Nike Returns to Amazon After Six Years 🚀

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Nike Returns to Amazon After Six Years

Nike is making a comeback on Amazon after a six-year hiatus, restoring a direct partnership it ended in 2019 over concerns about counterfeits and lack of control. According to reports, the new deal allows Amazon to stock a wider range of Nike products, replacing the limited third-party listings that had dominated the platform.

Amazon, meanwhile, is offering time for smaller sellers to wind down overlapping inventory. The agreement also signals Amazon’s growing success in courting premium brands, following its recent tie-up with Saks Fifth Avenue.

• Why now❓: With sales declining in recent years, Nike is now returning to Amazon as part of its strategy to reignite growth and reach more customers

• Brand of Brothers 🫂: Nike is also expanding its retail footprint by partnering with new outlets like Printemps, a renowned French department store that just launched its first U.S. location in New York

Target Lowers Outlook as Sales Drop and Tariff Pressures Grow

Target reported a sharper-than-expected drop in first-quarter sales and warned of a full-year decline, signaling continued pressure from tariffs, shifting consumer habits, and political backlash. Revenue fell 2.8% to $23.85 billion, with in-store sales down 5.7% and digital sales rising 4.7%.

The company pointed to economic uncertainty and boycotts tied to its rollback of diversity initiatives as key factors behind the slowdown. In response, Target is slashing prices, launching 10,000 low-cost items, and reshuffling top leadership to speed up operations. Sourcing is being moved away from China to reduce tariff exposure. Despite the changes, shares have fallen 37% over the past year, reflecting investor skepticism.

TLDR 🗓️

McDonald’s Pulls the Plug on CosMc’s

McDonald’s is shutting down CosMc’s, its two-year-old beverage-focused spinoff, by the end of June. Launched in 2023 to rival niche drink chains like Dutch Bros and Swig, CosMc’s aimed to capture Gen Z consumers with customizable sweet drinks and light snacks.

But the concept failed to gain traction, with fewer customers personalizing drinks than expected. Amid back-to-back quarters of falling sales and rising economic pressure, McDonald’s is shifting focus back to its core business. The company said CosMc’s served as a testing ground for bold flavors and new tech without disrupting the main brand.

Home Depot Says It Won’t Raise Prices

Home Depot reported a strong start to the year with $39.9 billion in first-quarter sales, an increase of nearly 10% compared to a year earlier, as shoppers focused on smaller home projects this spring.

Yet, despite steady demand, the retailer's quarterly earnings report indicated some quiet cuts ahead. While it has no plans for widespread price increases despite new import tariffs, executives acknowledged that certain products might disappear from shelves if costs exceed demand.

Net earnings slipped slightly to $3.4 billion, and comparable sales in the U.S. rose just 0.2%. Still, the company reaffirmed its 2025 outlook, betting that its sourcing shift—aimed at reducing exposure to any one country—will help it withstand rising trade pressures.

FTC Drops Case Against PepsiCo

The Federal Trade Commission has dismissed a lawsuit accusing PepsiCo of giving Walmart unfair pricing advantages, ending a case launched in the final days of the Biden administration. Filed under the rarely used Robinson-Patman Act, the suit alleged that Pepsi’s promotional deals violated laws against price discrimination.

PepsiCo welcomed the decision, stating its pricing practices are fair and non-discriminatory. The dismissal comes as the Trump administration continues rolling back antitrust actions initiated under its predecessor.

Levi’s Sells Dockers to Authentic Brands in $311 Million Deal

Levi Strauss is offloading its Dockers brand to Authentic Brands Group for $311 million, as part of a broader effort to streamline its business and focus on core labels like Levi’s and Beyond Yoga. Under the deal, Authentic will own Dockers’ intellectual property while Centric Brands will handle operations. Levi’s could earn up to $391 million more, depending on Dockers’ future performance.

Levi’s said the move allows it to double down on its direct-to-consumer growth and simplify its brand portfolio. Last October, the company flagged Dockers for potential sale, citing brand overlap and lagging performance.

