The Weekly Closeout: Coty winds down Russian operations and The North Face repurposes scraps into gear

It’s been another week with far more retail news than there is time in the day. Below, we break down some things you may have missed during the week and what we’re still thinking about.

From JC Penney’s Marilyn Monroe capsule collection to Sephora’s future at Kohl’s, here’s our closeout for the week.

What you may have missed

The North Face is making gear from leftover scraps at its factories

On Earth Day last week, The North Face announced a collaboration with clothing company Online Ceramics, inspired by ’70s California climb culture. The collection also served as an introduction to The North Face’s latest sustainability initiative: Re-Grind, a process through which the retailer is repurposing scraps from its factories into gear. Products in the Online Ceramics collection are made with at least 75% recycled or organic materials, and some of them were designed using the Re-Grind effort, the company said in a release emailed to Retail Dive.

The North Face plans to debut additional Re-Grind pieces throughout the course of the year as part of its goal to have its top apparel materials be recycled, regenerative or renewable by 2025. In its efforts to improveity, The North Face also launched a refurbishment pilot in 2018 dubbed “The North Face Renewed” to clean up defective, damaged or returned apparel and resell it online.

Coty opts to wind down Russian operations

In an SEC filing this week, beauty company Coty announced it would be winding down operations in Russia, effective immediately. In 2021, Russia accounted for about 3% of Coty’s sales and contributed a mid-single digit percentage of EBITDA, the retailer said.

“After careful consideration, including analysis of relevant US, UK, and other applicable regulation, Coty has decided to wind down its Russian operations starting immediately,” the company wrote in the filing. “While all of the financial impacts, including the impact on the Company’s long-term outlook, of the decision are still being determined, this decision is not expected to impact Coty’s ability to achieve its previously issued fiscal 2022 outlook on revenue, adjusted EBITDA or Adjusted EPS guidance because of seasonally lower contribution of the business in the fourth fiscal quarter.”

For fiscal 2022, Coty in issued February guidance of low-to-mid teens percentage growth in sales, $900 million adjusted EBITDA “at a minimum” and earnings per share of $0.22 to $0.26. The company is just one of many that have either paused operations in Russia or pulled out of the country entirely after Russia’s invasion of Ukraine began in February this year.

Chief Keef designs True Religion anniversary collection

Famous American rap artist Chief Keef has Designed an apparel collection for streetwear brand True Religion, according to a press release this week. The marks 20 years since the brand was founded and 10 years since the rapper’s hit song “True Religion Fein” was released. The collection relies heavily on graphic heart, skull and bones imagery. The designed T-shirt, hoodies, joggers, denim jeans, jackets and beanies will be available for purchase online May 5.

Image Source: True Religion Instagram

“[W]hen you think of True Religion you think of Chief Keef, because the brand and the artist have become synonymous,” Zihaad Wells, senior vice president and creative director for True Religion, said in a statement.

Chief Keef added that it has “always been a dream of mine to collaborate with True Religion. I actually wore head-to-toe True Religion to my first show and when this opportunity came about, I jumped on it.”

This news builds on True Religion’s history of collaborating with designers and artists, such as iconic skateboarding brand Supreme. The brand came to fame in 2002 by introducing denim jeans with a unique stitch and silhouette that rivaled the traditional five-pocket jean.

Brooks takes top spot in adult running market for the first time

For the first time, Brooks Running in Q1 took the top spot in the US adult performance running footwear market. The brand had 22% share, based on revenue, per NPD Group data cited in a company press release.

Two of Brooks’ products, the Ghost and Adrenaline, were the top two franchise lines in the category, accounting for 14% of US sales.

Given its performance and the fact that it topped $1 billion in revenue in 2021, the company is projecting double-digit growth in 2022.

“While Vietnam factory closures last year caused us to fall short of fulfilling strong market demand for Brooks in Q1, we remain bullish for substantial growth in 2022,” CEO Jim Weber said in a statement. “Brooks’ performance products continued to incredibly lead with runners and the best is yet to come as our new Glycerin styles come to market featuring DNA LOFT v3, a nitrogen-infused midsole compound that delivers an compelling running experience.”

JC Penney is turning out to be the Authentic Brands store

With the addition this week of Marilyn Monroe by JCPenney“a collection of pieces that honor the enduring style of feminine silhouettes and effortless, polished looks,” the 120-year-old department store has solidified its role as … Authentic Brands Group’s favorite retailer.

JC Penney

The IP management giant owns a slew of iconic brands; in addition to Marilyn Monroe, those include Sports Illustrated (found at JC Penney( Forever 21 )found at JC Penney), Juicy Couture (found at JC Penney) and Muhammad Ali (partnered with JC Penney), among others.

The Marilyn Monroe collection features clothing reminiscent of the actor’s style, including sleek capri pants, crisp shirting and full-skirted sundresses cinched at the waist, according to a press release from JC Penney and ABG. Items will be available in sizes XS to 3X, per the release.

The limited-time capsule is available now at 300 JC Penney locations and online, the companies said. A special edition of Keds with Marilyn Monroe-inspired details will be released in May exclusively at the department store.

“We are thrilled to see this collection come to life,” Dana Carpenter, ABG’s vice president of entertainment, said in a statement.

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