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It\u2019s 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\u2019re still thinking about.\u00a0<\/p>\n
From tween brand Justice\u2019s collaboration with Minecraft to Taft\u2019s first women\u2019s collection,\u00a0here\u2019s our closeout for the week.<\/p>\n
What you may have missed<\/h3>\n Minecraft gets Justice <\/em><\/p>\nTween clothing brand Justice announced on Tuesday a collaboration with best-selling video game Minecraft. The limited-edition Justice x Minecraft collection includes a selection of tops, bottoms, accessories, sleep sets and swimwear available exclusively at Walmart.\u00a0<\/p>\n\n\n
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\nCourtesy of Justice<\/p>\n
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\u201cThe entire Justice team is committed to delivering unique collaborations that cater to the passions and preferences of all girls,\u201d Kat DePizzo, president of Justice Design Lab, said in a statement. \u201cThis collection goes beyond clothing; it captures the spirit of Minecraft and tailors it to every tween’s style, building on our 20-year mission to champion girls and break style barriers in the fashion industry.\u201d<\/p>\n
Bank of America downgrades Figs, citing spending pullbacks from core customer base <\/em><\/p>\nDTC scrubs brand Figs may be facing trouble as consumers pull back on discretionary spending. Bank of America on Tuesday downgraded Figs\u2019 stock to underperform, citing a \u201cchallenging sales environment\u201d for the brand.<\/p>\n
\u201cWe think COVID caused a pull-forward in demand for scrubs, creating outsized growth and margins for FIGS. The healthcare worker is now squeezed by inflation and focused on spending on other areas instead of replenishing their uniforms,\u201d the analysts wrote in a research note led by Bank of America research analyst Lorraine Hutchinson. \u201cWithout a line of sight into an improving macro environment for the core customer that would drive stronger sales, we see few catalysts for multiple expansion.\u201d<\/p>\n
In its most recent quarter, Figs reported Q4 revenues were flat year over year, while net income increased from $3.4 million in the year-ago period to $10 million. For the full year, the brand reported revenue increased nearly 8% year over year to $545.6 million \u2014 which Hutchinson noted as \u201cbetter than initial expectations,\u201d but said it was driven in part by inventory clearing.<\/p>\n
\u201cFigs executed the inventory reduction nearly seamlessly (gross margin only down 100 [basis points] in 2023), but this likely pulled forward some demand, creating pressure on the 2024 outlook,\u201d Hutchinson said.<\/p>\n
For the year ahead, Figs expects revenue to be down mid-single digits to flat.<\/p>\n
Puma plans design, marketing space in Los Angeles<\/em><\/p>\nAfter moving its marketing operations from Boston to Germany last year, Puma this week announced it would open a \u201ccreative space\u201d in Los Angeles in early 2025 to help the athletics brand win share in the U.S. market. That\u2019s in addition to a U.S. product team located in Somerville, Massachusetts.<\/p>\n
The move is aimed at positioning the brand\u2019s design and marketing teams \u201ccloser to the most influential communities and celebrities\u201d in the U.S. When Puma CEO Arne Freundt \u2014 who took over in November 2022 \u2014 restructured the company\u2019s marketing organization and moved things to Germany to speed up decision-making, the executive said the North America team would still have responsibility for local sports marketing and partnerships. Now it seems Freundt wants to give them even more autonomy.<\/p>\n
\u201cOpening our Puma Studio in LA is an important strategic move for us, as we seek to elevate our business in the United States,\u201d Freundt said in a statement. \u201cOur new home will allow us to attract the best talent in one of the most vibrant and creative cities globally to create great product propositions for the US market.\u201d<\/p>\n
The brand has seen a slew of executive changes in the past couple of years, including the exit of its global brand chief and the naming of a new senior vice president of North American wholesale sales. Puma brought on H&M vet Julie Legrand to lead global brand strategy in February.<\/p>\n
Taft launches first women\u2019s collection<\/em><\/p>\nOn Tuesday, Taft launched Taft for Her, the brand\u2019s first-ever women\u2019s collection. The line takes the qualities of the brand\u2019s bestselling men\u2019s shoes, boots and loafers and adds \u201ca fresh, feminine perspective,\u201d the company said.<\/p>\n
The new line includes the Jill Boot, the Roma Boot, the Freya Boot and the Flora Loafer, which all mirror their male counterparts. The women\u2019s line is available in sizes 5 to 12, with prices ranging from $255 to $295,\u00a0and can be purchased on Taft\u2019s website and at select retail partners.<\/p>\n\n“Expanding Taft into a women’s collection has always been something on our radar,” Jordan Hancock, director of design and development at Taft, said in a statement. “For years there have been numerous comments, DM’s, and emails asking us to make women’s products. We have always been passionate about helping people be confident, be unique, and be bold in their distinctive ways. We want people who wear our shoes to feel good \u2014 not just about the quality of our product and the design, but about themselves and the value that they bring to everything they do.”<\/p>\n
Retail Therapy<\/h3>\n Sherwin-Williams celebrates failure with \u2018The Loneliest Color\u2019<\/em><\/p>\nIn the Broadway musical \u201cWicked,\u201d Glinda makes it her mission to turn everyone\u2019s least-favorite classmate, Elphaba, into one of the popular kids. In a move with many parallels, paint brand Sherwin-Williams is launching a similar, hopefully more successful, campaign to turn around its least favorite, green-undertoned color.<\/p>\n
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