal, Foot Locker did not hold an earnings call or provide guidance. The company opened nine new stores in the quarter and closed 56, including its locations in South Korea, Denmark, Norway, Sweden, Greece and Romania. The retailer also revamped 69 locations to meet its new design standards and remodeled or relocated 11. Additionally, Foot Locker launched new apps for its Champs Sports and Kids Foot Locker banners.
Foot Locker CEO Mary Dillon said the company saw “softer traffic trends” during the quarter, which impacted performance. “We remained focused on the rollout of our Reimagined and Refresh programs to elevate our in-store experience, enhancing our digital offerings, deepening customer engagement through our FLX program and leveraging our strong brand partnerships to generate excitement for our customers,” the executive said.
It’s unclear if Dillon will hold a leadership role at the combined company after the transaction goes through, but Dick’s leadership has said they like Foot Locker’s team and many elements of the strategy the retailer has in place.
Adidas experiences security breach
Adidas said this week that an unauthorized party obtained consumer data through a third-party customer service provider.
The breach mainly centers on the retailer’s customer service desk, and the impacted data doesn’t contain passwords, credit cards or other payment information. Adidas is contacting affected customers as well as data protection and law enforcement authorities.
“We remain fully committed to protecting the privacy and security of our consumers, and sincerely regret any inconvenience or concern caused by this incident,” the company said in a statement regarding the incident.
Victoria’s Secret this week also experienced a security incident which caused the retailer to shut down its website.
Retail therapy
Birthday cake trash bags anyone?
Hefty released a limited-edition box of trash bags featuring a birthday cake scent to celebrate the brand’s birthday. To honor 60 years of the Hefty brand, the box is selling for just 60 cents online.
Courtesy of Hefty
“We wanted to celebrate this milestone with something fun, unexpected, and unmistakably Hefty. The birthday cake scent adds a playful, nostalgic touch that honors our legacy – and elevates the ordinary.” Brienne Neisewander, Hefty’s vice president of marketing, said in a statement.
The brand also partnered with the Chicago Cubs for its birthday celebration on Tuesday at Wrigley Field. The first 5,000 fans at the event received a Hefty 60th birthday bucket hat.
Lip balm’s latest flavor: hot honey wings
Burt’s Bees and Mike’s Hot Honey partnered to release a limited-edition lip balm flavored with a sweet heat taste most commonly meant for chicken.
Burt’s Bees x Mike’s Hot Honey moisturizing lip balm launched Thursday, retails for $3.99 and is sold exclusively on the Burt’s Bees website and the brand’s TikTok shop.
“This summer we wanted to bring something playful and flavor-forward to our fans,” Nick Higgins, general manager at Burt’s Bees, said in a statement. “Mike’s Hot Honey has set the trend for swicy flavor everywhere, and together we’re delivering a bold flavor experience – with the moisturizing care you expect from Burt’s Bees.”
What we’re still thinking about
4,710
That’s how many bitcoin GameStop purchased this week, according to a company press release. The investment was worth around $500 million at the time of purchase. Shares of GameStop’s stock dropped following the news. The company’s board this spring voted unanimously to add the cryptocurrency as a treasury reserve asset.
Also this spring the company announced that it was preparing to close a “significant number” of stores in 2025. In its latest earnings net sales fell 28.5% to $1.3 billion, while net income more than doubled to $131 million.
8.6%
That’s how much Destination XL’s sales fell in Q1, hitting $105.5 million. Comps for the first quarter were also down 9.4%. CEO Harvey Kanter said in a statement that the retailer is working with suppliers to mitigate the cost of tariffs, is in discussion with national brands and has had “productive” conversations with private label vendors.
“We are currently managing our business through an economic downcycle, and our performance does not reflect the opportunity in our total addressable market or the longer-term potential for our brand,” Kanter said in a statement. “We believe the broader macroeconomic challenges within the apparel industry and consumer sentiment are pushing our customer to be more discerning in what he is buying. Our assortment is well positioned to serve those value-oriented customers who are trading down from national designer brands to our private label brands, which have lower average unit retail prices but higher margins.”
DXL swung to a loss in the first quarter, mostly due to sales declines, but the retailer stressed that comps improved over the course of the quarter. While comps were down 14% in February, they declined 8.2% in March and 7.2% in April. Kanter said on a call with analysts that the retailer was working “feverishly” to regain its trajectory. New stores haven’t been driving the traffic DXL expected and the retailer plans to resume openings “when we can support it with a brand awareness campaign,” Kanter said.
What we’re watching
Courts block and unblock tariffs, uncertainty remains and the damage is done
Whiplash from U.S. trade policy these days usually comes from the executive branch, but this week the courts did their part. A federal appeals court on Thursday paused a Wednesday ruling from the U.S. Court of International Trade, which had blocked a slew of levies imposed by President Donald Trump using emergency powers.
“[This] just highlights the evolving nature of the policy and high level of complexity retailers face as they plan inventory purchases and other business decisions,” Fitch Ratings Senior Director David Silverman told Retail Dive by email on Thursday afternoon.
Retailers must also contend with impacts to consumers and the economy. How long any tariffs last – whether ended by the courts or the president himself – remains an open question, but economic damage is already done, according to UBS economists led by Jonathan Pingle. New duties on autos, steel and aluminum, unaffected by this court fight, will probably add about 30 basis points to inflation this year, for example, according to their Thursday research note.
“Significant policy uncertainty remains,” Pringle wrote. “Even if the [recently blocked] tariffs do not come back, at least some of the economic impact has likely already begun to take effect and we believe will be witnessed in the macroeconomic data in the coming months.”
