{"id":15166,"date":"2025-04-26T05:17:37","date_gmt":"2025-04-26T05:17:37","guid":{"rendered":"https:\/\/dmsretail.com\/RetailNews\/the-weekly-closeout-coty-to-cut-700-jobs-adidas-sports-double-digit-growth\/"},"modified":"2025-04-26T05:17:37","modified_gmt":"2025-04-26T05:17:37","slug":"the-weekly-closeout-coty-to-cut-700-jobs-adidas-sports-double-digit-growth","status":"publish","type":"post","link":"https:\/\/dmsretail.com\/RetailNews\/the-weekly-closeout-coty-to-cut-700-jobs-adidas-sports-double-digit-growth\/","title":{"rendered":"The Weekly Closeout: Coty to cut 700 jobs, Adidas sports double-digit growth"},"content":{"rendered":"

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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.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

From the story of how Old Navy got its name to KFC\u2019s drumstick purse, here\u2019s our closeout for the week.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

What you may have missed<\/span><\/span><\/strong><\/span><\/span><\/span><\/h3>\n

Coty to cut 700 jobs in transformation initiative<\/span><\/em><\/span><\/span><\/span><\/span><\/p>\n

Coty\u00a0is <\/span><\/span><\/span><\/span><\/span><\/span>eliminating around 700 positions<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span>\u00a0as part of the next phase of its strategic transformation, the beauty conglomerate announced Thursday.<\/p>\n

The \u201cAll-in to Win\u201d program aims to simplify and scale the company\u2019s operating model, reduce complexities across markets and functions, and focus on innovation.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

\u201cWe are committed to building a stronger, more resilient Coty that is well-positioned for sustainable growth. When we first announced our All-in to Win Program in FY20, at the peak of COVID disruptions, our goal was to boost our margin profile and brand reinvestment firepower through a significantly lower fixed cost structure, supply chain simplification, procurement savings and strategic revenue management initiatives,\u201d Coty CEO Sue Nabi said in a statement.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

The company generated over $700 million in savings between fiscal year 2021 and 2024, expanded gross margin by over 400 basis points and delivered over 130 basis points of EBITDA margin expansion.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

The next phase of its transformation, which should occur through the first half of fiscal 2027, is expected to generate annual fixed cost savings of about $130 million before taxes, which includes $80 million in 2026 and $50 million in 2027.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

Zales\u2019 latest tactic to dazzle Gen Z <\/span><\/em><\/span><\/span><\/span><\/span><\/p>\n

The jewelry retailer this week <\/span><\/span><\/span><\/span><\/span><\/span>launched a campaign dubbed \u201cOwn It,\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span> which aims to court \u201ca new generation of confident, fashion-forward consumers who are redefining what it means to wear jewelry \u2013 no occasion needed.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

The campaign, directed by filmmaker Marie Sch\u00fcller, highlights fine jewelry that can be worn every day. Coinciding with the campaign, Zales has revamped its assortment with trend-driven pieces that feature lab-grown diamonds at \u201caccessible price points.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

\u201cJewelry is for every occasion \u2014 morning coffee, dog walks, even the gym. We\u2019re here to make fine jewelry effortless, wearable, and unapologetically you,\u201d Lionel Cipriano, Zales\u2019 creative director, said in a statement. \u201cNo rules \u2014 just stunning pieces that fit your life. Diamonds with denim? Absolutely. Gold hoops for the morning commute? Why not! When you wear what makes you feel good, you shine. So, own it.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

Charles and Colvard delisted from Nasdaq<\/span><\/em><\/span><\/span><\/span><\/span> \u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

Fine jewelry company Charles and Colvard on Tuesday announced that it <\/span><\/span><\/span><\/span><\/span><\/span>has been delisted<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span> from the Nasdaq. The company was out of compliance with the stock exchange for failure to file quarterly forms with the U.S. Securities and Exchange Commission, according to a company press release.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

Charles and Colvard could appeal the decision, but has determined not to take action. \u201c<\/span><\/span><\/span><\/span><\/span><\/span>This decision was based on a careful review of numerous factors, including the potential for limiting the significant costs associated with remaining listed on Nasdaq and complying with Nasdaq listing standards,\u201d the company said.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

Suspension of its stock will take place Friday. <\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

Retail therapy<\/span><\/span><\/strong><\/span><\/span><\/span><\/h3>\n

It\u2019s poultry in motion<\/span><\/em><\/span><\/span><\/span><\/span><\/p>\n

Funko<\/span> brand Loungefly<\/span>\u00a0launched an accessories collection\u00a0in collaboration with KFC. The Original Recipe inspired collection includes a sherpa<\/span> drumstick crossbody<\/span> bag for $75, a mini backpack for $80 and a Colonel Sanders wallet at $40.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

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Image courtesy of Loungefly<\/p>\n

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The collection is available at Loungefly\u2019s website starting Friday.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

Here\u2019s how Old Navy got its name <\/span><\/em><\/span><\/span><\/span><\/span><\/p>\n

If you ever wondered how <\/span><\/span><\/span><\/span><\/span><\/span>Old Navy arrived at its name<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span>, Mickey Drexler solved the mystery this week.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

In a LinkedIn post, the former CEO of Gap Inc and Old Navy founder said that he \u201cborrowed\u201d it.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

\u201cI was on my way to the airport in Paris \u2026.daydreaming looking out the window – and there it was. A neon-lit marquee with the name \u2018Old Navy\u2019 – (it happened to be a dive bar).\u201d\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

Drexler said he registered the name as a trademark in the U.S. the next morning.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

What we\u2019re still thinking about<\/span><\/span><\/strong><\/span><\/span><\/span><\/h3>\n

17%<\/span><\/em><\/span><\/span><\/span><\/span><\/p>\n

That\u2019s <\/span><\/span><\/span><\/span><\/span><\/span>how much Adidas\u2019 sales grew<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span> on a currency-neutral basis in Q1, excluding Yeezy sales last year. With Yeezy sales included, the company\u2019s sales were still up 13% year over year, reaching 6.2 billion euros (about $7 billion), per a preliminary earnings report. The retailer sold off the last of its Yeezy inventory at the end of 2024, meaning the brand will no longer factor into Adidas\u2019 sales results.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

Adidas also saw an operating margin of 9.9% after operating profit nearly doubled, to 610 million euros.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n