Battered in late June after a weak sales forecast, Nike Inc. shares are now on track for their longest winning streak in more than eight years, propelled higher by a torrent of positive developments.

The athletic footwear and apparel maker’s stock is up 17 percent over nine days, outpacing the S&P 500 by some 10 percentage points as the market rebounded from its worst rout in two years on Aug. 5.

Sentiment around consumer companies in general got a boost after solid earnings from the likes of Walmart Inc. and Home Depot Inc. A reading on US retail sales topped estimates, helping to ease mounting concerns about the strength of the American consumer.

The shares also got a lift when Bill Ackman’s Pershing Square Capital Management LP disclosed  a $229 million position in the world’s largest sportswear company on Wednesday. That helped allay some fears on Wall Street that activist investors could target Nike after its dismal annual revenue guidance — a forecast that sent the stock spiralling 20 percent to its biggest decline on record.

The rally looked set to hold into the weekend after Williams Trading analyst Sam Poser upgraded the stock to buy from sell on Friday. He said the recent rehiring of Tom Peddie as the VP of Marketplace Partners — basically Nike’s US wholesale division, according to the analyst — indicates that a change “is brewing.”

Nike’s current executives “lack brand and Nike institutional knowledge that the leaders had in 2015,” said Poser. He called the firm’s senior management “poster children for a Nike ad, ‘Winning isn’t for Everyone, am I a Bad Person?”’

Even after the latest surge, Nike shares are still down 11 percent from the day before its last earnings release on June 27. They remain lower by 23 percent this year. If the stock fails to reverse the drop, 2024 would be the third straight year of declines, a streak not seen since Nike’s initial public offering more than four decades ago.

Poser expects that poor stock performance — sparked in part by lacklustre product launches and disappointing sales performance and guidance — raises the likelihood that a “C-Suite change occurs.” For that reason, he rates the stock a “buy,” even with some time before a meaningful turnaround takes hold.

“We foresee improvement in the stock price well ahead of improvements of Nike’s business, and recommend investors to be patient,” he said.

By Janet Freund

Learn more:

Inside Nike’s Big Marketing Vibe Shift

The return of company veteran Nicole Hubbard Graham as CMO and the rollout of its ‘Winning Isn’t for Everyone’ campaign have helped fuel a push to restore Nike’s marketing glory after the brand ran off course. “Do I think Nike stopped believing that the notion of winning could continue to grow this brand? Maybe.”

It was the week’s other surprise CEO switch.

On Wednesday, Victoria’s Secret announced it would replace chief executive Martin Waters with retail veteran HiIlary Super. The news was overshadowed by Starbucks’ shocking dismissal of CEO Laxman Narasimhan the day before. But the lingerie brand’s long-suffering investors certainly took note: shares of the company have surged more than 25 percent.

Super isn’t a household name, even in retail circles. But her experience is cause for optimism at a brand that could certainly use some right now. Crucially, Super has for the last year served as CEO of Savage X Fenty, where she took the reins from Rihanna herself at the singer’s underwear start-up. (Super also ran Anthropologie for four years and has held senior roles at Guess, American Eagle and other brands.)

With decades of merchant experience at mall retailers, Super has the right resume to increase product innovation, build customer loyalty and improve marketing efforts, TD Cowen analyst Jonna Kim wrote in a research note Wednesday. All that will be necessary to help the brand find its voice in a category that’s become crowded with upstarts — Savage X Fenty among them — offering a fresher take on the Victoria’s Secret formula.

“We believe the new CEO at the helm could start a new chapter for the company,” Kim wrote.

We’ve been down this road before, of course. Victoria’s Secret promised a fresh start when it was spun off from L Brands – and controversial owner Les Wexner – in 2021. The brand quickly shed the hyper-sexualised aesthetic that defined it for decades under Wexner, adopting an inclusive image that mimicked its fast-growing challengers.

That gambit didn’t work. Sales continued to decline, and the disruptors kept growing. Last autumn, the company said it would reverse course. Recent campaigns are reminiscent of the high-gloss vampiness of its heyday, albeit with a more diverse range of body types. The annual fashion show that Victoria’s Secret had done away with in 2019, amid scandal, is coming back later this year, it announced in May.

