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Tag: Specialty Retailing

  • This Barbie ‘holy grail’ doll is on sale for $25,000 — but one rare Barbie collectible could fetch $1 million

    This Barbie ‘holy grail’ doll is on sale for $25,000 — but one rare Barbie collectible could fetch $1 million

    With the release this weekend of the new “Barbie” movie starring Margot Robbie and Ryan Gosling, there’s growing attention being paid to the world of Barbie collectibles. As in the hundreds of dolls that have been released over the years, to say nothing of such accessories as Barbie outfits and furniture.

    But there’s one collectible above all — the holy grail of Barbies, if you will. We’re referring to Barbie No. 1, the first doll ever released by Mattel to bear the Barbie name, dating from 1959.

    Barbie fanatics speak of it in reverent terms. “I lost sleep over this doll,” one collector said in a YouTube
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    video that documented the arrival and unboxing of a Barbie No. 1.

    Needless to say, collectors will pay a pretty penny for a Barbie No. 1. Prices can easily reach $10,000-plus, according to Barbie experts. The original doll sold for about $3, but there’s a Barbie No. 1 doll on eBay
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    currently going for $25,000.

    But before you plunk down five figures for an investment-grade doll, we figured you might want to know a little more about this one-of-a-kind Barbie. Here goes:

    What makes the ‘Holy Grail’ Barbie so special?

    Obviously, it’s all about being the first of its kind, not unlike a baseball player’s rookie card (the 1952 Mickey Mantle card is often considered the holy grail of sports collectibles, though that can sell for millions of dollars). It’s also about rarity. Experts say around 300,000 to 350,000 of those debut Barbies were sold in 1959, but the number of Barbie No. 1s that survived throughout the years — dolls are sold as toys, after all, not necessarily collectibles — is considerably less.

    (Mattel
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    reportedly now releases about 60 million Barbies annually, but the company didn’t respond to a MarketWatch request for comment and information.)

    There’s also something to be said for No. 1’s distinct look, marked by what veteran Barbie appraiser Dr. Lori Verderame describes as its “deep profile” with a protruding nose and high forehead. It’s a design very much inspired by the German-made Bild Lilli dolls that intrigued Barbie creator Ruth Handler.

    Are there any really rare examples of the original Barbie?

    Red-headed Barbie No. 1s are known to exist. Marl Davidson, a Barbie dealer based in Bradenton, Fla., says she once sold one for $50,000, and perhaps the holiest of holy grails is a salesman’s Barbie sample case dating from the doll’s early years. Davidson says she believes only two or three are around. And one surfaced? “It could go for $1 million,” she says.

    And what makes some Barbie No. 1s more valuable than others?

    As with almost any collectible category, it’s all about condition. Barbie buyers are looking for a No. 1 that’s as close to mint condition as possible, with all the original items — namely, the box, black stand, sunglasses, shoes, brochure and zebra-striped swimsuit. (There are also outfits and accessories dating from Barbie’s early years, but these were sold separately; Verderame says a popular outfit from this period can sell for $150 to $200.)

    Ironically, if the Barbie has stayed in the original box, it may affect the condition — Verderame explains that the packaging is acidic so it can “damage the piece over time,” but she says collectors still “want it in the box.”

    Then, there’s the hair color. The original Barbie came in both blonde and brunette versions. Verderame says the blondes are generally more sought after since that’s what most people think of as the Barbie classic. But Davidson says brunettes can actually have value since there were fewer made of them. Then again, she says, the collectors “who can afford it will have one of everything.”

    How can you tell if a first-edition 1959 Barbie is a fake?

    There are various elements that will signify an original Barbie — most notably, a marking on the doll’s, um, right buttock (this also applies to later Barbies, though). Also look for holes in the feet and what the Doll Reference site describes as “tight curly bangs,” among other identifiers. It’s worth keeping in mind that you might find an original No. 1 doll, but with other parts that are not original — say, a replacement stand.

    What’s the current market for the original Barbie?

    It’s soaring because of the movie, Verderame says. She notes that Barbie No. 1s that went for $10,000 as recently as three months ago are now selling in the $15,000-$25,000 range. Verderame anticipates the market will cool off after the fervor for the Warner Bros.
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    film dies down. But Davidson remains bullish on Barbie’s longer-term prospects because of the doll’s iconic appeal: “The price can only go up,” she says.

    Are there any affordable alternatives to a first-edition Barbie?

    Davidson says collectors can also consider Barbie No. 3 as a collectible. It’s a very early model, but it has a far more approachable price — Davidson says collectors can find one between $1,000 and $3,000.

    If you want something way more affordable that still has potential to appreciate, Verderame says to consider iconic Barbies from the 1990s and 2000s that are currently selling for between $50 and $150.

    But if you insist on a Barbie No. 1, Davidson says you can always buy one in lesser condition for a lesser price. Still, even a bald Barbie No. 1 won’t come cheap, she warns. “It’s going to go for a couple of grand,” she says.

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  • H&M to Launch in Brazil During 2025

    H&M to Launch in Brazil During 2025

    By Dominic Chopping

    STOCKHOLM–Sweden’s Hennes & Mauritz Monday announced plans to launch physical and online stores in Brazil during 2025.

    The fashion retailer said it will initially enter major cities in southeast Brazil with a view to further increase its presence across the country over time.

    In Latin America, H&M is currently present in Mexico, Peru, Uruguay, Chile, Colombia, Ecuador, Guatemala, Panama, and Costa Rica, and it said that with a population of over 210 million in Brazil there is considerable potential for expansion.

    To support the initiative H&M said it is partnering with Dorben Group, a Latin American luxury and fashion retail partner.

    Write to Dominic Chopping at dominic.chopping@wsj.com

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  • As food prices rise in June, analysts warn of a ‘tipping point’ for Americans

    As food prices rise in June, analysts warn of a ‘tipping point’ for Americans

    Food prices grew at a slower pace in June, but economists remain concerned that prices will reach a level where consumers will make dramatic changes in their behavior.

