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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.<\/p>\n
From A.k.a. Brands opening three Princess Polly stores to H&M designing Met Gala red-carpet looks, here\u2019s our closeout for the week.<\/p>\n
What you may have missed<\/h3>\n Joann exits bankruptcy after halving debt<\/em><\/p>\nJoann 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.<\/p>\n
Under the bankruptcy exit plan, Joann receives $153 million in post-bankruptcy financing and is now a privately held company. The retailer\u2019s restructuring avoided any store closures or layoffs, leaving Joann\u2019s approximately 800-store footprint and 18,000-strong employee roster intact.<\/p>\n
\u201cThere are still plenty of things that Joann needs to do to drive the business forward,\u201d Neil Saunders, managing director of GlobalData, said in an email to Retail Dive. \u201cThe 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.\u201d<\/p>\n
H&M returns to the Met Gala<\/em><\/p>\nRetailer H&M returned to this year\u2019s Met Gala on Monday, dressing celebrity guests Awkwafina, Adwoa Aboah, Paloma Elsesser, Quannah ChasingHorse, Hari Nef, Stefon Diggs and Victor Glemaud with custom designs.\u00a0<\/p>\n\n\n
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\nCourtesy of H&M<\/p>\n
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“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,\u201d Ann-Sofie Johansson, head of womenswear design and creative advisor at H&M, said in a statement. \u201cThis 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.\u201d<\/p>\n
The retailer\u2019s in-house design team crafted the seven custom looks, pulling from brand archives as far back as 1947 to H&M\u2019s roots as a small Swedish boutique. Two looks from the company\u2019s special collection archives will be displayed in the spring show. On Friday through September 2, the \u201cSleeping Beauties: Reawakening Fashion\u201d exhibit will be open to the public at The Metropolitan Museum of Art in New York.<\/p>\n
The Honest Company narrows losses in Q1 <\/em><\/p>\nThe 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%.<\/p>\n
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.<\/p>\n
\u201cOur 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,\u201d CEO Carla Vern\u00f3n said in a statement. \u201cThese 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.\u201d<\/p>\n
Last month, The Honest Company\u2019s founder, Jessica Alba, stepped down as chief creative officer.<\/p>\n
Retail Therapy<\/h3>\n It\u2019s Korn! It has the juice. I can\u2019t imagine a more beautiful thing!<\/em><\/p>\nKorn 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.\u00a0<\/p>\n
The collection launches on Wednesday and is available on the Adidas website, the Adidas website Confirmed, Korn\u2019s website and in select retailers.\u00a0<\/p>\n
Talenti and Bradley Cooper enjoy some gelato<\/em><\/p>\nTalenti 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.<\/p>\n\n\n
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\nImage courtesy of Talenti Gelato<\/p>\n
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The \u201cRaise the Jar\u201d campaign stars the multi-Oscars-nominated Cooper as brand ambassador. In one of the video ads, Cooper gushes over Talenti\u2019s slowly cooked salted caramel truffle gelato layers. The campaign was produced by LoLa MullenLowe.<\/p>\n\n\u201cAll 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,\u201d Lisa Vortsman, chief marketing officer of U.S. Ice Cream at Unilever, said in the press release.<\/p>\n
Cooper said he has been a fan of Talenti\u2019s products for years. \u201cIt has now become our go-to indulgent dessert, so to be invited into their family has been a true pleasure,\u201d Cooper said in a statement.<\/p>\n
What we\u2019re still thinking about<\/h3>\n 3<\/em><\/p>\nThat\u2019s 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\u2019s \u201cwell-received\u201d launch of an activewear\u00a0collection.<\/p>\n
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\u2019s store openings, the apparel company highlighted double-digit sales growth at Culture Kings, as well as Petal & Pup\u2019s expansion to Nordstrom\u2019s website.<\/p>\n
600%<\/em><\/p>\nThat\u2019s how much Beyond\u2019s 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.<\/p>\n\nNot 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\u2019s executive chairman, said each of the banners has the chance to become a billion-dollar business once again.\u00a0<\/p>\n
What we\u2019re watching<\/h3>\n Simon gets no-money-down offer for Express<\/em><\/p>\nA deal for Simon Property Group and others to acquire bankrupt apparel retailer Express Inc.\u00a0would go through without requiring the REIT to put up any capital, according to CEO David Simon. Simon\u2019s interest in the deal contrasts with some recent business moves to reduce its retail investment holdings.<\/p>\n
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.\u00a0<\/p>\n
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 \u201cjumped at the opportunity.\u201d\u00a0A 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.<\/p>\n<\/p><\/div>\n
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