Super’s most important job is to clearly define what the brand stands for to consumers puzzled by the recent flip-flops. Jettisoning the Y2K-era marketing formula didn’t work, but neither has grafting body positivity onto it. Figuring out what identity Victoria’s Secret will convey to shoppers — and then selling that vision with strong merchandise and well-designed stores — is the task at hand.

It can be done. Abercrombie & Fitch is reaping the rewards of a rebrand that began a decade ago, when the retailer was also mired in scandal and widely regarded as out-of-touch. Gap is also seeing promising early returns from a similar top-to-bottom revamp under CEO Richard Dickson.

Victoria’s Secret still has a commanding lead in its lane of the underwear market. And brand president Greg Unis wasn’t wrong when he told investors last October that “sexiness can be inclusive.” The company hasn’t figured out how to turn that slogan into reality. Now it’s time for Super and her team to have a try.

THE NEWS IN BRIEF

FASHION, BUSINESS AND THE ECONOMY

US retail sales rose more than expected in July. Retail sales increased 1.0 percent last month after a downwardly revised 0.2 percent drop in June, the US Census Bureau said. Signs that demand is not collapsing could prompt financial markets to dial back expectations for a 50 basis points interest rate cut next month.

Tapestry gains as quarterly profit beats Wall Street’s view. The company posted a revenue of $1.59 billion, narrowly beating projections. Tapestry’s strategy of increasing the average price of its handbags in recent quarters has improved profitability.

On records another bumper quarter. The Swiss sneaker giant reported net sales of CHF 567.7 million ($654.4 million) in its most recent quarter, up 28 percent from the same period last year. On received a boost from its recent expansion into apparel and accessories.

Branded resale provider Trove acquires Recurate, a competitor in the space. The addition of Recurate’s 29 brand clients means Trove will now generate 75 percent of total online branded resale traffic, the company said.

Walmart lifts full-year outlook on strong apparel sales. Walmart said comparable sales in the US rose 4.2 percent last quarter driven by higher units and transactions. Walmart’s bullishness points to an increasingly selective US consumer facing economic uncertainty and high interest rates.

Anna Wintour and Tory Burch to attend Hamptons fundraiser for Harris. Vice President Kamala Harris will host a high-profile Southampton fundraiser on August 31, with tickets ranging from $2,500 to $50,000.

Pandora raises full-year growth outlook as broader product range pays off. The company said its operating profit rose to 1.34 billion Danish crowns ($196.25 million) in the second quarter from 1.19 billion a year earlier. Its full-year organic growth guidance is now between 9 percent and 12 percent.

JD.com beats quarterly profit estimates. The company’s second-quarter profit rose 73.7 percent. The company’s total revenue rose 1.2 percent to 291.40 billion yuan ($40.71 billion) in the second quarter, compared with estimates of 292.89 billion yuan.

Goldman agrees to sell Ireland’s largest shopping mall to SVP. Strategic Value Partners is set to buy Blanchardstown Centre, Ireland’s largest mall as investor interest in malls rises due to lower rents and increased consumer spending.

Alibaba misses quarterly revenue estimates. The company’s domestic e-commerce sales came under pressure from cautious spending by Chinese consumers in a faltering economy. Alibaba reported revenue of 243.24 billion yuan ($33.98 billion) for the quarter ended June 30.

THE BUSINESS OF BEAUTY

Avon Products files for bankruptcy to wrangle talc lawsuits. The firm has already incurred $225 million of costs defending personal injury lawsuits and settlement payments, according to court filings. As part of the filing, Avon Products’s assets will be marketed, with Natura offering to buy it for $125 million in the absence of higher offers.

Crown Laboratories and Revance will merge in a $934 million deal. Under the agreement, Crown would acquire all of Revance’s outstanding common stock shares at an 111 percent premium. Revance will be delisted from the Nasdaq and the new company will be a private entity.