    Food prices rose 3% in June compared to a year ago, according to the latest data from the Bureau of Labor Statistics. After a year of price hikes, consumers continued to see food prices rise, but at a slower rate.

    Grocery prices were 5.7% higher in June compared to a year ago, and dining out was 7.7% more expensive. That’s significantly lower than the 13.5% peak inflation for grocery prices last August and the 8.8% peak inflation for dining out.

    “Overall, there continues to be a similar narrative of extended upward pressure on food prices as we try to discern whether this stress has led to a tipping point where consumers are struggling to buy the foods that they want,” said Jayson Lusk, the head and distinguished professor of Agricultural Economics at Purdue University.

    Reported food insecurity across households of different income levels reached 17% in June, the highest level since March 2022, according to the monthly Consumer Food Insights Report from Purdue University. Although it didn’t deviate too much from the normal range — food insecurity hovered at 14% two months ago — Lusk said the increase is concerning given the amount of pressure on more financially vulnerable consumers. 

    Reported food insecurity across households of different income levels reached 17% in June, the highest level since March 2022, according to Purdue University.

    The pandemic-era expansion of the Supplemental Nutrition Assistance Program ended in March, meaning SNAP recipients are now receiving $90 less on average every month, according to the Center on Budget and Policy Priorities, a progressive policy think tank based in Washington, D.C. 

    The recent rise in food insecurity could be a lag from households adjusting to the policy change, Lusk said. On average, consumers are spending about $120 per week on groceries and $70 per week on dining out or takeout, the report found. 

    Middle-income households earning $50,000 to $100,000 a year and low-income households earning less than $50,000 a year cut weekly spending on groceries and dining out by about $10 a week, Purdue found. The average weekly grocery expenditure for low-income households was $103 in June; for middle-income households, it was $118. Households earning more than $100,000 a year spent $141 a week on groceries in June.

    Around 47% of low-income households — those earning less than $50,000 a year — said they relied on SNAP benefits in May, up from roughly 40% in February, according to a recent Morning Consult report.

    For low-income households, rising food insecurity is often coupled with juggling bills such as utilities and rent, which has also led to rising eviction rates in recent months, according to Propel, an app that aims to help low-income Americans improve their financial health. Propel surveys SNAP users on insecurity around food, finance and their housing situation. 

    Nearly half of the survey respondents said they cannot afford the food they want. “We were unable to pay bills because we had to buy food. We’re about to lose our home,” a South Carolina user named Anna told the Propel survey. 

    The share of surveyed households that paid their utilities late rose 11% from May to June, and only 27% of respondents paid their utility bills on time and in full, according to Propel’s June survey.

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  • Used Car Prices Drop By a Record. Carvana Stock Is Up, a Lot.

    Used Car Prices Drop By a Record. Carvana Stock Is Up, a Lot.

    Used Car Prices Drop By a Record. Carvana Stock Is Up, a Lot.

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  • Casino Receives Offers to Strengthen Capital Base

    Casino Receives Offers to Strengthen Capital Base

    By Mauro Orru

    Casino Guichard-Perrachon said it has received two proposals to strengthen its capital base, a day after the group warned it could default on part of its debt.

    The French grocer said Tuesday that one proposal came from EP Global Commerce and Fimalac, and the second from 3F Holding. Casino said it would analyze the two proposals and put them to creditors on Wednesday, when it expects to disclose details of the offers.

    Casino has for months been grappling with high debt and has entered talks with creditors to ensure it has enough funding available. Last week, the group said it was seeking to raise at least 900 million euros ($982.2 million) to deliver its midterm targets.

    “Casino’s governance bodies will not take any decision relating to such proposals until they have been presented and discussed with the creditors under the aegis of the conciliators,” the group said in a statement.

    On Monday, the company said it had fully drawn its revolving credit line at the end of June, with the ratio of gross secured debt to earnings before interest, taxes, depreciation, and amortization after lease payments expected to exceed a cap that is closely watched by investors.

    The company warned it could be in default under its revolving credit line by the end of August, “which would result in a cross-default in respect of a part of its financial debt at the level of its operating subsidiaries.”

    Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94

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  • Sainsbury’s Backs FY24 View

    Sainsbury’s Backs FY24 View

    J. Sainsbury sees same-store sales rise 9.8% in first quarter, backs 2024 view

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  • Casino Shares Plunge After Warning of Potential Debt Default

    Casino Shares Plunge After Warning of Potential Debt Default

    By Mauro Orru

    Shares of Casino Guichard-Perrachon slumped in early Monday trading after the French grocer said it could default on part of its debt.

    At 0750 GMT, Casino shares traded 15% lower at EUR3.45.

    The group said that with its revolving credit line be fully drawn at the end of June, the ratio of gross secured debt to earnings before interest, taxes, depreciation, and amortization after lease payments is expected to exceed a cap that is closely watched by investors.

    The company said it could be in default under its revolving credit line by the end of August, “which would result in a cross-default in respect of a part of its financial debt at the level of its operating subsidiaries.”

    Casino has for months been grappling with high debt and entered talks with creditors to ensure it has enough funding available. Last week, the group said it was seeking to raise at least 900 million euros ($982.2 million) to deliver its midterm targets.

    Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94

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  • Like choosy shoppers at a retail store, IPO investors are demanding discounts and displaying price sensitivity

    Like choosy shoppers at a retail store, IPO investors are demanding discounts and displaying price sensitivity

    IPO investors, much like retail shoppers in recent years’ inflationary environment, are demanding clear discounts and demonstrating sensitivity to price and valuations, according to Renaissance Capital.

    The provider of IPO exchange-traded funds and institutional research said that’s a positive — even if tech unicorns in the pipeline would prefer it were not the case.

    “Quality consumer names are working,” said Matthew Kennedy, senior strategist at Renaissance, listing Kenvue, Cava Group Inc., Gen Restaurant Group Inc. and Savers Value Village Inc. as examples of recent new issues that enjoyed strong debuts.

    Kenvue
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    ,
    the former consumer arm of Johnson & Johnson
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    and parent of household-name products such as Tylenol and Band-Aid, raised $3.8 billion in its May IPO at a valuation of $41.08 billion, making it the biggest deal of the year to date.

