Welcome to our Consumer and Retail recap where we share noteworthy headlines, updates, and insights. Never spam.

Table of Contents:

1. Company Announcements

2. Corporate Shakeups

3. M&A Updates

4. Financing Updates

5. Regulatory Updates

6. Macro Updates

Company Announcements

• Amazon (AMZN) aiming to enter Japan's online prescription drug market (Nikkei)

• Apple (AAPL) aiming to double workforce of digital advertising business (Financial Times)

• PetIQ (PETQ) Announces $30 mln stock repurchase program (Global Newswire)

• Getty Images (GETY) and Amazon (AMZN) sign multi-year renewal agreement (Global Newswire)

• Amazon (AMZN) testing virtual care venture (Business Insider)

• Peloton (PTON) discloses Consumer Product Safety Commission investigation (Reuters)

• Microsoft (MSFT) aiming to invest in CloudKitchens (Financial Times)

• Cineworld Group (CNNWF) has filed for Chapter 11 bankruptcy in the U.S. (Barron’s)

• Tapestry (TPR) taps Kim Kardashian as global ambassador for Stuart Weitzman (WWD)

• Spruce Point Capital writes detailed short report on FIGS (FIGS) (Release)

  • This is important to Cedar Grove Capital because much of the points that Spruce called out were the exact reasons that we had when writing our short report back in November - it’s our most read research to-date

Figs Research Thesis 9 7 2022 - Spruce Point

12.2MB ∙ PDF File

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Cedar Grove Capital

FIGS: Not the lululemon of Healthcare Apparel

Summary Despite a highly successful IPO, FIGS has reported earnings twice that have left investors to sharply sell off the stock Their premium product inherently decreases the TAM despite management's constant reiteration of the opposite The rate of insiders selling is quite alarming and doesn’t paint a good picture of future conviction of the stock price…

Read more

a year ago · 2 likes · Paul Cerro

Corporate Shakeups

• World Wrestling (WWE) promotes Frank Riddick to President (Press Release)

• The Children's Place (PLCE) terminates CFO Robert Helm (Pulse 2.0)

• Traeger (COOK) promoted Jim Hardy to Chief Operating Officer and Cole VandenAkker to Chief Sales Officer (Businesswire)

• Freshpet (FRPT) CFO Heather Pomerantz to step down (Benzinga)

• Bed Bath & Beyond (BBBY) gets new interim CFO (Barron’s)

M&A Updates

• CVS (CVS) to acquire home health care company Signify Health (SGFY) for $8 bln (MedicalxPress)

• ADT (ADT) receives $1.5 bln in investments from State Farm and Google (GOOG) (WSJ)

• Phillip Morris (PM) aiming to lower acceptance threshold for Swedish Match takeover (Bloomberg)

• Trupanion (TRUP) acquires Smart Paws, marking European expansion (Global Newswire)

• Driven Brands (DRVN) acquires Auto Glass Fitters (Benzinga)

• Church & Dwight (CHD) has signed a definitive agreement to acquire the Hero Mighty Patch brand and other acne treatment products for $630 mln (Businesswire)

Financing Updates

• PLBY Group (PLBY) files for $250 mln mixed securities shelf offering (SEC)

• Walt Disney (DIS) files mixed securities shelf offering (SEC)

• Walmart (WMT) will raise $5 bln in bond offerings (Reuters)

Regulatory Updates

• FTC will review Amazon (AMZN) acquisition of iRobot (IRBT) (Politico)

• U.S. FTC asks Amazon (AMZN), One Medical (ONEM) for more information on $3.49-bln deal (Reuters)

• Blue Apron (APRN) and RJB Partners amended purchase agreement (Seeking Alpha)

• Juul (MO) agrees to $438.5 mln multistate settlement over e-cig sales (Barron’s)

Macro Updates

• Pay attention to Europe’s unfolding crises - they could impact U.S. stocks (Barrons)

Europe contributed about 25% of Apple ’s (AAPL) earnings in 2021, with the region representing 20%-25% of S&P 500 revenue. In addition to potentially reduced demand due to high energy prices, U.S. companies with heavy European exposure must contend with the strong dollar, which is making their products more expensive abroad and shrinking repatriated profits.

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Until next time,

Paul Cerro | Cedar Grove Capital

Personal Twitter: @paulcerro

Fund Twitter: @cedargrovecm

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