Equinox-owned Blink Fitness files for Chapter 11 bankruptcy. The company, the latest chain to succumb to stiff competition and higher costs. Blink plans to keep operating while it tries to sell itself out of bankruptcy

Berkshire Hathaway takes a stake in Ulta Beauty. Warren Buffett’s Berkshire added 690,106 shares of Ulta Beauty, according to a regulatory filing. Its stake in Ulta was worth about $227 million, based on Wednesday’s closing price.

Roz hair raises growth equity from Silas Capital and G9 Ventures. The prestige hair care line launched in 2021 and coins Credo and Neiman Marcus as stockists. The funding will be used to accelerate retail expansion, introduce new products and increase headcount.

PEOPLE

Shein hires ex-EU official to bolster lobbying as IPO nears. The online fashion retailer hired former EU budget commissioner Günther Oettinger as a consultant to help it navigate the bloc’s policy environment. Shein faces a raft of issues including a debate whether to impose customs duties on cheap parcels.

Victoria’s Secret taps Savage X Fenty CEO to lead turnaround. Hillary Super will be Victoria’s Secret third leader in four years and brings nearly three decades of experience in retail. Super replaces Martin Waters, who was terminated as CEO, as chief executive officer and a member of the board.

MEDIA AND TECHNOLOGY

US FTC finalises ban on fake online reviews. The ban on companies knowingly buying or selling fake online reviews, including those written by AI, gives the agency the power to levy fines against the shadowy practice. The FTC can seek a maximum penalty of up to around $51,744 per violation.

Compiled by Yola Mzizi.

For at least 13 straight months, the world has sweltered under near-record-breaking heat.

The consequences have been deadly and chaotic, with soaring temperatures not only disrupting daily life and harming health, but also fuelling a range of other destructive weather extremes from hurricanes to fires, droughts and floods.

Even as many in the fashion industry wind down for a summer break, broiling weather has scorched popular holiday destinations.

But while complaints about the sweltering conditions are now a mainstay of conference call small talk, the real impact and financial cost of rising temperatures on shopping habits, supply chains and workers’ health is something much of the industry has yet to grapple with.

Why has this year been so hot?

In a nutshell: climate change.

Scientists have been warning for decades that humans’ use of fossil fuels is raising global temperatures. The planet-warming carbon emissions given off when coal, natural gas or oil are burned trap heat in the atmosphere, making heatwaves more frequent, more intense and longer lasting around the world.

At the start of this year, that human-caused climate change was compounded by the El Nino effect, a natural weather phenomenon that warms the surface waters in the eastern Pacific Ocean and tends to raise global average temperatures. But the world moved out of that climate pattern in April and temperatures have still climbed.

What is the impact of extreme heat?

The higher temperatures have already had deadly and costly consequences.

Scorching conditions this year killed over 1,000 during the Hajj pilgrimage in Saudi Arabia, closed schools for some 80 million children across Asia and Africa and placed 120 million people under heat advisory warnings in the US. Hot weather contributed to natural catastrophes that caused $120 billion in losses in the first half of the year, according to insurer Munich Re.

In fashion, the weather gyrations have implications for shopping habits, making it harder for brands to manage inventory and predict merchandising mix. They threaten supply of raw materials like cotton, with major growing regions buffeted by floods and droughts in recent years. And they hamper manufacturing productivity and harm worker health.

Unless the industry takes steps to protect against such extremes, soaring heat and flooding in just a handful of key manufacturing countries could reduce garment sector export earnings by $65 billion by 2030, prevent the creation of one million jobs and significantly hit operating profits at exposed brands, according to a study by Cornell University’s Global Labor Institute and investment firm Schroders published last year.

Why isn’t fashion talking about this more?

Amid a flurry of earnings calls over the last month, the weather barely made the agenda. Instead, executives focused on sluggish consumer confidence, geopolitical gyrations and laying out their plans to navigate an uncertain second half of the year.

That’s not entirely surprising. Unlike fires, hurricanes and floods, heat is a largely invisible menace. Feeling hot is a routine human experience and symptoms of heat stress often go unnoticed until it’s too late. Meanwhile, companies aren’t systematically gathering data on how rising temperatures are affecting their workforce or their business, making it hard for executives and investors to interpret how to think about its impact.