    Cava Group
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    -5.93%
    ,
    the loss-making Mediterranean-style fast-casual restaurant group, raised $317 million in its mid-June deal at a valuation of $2.5 billion. The stock popped more than 99% on its first day of trade.

    For more: Cava Group CFO is confident restaurant chain will be profitable — but she won’t say when

    Gen Restaurant Group
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    +13.95%

    is a profitable Korean barbecue chain that made its debut Wednesday with a more than 50% pop in early trade.

    “But broadly investors are still demanding clear discounts to public peers, especially if they take issue with certain aspects of a deal. So it’s good to see that valuation sensitivity,” said Kennedy.

    Savers Value Village
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    went public Thursday with some fanfare, closing 27% above its $18 issue price. The company is the biggest for-profit thrift-store chain in North America, with 317 stores that operate under multiple names.

    The company is profitable, with net income of $11.9 million in the quarter through April 2, after a loss of $10.2 million in the same period a year earlier. For all of 2022, it had net income of $84.7 million, up from $83.4 million in 2021.

    Revenue for the quarter came to $327.5 million, down from $345.7 million in the year-ago period. Revenue totaled $1.4 billion for 2022, up from $1.2 billion in 2021.

    See: Money-losing food chain Cava showed IPO success. Is it finally time for some tech deals?

    Two other deals that made their debut on Thursday fared less well, however.

    Texas-based Kodiak Gas Services Inc. 
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     and Fidelis Insurance Holdings Ltd. closed lower after pricing below their estimated ranges and making other accommodations to get their deals through.

    Bermuda-based Fidelis, a reinsurer, downsized its deal to 15 million shares from a previous expectation that it would offer 17 million. The initial public offering was priced at $14 a share, below the proposed $16-to-$19 range.

    Maker of oil- and gas-production equipment Kodiak opened almost 3% below its issue price of $16, which was well below its proposed price range of $19 to $22.

    Fidelis has an unusual structure, in that it uses a third party for origination, underwriting and claims management, said Kennedy.

    “We think insurance investors wanted a discount for a company that didn’t own the underwriting group,” he said. “It has an experienced management team, though, so now they’ll just need to execute.”

    Kodiak, meanwhile, carries substantial debt and will need to undertake significant capital spendig in the coming years, just as gas prices have fallen back.

    It’s also worth noting that the last big oil and gas IPO, Atlas, “is slightly below its offer price,” Kennedy said.

    Atlas Energy Solutions Inc.
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    went public in March at an issue price of $18 a share. The stock was last quoted at $17.52.

    Still, Renaissance is expecting a gradual reopening of the IPO market in the second half, said Kennedy, who noted that the IPO ETF
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    has gained about 30% in to date in 2023, outperforming the S&P 500’s
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    14% gain.

    To date, there have been 52 IPOs this year, up 33% from the same time last year, when the market was effectively frozen. Almost $9 billion in proceeds have been raised, up 115% from last year but well below levels seen in frothier times.

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  • Does Nike have too many sneakers? Its financial results could tell us whether shoes will get cheaper.

    Does Nike have too many sneakers? Its financial results could tell us whether shoes will get cheaper.

    Are stores getting more desperate to sell sneakers? Fourth-quarter results from Nike Inc. on Thursday will probably provide part of the answer.

    Even as its some of its basketball shoes still put up double-digit sales gains — like those named after NBA icons LeBron James, Luka Doncic and Giannis Antetokounmpo — the athletic-gear maker, like its rivals, has faced weaker consumer demand overall. With customers forced to spend more money on necessities over the past year, they’ve had less to spend on new shoes.

    In March, Nike
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    +0.19%

    executives said that the demand backdrop remained “promotional” — one in which anyone selling sneakers and clothing was cutting prices more aggressively to attract customers. But ahead of Thursday’s results, some analysts also wondered whether the stalling demand has forced bigger changes to the way management thinks about its broader turn away from retailers — a core piece of its sales strategy.

    Nike over recent years has embarked on a plan to rely less on shoe retailers for sales and more on sales made directly to customers through its own stores and online. But recently, it decided to start selling clothing again at Macy’s
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    and shoes again at DSW, the shoe-store chain run by Designer Brands Inc.
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    — this after ending partnerships with both retailers over the past two years.

    The return to traditional retail has raised questions about whether Nike is looking to more aggressively clear product it’s had trouble selling, and whether management is re-evaluating the company’s go-it-alone sales strategy overall.

    “The big question on our minds heading into [Nike’s] quarter is what is going on with the [direct-to-consumer] pivot?” Quo Vadis analyst John Zolidis said in a note on Monday. “Reopening Macy’s and DSW seems odd in context of previous dismissive statements about undifferentiated retail.”

    He continued: “Further, neither of these retailers has a customer that correlates strongly with [Nike’s] highest-value segments. The easiest explanation is that [Nike] overestimated the dollars it could recapture from closed wholesale accounts and now has too much inventory it needs to clear.”

    What to expect

    Earnings: Analysts polled by FactSet expect Nike to earn 68 cents a share, down from 90 cents in the same quarter a year ago. Contributors to Estimize — a crowdsourcing platform that gathers estimates from Wall Street analysts as well as buy-side analysts, fund managers, company executives, academics and others — expect earnings per share of 75 cents.

    Revenue: Analysts polled by FactSet expect $12.58 billion in sales for Nike. Forecasts from Estimize call for sales of $12.72 billion.

    Stock price: Nike’s stock is only up 1.3% over the past 12 months. Shares got hit in September, after company executives warned of further price-cutting from rivals due to weaker demand. The stock rebounded later but gave up some gains in May. The stock was up 2% on Monday.

    What analysts are saying

    Nike in March said demand for product sold at full pricing remained solid. Still, sneaker chain Foot Locker Inc.
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    recently cut its outlook. Lots of Vans shoes are running at a discount, one analyst said last month, as the skater-centric brand competes with casual fare from the likes of Adidas
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    and others.

    Other analysts were also wondering about Nike’s return to Macy’s and DSW. But not everyone believed the move was a sign of deeper problems.

