Trade War Is Driving Retailers Nuts, Says Alix's Etlin
Tariff chaos has tossed retailers into a crisis similar to Covid in 2020, leaving them unable to plan ahead, according to AlixPartners, the financial advisory and global consulting firm. 'It's a little crazy and retailers are canceling orders,' Holly Etlin, a partner at the firm and restructuring veteran, tells Bloomberg News' Reshmi Basu and Bloomberg Intelligence's Stephen Flynn in the latest Credit Edge podcast. There's a 'real crisis, everybody going nuts,' she added, referring to pricing, inventory and shipping decisions that retailers are trying to make. Etlin also discusses the impact of elevated bankruptcy costs, the outlook for more coercive liability management exercises, how retailers are using asset-based loans as a lifeline and the turnaround of Tailored Brands.
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Los Angeles Times
an hour ago
- Los Angeles Times
Visit Huntington Beach President and CEO Kelly Miller to retire in October
Kelly Miller wants to visit Joshua Tree. To help make that happen, he's stepping down as president and chief executive of travel marketing organization Visit Huntington Beach, effective Oct. 15. Miller, who has been at the helm of Visit Huntington Beach for 12 of the nearly 35 years he's worked in the visitor industry, decided it's a good time to retire and enjoy life with his wife. 'I do believe that as we get to the next chapter and hopefully the next third of my life, because I do want to try to live to be 100, those priorities change,' said Miller, 67, in an interview Monday. 'You have a sense in your own skull that those priorities are changing and you want to do more hobbies or travel more, and you aren't as excited about the things you used to be excited about when I was younger in the hospitality industry. 'I love to ride my bike, I love Orange County and I love Huntington Beach, and I want to really enjoy the time we have here within this region. I've never been to Joshua Tree, for example. These are the things that we talk about, but before you know it we're in the middle of COVID and all of these things start to happen.' Miller feels that under his leadership, Visit Huntington Beach has solidified Surf City's status as a premier destination for travelers, events and 'beach-wide' conventions, delivering on the brand promise of being the quintessential California beach destination. Miller, whose organization hosted the biannual Tourism Summit last month, noted that Huntington Beach welcomed 2.34 million non-Orange County visitors last year, a 4.4% increase from 2023. Roughly two-thirds of the city's visitors overall are repeat visitors. 'If you lay that foundation right and the team is delivering on what the board's expectations are, the question becomes, do you mail it in or do you look to do the next chapter?' Miller said. 'Leaving on one's own terms is very important.' During his tenure, Visit HB reached a 10-year funding agreement with the city of Huntington Beach, and saw three Tourism Business Improvement District (TBID) assessment increases. Justin Simpson, the Visit HB board chairman and general manager of Kimpton Shorebreak Huntington Beach Resort, said Miller's ability to balance forward-thinking strategy with a results-based approach has served the city well. 'While we will deeply miss his presence, we fully support Kelly's decision to retire and are grateful for the legacy he leaves behind,' Simpson said in a news release. 'Under his leadership, VHB has not only achieved national recognition, including DMAP accreditation from Destinations International, but has also twice been named one of the best places to work in Orange County. His impact will be felt for years to come.' Miller held destination leadership roles in Juneau, Alaska; Atlanta, Ga.; Asheville, N.C. and Tampa, Fla. before coming to Huntington Beach. A longtime supporter of sports tourism, he is currently the chair of the Orange County Sports Commission and formerly chaired the Orange County Visitors Assn. He said some of his favorite memories during his tenure include celebrating surfing's centennial in 2014 and 2015, when he rode a 42-foot-long surfboard with 66 other surfers, setting Guinness World Records for both the length of the board and most riders. In June 2019, Huntington Beach hosted Visit USA's annual IPW tourism showcase, which included a performance by Snoop Dogg. Miller said that hosting the International Surfing Assn. World Para Surfing Championship the last two years was also meaningful for him, as his stepmother lived with multiple sclerosis for decades. Visit Huntington Beach now has more money to market the travel destination than ever before, and recently partnered with a new advertising agency, JNS Next. 'I now have in place an incredible team,' he said. 'There were some things we wanted to check off. This might be a good time to wave goodbye, be around to see my successor get hired, help train them and go to my next chapter. It just felt time.'
