Consumer & Retail Report #9: 9/4 Recap

Summary of the Week in Consumer and Retail

Paul Cerro

Sep 04, 2022

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

Company Announcements

DoorDash (DASH) and REL EX Solutions announce a partnership to implement RELEX's AI-driven supply chain planning solution to service DoorDash's DashMart locations (Businesswire)
Petco (WOOF) announces the expansion of Vital Care to now include birds, reptiles, fish and small pets (PR Newswire)
- Can read about the power of Vital Care through our post

Cedar Grove Capital

Petco Vital Care Economics Fueling Growth

Listen now | Last week, we released our research on Petco's pre-earnings announcement and we were happy with the results [WOOF: Banking on the Pet Industry]. The company beat on all estimates and what seemed to be retail armageddon due to the likes of Target and Walmart…

2 years ago · 3 likes · 3 comments · Paul Cerro

Grove Collaborative (GROV) lays off 18% of its workforce (Market Screener)
Peloton (PTON) files to delay form 10-K (Barron’s)
Dick's Sporting Goods (DKS) entered into partial unwind agreements with a financial institution (Market Screener)
Fiverr (FVRR) announced a partnership with Shutterstock (SSTK) to integrate its vast content of licensed assets on its platform (Businesswire)
Sam’s Club (WMT) raises annual membership fee for the first time in nine years (CNBC)
Netflix (NFLX) looking to charge brands premium prices to advertise on its upcoming ad-supported platform (WSJ)
Scotts Miracle-Gro (SMG) lowers 2022 free cash flow guidance, and reaffirms all other aspects of prior guidance (Press Release)
Walt Disney (DIS) may offer membership program similar to Prime for park discounts or perks (WSJ)
Apple (AAPL) overtakes Android to pass 50% share of smartphones used in US (FT)
Meta (META) and Qualcomm (QCOM) sign agreement on virtual reality chipsets (Reuters)
Wendy's (WEN): CDC says E. coli Outbreak has spread to six states (Bloomberg)
Walmart (WMT) trademarks signal the launch of a clinical trial business (Insider Intelligence)
Oak Street in $2 bln bid for Kohl's (KSS) real estate (Reuters)

Corporate Shakeups

Life Time (LTH) CFO to retire; names Robert Houghton as CFO (PR Newswire)
AMMO (POWW): Shareholder Steven Urvan nominates seven candidates for Board seats, sends letter w/strategy for profitability (Businesswire)
Primo Water (PRMW) plans retirement of Chief Financial Officer (PR Newswire)
Denny's (DENN) COO is leaving to pursue other opportunities (Street Insider)
PVH (PVH) head of PVH Americas & Calvin Klein Global will be leaving (Businesswire)
Hershey (HSY) announces new Global Chief Sales Officer (PR Newswire)
FaZe Clan (FAZE) announces partnership renewal with McDonald’s (MCD) (PR Newswire)
Scotts Miracle-Gro (SMG) CFO departs and a new one is instated (Press Release)
Starbucks (SBUX) names Laxman Narasimhan as next Chief Executive Officer (Starbucks Stories)
JOANN (JOAN) gets a new CFO (Global Newswire)

M&A Updates

Camping World (CWH) to acquire the Clear Creek RV Center dealerships located in Silverdale and Puyallup, Washington (Businesswire)
HP Inc. (HPQ) completes the acquisition of Poly (POLY) in an all-cash transaction of $40 per share (HP IR)
Sony (SONY) acquires Savage Game Studios (Game Informer)
Walmart (WMT) makes offer to buy out rest of S.African retailer Massmart (Reuters)
Roper (ROP) to acquire Frontline Education in an all-cash transaction valued at approximately $3.725 billion (Global Newswire)
Kraft Heinz (KHC) to sell B2B powdered cheese business to Kerry Group (Businesswire)
TRX founder Randy Hetrick buys TRX for $8.4 mln in bankruptcy auction (Club Industry)
Activision Blizzard (ATVI): UK CMA says Microsoft (MSFT) / Activision deal could lead to competition concerns (Reuters)

Financing Updates

Bed Bath & Beyond (BBBY) gets $500 mln in financing, to shut 150 stores (Reuters)
Build-A-Bear Workshop (BBW) authorized $50 mln stock repurchase program (Filing)
Activision Blizzard (ATVI) files mixed securities shelf offering (Filing)
Starbucks (SBUX) files mixed securities shelf offering (Filing)
Chobani withdraws IPO plans (CNBC)

Regulatory Updates

California legislature passed a bill that would allow the government to set wages for fast food workers (WSJ)

Macro Updates

Credit card interest rates hit the highest level in more than 25 years (Bloomberg)

Until next time,

Paul Cerro | Cedar Grove Capital

Personal Twitter: @paulcerro

Fund Twitter: @cedargrovecm

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