The result is that even as headlines blare alarms about heat extremes, their fallout for the industry is slipping under the radar.

What should the industry do about it?

Future proofing the industry requires a combination of preventative action and adaptation.

While a growing number of fashion players have made commitments to curb their planet-warming emissions, the industry’s carbon footprint is still rising and climate efforts are under pressure from current market volatility. Companies shouldn’t lose sight of the fact that climate change is a real and present financial threat, which means taking steps to tackle it makes business sense.

That will mean costly investments to boost climate resilience across the supply chain and retrofit factories with cooling systems — a move that also comes with climate trade-offs because more air conditioning also means more emissions. Smart and flexible supply chains and inventory management will help brands navigate weather-related disruptions and volatile consumer demand, and there are potential market opportunities for sun-protective clothing and skincare.

There are also relatively simple steps that can make an immediate difference. These include providing workers adequate time for breaks, access to water and a cooled area to take them in.

Increasingly, governments around the world are stepping in to set clearer standards governing working conditions when the mercury rises. The industry should endorse such measures and push for more policies that support both decarbonisation and adaptation.

Last month, the UN issued its first call for action on extreme heat, illustrating the growing urgency of the issue. It launched alongside a new report from the International Labour Organisation that found more than 70 percent of the global workforce is now at risk from extreme heat.

“The heat is on,” said UN secretary general Antonio Guterres. “The world must rise to the challenge of rising temperatures.”

Welcome back to Haul of Fame, your must-read beauty roundup for new products, new ideas and an “Emily in Paris” branding bonanza.

Included in today’s issue: Act+Acre, Baccarat, Calista, Clinique, Inhibit Collection, John Masters Organics, Kaja, Kylie Cosmetics, Lancôme, Lake & Skye, Le Mini Macaron, Mara, Naturium, OneSkin, St. Tropez, Tatcha, The Rootist, Tower28, Trixie Cosmetics, Ursa Major, Youngblood and Mayonnaise.

But first –

Last month, I realised Lemme was a big deal. I was on the New York City subway, where tons of wellness brands advertise. But Lemme doesn’t need to, because bouquets of women — mostly young, mostly chicer-looking than I can manage on a sauna-y subway platform — were popping the recognisable swirl-patterned gummies from Williamsburg in Brooklyn to the Upper West Side. I even spotted several discarded Lemme wrappers overflowing from a subway garbage can in SoHo.

Perhaps this is not surprising. Lemme was founded in 2021 by Kourtney Kardashian Barker, after all, and though she is the chillest of the megastar sisters, she is still so famous that her Instagram followers outnumber the population of Brazil at 222 million.

This week, Kourtney Kardashian Barker called from the tour bus of her husband, Blink 182 drummer Travis Barker, while stopped in Minnesota. She was phoning to talk about Lemme’s first steps into wearable wellness.

“Wellness” is a fraught term, of course. And just like the grating practice of models championing inner beauty, very wealthy and beautiful women speaking of a heightened wellbeing is tough and sometimes hurtful. Staying well relies so much on access to clean food and trusted medical care, and the reassurance that your body is valuable. Supplements help us feel like we have more agency over our health, but there’s no replacement for systemic care. And I cannot speak to whether chewable ashwaganda aligns with a higher quality of life.

I can, however, speak to cool girls and Kardashian Barker may soon have them in a lock. She’s debuting a gummy-holding charm necklace with the Brooklyn-based indie jewellery brand Haricot Vert, which she fell for on Pinterest. “I always carry a ton of supplements with me,” said Kardashian Barker when we spoke by phone last week. Instead of a clinical pillbox or pharmacy vial, she wanted to “do something that kept wellness playful.” Each necklace holds one gummy — Lemme makes eight kinds, including Lemme Sleep with melatonin and Lemme Glow with biotin. The piece retails for $199.

In a way, Lemme’s new drop plays into the trend of accessory-led beauty that’s currently being mined by Hailey Bieber’s Rhode lip case and LoveShackFancy’s Stanley Cup collaboration. But Kardashian Barker sees the project not as a category extension, but as “a one-off” that speaks more to making wellness more fun. “How can we make taking care of ourselves more of a treat? To me, that’s always the goal. At the same time, I’m not going to make a new product just because it’s new. Every launch, even smaller collaborations like this one, has to serve a purpose.”

