Eoin Comerford

New tariffs on apparel and footwear imports from key manufacturing regions are putting real pressure on costs. It’s a direct hit to unit economics. For U.S. businesses, profit can flip negative if costs are absorbed. Push prices higher, and you risk volume. >> Pressure test your exposure at the SKU level. Use real import flow and cost data. >> Activate customs strategies like First Sale and bonded warehousing to reduce the hit. >> Re-evaluate your sourcing footprint. Look for flexibility, not just cost. >> Build pricing guardrails that protect margin without killing demand. There are no silver bullets. But there are smart plays. If you're working through this, let’s talk.

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Returns: The Hidden Profit Killer Every Retailer Faces As every retailer knows, returns aren’t just a customer service issue — they’re a major operational and financial one. Managing them effectively can make or break your margins. Industry-wide, ecommerce return rates range from 16% to 40%, and for apparel, it often hits the high end of that scale — around 30–40%, especially post-holiday. At Flyclothing.com, we’ve kept our return rate around 5%, thanks to a straightforward 30-day policy where customers are responsible for return shipping. That small barrier helps deter the “buy-try-return” behavior that plagues much of online retail. However, the story changes dramatically on marketplaces like Walmart, where sellers have zero control over return policies. There, we’ve consistently seen returns exceed 15%, even though Walmart’s benchmark target is an unrealistic 6%. Combine that with the requirement for small businesses to cover both outbound and return shipping, and the average cost per return easily hits $25 or more. Most sellers I’ve spoken with now bake those losses into their pricing, raising product or shipping costs to stay afloat. But as we move into the holiday season — with return windows stretching to 90 days — we’re reevaluating our product lineup on these platforms and may remove thousands of SKUs and brands that simply don’t make financial sense under those conditions. Returns are inevitable, but unmanaged returns are expensive. Having a clear, data-driven strategy isn’t optional — it’s survival. https://lnkd.in/gp33N7Ev

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Kohl’s represents classic American retail: a family-founded department store that rode the post-war suburban boom, built a massive footprint, and became the pragmatic, go-to place for middle-class families. Early wins relied on convenient locations, a broad but familiar assortment (apparel, basics, home), and a relentless promotional cadence that made shopping predictable and habitual. That formula scaled: Kohl’s became a comforting, low‑risk brand for shoppers who wanted value without the chaos of outlet hunting. Then the retail landscape changed. Fast fashion and off‑price competitors sharpened price and trend; e‑commerce rewired convenience and selection; and experiential stores redefined value. Kohl’s tried to respond. Smart moves included partnerships like bringing Sephora into hundreds of stores — injecting prestige beauty into the footprint — and pilot concepts to modernize formats. Yet, the company still struggled. They have now endured 14 consecutive quarters of falling revenue! Net/net: Kohl's is a hot mess. IMHO, here's the problem: Identity confusion. Kohl’s sits awkwardly between value and aspiration. Is it family basics or curated lifestyle? That indecision shows up in merchandising and marketing, and hinders the right type of customer from forming the right type of emotional relationship with the brand. Promotional reliance. Decades of coupons and markdowns trained shoppers to chase discounts, eroding full‑price sales and margins. Promotions drove transactions but not loyalty or higher lifetime value. JCPenney suffered the same fate, and they should not be anyone's role model to emulate. Execution gaps online. Omnichannel isn’t just buy‑online‑pick‑up; it’s a seamless, data‑driven experience. Kohl’s has had pockets of digital competence but uneven fulfillment, personalization, and checkout experiences versus peers. Real estate and scale drag. A large store base is an asset when optimized — a liability when many locations underperform. The fleet costs cash and managerial focus, and real‑estate distractions (high‑profile Amazon/Otis deals and activist attention) created strategic whiplash. Leadership churn and mixed signals. Frequent strategic pivots — partnership-first, asset‑monetization, and cost-cutting cycles — make it hard to execute a long, coherent plan. Investors reward clarity; shoppers reward consistency. Can Kohl's be saved? The stock is up at the moment, but investors are even more fickle than shoppers. It needs a revolution, not an evolution. Its Sephora partnership was a smart step toward desirability, but a few shop‑in‑shops don’t rebrand the entire customer proposition. Kohl’s needs a compelling narrative that gives shoppers a reason to choose it. I'm unsure its leaders and backers are prepared to be as bold as they need to be.

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Retail is changing, but the fundamentals haven't. I recently joined the NYSE Floor Talk at the ICR Conference to discuss the current state of the apparel industry and where Faherty is headed. In a world obsessed with "tech-first" retail, we’ve found success by being a lil old school. A few takeaways from the conversation: 1. In-Person Retail (wholesale + stores) is a superpower: It’s not just about distribution; it’s about brand discovery and building trust in-person. 2. The "Modern Comfort" Shift: Post-pandemic style isn't going back into a box. People want high-quality pieces that work for the city, the beach, and everywhere in between. 3. Team is Everything: As a former college athlete, I look at business through a coaching lens. Our success is a direct result of the incredible team we’ve built. Check out the full interview here: https://lnkd.in/eppjpqCv

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Tariffs increase costs. If firms are reluctant to pass those costs onto their consumers, profit margins get squeezed and that prompts cuts to hiring and investment. From the WSJ … “Walmart plans to cut around 1,500 jobs in a restructuring aimed at trimming its expenses and speeding up decision-making. Walmart and other retailers have been cutting costs, putting pressure on suppliers, shifting production to other countries and increasing prices to offset the cost of tariffs.”

