Consumer & Retail Report #10: 9/11 Recap

Summary of the Week in Consumer and Retail

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

Download

Download

FIGS: Not the lululemon of Healthcare Apparel

---

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.

---

Until next time,

Paul Cerro | Cedar Grove Capital

Personal Twitter: @paulcerro

Fund Twitter: @cedargrovecm

---

Don’t Want A Weekly Recap?

As an avid reader and subscriber of other research myself, the last thing I want is to be bombarded with emails that I don’t actually want, i.e. spam. I never want this for you with any of the content that I make.

If you would like to continue getting all my other research (ex, equity research, charts, trade ideas, etc) but not the Weekly Recap, please follow the three-step instructions below.

1. Click “unsubscribe” at the bottom of this email

2. Then it will open your email settings and ask which section you’d like to “turn off emails” for

3. Select “turn off emails” for Weekly Recap - BOOM you’re done

---

Disclosure: All information provided herein by Cedar Grove Capital Management, LLC (“Cedar Grove Capital”) is for informational purposes only and does not constitute investment advice or an offer or solicitation to buy or sell an interest in a private fund or any other security. An offer or solicitation of an investment in a private fund will only be made to accredited investors pursuant to a private placement memorandum and associated documents.

Cedar Grove Capital may change its views about or its investment positions in any of the securities mentioned in this document at any time, for any reason or no reason. Cedar Grove Capital may buy, sell, or otherwise change the form or substance of any of its investments. Cedar Grove Capital disclaims any obligation to notify the market of any such changes.

The enclosed material is confidential and not to be reproduced or redistributed in whole or in part without the prior written consent of Cedar Grove Capital. The information in this material is only current as of the date indicated and may be superseded by subsequent market events or for other reasons. Statements concerning financial market trends are based on current market conditions, which will fluctuate. Any statements of opinion constitute only current opinions of Cedar Grove Capital which are subject to change and which Cedar Grove Capital does not undertake to update. Due to, among other things, the volatile nature of the markets, and an investment in the fund/partnership may only be suitable for certain investors. Parties should independently investigate any investment strategy or manager, and should consult with qualified investment, legal and tax professionals before making any investment.