Yahoo
an hour ago
- Yahoo
Dollar Tree (NASDAQ:DLTR) Surprises With Q1 Sales, Provides Optimistic Revenue Guidance for Next Quarter
Discount treasure-hunt retailer Dollar Tree (NASDAQ:DLTR) reported revenue ahead of Wall Street's expectations in Q1 CY2025, but sales fell by 39.2% year on year to $4.64 billion. The company expects next quarter's revenue to be around $7.67 billion, coming in 74.6% above analysts' estimates. Its non-GAAP profit of $1.26 per share was 4.5% above analysts' consensus estimates. Is now the time to buy Dollar Tree? Find out in our full research report. Revenue: $4.64 billion vs analyst estimates of $4.53 billion (39.2% year-on-year decline, 2.4% beat) Adjusted EPS: $1.26 vs analyst estimates of $1.21 (4.5% beat) Adjusted EBITDA: $535.2 million vs analyst estimates of $528.3 million (11.5% margin, 1.3% beat) The company reconfirmed its revenue guidance for the full year of $18.8 billion at the midpoint Management raised its full-year Adjusted EPS guidance to $5.40 at the midpoint, a 2.9% increase Operating Margin: 8.3%, up from 5.5% in the same quarter last year Free Cash Flow Margin: 2.8%, similar to the same quarter last year Locations: 16,607 at quarter end, up from 16,397 in the same quarter last year Same-Store Sales rose 5.4% year on year (1% in the same quarter last year) Market Capitalization: $20.33 billion 'Our strong first quarter performance underscores the progress we've made against our strategic priorities and is a clear signal that our customers are responding positively to the changes we are making,' said Mike Creedon, Chief Executive Officer. A treasure hunt because there's no guarantee of consistent product selection, Dollar Tree (NASDAQ:DLTR) is a discount retailer that sells general merchandise and select packaged food at extremely low prices. A company's long-term performance is an indicator of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. With $24.59 billion in revenue over the past 12 months, Dollar Tree is one of the larger companies in the consumer retail industry and benefits from a well-known brand that influences purchasing decisions. However, its scale is a double-edged sword because there is only so much real estate to build new stores, placing a ceiling on its growth. To accelerate sales, Dollar Tree likely needs to optimize its pricing or lean into international expansion. As you can see below, Dollar Tree grew its sales at a sluggish 1.1% compounded annual growth rate over the last six years (we compare to 2019 to normalize for COVID-19 impacts) as its store footprint remained unchanged. This quarter, Dollar Tree's revenue fell by 39.2% year on year to $4.64 billion but beat Wall Street's estimates by 2.4%. Company management is currently guiding for a 4% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to decline by 21.7% over the next 12 months, a deceleration versus the last six years. This projection is underwhelming and indicates its products will see some demand headwinds. Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend. A retailer's store count influences how much it can sell and how quickly revenue can grow. Dollar Tree listed 16,607 locations in the latest quarter and has kept its store count flat over the last two years while other consumer retail businesses have opted for growth. When a retailer keeps its store footprint steady, it usually means demand is stable and it's focusing on operational efficiency to increase profitability. The change in a company's store base only tells one side of the story. The other is the performance of its existing locations and e-commerce sales, which informs management teams whether they should expand or downsize their physical footprints. Same-store sales is an industry measure of whether revenue is growing at those existing stores and is driven by customer visits (often called traffic) and the average spending per customer (ticket). Dollar Tree's demand has been healthy for a retailer over the last two years. On average, the company has grown its same-store sales by a robust 3.1% per year. Given its flat store base over the same period, this performance stems from not only increased foot traffic at existing locations but also higher e-commerce sales as demand shifts from in-store to online. In the latest quarter, Dollar Tree's same-store sales rose 5.4% year on year. This growth was an acceleration from its historical levels, which is always an encouraging sign. It was great to see Dollar Tree raise its full-year EPS guidance and beat Wall Street's revenue, EPS, and EBITDA estimates. On the other hand, its full-year revenue guidance slightly missed. Overall, we think this was a decent quarter with some key metrics above expectations. Investors were likely hoping for more, and shares traded down 2.8% to $93.94 immediately after reporting. Is Dollar Tree an attractive investment opportunity at the current price? When making that decision, it's important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
TechCrunch
2 hours ago
- TechCrunch
It's layoff ‘season' at Phil Libin's Airtime
