TikTok Restructures U.S. Business ✅

After a year of political standoffs, legal deadlines, and stalled negotiations, TikTok’s Chinese owner, ByteDance, has reached a deal with U.S. and global investors to restructure the platform’s American operations and avert a potential nationwide ban.

🤝 What’s the deal: Under the agreement, a new U.S.-based joint venture will be formed, with TikTok’s U.S. business majority-owned by investors, while ByteDance retains a 19.9% minority stake. The transaction is expected to close on January 22.

📊 Key Details: Oracle, Silver Lake, and Abu Dhabi–based MGX will each take a 15% stake. The remaining 30.1% will be held by affiliates of ByteDance’s existing investors, according to reports.

🔎 The Big Picture: The agreement follows years of political pressure in the U.S., including a 2024 law passed during Joe Biden’s administration that threatened to ban the app unless it was sold. Enforcement was repeatedly delayed under Donald Trump, who backed negotiations with Beijing to reach a compromise.

Nike reported a modest increase in fiscal second-quarter revenue, but persistent weakness in China and rising tariff costs continue to weigh on its turnaround. Revenue rose 0.6% to $12.43 billion, topping analyst expectations, while earnings came in well ahead of forecasts despite a sharp year-over-year decline in profit. Nike's stock fell 10% after the earnings report.

📈 Improved Sales: The gains were driven largely by North America, where demand improved, and wholesale revenue climbed 8%. That strength was offset by ongoing declines in Greater China (dropped 17% year over year) and in parts of Asia-Pacific and Latin America. Nike’s direct sales fell 8%, reflecting weaker digital traffic and lower sales at company-owned stores.

📦 Tariff Impact: The company said higher tariffs weighed heavily on profitability, contributing to a 32% decline in net income and a notable hit to gross margins. Nike now expects revenue to decline modestly in the current quarter and warned that tariff-related costs will continue to pressure margins, even as it works to rebalance inventory and reset parts of its business.

Instacart has agreed to pay $60 million in consumer refunds to settle a lawsuit brought by the Federal Trade Commission, which accused the grocery delivery firm of deceptive practices related to fees, refunds, and subscription disclosures.

The FTC alleged that Instacart misled customers with “free delivery” promotions that still included service fees of up to 15%, made it difficult for users to obtain refunds, and failed to clearly disclose that its Instacart+ free trial automatically renews into a paid annual membership. Regulators said these practices generated millions of dollars in consumer harm and violated federal consumer protection laws.

Under the proposed settlement, Instacart must clearly disclose delivery and service fees, improve transparency around refunds and subscription terms, and stop misrepresenting satisfaction guarantees. Instacart denied wrongdoing but said it agreed to the settlement to resolve the matter.

Online returns declined at the start of the 2025 holiday season, offering retailers a rare bright spot amid heavy promotional activity. Data from Adobe Analytics shows that returns of online purchases fell 2.5% during the first six weeks of the season, while U.S. e-commerce sales climbed 6.1% through Dec. 12.

According to the Adobe report, shoppers are increasingly using AI tools to research and select products more carefully before buying. That shift appears to be reducing impulse purchases and mismatches, particularly in categories like electronics, toys, appliances, and personal care.

However, Adobe expects return volumes to spike after Christmas, with the final week of December and early January historically the busiest period. Overall, the firm still forecasts $253.4 billion in U.S. online holiday spending, up 5.3% year over year.

HSG has acquired a majority stake in the Italian luxury sneaker brand Golden Goose for about €2.5 billion, marking a sharp rebound after the company scrapped plans for a Milan IPO last year amid a weakening luxury market. The deal nearly doubles Golden Goose’s valuation since its 2020 buyout.

The stake was purchased from investors led by Permira, which will retain a minority holding, while Temasek will also take a minority stake. Golden Goose had previously been valued at around €1.9 billion in its aborted IPO and at €2.2 billion in a secondary stake sale earlier this year.

Golden Goose has benefited from rapid growth in direct-to-consumer sales, with revenue rising to €655 million in 2024 from €266 million in 2020, and now operates 227 stores globally. CEO Silvio Campara will remain in charge as HSG backs further international expansion, particularly in Asia.

U.S. retail sales were unchanged in October, according to U.S. Commerce Department Census Bureau data, missing economists’ expectations for a modest increase. The flat reading followed a downwardly revised 0.1% gain in September, underscoring how rising living costs are beginning to weigh on consumer spending despite a resilient labor market.

Lower- and middle-income households are pulling back, pressured by higher prices for food, housing, and imported goods following sweeping tariffs. At the same time, higher-income consumers continue to spend on discretionary categories such as clothing, travel, and entertainment, according to a Bank of America Institute analysis.

Retail sales excluding autos, gasoline, building materials, and food services jumped 0.8% in October, after a 0.1% decline in September.

UPS-owned returns specialist Happy Returns is deploying an AI-powered fraud-detection tool to combat a surge in fraudulent returns during the holiday season, a problem estimated to cost U.S. retailers $76.5 billion this year.

The new system, called Return Vision, is being tested with retailers including Everlane, Revolve, and Under Armour. It uses AI to flag suspicious returns—such as mismatched items or unusual customer behavior—for human review at processing hubs. The goal is to identify cases where customers return low-value knockoffs instead of the original product, a tactic that retailers say quietly erodes margins.

Shares of Lululemon Athletica jumped nearly 8% after reports that activist investor Elliott Management has built a roughly $1 billion stake in the company, just days after Lululemon announced CEO Calvin McDonald will step down. The move has fueled expectations of a leadership shake-up aimed at reversing slowing growth and restoring the brand’s appeal with younger shoppers.

Elliott is reportedly working with retail veteran Jane Nielsen as a potential CEO candidate. Lululemon’s stock has lost nearly half its value this year, reflecting investor concerns over competition from newer brands, softer growth, and rising tariff-related supply chain pressures.

Analysts say a turnaround will require faster product cycles, refreshed designs, and supply chain improvements to defend margins.

The National Retail Federation expects a record 158.9 million consumers to shop on Super Saturday, the final Saturday before Christmas, edging past the prior high set in 2022. The estimate is based on a survey showing 63% of consumers plan to shop that day, underscoring how much holiday spending remains concentrated in the final stretch.

According to the survey, about 45% of Super Saturday shoppers plan to buy both online and in stores, while 29% expect to shop exclusively in physical locations. Department stores, discount retailers, and e-commerce sites rank as the top destinations, reflecting continued demand for convenience and value.

NRF also expects shopping momentum to carry into the week after Dec. 25, with 70% of consumers planning to shop in that week to take advantage of sales and use gift cards.

Tween retailer Claire’s is facing legal challenges from several Asia-based suppliers over millions of dollars in unpaid invoices, complicating its turnaround under new owner Ames Watson.

The disputes stem from orders placed earlier this year, before Claire’s filed for its second bankruptcy in August, when Elliott Management still owned the company. Suppliers have filed claims in Hong Kong, alleging they were never paid for goods produced ahead of the holiday season.

The supplier dispute adds pressure to Ames Watson’s effort to stabilize the business during its first holiday season in control. While the new owner says inventory is in place and that it was not responsible for prior purchasing decisions, experts warn that strained supplier relationships could disrupt Claire’s long-term supply chain.