Consumer & Retail Report #6: 8/14 Recap

Summary of the Week in Consumer and Retail

Paul Cerro

Aug 14, 2022

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

Company Announcements

Primo Water's (PRMW) Board authorized new $100 million share repurchase program.
Johnson & Johnson (JNJ) to no longer sell talc-based baby power globally in 2023.
Apple (AAPL) asks suppliers to build same number of iPhones for sale this year as it did last year.
DoorDash (DASH) to partner with Facebook Marketplace (META) for local delivery options.
Domino’s (DPZ) decides to call it quits in Italy and cease operations after 7 years.
Peloton (PTON) slashing 780 jobs, closing stores and hiking prices.
Starboard slashes stake in Kohl's (KSS) after seeking to buy it in January.
Best Buy (BBY) cuts store jobs to shave costs
Ferragamo partners with Farfetch (FTCH) to grow online, reach younger shoppers

Corporate Shakeups

Planet Fitness (PLNT) announces the retirement of Dorvin Lively as President
Revlon (REV) announced that Victoria Dolan is retiring as the Company's Chief Financial Officer
Turtle Beach (HEAR) provides an update on its review of strategic alternatives: will remain a standalone business
Performance Food Group (PFGC) announces the upcoming retirement of Executive Vice President & Chief Financial Officer Jim Hope
Petco (WOOF) announces multiple organizational changes

M&A Updates

CVS Health (CVS) seeks to buy Signify Health (SGFY) as it looks to expand in-home health services
Walmart (WMT) acquires omnichannel tech specialist Volt Systems
Signet Jewelers (SIG) signed an agreement to acquire Blue Nile for $360 million in an all-cash transaction
MarineMax (HZO) to acquire Island Global Yachting LLC for $480 million in cash
Churchill Downs (CHDN) to sell 49% of United Tote to NYRA Content Management
Endeavor Group (EDR): IMG has acquired a majority stake in Barrett-Jackson, a leader in car collection auctions
Coca-Cola HBC announced it has reached an agreement to acquire Three Cents, the owner of the popular super-premium mixer product line
Investindustrial to acquire a significant portion of TreeHouse Foods’ (THS) meal preparation division, a leading private label food manufacturer
Manchester United (MANU): Michael Knighton is in discussions to acquire MANU from the Glazer family
Endeavor Group (EDR) has entered into a definitive agreement to sell Diamond Baseball Holdings, to Silver Lake
Whirlpool (WHR) to buy InSinkErator for $3 billion to beef up kitchen presence

Financing Updates

Portillo's (PTLO) announced the pricing of an underwritten public offering of 8 million shares at a price to the public of $23.75 per share
Papa John's (PZZA) files mixed securities shelf offering
B&G Foods (BGS) files mixed securities shelf offering
Post (POST) to commence $400 million private offering of convertible notes
Sovos Brands (SOVO) prices offering of 8.5 million shares of common stock at $14.00 per share
Prada seeks $1 billion valuation in Milan listing

Insider Buying/Selling

Sells

RH (RH) Chief Legal and Compliance Officer sells 4,400 shares.
General Mills (GIS) Chief Innovation Officer sold 15,685 shares at ~$75.25 worth ~$1.18 million
Tesla (TSLA) CEO Elon Musk sold 7,924,107 shares worth ~$6.9 billion
Beyond Meat (BYND) Chief Brand Officer sold 25,573 shares at $36.10 - $43.10 worth ~$1.0 million
Callaway (ELY) Director sold 22,500 shares at $22.99 - $23.12 worth ~$518K
Vizio Holding Corp (VZIO) 10% owner sold 220,000 shares (50,000 / 50,000 / 50,000 / 70,000)
O’Reilly Automotive (ORLY): SVP of Sales - 4,031 shares / Chairman of the board - 10,000 shares / EVP - 6,500 shares / EV Chairman of the Board - 10,000 shares
e.l.f. Beauty (ELF): CEO - ~164,000 shares / CEO - ~8,000 shares / CFO - ~21,000 shares / Chief People Officer - ~21,000 shares / SVP of Operations - ~10,000 shares / Director - ~8,000 shares
Archer-Daniels-Midland (ADM) SVP sells ~128,000 shares.

Regulatory Updates

Google (GOOGL) sues Sonos (SONO) over smart speaker and voice control tech
Revlon (REV) stockholders ask for court blessing to form an equity committee.
- Why this matters? - Revlon might owe less than the $3.54 billion in bonds and loans it brought with it into bankruptcy. The beauty-products maker may not owe anything to lenders that were accidentally repaid in 2020 by their loan agent, Citigroup. To the extent that Revlon isn’t on the hook for either of those claims of accidental prepayment, shareholders are more likely to retain some value in the bankruptcy.

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.

Click “unsubscribe” at the bottom of this email
Then it will open your email settings and ask which section you’d like to “turn off emails” for
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.

Cedar Grove Capital Management

Discover more from Cedar Grove Capital Management