Retail Brew // Morning Brew // Update

May 14, 2025

Hi there. American Eagle shares plummeted yesterday as it withdrew its full-year guidance after sharing underwhelming preliminary Q1 results. Perhaps Travis Kelce’s forthcoming campaign with the retailer shot earlier this month—and, more importantly, the homemade Pop-Tarts Taylor Swift reportedly baked for the crew—could give AE an extra boost in Q2.

In today’s edition:

—Alex Vuocolo, Erin Cabrey

SUPPLY CHAIN

Extra underwear

Mack Weldon

There’s an old theory among economists that sales of men’s underwear are a reliable measure of which way the economy is headed.

Now known as the Men’s Underwear Index (MUI), the idea originated with former Federal Reserve chairman Alan Greenspan, who believed that underwear was exactly the kind of basic necessity that a consumer might delay purchasing if they were worried about their financial future

Whatever the merits of this theory, underwear could prove a bellwether in the latest economic crisis as President Donald Trump implements staggering new tariffs on major trading partners such as China and Vietnam.

According to Mack Weldon, a direct-to-consumer underwear brand, sales of men’s underwear spiked 90% since March 15, including following the president’s announcement of reciprocal tariffs on March 18. In addition, Google searches for “men’s underwear” surged over the same period.

In response to increasing demand, Mack Weldon is trying out a new marketing strategy it calls “price-locking,” which is designed to soften the impact of tariffs with a promise to maintain prices at their current level until at least July 4, regardless of what happens with tariffs.

“This is a really tense economic environment that we’re all living through,” CEO Brian Berger told Retail Brew. “We just found that this was an opportunity to present something that offers medium-term stability for our consumers in the form of a price lock.”

Keep reading here.—AV

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STORES

Well, that’s just tariff-ic

Pedro Pardo/Getty Images

The US and China spent the weekend working on a trade agreement that could significantly lower the 145% tariff rate proposed earlier this year. The trade talks came just a few days after the US struck a deal with the UK to remove trade barriers on key products such as beef and ethanol, while retaining a 10% baseline tariff on the country.

In the meantime, the debate continues over who these tariffs will benefit. Writing for Marketplace Pulse, analyst Ben Donovan argued last week that Chinese firms paradoxically could end up benefiting the most from the tariffs.

Citing comments from Amazon CEO Andy Jassy, Donovan explained that US sellers sourcing from Chinese manufacturers often have to deal with intermediary suppliers, whereas Chinese firms are selling directly to US consumers, and so have “a significantly lower baseline” when it comes to cost.

Keep reading here.—AV

COMMUNITY

Coworking with Danial Reed

Danial Reed

On Wednesdays, we ~~wear pink~~ spotlight Retail Brew’s readers. Want to be featured in an upcoming edition? Click here to introduce yourself.

Danial Reed is VP of marketing at home improvement retail company E.C. Barton & Company.

How would you describe your job to someone who doesn’t work in retail? I have two jobs. The first is to understand the home improvement needs and challenges of homeowners and professionals, and the most efficient and effective way to reach them in order to tell our story and share our value proposition. The second is to fulfill the mission, vision, and business objectives of our 100% employee-owned company. The two go hand in hand; when we experience success in one area, the results inherently lift the other.

One thing we can’t guess about your job from your LinkedIn profile? My family is my first priority and I love being outdoors—on the lake, at the pool, or on a great hike. My husband and I backpacked through the Grand Canyon for three days in 2020 and it was the most amazing experience.

What’s your favorite project you’ve worked on? The rebranding of our home improvement retail division known as Home Outlet. When I moved into my role, our team was tasked with merging the branding of two different divisions within the company and overcoming a failed rebrand pilot in select locations. It was a huge challenge for our team and a major undertaking that required collaboration across the company. The project also required our team to be innovative with our limited resources. Ultimately, the results have been better than we could have hoped and I felt a great sense of pride in what we were able to accomplish.

Which emerging retail trend are you most excited about right now, and why? While there are challenges to work through, the capabilities and future opportunities AI will present in retail and the marketing industry in general will be transformative.

Keep reading here.—EC

Together With Domino’s

Sharing the pie. From now through July 31, 2025, new Domino’s Pizza Concierge customers who mention code GIFT50 prior to ordering will receive $50 worth of gift cards on orders of $500 or more. It’s the easier way to coordinate food delivery to 2 locations or thousands. Here’s a tip: Dole out the gift cards as another employee reward. Learn more.

MASTERING CUSTOMER DATA

Jason Solo

As economic uncertainty looms, retailers are turning to customer data to personalize shopping experiences, predict trends, and optimize operations—unlocking insights that can drive loyalty, efficiency, and growth in a shifting market. Read about what data retailers should focus on, how data predicts customer trends and personalized experiences, and how to forecast seasonality.

Check it out

SWAPPING SKUS

Today’s top retail reads.

Steep climb: After scoring a 43% year over year sales boost in the first quarter, sneaker maker On said it’ll raise prices to position itself as a more premium brand. (Retail Dive)

Slaying the search: How brands can tap into Gen Z’s use of ChatGPT for fashion advice. (Vogue Business)

O Christmas fee: Spring may have just sprung, but Trump’s tariffs are already promising to upend the holiday shopping season. (Bloomberg)

The RevOrg’s must-read: Revenue Brew is your new twice-weekly analysis of strategies and trends for revenue professionals. Subscribe here.*

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