    “Investors are worried that this is a reversal in Nike’s shift from wholesale to [direct-to-consumer], but we don’t think the strategy is broken,” BofA analyst Lorraine Hutchinson said in a research note on Wednesday. “We expect to hear an explanation of these moves on the [conference] call rather than an about-face on its focus on reducing undifferentiated wholesale.”

    Still, the company faced concerns about sales abroad. Zolidis also said markets were increasingly worried about growth in China, whose recovery from pandemic lockdowns has stumbled.

    “Our recent conversations with companies in China suggest that trends are mixed,” Zolidis said. “The consumer is more value oriented, and job uncertainty is higher.”

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  • Ozempic and other weight-loss drugs boost pharmacy sales at Rite Aid

    Ozempic and other weight-loss drugs boost pharmacy sales at Rite Aid

    Rite Aid Corp. said Thursday that its fiscal first-quarter pharmacy sales got a boost from a new class of drug.

    Pharmacy sales, which rose 3.4% from a year ago, were boosted by higher sales of Ozempic and other GLP-1 receptor agonists, which are used to treat Type 2 diabetes and obesity.

    The higher sales did not translate into profit, however.

    “As the cost of these drugs is also high, the impact of the increase in volume of these drugs on our gross profit dollars is minimal,” Rite Aid Chief Financial Officer Matthew Schroeder told analysts on the company’s earnings call, according to a FactSet transcript.

    Still, the company
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    cheered investors by raising its full-year revenue guidance due to the sales bump from Ozempic and other high-dollar GLP-1 drugs. It now expects revenue of $22.6 billion to $23 billion, ahead of the FactSet consensus of $22.3 billion.

    Ozempic, Wegovy and Rybelsus, which are made by Novo Nordisk
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    +0.17%

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    ,
    and Mounjaro, which is made by Eli Lilly & Co.
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    have become so popular in the U.S. that supplies have at times run short and the U.S. Food and Drug Administration has been forced to warn patients against using knockoff versions.

    The drugs are administered by injection and mimic the effects of GLP-1, a gut hormone that can help control blood-sugar levels and reduce appetite. GLP stands for glucagon-like peptide.

    Ozempic, Rybelsus and Mounjaro have been approved by the Food and Drug Administration for treatment of Type 2 diabetes, while Wegovy is approved for people with obesity and for certain people with excess weight combined with weight-related medical problems. 

    Last year, more than 5 million prescriptions for Ozempic, Mounjaro, Rybelsus or Wegovy were written for weight management, up from 230,000 in 2019, according to data and analytics firm Komodo Health.

    Obesity drugs could be a $54 billion market by 2030, up from $2.4 billion in 2022, Morgan Stanley said in a report last year. Reports of people who take GLP-1 drugs seeing improvements in addictive behaviors such as smoking and drinking have lately amplified interest in the medications.  

    For more, read: The dark side of the weight-loss-drug craze: eating disorders, medication shortages, dangerous knockoffs

    Drug companies, including Lilly and Pfizer Inc.
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    are now working to develop treatments in the form of pills that could be more convenient alternatives to the injectables.

    See now: Weight-loss drugs in development aim to replace injections with pills

    Rite Aid’s overall numbers surprised on the upside, as its loss was narrower than expected and revenue beat the consensus estimate.

    For more, see: Rite Aid’s stock soars 7.5% after company surprises with earnings that are less bad than feared

    Eleanor Laise contributed.

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  • ‘This is a game changer’: Ahead of Amazon Prime Day, a new law makes it harder for online sellers to hawk fake or stolen products

    ‘This is a game changer’: Ahead of Amazon Prime Day, a new law makes it harder for online sellers to hawk fake or stolen products

    Shopping online has just gotten safer.

    The INFORM Consumers Act, which went into effect Tuesday, aims to limit the sales of stolen and counterfeit products on e-commerce platforms. 

    The measure, which requires e-commerce sites to verify and disclose information about their high-volume third-party sellers, was passed into law following a lobbying campaign to address counterfeit products after being left out of the bipartisan Chips and Science Act last year.

    All online marketplaces, including eBay, Etsy, Poshmark and Amazon’s third-party sales platform, will now be required to collect information from high-volume sellers, defined as those selling 200 items or more totaling at least $5,000 over the previous 12 months. These third-party sellers must submit information such as a government-issued ID, a bank-account number, a working email address and phone number, and a taxpayer identification number. 

    Customers will also be able to find the verified contact information for bigger third-party sellers — those with sales of over $20,000 a year — and to get in touch with them outside of the e-commerce platform. In the past, consumers often had to engage within the platform operator in order to communicate with a seller. 

    Those bigger sellers will also have their full names and physical addresses listed on their product pages in addition to their contact information, according to the Federal Trade Commission’s business guide

    “This is a game changer,” said Teresa Murray, director of the consumer watchdog office at U.S. PIRG, a nonprofit that lobbies on behalf of the public interest. “For bad guys, stealing items has generally been the difficult part. Selling things online once you’ve stolen them is easy. We hope that with the INFORM Act, it’s not nearly as easy in the future.”

    ‘The only people opposing this may be thieves.’


    — Teresa Murray, U.S. PIRG

    The act goes into effect just weeks before Amazon Prime Day, when the world’s biggest e-commerce site rolls out discounts for Prime members. This year, Prime Day will be held over two days, on July 11 and 12.

    Picks: Amazon Prime Day is July 11-12. You’ll need the $139-a-year Prime membership to access the deals, but is it actually worth it?

    Also see: Amazon sued by FTC, which alleges people were ‘tricked and trapped’ into Prime subscriptions

    Several e-commerce platforms, including Amazon and eBay, supported the INFORM Consumers Act. TechNet, a national network of technology CEOs and senior executives representing what it calls the innovation economy, wrote to leaders in Congress last December, saying the law would improve consumer safety and increase transparency. 

    In a statement provided to MarketWatch, eBay
    EBAY,
    +2.32%

    said it “fully supports transparency and is committed to a safe selling and buying experience for our customers. We were proud to support” the law “to protect consumers from bad actors who seek to misuse online marketplaces, while also ensuring important protections for sellers. We are fully prepared to comply with the new law.”

