Retail Brew // Morning Brew // Update

May 02, 2025

Hi, it’s Friday. And while Amazon may not be breaking down tariff costs, it finally broke its vow of silence on the topic. CEO Andy Jassy told investors on its Q1 earnings call Thursday, “We haven’t seen any attenuation of demand yet. To some extent, we’ve seen some heightened buying in certain categories that may indicate stocking up in advance of any potential tariff impact.”

In today’s edition:

—Jeena Sharma, Erin Cabrey, Matty Merritt

MARKETING

The fundamentals of Kering

Anjelika Gretskaia/Getty Images

Kering’s less-than-promising Q1 results recently sent waves of disappointment through the luxury industry as the French conglomerate reported revenues plunging 14% year over year.

The results put a particular focus on already troubled brand Gucci, which experienced a sharp 25% drop in sales, underscoring the brand’s ongoing struggles to resonate with consumers. Meanwhile, brands like YSL also saw a 9% decrease in sales. Kering attributed much of its ongoing troubles to weak overall performance in China and North America among other regions.

“Analysts were already worried about luxury in 2025, and given the macroeconomic environment and global uncertainty, I am expecting weak sales throughout the year,” Wendy Zajack, adjunct faculty at Georgetown University’s McDonough School of Business, who specializes in luxury goods and marketing, told Retail Brew in an email.

While Kering may have anticipated the results, it has tried to make some unexpected moves to respond to challenges, namely its appointment of Demna as the creative director at Gucci. But will the decision—likely aimed at revitalizing the flailing brand’s appeal, especially among younger consumers—work in its favor in the long run? Most analysts remain cautiously optimistic.

Keep reading here.—JS

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STORES

Inside jobs

Alexandrefagundes/Getty Images

In April, sneaker brands tapped new leaders, former and new Ulta Beauty execs were on the move, and Rodney McMullen resigned—again. Here are the retail C-suite shifts to know:

Macy’s hired Thomas J. Edwards, COO and CFO at Michael Kors owner Capri Holdings, as its new COO and CFO. He’ll take over from Adrian Mitchell, who will depart on June 21.
LVMH appointed Ramon Ros, former president and CEO of Louis Vuitton China, as Fendi’s new CEO, and brought on Charlotte Coupé, formerly a leader of Louis Vuitton’s men’s ready-to-wear business, as CEO of Kenzo.
Puma’s CEO Arne Freundt left his role after 14 years with the company due to differences with its supervisory board. Former Adidas exec Arthur Hoeld was tapped to fill the role on July 1.
On Co-CEO Martin Hoffman will take over as sole chief exec come July 1, with Co-CEO Marc Maurer departing after 12 years with the sneaker maker.
Ulta Beauty announced Revolution Beauty CEO Lauren Brindley will serve as its new chief merchandising and digital officer, effective June 3, succeeding Monica Arnaudo, who is retiring.

Keep reading here.—EC

QSR

Not lovin’ it

Francis Scialabba

Your mom was right—y’all do got burgers at home. McDonald’s reported a 3.6% drop in US same-store sales in Q1, the steepest decline since the beginning of Covid lockdowns in 2020.

CEO Chris Kempczinski said lower- and middle-income customers pulled back the most, which signals to the Golden Arches that cash-strapped consumers are starting to tighten their budgets even more amid economic uncertainty.

And McDonald’s isn’t alone. Fast-food behemoths like KFC, Pizza Hut, and Domino’s all saw US sales declines last quarter. Americans even pulled back on burrito bowl spending at Chipotle..

Keep reading here on Morning Brew.—MM

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SWAPPING SKUS

Today’s top retail reads.

Marked down: The CEO of department store Kohl’s has been fired after an investigation found “undisclosed conflicts of interest,” the company said. (the Wall Street Journal)

Duty calls: DuPont de Nemours said tariffs may result in an extra $60 million in expenses this year. (the Wall Street Journal)

Where’s the beef: Wendy’s changed its outlook and doesn't expect sales to grow this year. (Bloomberg)

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