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Sizing is not just a fit issue. It is a business intelligence issue. At the Coresight Research #AIPlaybook event, Janice Wang (ALVANON) and Michael Relich (Tillys) shared why sizing intelligence is fast becoming a strategic priority for retailers. Three key takeaways from the conversation: #1 Sizing data drives better decisions Accurate body and fit data informs design, assortment planning, and merchandising — reducing guesswork across the value chain. #2 Fit accuracy directly impacts performance Better sizing improves customer confidence, boosts conversion, and meaningfully reduces returns. Navjit Bhasin #3 One-size assumptions no longer work Consumers are diverse, dynamic, and evolving. Brands that adapt sizing strategies to real customer bodies gain a lasting competitive edge. The message was clear from these two futurists. Sizing intelligence is no longer optional, it is foundational to a customer-centric retail strategy. Takeaway: When brands replace assumptions with insight, both the customer experience and the bottom line improve. #CoresightResearch #Alvanon #Tillys #Returns

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📈 Levi Strauss stock just popped 7%... and the signal is loud and clear: Being DTC-first doesn’t mean ditching marketplaces. This week, Levi’s posted stellar Q2 results. Margins up. DTC growing double digits. And yes, marketplaces still pulling weight. 🧵 Some highlights from the Levi’s Q2 update: 🛍️ DTC now drives 50% of total revenue, up 11% YoY 💻 E-commerce alone rose 13%, showing strong traction on Levi.com 🧾 Gross margin hit 62.6%, up 140 basis points despite tariffs 📦 Wholesale grew 3%, with CFO spotlighting digital channels (yes, that’s code for Amazon & Zalando) 🇪🇺 EU wholesale up 23%, thanks to platforms like About You, Zalando, and Next 🧠 Inventory rationalised, with low-turn SKUs pulled back to protect margins across all channels And the cherry on top? Despite Trump’s 30% China tariff blitz, Levi’s raised its full-year outlook. Why? Because their hybrid model is working. 💡 It’s not about choosing between DTC and marketplaces. It’s about getting both to drive profitable growth. Levi’s just showed the industry how it’s done. #ecommerce #dtc #marketplaces #retailstrategy #levis #amazon #zalando #channelstrategy #digitalshelf #channelmojo #fashionbusiness #supplychain #omnichannel #growthstrategy #primeday #marketplacestrategy #retailinsights #dtcbrands #q2results

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BLUESTAR ALLIANCE TO ACQUIRE DICKIES FROM VF CORP FOR $600M VF Corporation Corp ($VFC) acquired Dickies® in 2017 for $820m when the brand was doing $875m (1.06x sales) and $45.6m in net income run rate ~18x earnings. Fast forward to 2025, Dickies has shrunk to $542m in annual sales and is being offloaded by VF to Bluestar Alliance for a similar sales multiple and a loss of $220m. VF Corp also offloaded Supreme last year for $1.5B after buying it for $2.1B in 2020. Bluestar Alliance is a brand management firm that is running a similar playbook to Authentic Brands Group snapping up apparel brands with cultural significance on the cheap. They also own Scotch & Soda (2023), Off-White (2024), and Hurley (2019). Given that Dickie's revenue has decreased nearly 40%, the revenue multiple of >1 is quite a bit healthier than I would expect. Here's a comp list for revenue multiple:

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Bright Future for Bricks & Mortar Stores. Great piece covering Advise by John Walshe @ Retail Media Group, and highlighting: ·      Vast Majority of Grocery Sales still happen in Brick & Mortar Stores (80% plus) ·      CPG/ FMCG manufacturers are drowning in data and leaving enormous volumes and value on the shop floor, on the shelf, in the storeroom, with the competition, wasted… take your pick! ·      When manufacturers don’t engage with data they already have access to, they can’t automate processes, increase margins, increase efficiencies, reduce costs & retail talent. ·      Almost forgot… Manufacturers have to embrace AI, where it makes sense, like everyone else… 😊 See full article here: https://lnkd.in/erNY7bnH #cpganalytics #drowningindata #ecrireland #catmanglobal

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Governance lessons to take from this one: ���️‍♀️ carry out appropriate due diligence on directors before you appoint them. In this case it appears that the CEO’s relationship was an open secret but was a surprise to the board 💎have a crystal clear policy on conflicts of interest setting out expectations not just on disclosures but also on how situations of potential conflict should be managed ✍️authorities to sign off on contracts should include appropriate checks and balances. Power should not be concentrated in the hands of a single individual, with processes set up such that there should be different people involved in negotiation and approval for significant commitments 👂create the right conditions where whistleblowers will have the confidence to speak up and know they will be listened to, their allegations will be taken seriously, properly investigated and acted upon. Whistleblowers are the eyes and ears of the board 🕰️when things go wrong, as they inevitably will from time to time, act swiftly (not hastily) and decisively, demonstrating your commitment to uphold appropriate behaviours. It sends a strong message 📢it can be tempting, and sometimes necessary, to be vague in communications but transparency can bring both internal and external benefits 💷as appears to have been the case here, have robust malus and clawback rights in place to enable the business to obtain repayment or cancellation of benefits when wrongdoing is found What have I missed? Please add your thoughts in the comments 👇 #GoodGovernance #InternalControls #ConflictsOfInterest

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