    Etsy
    ETSY,
    +3.45%

    said it “has long been supportive of the INFORM Act passing into law, as a balanced and thoughtful approach to make the ecommerce landscape safer for both consumers and sellers.” In a statement provided to MarketWatch, the company said, “We are taking appropriate steps to comply with the INFORM Act requirements.”

    Amazon
    AMZN,
    +1.45%

    and Poshmark, owned by South Korea–based Naver Corp.
    035420,
    -0.59%
    ,
    did not immediately respond to MarketWatch requests for comment.

    Some analysts, however, said the new law lacks stronger protections that were included the SHOP SAFE Act, an earlier bill that did not get passed by Congress. The INFORM Act, they noted, does not hold online platforms liable when a third party sells harmful counterfeit products or when the platform has not followed certain best practices. 

    “Notably, the legislation is supported by Amazon and other marketplaces as it’s seen as a watered-down bill that would head off more stringent legislation like the SHOP SAFE Act,” Ben Koltun, director of research at Beacon Policy Advisors, wrote in a note last year.

    So how can consumers spot counterfeit or stolen items? A guide from PIRG has tips, such as keeping an eye out for products with suspiciously low prices or featuring misspellings or mislabeling or low-quality, photoshopped photos in their listings.

    PIRG also cautions consumers about purchasing medications online. Always check the legitimacy of online pharmacies, it says. 

    “Many online marketplaces haven’t been doing enough to protect consumers from sellers who appear to be peddling stolen or counterfeit goods,” Murray said. “The only people opposing this [new law] may be thieves.”

    Victor Reklaitis contributed.

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  • Hennes & Mauritz 2Q Sales SEK57.62B

    Hennes & Mauritz 2Q Sales SEK57.62B

    By Dominic Chopping

    STOCKHOLM–Sweden’s H&M Hennes & Mauritz on Thursday reported fiscal second-quarter sales that were slightly below expectations.

    The fashion retailer said sales for the quarter ended May 31 increased by 6% on year to 57.62 billion Swedish kronor ($5.38 billion), while net sales in local currencies were “flattish”.

    Analysts…

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  • ‘Greedflation’ is replacing inflation as companies raise prices for bigger profits, report finds

    ‘Greedflation’ is replacing inflation as companies raise prices for bigger profits, report finds

    That’s the practice by many S&P 500 food and consumer companies of raising prices to protect what a new report calls their “cushioned corporate profits,” and it has enabled them to boost margins through the current inflationary period.

    Companies including Kimberly-Clark Corp.
    KMB,
    -0.45%
    ,
    PepsiCo Inc.
    PEP,
    -0.18%
    ,
    General Mills Inc.
    GIS,
    -0.88%

    and Tyson Foods Inc.
    TSN,
    -0.36%

    have on recent earnings calls touted their ability to raise prices, earning tidy profits and rewarding their shareholders as they go, according to the report from Accountable.US, a liberal-leaning consumer-advocacy group.

    And they have signaled their intention to continue to take “price actions” even as the Federal Reserve has hiked interest rates an unprecedented 10 times in an effort to tame inflation.

    “Higher interest rates haven’t stopped S&P companies, especially in the big food industry, from raising consumer prices despite reporting billions in extra net earnings and over a trillion dollars in new giveaways to wealthy investors,” said Liz Zelnick, director of economic security and corporate power at Accountable.US.

    “Corporate greed is a stubborn thing and requires serious action from Congress. The Fed has not seen an adequate return on its investment in a policy that has already created fissures in the economy that could lead to recession. It’s just not worth it,” she said. 

    Now read: Skip, pause or hike? A guide to what is expected from the Fed on Wednesday.

    Accountable.US is not alone in calling out price hikes on essentials including food. Walmart Inc.
    WMT,
    +0.73%

    is also unhappy with packaged-food companies that have steadily raised prices in dry grocery and consumable goods, according to a recent report from research company CFRA.

    “Given Walmart’s enormous bargaining power over its suppliers, we expect the retail giant to push back on further price increases from its packaged-food suppliers,” he said. That is expected to hurt margins, especially if volume growth does not recover.

    For more, see: Inflation in goods from cereal to soup has given a boost to consumer food stocks. Can Walmart help bring prices, both food and stock, down?

    May inflation data released Tuesday found that food prices were up 0.2% from April, after remaining flat for the previous two months. Food prices are up 6.7% over the last year. The food-at-home index is up 5.8% over the last year, while the index for cereals and bakery products is up 10.7%.

    Food prices started to rise about two years ago, when supply-chain issues and higher fuel and commodity prices led companies to pass some of those costs on to customers.

    But companies appear determined to raise prices even more, despite a decline in shipping and gas costs. Gasoline was down 5.6% in May from April and fuel oil fell 7.7%, according to consumer-price-index figures.

    Also read: U.S. inflation slows again, CPI shows, and might keep Fed on sidelines

    Kimberly-Clark executives told analysts on its recent earnings call that the company is able to “rapidly implement broad pricing actions” and acknowledged that “pricing has continued to be a big driver behind our top-line growth.”

    The company’s first-quarter earnings topped expectations and it raised guidance for the full year. That’s after it raised prices by 10% for a second straight quarter, driving margins wider by 340 basis points.

    Shareholders were rewarded to the tune of $425 million during the quarter, the Accountable.US report notes.

    See also: Colgate-Palmolive’s stock pops after earnings beat as company raises prices by double-digit percentage

    PepsiCo Chief Executive Ramon Laguarta told analysts on that company’s recent earnings call that most of its price increases are behind it.

    However, he said, “obviously, there are some markets, highly inflationary markets around the world, where we might have to take additional pricing. If you think about Argentina, Turkey, Egypt — those kinds of markets where the currencies are suffering. But the majority of our pricing is already done,” he said, according to a FactSet transcript.

    PepsiCo’s 2022 earnings rose 16.9% to nearly $9 billion, and it spent more than $7.6 billion on stock buybacks and dividends, with the former up 1,313% from 2021.