Google Invests $150M in AI Smart Glasses Deal With Warby Parker

Google is partnering with Warby Parker to develop a new line of AI-powered smart glasses, committing up to $150 million as part of the deal announced at Google I/O 2025.

An initial $75 million will support product development, while the remaining $75 million is tied to future milestones and includes an equity stake in Warby Parker. The glasses will run on Android XR and feature Google’s Gemini AI, blending wearable tech with the optical brand’s design and retail footprint.

The collaboration mirrors Meta’s successful alliance with Ray-Ban. The first Warby-Google smart glasses are expected to launch after 2025.

Amazon Adds AI Audio Summaries to Boost Shopping Experience

Amazon is rolling out a new feature called “Hear the Highlights,” offering AI-generated audio summaries on select product pages in the U.S. The tool uses large language models to provide shoppers with a short, conversational overview of key features and customer reviews.

The summaries are voiced by AI “shopping experts” and designed to help users make faster, more informed decisions. Currently in testing, the feature is expected to expand in the coming months. It joins Amazon’s growing suite of AI tools, including Rufus, Review Highlights, and Buy for Me, aimed at making the platform more interactive and personalized.

Shopify Launches AI Tool to Instantly Build Online Stores

Shopify has unveiled an AI-powered “Store Builder” that lets merchants create customized online storefronts by simply entering descriptive keywords. The tool generates layouts, text, and images automatically, eliminating the need for coding and speeding up store setup.

The announcement came alongside updates to Shopify’s POS app, including smoother navigation and a new “ship and carry out” feature that splits in-stock pickups and shipped items. Shopify says the push reflects a company-wide expectation to adopt AI, with CEO Tobias Lütke calling it essential to staying competitive in modern commerce.

UK Retail Sales Rise 1.2% in April

UK retail sales volumes increased by 1.2% month-on-month and 5% year-on-year in April 2025, according to the Office for National Statistics. This marks the largest three-monthly rise since July 2021 and the strongest annual growth since March 2022.

Despite a 0.7% decline in non-food store volumes, due to slower clothing and household sales, overall retail momentum remained positive. Total sales value rose 0.7% in April, even as online spending dipped 0.3% and the online share fell to 26.8% from 27.1% in March. Volumes are now 0.3% above pre-pandemic levels, reaching their highest point since mid-2022.

Steve Madden Sues Adidas Over Stripe Design Dispute

Steve Madden has filed a lawsuit against Adidas, seeking to block the German sportswear giant from challenging the design of two of its new sneaker lines. The complaint, filed in New York federal court, claims Adidas is trying to monopolize the use of stripes on footwear by objecting to Madden’s Viento and Janos shoes, which feature two non-parallel bands. Madden argues its designs are clearly distinct from Adidas’ iconic three-stripe mark and says such patterns are common across the industry.

Lowe’s Beats Estimates, Signals Tariff-Linked Price Hikes

Lowe’s reported better-than-expected Q1 earnings, with steady demand from professional customers helping limit comparable sales decline to 1.7%. The company posted earnings of $2.92 per share, beating forecasts, and maintained its full-year guidance.

CEO Marvin Ellison said Lowe’s would stay price competitive but didn’t rule out selective price hikes due to tariffs. Unlike Home Depot, which pledged not to raise prices, Lowe’s expects most tariff impacts to surface in the second half of the year. About 20% of its inventory comes from China, including items like holiday trees and ceiling fans.

Tidbits 🍿

• Bath & Body Works has appointed former Nike executive Daniel Heaf as its new CEO, replacing Gina Boswell. Heaf previously led Nike Direct, where he doubled revenue to $22.3 billion over five years

• Former Apple design chief Jony Ive is joining OpenAI through a $6.5B merger with his firm, io

• BYD outsold Tesla in Europe for the first time, registering 7,231 vehicles in April versus Tesla’s 7,165. The Chinese EV maker saw a 169% YoY surge, while Tesla’s sales dropped 49% amid political distractions surrounding Elon Musk

• The EU is preparing to formally warn Shein as part of an escalating consumer protection probe. Regulators plan to outline grievances and demand corrective actions from the fast-fashion giant, potentially as early as next week

This newsletter was curated by Shyam Gowtham

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