Kardashian Barker is smart to align Lemme’s sassy-but-mainstream brand identity with the artsy Gen-Z girls who flit through Haricot Vert’s kitschy wonderland. And certainly, the tiny accessories label will be buoyed by the (extremely cute) collaboration. But KKB also understands Lemme’s appeal is part of a bigger world-building exercise, one that lets everyone think they can have a tiny piece of Kardashian Barker’s unbothered allure.

“I think of Lemme’s world like Candyland — we actually call it ‘Lemmeland’ — where it’s supposed to be fun, over-the-top, but also calming,” she explained, with pastel-clad ‘60s girl groups and ‘80s starlets wearing frosted lipstick serving as muses for the “Lemmeasthetic.” On August 1, Kardashian Barker posed in a pink feathery bodysuit with a teased-out Bardot bouffant to launch Lemme Glow lollipops for $12 per pack.

“But look, I have a baby sleeping on me right now as I talk to you,” she said. “I understand the balance of that fun fantasy with the reality of being a very busy person.” Kardashian Barker’s youngest child, Rocky, is nine months. She’s also mom to Reign, 9, Penelope, 12, and Mason, 14. (“He’s starting high school this fall. High school. I am definitely not okay!” she said laughing.)

The balance she speaks of, brand-wise, happens when “Lemmeland” collides not just with wellness, but with actually feeling better. “As my wellness routine evolves, I think of new things that could be cool for Lemme. But we have to back up our ingredients with science. We have to be laser-focused on innovation. We have several new launches in the next few months … but we never release a product until the quality and effectiveness are clear.” Otherwise, she says, you lose people’s trust — something Kardashian Barker says she’s “proud” to have earned from shoppers.

I guess that one of her future launches will be a functional fragrance. “It’s such a good idea,” she said. “But the formula would have to be a hundred, million percent clean. Otherwise, I couldn’t do it. There’s other really special things coming, though. You’ll see.” So will 222 million people on Instagram — and then many will click to buy.

What Else Is New

Skincare

The Lede Company is a heavyweight PR firm that represents Rihanna, Sabrina Carpenter and Ashley Park. Now it also represents Clinique, and yes, I’m already dreaming of (their client) Addison Rae starring in an Almost Lipstick campaign. Bring it.

When Oneskin introduced its $54 OS-01 Body SPF this summer, it vowed the formula could “undo the effects of skin ageing.” So I tried it. My skin is not younger (sorry!) but it is indeed more supple, and unburned despite several long beach days. I am actually impressed.

Ursa Major’s Green Slate Mineral Polish hit stores on Aug. 15. It counts volcanic ash, birch sap and aluminium oxide as ingredients. It seems like a satisfying scrub if you like a little mud. (I really do.)

St. Tropez Self Tan Express Tropical Colada Mousse hit Sephora on Aug. 14. It’s got the brand’s normal formula, along with an exclusive coconut-y fragrance that makes me wonder if Sol de Janeiro has thought about launching a proper self-tanner.

On Aug. 16, Mara launched Clear Skin Mineral Milk, a salicylic acid solution formulated with anti-ageing benefits that targets those with adult acne and dryness. This seems canny — many Millennials (including me!) have skin that’s too sensitive for Stridex swipes. And perimenopausal acne, while often discussed, doesn’t have many targeted solutions.

Inhibit Collection debuted High Definition Lifting Cream, a tightening and plumping moisturiser, on Aug. 15. The product’s claim is pretty lofty — it will “defy the effects of gravity and define the lower facial third” — so if you’ve spent the $400 to get it, please DM us @businessofbeauty and share your thoughts.

If you see a Tatcha truck stationed outside Sephora in NYC today, get your free samples of Dewy Skin Cream and Water Cream. It’s part of a new seeding campaign to boost the products’ visibility online and IRL.

Is Walmart’s beauty stash getting really good? Last week, Futureyouth launched there. On Aug. 13, so did ITK, with a new Blemish Spot Cream + Gentle Retinol Serum.

