Baker Retail Rundown

E.l.f. Acquires Hailey Bieber’s Rhode for $1 Billion

E.l.f. Beauty is acquiring Hailey Bieber’s skincare brand Rhode for $1 billion to strengthen its appeal with Gen-Z consumers. Founded in 2022, Rhode has quickly grown, generating $212 million in annual sales from just 10 products and preparing for a major Sephora expansion. Bieber will stay on as chief brand officer, with the full Rhode team joining E.l.f. The deal boosts E.l.f.’s presence in prestige retail and supports its ongoing growth despite industry headwinds. E.l.f. plans to scale Rhode while preserving its founder-led vision.

The Pros and Cons of Near-Shoring Beauty and Personal Care Manufacturing to Mexico

As global tariffs, especially under President Trump’s policies, introduce uncertainty into trade, many U.S. beauty brands are turning to Mexico for manufacturing due to its proximity and cost-effective shipping. While Mexican production technologies lag slightly behind China’s, they’re sufficient for many beauty products, and the country offers comparable access to raw materials and packaging. Major companies like Unilever are investing heavily in Mexico, with a $1.5 billion plan including a new facility in Nuevo Leon, signaling confidence in Mexico’s long-term manufacturing potential. However, concerns remain about Mexico's evolving tariff status, slower timelines, and regional risks like cartels and infrastructure inconsistencies. Despite challenges, firms like BeFra and Jafra are betting on Mexico’s growth, aiming to rival China by strengthening their R&D and developing new contract manufacturing capabilities for international brands.

Dick’s Sporting Goods to Acquire Foot Locker for $2.4 Billion in Effort to Corner Nike Market

Dick’s Sporting Goods is acquiring Foot Locker for $2.4 billion in a bid to expand internationally, reach new consumer segments, and strengthen its dominance in the Nike sneaker market. The deal will allow Dick’s to operate Foot Locker as a standalone unit and tap into Foot Locker’s younger, urban customer base and global footprint. While the merger could unlock growth and synergy opportunities, some analysts see it as risky, citing Foot Locker’s recent struggles, including store closures and financial losses. Despite investor skepticism and a drop in Dick’s stock, leadership from both companies expressed strong confidence in the deal’s long-term value. The acquisition significantly expands Dick’s addressable market and positions it as a major player in global sneaker retail.

Temu-owner PDD Holdings Profit Dives as it Faces Challenges at Home and Abroad

PDD Holdings Q1 net profit fell 47% to $2.05 billion due to intense domestic competition and global trade uncertainty. Its US listed shares dropped over %17 after missing earnings expectations partly due to weaker margins impacted by tariffs. Sluggish consumer spending in China and price wars among major e-commerce platforms have further pressure growth. PDD increased promotional spending to support long term goals, sacrificing short term profits. Ongoing US-China trade tensions also created challenges for its global business, including Temu.