E.l.f. Beauty acquires Hailey Bieber’s Rhode 💰

E.l.f. Beauty has announced plans to acquire Hailey Bieber’s skincare brand, Rhode, in a deal worth up to $1 billion. The offer includes $800 million in cash and stock, plus an additional $200 million if Rhode achieves performance targets over the next three years.

Rhode, launched in 2022, has grown rapidly, reaching $212 million in net sales with just 10 products, all of which are sold exclusively through its website. E.l.f. CEO Tarang Amin said he’s never seen a brand grow this fast in his 34-year career. The company now plans to expand Rhode into stores like Sephora and target higher-income shoppers.

Costco beat Wall Street expectations in its fiscal Q3, reporting $63.2 billion in revenue and $4.28 in earnings per share, driven by an 8% jump in sales and a nearly 16% rise in e-commerce. But despite the solid numbers, shares dipped slightly as the retailer signaled growing pressure from tariffs.

CEO Ron Vachris said Costco acted fast, pulling forward shipments ahead of expected duties and redirecting products from high-tariff countries to other markets. The company is also leaning more heavily on its private-label Kirkland brand to manage costs and protect prices.

While many retailers are passing costs onto shoppers, Costco is taking a more selective approach. Staples like eggs and butter have remained stable, even if it means tighter margins. On the other hand, discretionary items like flowers have seen price hikes.

Roughly a third of Costco’s U.S. sales are sourced from imports, with approximately 8% coming from China, leaving the company vulnerable to shifting trade policies. Still, its size and no-frills product range give it leverage with suppliers and room to adapt.

DHL has joined Shopify Shipping as a pre-integrated logistics partner, providing merchants in the U.S. and Germany with immediate access to discounted rates and international delivery services, without requiring separate onboarding. The partnership, announced May 26, will expand to additional markets across the Americas, Europe, and Asia-Pacific by 2026.

Shopify sellers can now leverage DHL’s network, offering up to 80% savings on international shipping, including Delivered Duty Paid (DDP) options that eliminate unexpected fees for customers. The move simplifies administrative processes for small and mid-sized businesses, while expanding DHL's footprint in e-commerce logistics.

This integration reflects a broader trend of shipping providers teaming up with major platforms to target small to medium-sized businesses (SMBs). Competitors like FedEx, UPS, and USPS have inked similar deals with other platforms to offer embedded logistics solutions and lower rates.

Mondelez International, the maker of Oreo and Wheat Thins, has filed a federal lawsuit accusing Aldi of copying the packaging of several popular snacks to mislead customers. Filed in Illinois, the lawsuit claims Aldi’s store-brand products mimic the look of Mondelez’s brands with similar colors, fonts, and layouts, despite having different names.

Examples cited include Aldi’s “Peanut Butter Creme Filled Cookies,” which come in red boxes resembling Mondelez’s Nutter Butter, and “Thin Wheat” crackers, which allegedly mirror Wheat Thins in both name and design. Mondelez argues the similarities are intentional and deceptive, and it’s seeking damages and a ban on the packaging.

This isn’t the first time Aldi has faced legal trouble over product design. A U.K. court recently ruled in favor of a cider brand that made similar claims.

CVS Health will shutter 270 stores nationwide in the coming months as part of its ongoing effort to streamline operations and adapt to shifting consumer habits. The closures are part of a broader plan first announced in 2021 to eliminate around 900 underperforming locations by the end of 2026.

The company cited changing demographics, evolving consumer buying patterns, and the growing shift toward digital and clinical services as key reasons behind the decision. Affected employees will be offered comparable roles within the company where possible.

The closures come amid broader pressures in the retail pharmacy space, including reimbursement challenges, labor shortages, and increased competition from digital players like Amazon Pharmacy.

Saks Global Enterprises reported an adjusted loss of over $100 million for the last fiscal year, even as it faces $275 million in overdue payments to suppliers. The disclosure came just a day after the luxury retailer secured a $350 million financing package to improve liquidity ahead of a looming $120 million bond coupon due in June.

Despite the standalone loss, Saks said it generated $161 million in adjusted earnings when combined with Neiman Marcus, which it acquired five months ago. Executives claimed that the merger is already delivering results, projecting over $285 million in annual synergies by year-end, which is well above the original $150 million estimate.

The company provided the figures in a creditor call on Friday but declined to take questions. CEO Marc Metrick said the integration has strengthened inventory flow and will drive stronger performance in 2025 and beyond.