Airtime, the video startup from Evernote's founder Phil Libin, has laid off dozens of employees, TechCrunch has learned, and Airtime confirmed. According to the company, 25 people were let go from the 58-person team — a change Airtime described as 'bigger than usual.' While Airtime characterizes the departures as part of its typical seasonal approach to employment, sources inside the company said staff were surprised by the announcement. Many were under the impression the startup intended to raise funds this year and were previously told no cuts were planned, they said. Formerly known as mmhmm, Airtime was launched in 2020 by Libin, whose Evernote, a note-taking startup, was valued at nearly a billion at its height before being sidelined by newer competitors like Notion. (The company later sold to Bending Spoons in 2022 for a decidedly smaller figure.) First launched amid the COVID pandemic, when all office work had suddenly shifted to video, Airtime today offers two key tools for online meetings. Its 'AirTime Creator' lets users present a deck while appearing on screen at the same time, while its 'AirTime Camera' allows users to create custom looks to stand out in meetings. Image Credits:Airtime The startup introduced a 'seasons'-focused employment structure in late 2022, following a layoff of around 10%-15% of the staff, which had capped the company's headcount at 100 while it searched for product-market fit. The idea was introduced so staff wouldn't face any surprise firings or layoffs. Instead, the company would decide roughly every six months who would be invited back for the next 'season.' This plan allowed Airtime to give staff a longer heads-up if they weren't going to return, so they had time to seek other employment. And ideally, employees would work throughout a full season before choosing to quit. Techcrunch event Save now through June 4 for TechCrunch Sessions: AI Save $300 on your ticket to TC Sessions: AI—and get 50% off a second. Hear from leaders at OpenAI, Anthropic, Khosla Ventures, and more during a full day of expert insights, hands-on workshops, and high-impact networking. These low-rate deals disappear when the doors open on June 5. Exhibit at TechCrunch Sessions: AI Secure your spot at TC Sessions: AI and show 1,200+ decision-makers what you've built — without the big spend. Available through May 9 or while tables last. Berkeley, CA | REGISTER NOW Such a structure, as you can imagine, was controversial. But until now, the deal had been honored on both ends. The recent layoffs have frustrated staff because, typically, their 'season' would have ended on the last day of June, according to what their managers told them. But impacted employees have been given an end date of Friday, June 6. That means their severance covers at least some of what would have normally been offered if they were employed through the period they were promised under the 'seasons' arrangement. Airtime declined to respond to questions about severance. The layoffs themselves were hashed out by leadership over two 8-hour sessions at Nobu in Palo Alto, sources claim. Staff were told on Tuesday, June 3, while their managers were told the night prior. An unknown number of independent contractors were also let go, they said. As to what necessitated the cuts, company insiders said Airtime's product never really took off and experienced quite a bit of churn. User acquisition ad spend also cost Airtime high tens of thousands of dollars per month, and employees report that Libin was often absent from day-to-day decisions as he focused his attention on his restaurant in Arkansas. Airtime, meanwhile, said the larger cuts had to do with the company's changing focus. In an emailed statement attributed to Libin, Airtime said the following: 'Since 2022, Airtime has operated on a 'seasonal' structure: two five-and-a-half-month work seasons per year, with a shared two-week break in between. Near the end of each season, we decide who comes back based on plans for the following season. The company invites some people back, and they decide whether they want to return. There's a mutual commitment that people who return will not leave mid-season and that the company won't terminate anyone mid-season other than for serious misbehavior. We treat everyone who departs at the end of a season equally, whether or not they were invited back. Product releases, hiring, departures, promotions, and other events are also timed around the seasons to provide people with a predictable cadence. We're currently in our sixth seasonal transition, and we've made changes to the team every time. This change is bigger than usual because our focus changed more than usual. Of 58 employees, we've asked 33 to come back next season to work on our new products and partnerships.' To date, Airtime has raised nearly $235 million in venture funding across multiple early-stage rounds. Some of those funds were used for M&A, as with the deal to acquire filter-maker Mexmix in 2020, then acquire Macro, a maker of filters and reactions for online meetings, in 2021. The latter deal was focused on bringing in founders with product chops, Ankith Harathi and John Keck. (The pair has since left Airtime, according to their LinkedIn profiles.) Airtime parent All Turtles also brought in Alexander Pashintsev, who previously worked on AI at Evernote, but Airtime itself has not yet made a significant AI push. Sarah Perez can be reached at sarahp@ and @sarahperez.01 on Signal. TechCrunch also offers secure tip lines here.