Make-Up

Lancôme’s Teint Idole bronzer launched Aug. 13. It was developed partly by makeup maestro Lisa Eldrige, who has her own excellent beauty brand.

Is apple cider replacing pumpkin spice as fall’s beauty flavour? Some new evidence: Kaja’s Juicy Lip Glass Oils added an apple cider colour on Aug. 13, along with Cherry Cola and Fig Smoothie, which is perhaps the only flavour of smoothie you cannot find at Erewhon.

On Aug. 14, Le Mini Macaron debuted a Y2K collection, including tiny nail gems and a hot pink box that says — in “burn book” letters — “You’re like really pretty!” I guess I could say something snarky about this blatant “Mean Girls” reference, but whatever, I’m getting cheese fries.

Youngblood Mineral Cosmetics introduced its One-Swipe Gel Eyeliner on Aug. 13. There are three shades — copper, brown and black — which retail for $26 each. The tip is a little wider than the Valentino gel pencil, but smaller than Bobbi Brown’s, so you can expect a nice smudging effect, but not exactly a full smoky eye.

Trixie Cosmetics unveiled a new range of lipsticks on Aug. 13 called the 9-to-5 Collection. Inspired by Dolly Parton’s epic 1980 office comedy, the range features a matte mauve shade called HR Hunny that’s pretty delightful.

Kylie Cosmetics has a Lip & Cheek Blush Tint launching Aug. 13. It comes in six shades, including the dusty mauve “She’s It,” and costs $26. Speaking of blushing, I’m embarrassed because last week, I said Kylie’s birthday was on Aug. 7. Fans corrected me: She was born Aug. 10, 1997. Thanks, Kylie-verse!

It’s also John Masters Organics’ 30th birthday — older than Kylie! — and to celebrate, there’s a limited-edition Birthday Lip Calm collection, featuring two cake-and-raspberry scented balms. The set of four retails for $29, and is packaged with similar imagery to a Kylie Lip Kit. Leo Season brings out the drippy pink graphics in us all, I suppose.

Attention, Ulta Beauty shoppers: Naturium has restocked its best-selling Phyto-Glow Lip Balm in all five colours. They cost $10 each.

Tower28′s new GetSet Blur + Set Pressed Powder was unveiled Aug. 13. It comes in four shades, with kaolin clay to help mitigate shine.

Hair Care

Calista’s Jousse Styling Elixir hit shelves on Aug. 13. It’s a “3-in-1 product that helps smooth like a cream, control like a gel, and plump your hair like a mousse thanks to ingredients like wheat protein and collagen.” The 3-in-1 spray costs $26 — so, like $8.66 per function.

The Rootist has a new Densify trio — serum, shampoo and conditioner — hitting Sephora on Aug. 16. The products come just as consumer trend firm Spate reports a 67.4 percent spike in Google searches about hair loss, year-over-year. For a more personal take on hair loss, I recommend this excellent beauty interview with Elle fashion features director Veronique Hyland.

On Aug. 19, Act+Acre’s Daily Hydro serum became available. It promises to relieve dry, itchy scalps while promoting hair strength, and leans into the “scalp care is skincare” messaging with its hyaluronic acid.

Fragrance

On Aug. 13, Hellman’s Mayonnaise unveiled Will Levis No. 8, “the world’s first parfum de mayonnais.” Please excuse me while I scream into the void.

Baccarat perfume may be an actual plot point on “Emily in Paris,” but Literie Candles has its own branded EIP scents flaring up on Aug. 15: the gourmand Pain Au Chocolat, the floral Berets and Bouquets, and the vanilla-scented More French By the Day. Cute!

Lake & Skye launched 11 11 Vanilla on Aug. 9, exclusively at Ulta Beauty. It retails for $98, but perhaps the brand should do a special $11.11 promo for the first few bottles. You know, for luck.

And Finally

Lemme isn’t the only wellness supplement with news this week. On Aug 13, SoWell launched their GLP-1 Supplement Support, the first-ever packet of powder designed to reduce the side effects of Ozempic. Oh my.

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