Bain Capital snaps up Brazilian restaurant chain Fogo de Chão
Somber Under Armour results raise questions about brand positioning
Tupperware secures lifesaving debt restructuring
NEWS
Bain Capital snaps up Brazilian restaurant chain Fogo de Chão
Somber Under Armour results raise questions about brand positioning
Under Armour started off its FY2024 with net revenue of $ 1.3 billion for the first quarter , down 2.4 percent , year over year . For the three months ended June 30 , the company ’ s wholesale revenue dropped 6 percent to $ 742 million , while direct-toconsumer revenue , and owned and operated store revenue , were up 4 percent and 3 percent , respectively .
North American revenue experienced a 9 percent decline to $ 827 million , and international revenue increased 12 percent to $ 485 million .
Gross margin was down 60 basis points , to 46.1 percent , attributed to higher promotions and adverse effects from changes in foreign currency , partially offset by supply chain benefits related to lower freight expenses .
“ We ’ re pleased with how we have navigated our start to fiscal 2024 ,” Under Armour president and CEO Stephanie Linnartz said .
International and direct-to-consumer businesses continue to deliver amid a challenging consumer retail environment in North America , Linnartz continued , and the company is maintaining its outlook for FY24 , with revenue expected to be flat or up slightly , and gross margin expected to increase 25 to 75 basis points .
The decrease in revenue following last year ’ s sales drop of 0.2 percent has raised questions about the brand ’ s position , however , especially considering that sales of sporting and athleisure categories have held up well and rival brands have been reporting positive results despite the current challenging environment and shoppers cutting back on spending .
“ As such , we believe that most of the blame for the current slump must be firmly placed at Under Armour ’ s door ,” GlobalData ’ s Saunders said .
Investment firm Bain Capital has acquired Brazil-based restaurant chain Fogo de Chão from Rhône Capital for an undisclosed sum .
As part of the agreement , the current management team , led by CEO Barry McGowan , will continue to oversee the chain ’ s operation . Founded in Southern Brazil in 1979 , Fogo de Chão has 76 locations worldwide .
“ Barry and his team have done an impressive job building on the brand ’ s differentiated concept , strong value proposition and rich Brazilian heritage ,” said Adam Nebesar , a partner at Bain
Tupperware secures lifesaving debt restructuring
Household products company Tupperware Brands has sealed a deal with lenders to restructure its debt obligations , which is expected to help improve the business ’ financial position and help it avoid bankruptcy .
The agreement includes the re-allocation of $ 150 million of cash interest and fees , and the extension of the stated maturity of principal and re-allocated interest and fees worth $ 348 million to FY27 .
The company is also entitled to the reduction of amortization payments required to be paid in FY25 by $ 55 million and immediate access to a revolving borrowing capacity of $ 21 million .
“ I am confident that this agreement provides us with the financial flexibility to continue executing on our nearterm turnaround efforts , as well as our long-term strategy to create a global omnichannel consumer brand ,” Tupperware CFO Mariela Matute said .
Tupperware previously faced the risk of collapse as it failed to attract sufficient capital , forcing the company to seek
Capital . “ Fogo is the clear market leader , and we believe the business is poised to continue its rapid growth as consumers increasingly seek unique and authentic dining experiences .”
The acquisition is expected to close in September .
Rhône Capital took the Fogo de Chão private in 2018 . The chain is in its third year of 15 percent annual growth .
Bain Capital ’ s global restaurant investments include Burger King , Dessert Holdings , Domino ’ s Pizza , Domino ' s Pizza Japan , Dunkin ’ Brands Group , and Skylark Restaurants .
potential investors and engage with legal and financial advisers .
The company received a delisting warning from the New York Stock Exchange after failing to file its annual reports , and recorded a $ 28.4 million loss in the fourth quarter of FY22 .
It also withdrew from New Zealand in 2022 after 49 years of operations in the market .
Founded in 1946 , Tupperware Brands is known for its problem-solving kitchen and home products , which are distributed in nearly 70 countries .
12 www . insideretail . us September 2023