    General Mills, meanwhile, bragged about “getting smart about how we look at pricing” on its recent call. The parent of brands including Cheerios, Nature Valley, Blue Buffalo pet products and Pillsbury raised its fiscal 2023 guidance in February.

    And Tyson executives touted the “significant pricing power of our portfolio with a year-over-year increase of 7.6%.” Tyson’s latest quarter included a surprise loss, as it was hit by weak demand for meat, along with plant closures and job cuts.

    For more, see: Tyson Foods stock slides after meat producer swings to surprise loss

    But Tyson had net income of over $3.2 billion in 2022, up from $3 billion in 2021, and it rewarded shareholders with $1.35 billion in buybacks and dividends.

    For Accountable.US, it’s more compelling evidence that the Fed’s rate-hike strategy “has failed to root out one of the main drivers of inflation and should give the [Federal Open Market Committee] pause before lifting rates again this week to the detriment of jobs and the economy.”

    The Consumer Staples Select Sector SPDR exchange-traded fund
    XLP,
    +0.36%

    has fallen 1.6% to date in 2023, while the SPDR S&P Retail ETF
    XRT,
    +1.89%

    has gained 4.6%. The S&P 500
    SPX,
    +0.62%

    has gained 13% in the same period.

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  • GameStop Shares Fall as It Terminates CEO and Ryan Cohen Becomes Executive Chairman

    GameStop Shares Fall as It Terminates CEO and Ryan Cohen Becomes Executive Chairman

    GameStop Shares Fall as It Terminates CEO and Ryan Cohen Becomes Executive Chairman

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  • GameStop fires CEO, elects Ryan Cohen as executive chairman; stock plunges

    GameStop fires CEO, elects Ryan Cohen as executive chairman; stock plunges

    GameStop Corp. fired Chief Executive Matthew Furlong on Wednesday and said that its board had elected activist investor Ryan Cohen as its executive chairman, effective immediately.

    Shares of the videogame retailer and meme stock sank 19% after hours following the brief press release detailing the move. That release did not offer a reason for Furlong’s firing and was made shortly ahead of the chain’s quarterly results.

    GameStop
    GME,
    +5.75%
    ,
    in its earnings release, said it would not be holding a conference call to discuss those results. But in a filing detailing those financials, the company said Cohen’s leadership would be good for shareholders.

    “We believe the combination of these efforts to stabilize and optimize our core business and achieve sustained profitability while also focusing on capital allocation under Mr. Cohen’s leadership will further unlock long-term value creation for our stockholders,” GameStop said.

    Cohen, the co-founder and former CEO of online pet-supplies retailer Chewy Inc.
    CHWY,
    -4.10%
    ,
    became GameStop’s board chairman in 2021, after joining the board that year and building up a stake in the company earlier. His influence at the company, as the Wall Street Journal reported in 2021, led to feuding with management and an explosion in popularity among the meme traders who helped launch GameStop’s stock higher. He also amassed and then sold off a stake in Bed Bath & Beyond, the home-goods retailer that is in the process of closing up shop.

    GameStop announced the move on Wednesday as it struggles to put up a consistent profit and tries to cut costs. Under Cohen’s control, the company has redoubled its focus on physical stores — as more of the gaming industry becomes more online and mobile — after initially making a bigger push toward e-commerce.

    GameStop, in a separate filing on Wednesday, said Cohen’s responsibilities would include “capital allocation, evaluating potential investments and acquisitions, and overseeing the managers of the company’s holdings.”

    In that filing, GameStop said that Furlong was fired without cause. According to his offer letter in 2021, Furlong is due any unvested stock that would have vested in the next six months. According to the terms outlined in that letter, Furlong would have been eligible to receive nearly $2.5 million in stock in August. He’ll also receive $100,000 in base salary. The filing also said Furlong had resigned as a company director.

    The company also said it appointed Mark Robinson as its general manager and principal executive officer. Robinson has worked as vice president and general counsel at the company since January 2022, and held other roles at GameStop since 2015, the filing said.

    GameStop also said it appointed Alain Attal as the lead independent director of the board and dissolved the Strategic Planning and Capital Allocation Committee.

    For its first quarter, GameStop reported a net loss of $50.5 million, or 17 cents a share — far narrower than the $157.9 million, or 52 cents a share, in the same quarter last year. Net sales were $1.24 billion, down from $1.38 billion in the prior-year quarter. GameStop ended the quarter with cash and cash equivalents of $1.06 billion.

    Popular videogames, such as “The Legend of Zelda: Tears of the Kingdom” and “Hogwarts Legacy,” seem likely to help GameStop’s sales up ahead. And the company has cut costs in an effort to improve profitability.

    The company reported a profit in the prior quarter, helped by holiday-season demand. Still, the two analysts polled by FactSet don’t expect another profitable quarter until this year’s holiday quarter.

    Wedbush analyst Michael Pachter, in a note last week, noted that broader challenges for the retailer include “a shift towards digital, mobile and subscription software (and away from the traditional packaged business).”

    GameStop shares are down 29% over the past 12 months. By comparison, the S&P 500 Index
    SPX,
    -0.38%

    is up 2.7% over that period.

    Jeremy Owens contributed to this story.

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  • Lowe’s stock falls after earnings beat expectations but full-year guidance was cut

    Lowe’s stock falls after earnings beat expectations but full-year guidance was cut

    Shares of Lowe’s Companies Inc. dropped Tuesday, after the home-improvement retailer beat fiscal first-quarter profit and sales expectations but cut its full-year outlook, citing lower demand for discretionary items.

    Net income for the quarter to May 5 was $2.26 billion, or $3.77 a share, after income of $2.33 billion, or $3.51 a share, in the same period a year ago. Net income fell while earnings per share increased as the number of shares outstanding used to calculate EPS dropped 9.8% to 597 million.

    Excluding nonrecurring items, such as an asset-sale gain, adjusted EPS of $3.67 beat the FactSet consensus of $3.44.

