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Leadership Changes
Across all functions, C-suite leadership appointments were down compared to the prior month as retailers and brands focused on holiday selling. We tracked 22 CEO changes in November, approximately half as many as in October.
Notable CEO appointments included:
- Capri Chief John Idol stepped back in as CEO of Michael Kors, replacing Cedric Wilmotte who left the company
- Kohl’s appointed Michaels’ top exec Ashley Buchanan as CEO, replacing Tom Kingsbury who will step down on Jan. 15
- Kering named Cédric Charbit as CEO of Saint Laurent and Gianfranco Gianangeli as CEO of Balenciaga
- Moët Hennessy promoted Jean-Jacques Guiony as CEO alongside Alexandre Arnault who will be Deputy CEO
Additional CEO appointments included: K-Way, Careimatic Brands, Baccarat, Citi Trends, Salomon Sports, Taos Footwear, Deciem, PopSockets, Morleys, StockX, Thrasio, Dollar Tree, Boohoo, and LR Paris.
Financing/M&A
Investors continued wading back into the consumer space, with activity from:
- General Atlantic & Stripes led an $825 Million funding round in athleisure unicorn Vuori
- Norwest acquired a minority stake in scalp care brand Divi
- Forerunner announced a new $500 Million fund on focused early-stage investments in consumer startups
- Astō Consumer Partners led a $32 Million round for Clean Skin Club
- True Beauty Ventures led a $9 Million Series B for haircare brand Crown Affair
- True Capital acquired a minority stake in menswear brand Represent
- LVMH Luxury Ventures acquired a minority stake in Swedish fashion darling Our Legacy
In distressed retail news, The Container Store said it could file for bankruptcy if its lifeline deal with Beyond Inc. falls through. In the DTC mattress space, Casper was sold to cushioning manufacturer Carpenter Co., and Purple received a non-compliance warning from the NASDAQ.
The Tapestry-Capri merger was officially called off over a year after it was first announced, prompting questions about Capri's future.
Industry News
November brought to the fore two looming uncertainties - the US election and the shortened holiday season.
"Tariff-Proofing" was the first order of business for retailers post-election, with companies including Steve Madden, YETI, and Warby Parker announcing plans to reduce reliance on Chinese manufacturing. Others, including Walmart, Lowe's, and IKEA, warned of potentially higher costs that could be passed onto consumers.
The holiday season officially began, though some retailers had holiday products on the shelves as early as July. MasterCard data from Black Friday showed customers responding favorably to discounts, with online sales up nearly 15%, and in-store sales up 0.7%, for an overall increase of 3.4% compared to the prior year. Jewelry, electronics, and apparel were the top purchases, with discounts playing a role in consumer decisions.
Retailers tweaked their return policies to safeguard their bottom lines, with REI banning frequent returners and Ulta cutting its return window by half, while others introduced “keep it” policies for products that aren’t financially worth shipping back.
Holiday marketing looked a little different this year, as Coca-Cola and Ralph Lauren experimented with AI-generated campaigns, and AEO piloted an AI-generated, personalized gift-finding experience on WhatsApp targeting Gen Z. Meanwhile, Saks Fifth Avenue called off its iconic holiday light show, prioritizing other channels and citing a “challenging year for luxury.”
Amazon's Temu-esque, direct-from-China marketplace debuted with the name “Amazon Haul.” Whether Amazon shoppers will be willing to sacrifice delivery speed in exchange for ultra-low prices remains to be seen, but the race to the bottom is officially on.
Earning Reports
The retail sector’s bellwether for holiday spending posted mixed Q3 results. Target signaled weak sales ahead of the final quarter – a stark contrast from Walmart’s standout results, putting a cloud of uncertainty for how holiday shopping will turn out.
Off-price retailers clocked another solid quarter, with TJX, Ross, Burlington, and Nordstrom Rack growing Q3 sales over the prior year (the latter two posted double-digit gains).
Other clear winners emerged in Q3, as mall brands Abercrombie and Steve Madden stamped double-digit growth, while Gap made progress across its portfolio. In the activewear space, Dick's Sporting Goods touted an “excellent” back-to-school shopping season, while Amer Sports’ revenue grew a whopping 17%, and On hit its highest gross profit margin since its IPO.
Top-Clicked Articles
- Do insider or outsider CEOs perform better? (Fortune)
- DTC is Dead. Long live DTC. (Retail Dive)
- Lululemon's $150 yoga pants become surprise hit in slowing China (Bloomberg)
- Saks Fifth Avenue calls off holiday light show (NYT)
- What’s driving footwear’s recent leadership shuffle? (KPA)
Executive Placements
We are an executive search partner to the world's most compelling brands. This month, our placements started at:
- Rhone (Marketing)
- Hestra Gloves (President)
- Shoe Carnival (Marketing & eCommerce)
- Christian Dior (Vice President)
- Under Armour (Design)
- Wolverine Worldwide (President)
- Avara (Marketing & eCommerce)
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