U.S. consumer spending cooled sharply in April, rising just 0.2% after a 0.7% surge in March, as shoppers cut back following a pre-tariff buying spree. Durable goods, such as cars and apparel, saw the biggest drop-off, with spending shifting toward essentials like housing, food, and healthcare.

At the same time, incomes rose 0.8%—partly from larger Social Security payments—but much of that was saved, as the personal savings rate jumped to 4.9%. Economists say this behavior reflects rising caution in the face of ongoing trade policy uncertainty.

Inflation, meanwhile, continues to ease. The PCE price index—the Fed’s preferred gauge—slowed to 2.1% annually, the lowest since September 2024. Core inflation fell to 2.5%, the softest pace in over four years. But economists warn that recently reimposed Trump tariffs could reverse this trend in the months ahead.

Kohl’s reported better-than-expected Q1 results, providing a rare bright spot after weeks of internal upheaval. Comparable sales declined 3.9%, slightly better than projected, while revenue totaled $3 billion, slightly above analyst estimates. Shares rose as much as 2.8% following the report.

The update comes weeks after the surprise firing of CEO Ashley Buchanan for ethics violations, with board chair Michael Bender stepping in as interim chief. Despite the leadership shake-up, Kohl’s maintained its full-year guidance and stated that it would adhere to its current turnaround plan.

That plan includes expanding petite sizes, improving women’s assortments, and running broader brand promotions. CFO Jill Timm acknowledged the turnaround is still in its early stages and emphasized that the work ahead will take time.

A Skechers shareholder has filed a lawsuit seeking more transparency around the footwear company’s $9.4 billion buyout deal with private equity giant 3G Capital. Filed in a Los Angeles federal court, the complaint alleges that Skechers founder Robert Greenberg, who controls about 60% of the company’s voting power, sidelined other bidders and handed control to a longtime business ally without a fair sales process.

The plaintiff, Florida’s Key West Police Officers & Firefighters Retirement Plan, wants the deal halted until Skechers discloses more details to the SEC. The buyout values Skechers at $63 per share—20% below its 52-week high—and could net Greenberg over $1 billion. Analysts have called the deal “surprising,” noting the Greenbergs’ decision to skip an open auction process.

Macy’s has slashed its full-year profit outlook as tariff uncertainty and weakened demand for discretionary goods continue to weigh on the U.S. department store giant. The retailer now expects adjusted earnings per share for 2025 to land between $1.60 and $2.00, down from its earlier projection of $2.05 to $2.25. Analysts had forecast $1.93, according to LSEG data.

CEO Tony Spring pointed to rising supply chain costs linked to the Trump-era tariffs and growing price sensitivity among shoppers, particularly in the apparel and accessories sectors.

Despite the lowered profit guidance, Macy’s beat Q1 revenue estimates with $4.6 billion in sales and flat margins of 39.2%. The company reaffirmed its full-year revenue forecast of $21 billion to $21.4 billion.

Fast-fashion giant Shein is shifting its IPO ambitions to Hong Kong after failing to secure approval from Chinese regulators for a London listing, according to a Reuters report citing sources close to the matter.

The company is expected to file a draft prospectus with Hong Kong authorities in the coming weeks, aiming to go public before the end of the year. The pivot follows months of delays tied to geopolitical tensions and trade scrutiny, particularly amid the fallout from U.S. tariffs and growing scrutiny of Chinese firms abroad.

Shein’s London IPO had initially been viewed as a workaround to regulatory challenges in mainland China and the U.S. Hong Kong, with its established framework for Chinese listings, now appears to be the more viable route for Shein’s market debut. If successful, it would be one of the most high-profile IPOs of the year in Asia’s financial hub.

Meta is planning to expand its physical retail presence, aiming to drive up sales of its Ray-Ban smart glasses and virtual reality devices, according to reports by Business Insider. The company has quietly begun hiring retail staff, signaling intent to open new stores, though the exact number and locations remain undisclosed.

Meta already operates a flagship retail outlet in Burlingame, California, launched in 2022. It also ran a temporary pop-up store in Los Angeles to showcase its Ray-Ban smart glasses, which sold over 1 million units last year. Physical stores may offer Meta a direct-to-consumer edge, similar to Apple’s highly successful retail strategy.

This newsletter was curated by Shyam Gowtham

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