    Total sales declined 5.5% to $22.35 billion, above the FactSet consensus of $21.60 billion, while the same-store sales decline of 4.3% missed expectations for a 3.4% decline.

    Cost of sales fell less than sales, down 5.1% to $14.82 billion, as gross margin contracted to 33.7% from 34.0%. The value of merchandise inventory as of May 5 fell 3.5% from a year ago to $19.52 billion.

    The stock
    LOW,
    -1.51%

    shed 1.0% ahead of the open, but pared earlier premarket losses of as much as 3.4%.

    During the quarter, Lowe’s said it spent $2.1 billion to repurchase 10.6 million shares and paid out $633 million in dividends.

    “We are pleased with the performance of our business despite record lumber deflation and unfavorable spring weather,” said Chief Executive Officer Marvin Ellison. “Although we delivered positive comparable sales in Pro and online for the first quarter, we are updating our full-year outlook to reflect softer-than-expected consumer demand for discretionary purchases.”

    For fiscal 2023, the company lowered its guidance ranges for adjusted EPS to $13.20 to $13.60 from $13.60 to $14.00 and sales to $87 billion to $89 billion from $88 billion to $90 billion. The outlook for same-store sales was revised to down 2% to down 4% from flat to down 2%.

    Meanwhile, Wall Street’s full-year estimates were within the lowered guidance ranges, as the FactSet consensus for EPS was $13.56. The estimate for sales was $88.36 billion and for same-store sales was a decline of 2.2%.

    Lowe’s results came less than a week after rival Home Depot Inc.
    HD,
    -0.08%

    reported a first-quarter profit beat — but sales missed expectations. Home Depot also lowered its full-year outlook.

    The stock has gained 2.0% year to date through Monday, while Home Depot shares have dropped 8.0% and the S&P 500 index
    SPX,
    +0.02%

    has advanced 9.2%.

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  • How pickleball could help save America’s malls

    How pickleball could help save America’s malls

    When Andrew Pessano was looking to create a state-of-the-art indoor pickleball facility in southern New Jersey and take advantage of the surging interest in the sport, he considered building it from scratch. But he and his partners realized it would take at least two years and likely cost well over $1 million.

    So, Pessano and his team found a different way to achieve their goal: They leased a vacant big-box space — formerly home to a Burlington
    BURL,
    +0.44%

    store, in fact — and turned it into Proshot Pickleball, a membership facility replete with eight cushioned courts, viewing decks, a pro shop and a players lounge.

    Pessano says that since opening in mid-February, he’s already signed up more than 300 paid members. “The first couple of months we’re busy, busy,” he adds.

    Proshot Pickleball could be something of a model for the future of what is often described as the fastest-growing sport in the country; a game that shares elements with tennis, ping-pong and badminton. In short, pickleball could soon be coming to that vacant space in your local mall — or to that abandoned big-box store. (Consider all those soon-to-be-empty Bed Bath & Beyond locations.)

    Pickleball ‘will help America’s malls to become the social hub they once were.’

    The trend is already happening: A recent retail-outlook report from JLL, a company that tracks the commercial real-estate market, points to pickleball facilities in locations ranging from a former Saks Off Fifth store in Connecticut, to a shuttered Belk department-store location in Georgia.

    Pickleball “court owners are targeting malls for expansion,” says the report.

    Of course, no one is saying that pickleball won’t continue to be played in parks and other public spaces, or even people’s driveways. Inherent in the game’s appeal, say fans, is that it can be played just about anywhere. But there are notable factors driving the move into malls and other retail locations.

    Begin with that surging interest in pickleball. Nearly 9 million Americans are now playing the game, the Sports & Fitness Industry Association reports — an astounding year-over-year increase of 85.7%. 

    All those players need places to play, but the lack of available public court space in many cities and towns has led to all sorts of skirmishes, with issues arising when players use tennis facilities or take up space in playgrounds. As one parent complained about the pickleballers when the turf war erupted at a New York City playground: “It’s not a coexistence, it’s a complete and utter takeover.”

    See also: As pickleball players spend billions on the sport, they run into conflicts and controversy

    That leaves more room for operators of private facilities, like the pickleball court owners that JLL cites, to enter the picture — and many concepts, even chains, are starting to emerge to address the demand. But where should they go? Again, building from scratch can take a lot of money, and time.

    Nearly 9 million million Americans are now playing pickleball, the Sports & Fitness Industry Association reports — an astounding year-over-year increase of 85.7%.

    Meanwhile, mall operators and landlords of other retail spaces, such as big-box stores, are continually looking for new concepts to bring into their spaces, especially as brick-and-mortar retail stores fight to stay relevant and afloat at a time when online shopping has become the norm for many Americans.

    In turn, those concepts are more often about “experiences” rather than shopping, says James Cook, a research director at JLL. Think museums, golf simulators and pickleball.

    It’s about redefining the retail landscape, Cook says. “The idea is this is something new and unique,” he adds of these emerging types of mall/big-box tenants, including pickleball facilities.

    Mike Leigh, author of “Zen and the Art of Pickleball,” sees an especial logic to pickleball in malls. These retails spaces are all about bringing people together, something that is all too easily forgotten in a point-and-click world of online shopping. And pickleball is a game that’s inherently social because of its close-up nature.

    So the two make a natural combo, Leigh says: Pickleball “will help America’s malls to become the social hub they once were.”

    CityPickle, a New York City-based operator of pickleball facilities, opened a pop-up venue at the Hudson Yards development last year.


    CityPickle

    Still, there are plenty of arguments to the contrary, so this is not a one-size-fits-all solution.

    America’s malls and other retail hubs have their share of empty spaces, but the situation may not be as dire as it seems, Cook says. The points to the current retail vacancy rate of 4.2% being “at historic lows,” noting that there’s been considerable recovery since the darkest days of the pandemic.

    Moreover, he says, higher-end malls are doing especially well — and it’s those spaces that tend to be a good fit for experiential concepts like pickleball. In other words, these malls may like the idea, but they aren’t necessarily begging for tenants.

