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Consumer & Retail Report #12: 9/25 Recap

www.cedargrovecm.com
Weekly Recap

Consumer & Retail Report #12: 9/25 Recap

Summary of the Week in Consumer and Retail

Paul Cerro
Sep 25, 2022
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Consumer & Retail Report #12: 9/25 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

  • Walmart (WMT) plans to hire around 40,000 mostly seasonal workers (WSJ)

  • Porsche IPO to Raise up to $9.4 Billion for Parent VW (Bloomberg)

  • Apple (AAPL) will increase App Store prices in Europe and Asia next month (Bloomberg)

  • Peloton (PTON) releases new $3,200 Peloton row (PR Newswire)

  • Amazon (AMZN) had record Prime signups during Thursday Night Football three-hour period (CNBC)

  • Spotify (SPOT) announces launch of audiobooks for U.S. listeners (CNBC)

  • General Motors (GM) and Lithion announce an investment and strategic partnership agreement to pursue a circular EV battery ecosystem (PR Newswire)

  • Honda (HMC) aiming to reduce production by 40% at two Japanese plants (Reuters)

  • Home Depot (HD) store in Philly looking to unionize, a first for the chain (The Philadelphia Inquirer)


Corporate Shakeups

  • Nordstrom (JWN) adopts 'poison pill' (Reuters)

  • Tanger Factory (SKT) announces new CFO and CIO (PR Newswire)

  • Peloton (PTON) CIO Shobhana (Shobz) Ahluwalia leaves the company (Pelo Buddy)

  • Kohl's (KSS): Ancora Holdings pushing for CEO removal (Reuters)

  • Freshpet (FRPT): Jana Partners confirmed 9.6% active stake (Reuters)

  • Amazon (AMZN) PillPack founders to leave (Seattle Times)


M&A Updates

  • Purple Innovation (PRPL) receives a non-binding LOI from Coliseum Capital Management (Nasdaq)

  • BorgWarner (BWA) to acquire charging business of Hubei Surpass Sun Electric (SSE) (PR Newswire)

  • Walgreens (WBA) to buy remaining stake in Shields Health for $1.37 billion (Reuters)


Financing Updates

  • F45 Fitness (FXLV) files equity offering of 50 million shares (Filing)

  • Royal Caribbean (RCL) extended the maturity date of loan advances held by consenting lenders by twelve months to October 2024 (Filing)

  • Toyota Motor (TM) to extend the repurchase period for shares of its common stock to November 1, 2022 from June 17, 2022 (Business Insider)


Regulatory Updates

  • Amazon’s (AMZN) $1.7 billion purchase of iRobot (IRBT) under FTC investigation (WSJ)

  • California seeks to ban sales of diesel big rigs (Los Angeles Times)

  • McDonald's (MCD) will face $10 billion racial discrimination lawsuit (NYP)


Macro Updates

  • Housing paralysis engulfs US buyers with prices starting to fall (Bloomberg)

Twitter avatar for @paulcerro
Paul Cerro @paulcerro
New WSJ Prime Rate hits 6.25% as of this AM, the highest rate the in last 10 years For those of you that don't know what it is, products utilizing a prime rate can include mortgages, home equity lines of credit and loans, and car loans Basically everything the consumer has/uses
Image
3:13 PM ∙ Sep 22, 2022
Twitter avatar for @LizAnnSonders
Liz Ann Sonders @LizAnnSonders
Consumers are struggling with longer-term credit-card debt … 60% of debtors say they have been in CC debt for at least a year per ⁦@CreditCardsCom⁩ survey, up from 50% a year ago … share of those in debt for >2 years has climbed from 32% to 40%
Image
10:44 AM ∙ Sep 20, 2022
261Likes85Retweets
Twitter avatar for @paulcerro
Paul Cerro @paulcerro
"Credit card balances rose by a collective $46 billion from the first to the second quarter of 2022, according to the Federal Reserve Bank of New York. That increase was among the largest seen in its data since 1999, and was at least partly driven by inflation."
10:46 PM ∙ Sep 21, 2022
14Likes6Retweets
Twitter avatar for @Jason
jason@calacanis.com @Jason
The amount of Dry Powder in VC is wild. Docket All In source @PitchBook
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6:13 PM ∙ Sep 22, 2022
825Likes47Retweets
Twitter avatar for @cedargrovecm
Cedar Grove Capital Management @cedargrovecm
I really don't think people understand the issues that a strong dollar currently presents $JPY down ~20% YTD $EUR parity $GBP down ~16% Multinationals getting killed YTD just from existing abroad
Image
2:50 PM ∙ Sep 19, 2022
5Likes1Retweet
Twitter avatar for @cedargrovecm
Cedar Grove Capital Management @cedargrovecm
Like this tidbit from @charliebilello "But isn’t retail sales growth of 8.9% over the last year evidence of a strong economy? Not necessarily when you have inflation running over 8%. If you adjust for higher prices, the year-over-year growth rate in retail sales falls to 0.6%."
Image
4:04 PM ∙ Sep 18, 2022

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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 #12: 9/25 Recap

www.cedargrovecm.com
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