👖 Abercrombie’s super-high rise

…and Amazon workers plan a walkout over return-to-office rules   That’s so Fitch (Michael M. Santiago/Getty Images)   Yesterday’s Market Moves   Dow Jones 32,800 (-0.77%) S&P 500 4,115 (-0.73%) Nasdaq 12,484 (-0.61%) Bitcoin $26,367 (-3.15%) Dow Jones 32,800 (-0.77%) S&P 500 4,115 (-0.73%) Nasdaq 12,484 (-0.61%) Bitcoin $26,367 (-3.15%) Hey Snackers, A hot new real-estate deal is coming to screens, and it isn’t “Selling Sunset”: Paramount+ just [nabbed]( a virtual neighborhood in Roku City (aka: the home display for Roku devices). Your TV screen is going into escrow. Stocks slid again as the debt-ceiling standoff dragged on. Meanwhile, notes from the Fed’s latest meeting showed officials had been leaning toward a rate-hike pause in June, and have been split over whether more bumps are necessary this year. Y2Comeback Abercrombie & Fitch stock pops after a years-in-the-making comeback yields results Something’s in the air… and it’s not Fierce cologne. [Abercrombie & Fitch]( shares soared 31% yesterday after the mall icon unloaded decade-high Q1 sales, a [surprise profit]( and a boosted annual forecast. A&F was a middle-school must-have in the early-2000s (moose shirts sold by shirtless models were a status symbol). But in the 2010s its popularity fell lower than a Y2K waistline. Then came a turnaround: - New look: A&F stopped aggressively spritzing stores and scrapped the moose logo in 2017 when Fran Horowitz joined as its new CEO, leading an “America’s Next Top Model”-level makeover with Aaron Levine, who revamped its clothing design. - Inclusivity: After notoriously refusing to carry sizes above L in the ’00s, the retailer added extended sizing and showed it off in a 2020 ad campaign featuring plus-size models, and has leaned into inclusive marketing. Super-high rise… A&F’s brand refresh started in the late 2010s but only recently started paying off after serious legwork by top execs. It’s avoided the mall graveyard, despite a critical Netflix doc last year titled “White Hot: The Rise & Fall of Abercrombie & Fitch.” The comeback was driven by social media: - For You: A&F hired a Gen Z consultancy to expand its TikTok presence and collab’d with TikTok stars Charli and Dixie D’Amelio to launch a sub-brand called Social Tourist. - #AbercrombieJeans: Out of its portfolio of brands (including Hollister and Gilly Hicks), it was Abercrombie’s namesake denim that went viral last year. THE TAKEAWAY A&F found its spending sweet spot… While retailers like [Walmart]( and [Target]( recently said consumers were tightening discretionary budgets, fashion retailers like A&F that hit a mid-level price point (somewhere between Shein and Chanel) are seeing success. This week, [Urban Outfitters]( reported double-digit sales growth for its Free People and Anthropologie brands, and [American Eagle]( delivered record Q1 revenue thanks to Aerie. RT-No Amazon workers plan RTO walkout as tech’s corporate morale nosedives Walking the talk… Employees at [Amazon]( HQ in Seattle say they’re going to [walk off]( the job next week to protest the company’s return to office (RTO) mandate, layoffs, and a perceived lack of commitment to climate pledges. Organizers are looking for at least 1K workers to participate. - Primed: After Amazon announced an RTO mandate in February, nearly 30K employees (about 10% of its corporate workforce) signed a petition opposing the hybrid plan. But 700 staffers joined a pro-RTO Slack group. - Returned: Days after announcing another wave of 9K layoffs in March (for a total of 27K since last year), Amazon CEO Andy Jassy rejected the employee petition and doubled down on his three day/week in-office rule (which started this month), despite some offices apparently not being ready for employees until fall. Big tech’s morale-gorithm appears to be broken… Tech employee morale is said to be plunging as mass layoffs, hiring freezes, and stalled projects have left workers anxious. Even before [Meta]( 21K layoffs, only 31% of employees were confident in its leaders. Yesterday, Meta wrapped up its latest round of job cuts, which employees said had caused a standstill. [Microsoft]( execs fielded employee questions about “rock bottom” morale at an all-hands this week, while vibes at [Google]( have also reportedly tanked following layoffs and perk cuts. THE TAKEAWAY RTO may be retreating… The number of companies requiring workers in the office full time has fallen to 42% from 49% three months ago. Last year a Gallup poll found that worker engagement had declined the most among workers with remote-friendly jobs who were working from the office. While employers want to get staffers back at office desks to boost collaboration, they risk crushing morale. What else we're Snackin' - [NoFlix]( [Netflix]( started alerting US customers that their password-mooching days are over. In countries where it’s already cracked down, Netflix said that initial “cancel reactions” were followed by subscription bumps. - [Priced]( After a nationwide baby-formula shortage, the FTC is investigating whether manufacturers like [Abbott]( (Similac) and [Nestlé]( (Gerber) colluded on bids for state contracts in the highly concentrated market. - [Botlaw]( The Biden admin asked for public input as it works to develop a national AI strategy. Calls for regulation have grown as concerns spread over issues like misinfo (see: [fake Pentagon]( explosion). - [Obit]( [Virgin Orbit]( will sell itself to Stratolaunch, [Rocket Lab]( and Launcher Inc. after going bankrupt. Virgin tried to launch satellites from Boeing jets but never recovered after a high-profile flop in January. - [Push:]( Crypto CEO Ryan Selkis is seeking $125M for a pro-crypto lobbying group while [Coinbase]( is [running]( TV ads aimed at DC lawmakers. The moves come as regulators and politicians crack down on the industry. 🍪 Thanks for Snacking with us! Want to share the Snacks? Invite your friends to sign up [here](. Snack Fact Of the Day The world’s priciest ice cream, made with rare white truffles, is sold in Japan for $6K/scoop [Read more]( Thursday - Earnings expected from Dollar Tree, Best Buy, Ralph Lauren, Burlington, Build-A-Bear, Weibo, 23andMe, Ulta, and Gap Authors of this Snacks own shares of: Amazon, Alphabet, Microsoft, and Walmart Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate... [See more]( [Sherwood Terms and Conditions]( • [Our Editorial Principles]( • [Contact Us](mailto:hellosnacks@sherwoodmedia.com) • [Privacy Policy]( • [Advertise with us](mailto:advertising@sherwoodmedia.com) [Unsubscribe](