    Plus, Cook says pickleball facilities can need lots of space — concepts often have a food-and-drink component for pre- and post-game socializing. And facility operators like to have outdoor space, if possible, for the warmer months. Such requirements can pose challenges in a traditional mall setup, he says.

    “I think [pickleball] only works in some specific instances,” he says.

    Pessano, of South Jersey’s Proshot Pickleball, points to another issue: If the space’s support columns aren’t situated far enough apart from one another, it will make it difficult to have enough courts to make for a viable business. And the ceiling height can’t be too low, either, he adds.

    These discouraging realities notwithstanding, it appears pickleball operators will continue to consider abandoned mall spaces and big-box stores as a good option to create much-needed court space. Take CityPickle, a private operator that already set up a pop-up facility in New York City’s Hudson Yards mixed-use development in the past year, and is looking to establish permanent court spaces in the Big Apple and elsewhere.  

    CityPickle founders Mary Cannon and Erica Desai say they are considering abandoned retail locations as possibilities. They like the open space these places provide, and they say that landlords appreciate having tenants that bring the kind of buzz and energy that a pickleball facility offers.

    “It makes so much sense,” says Cannon.

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  • Home Depot stock falls after sales miss and lowered outlook, citing lumber deflation and bad weather

    Home Depot stock falls after sales miss and lowered outlook, citing lumber deflation and bad weather

    Shares of Home Depot Inc. dropped Tuesday, after the home improvement retail giant reported fiscal first-quarter profit that topped expectations but sales that fell short, and it cut the full-year outlook, citing lumber deflation and bad weather.

    Net income for the quarter to April 30 fell to $3.87 billion, or $3.82 a share, from $4.32 billion, or $4.09 a share, in the same period a year ago. That topped the FactSet consensus for earnings per share of $3.80.

    Sales declined 4.2% to $37.26 billion, well below the FactSet consensus of $38.31 billion.

    “Our sales for the quarter were below our expectations primarily driven by lumber deflation and unfavorable weather, particularly in our Western division as extreme weather in California disproportionately impacted our results,” said Chief Executive Officer Ted Decker.

    Overall same-store sales fell 4.5% to miss the FactSet consensus for a 1.6% decline, with same-store sales in the U.S. falling 4.6%.

    The stock sank 3.6% toward a seven-month low in premarket trading.

    “Given the negative impact to first quarter sales from lumber deflation and weather, further softening of demand relative to our expectations, and continued uncertainty regarding consumer demand, we are updating our guidance to reflect a range of potential outcomes,” said Chief Financial Officer Richard McPhail.

    For fiscal 2023, the company cut its EPS outlook to a decline of between 7% and 13% from a decline in the mid-single digit percentage range, and lowered its sales outlook to a decline of between 2% and 5% from approximately flat.

    The stock has dropped 10.2% over the past three months through Monday, while the Dow Jones Industrial Average
    DJIA,
    +0.14%

    has slipped 1.0%.

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  • Walmart, Alibaba, Target, and More Stocks to Watch This Week

    Walmart, Alibaba, Target, and More Stocks to Watch This Week

    Walmart, Alibaba, Target, and More Stocks to Watch This Week

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  • Mullen Automotive now a ‘go to’ meme stock, says influential trader

    Mullen Automotive now a ‘go to’ meme stock, says influential trader

    Mullen Automotive Inc. is attracting more meme-like attention from retail investors than traditional meme stock darlings AMC Entertainment Holdings Inc. and GameStop Corp., according to an influential meme-stock trader.

    The electric vehicle company’s stock has become the “meme go to” for retail investors, said the trader, who goes by the name Obi. The trader participates in the WallStreetBets group on Reddit under the user name Major-Access2321.

    Obi, whose Making Easy Money YouTube channel has over 28,000 subscribers, said that Mullen
    MULN,
    -7.98%

    is generating plenty of buzz across social media. “When it comes to meme stock world on Reddit, Twitter and now even Facebook, groups are popping up calling themselves the ‘MULN army’,” he told MarketWatch.

    The trader said that “less and less” people are speaking about AMC Entertainment
    AMC,
    +3.14%

    and GameStop
    GME,
    +2.38%
    .
    “More and more people are speaking about MULN … they call it the meme that makes sense,” he added.

    Mullen shares have seen a dramatic spike in trading volume recently, with average trading volume of 1.1 billion shares Wednesday and 547.8 million shares over the past five days, according to FactSet data. The stock’s 65-day average trading volume is 279 million shares. Mullen ended Wednesday’s session down 21.1% on the company’s announcement of a reverse stock split.

    Related: Mullen Automotive shares plunge on reverse stock split announcement

    AMC’s stock ended Wednesday’s session up 4.4% on trading volume of 25.1 million shares, below its 65-day average trading volume of 35.4 million shares. GameStop’s stock closed up 1.7% Wednesday on trading volume of 3.2 million shares, below its 65-day average of 4.8 million shares.

    The stock was down 18% on Thursday.

    The over outlook for the EV market looks bright, according to Obi. “Retail feel like they have something special here with MULN,” he added.

    On Wednesday Mullen Automotive Inc. announced that it will conduct the 1-for-25 reverse stock split as the electric-vehicle company looks to maintain its Nasdaq listing.

    The stock will continue to trade on the Nasdaq Capital Market under the existing symbol “MULN” and will begin trading on a split-adjusted basis at market open Thursday.

    In March, Mullen announced that the Nasdaq had approved the company’s request for a 180-day extension to meet the $1 minimum-bid-price requirement. On Sept. 7, 2022, the Nasdaq notified the company that its stock was not compliant with rules as it had traded below $1 for more than 30 days.

    Related: After TOP Financial’s surge, influential meme-stock trader looks for next big opportunity

    Mullen’s stock soared last year after Amazon.com Inc.’s
    AMZN,
    +0.34%

    delivery partner placed an order for up to 600 cargo vans, and the company has since teamed up with Rapid Response Defense Systems to supply vans for federal government business.

    In December, Mullen announced that it is partnering with Loop Global Inc. to build public and private EV-charging technology, infrastructure and network solutions. Earlier this year, Mullen joined forces with Qiantu Motors to launch what they called an EV supercar.

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