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Consumer & Retail Report #11: 9/18 Recap

www.cedargrovecm.com
Weekly Recap

Consumer & Retail Report #11: 9/18 Recap

Summary of the Week in Consumer and Retail

Paul Cerro
Sep 18, 2022
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Consumer & Retail Report #11: 9/18 Recap

www.cedargrovecm.com

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

  • Disney (DIS) looking to add sports wagering app (Bloomberg)

  • Xponential Fitness (XPOF) and Princess Cruises announce exclusive license agreement (Businesswire)

  • Disney (DIS) CEO Chapek considering merging company’s Hulu and Disney+ services (Bloomberg)

  • Peloton (PTON) announces national expansion of its rental program (PR Newswire)

  • Rent the Runway (RENT) to lay off nearly a quarter of employees (Barron’s)

  • Starbucks (SBUX) announces partnership with DoorDash (DASH) (Benzinga)

  • Kohl's (KSS): S&P downgraded Kohl's Corp. to 'BB+' (junk) from 'BBB-' on elevated leverage and declining competitive position (Atom Finance)

  • Life Time (LTH) completes latest sale-leaseback deal for $200 mln (Club Industry)


Corporate Shakeups

  • MSG Sports (MSGS) President and CEO Andrew Lustgarten to Step Down (Businesswire)

  • Better Choice (BTTR) company announces management and board changes (Global Newswire)

  • Williams-Sonoma (WSM) appoints Jeff Howie to CFO (Street Insider)

  • Peloton (PTON) announces changes to leadership team (Press Release)

  • Edgewell Personal Care (EPC) announces organizational changes (PR Newswire)


M&A Updates

  • Aptiv (APTV) announces definitive agreement to acquire 85% stake in Intercable Automotive Solutions (PR Newswire)

  • Churchill Downs (CHDN) acquires Ellis Park for $79 mln (Global Newswire)

  • Mexican department store chain Liverpool buys 9.9% stake in Nordstrom (JWN) (Reuters)


Financing Updates

  • SmileDirectClub (SDC) files for $400 mln mixed securities shelf offering (Filing)

  • Yum! Brands (YUM) announces $2 bln stock buyback authorization (Seeking Alpha)

  • Driven Brands (DRVN) files for share common stock offering by selling shareholders (PR Newswire)

  • First Watch Restaurant Group (FWRG) prices offering of 4.5 mln shares of common stock at $15.50 per share (Street Insider)

  • Johnson & Johnson (JNJ) authorized the repurchase of up to $5 billion of the company's common stock (Businesswire)

  • Bowlero (BOWL) files for 216,956,397 share common stock offering by selling shareholders (Filing)

  • Chicken Soup for the Soul Entertainment (CSSE) files for 7,745,453 share common stock offering by selling shareholders (Filing)


Regulatory Updates

  • California alleges Amazon (AMZN) stifled price competition in lawsuit (Reuters)


Macro Updates

  • Fedex (FDX) is sounding the alarm for a global slowdown (Barron’s)

  • Lithium prices surged to new records as EV-fueled demand pressures supply (Bloomberg)

Twitter avatar for @MetreSteven
Steven Van Metre 👑 @MetreSteven
If you think today was fun, wait until QT ramps up to $95b's. That doesn't start until the 15th.
9:56 PM ∙ Sep 13, 2022
1,738Likes188Retweets
Twitter avatar for @EddyElfenbein
Eddy Elfenbein @EddyElfenbein
The one-year Treasury closed today at 4%. One year ago, it was at 0.07%. Wild.
10:54 PM ∙ Sep 15, 2022
601Likes81Retweets
Twitter avatar for @charliebilello
Charlie Bilello @charliebilello
2 years ago: 30-yr mortgage rate was 2.87% & average new home price in the US was $405k. Today: 30-yr mortgage rate is 6.02% & average new home price is $547k. Result: $28k increase in down payment (assuming 20% down) and 96% increase in monthly payment (from $1,343 to $2,628).
2:21 PM ∙ Sep 15, 2022
9,054Likes2,345Retweets
Twitter avatar for @KobeissiLetter
The Kobeissi Letter @KobeissiLetter
You are now witnessing is the biggest bull trap in history built on false hopes. Markets quickly assumed that the Fed would become less hawkish and that inflation peaked. Now, markets are realizing this is a systemic failure. On top of it, we have millions of trapped bulls.
7:43 PM ∙ Sep 13, 2022
825Likes117Retweets

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Until next time,

Paul Cerro | Cedar Grove Capital

Personal Twitter: @paulcerro

Fund Twitter: @cedargrovecm

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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.
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Consumer & Retail Report #11: 9/18 Recap

www.cedargrovecm.com
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