Consumer Cyclical Featured Manufacturing - Apparel & Accessories

Nike Inc. | Annual Report 2023

As of May 31, 2023, our contract manufacturers operated 123 finished goods footwear factories located in 11 countries. For fiscal 2023, NIKE Brand footwear finished goods were manufactured by 15 contract manufacturers, many of which operate multiple factories. The largest single finished goods footwear factory accounted for approximately 9% of total fiscal 2023 NIKE Brand footwear production. For fiscal 2023, factories in Vietnam, Indonesia and China manufactured approximately 50%, 27% and 18% of total NIKE Brand footwear, respectively. For fiscal 2023, four footwear contract manufacturers each accounted for greater than 10% of footwear production and in the aggregate accounted for approximately 58% of NIKE Brand footwear production.

Consumer Cyclical Restaurants

Darden Restaurants Inc. | Annual Report 2023

On June 14, 2023, we completed our acquisition of Ruth’s Hospitality Group, Inc., a Delaware corporation (Ruth’s), for $21.50 per share in cash. Ruth’s is the owner, operator and franchisor of restaurants under the Ruth’s Chris Steak House® trademark. As the acquisition was subsequent to our fiscal year ended on May 28, 2023, there was no impact to our consolidated financial statements or operations. As of the closing, Ruth’s Chris Steak House had 155 locations around the globe, including 81 company-owned or company-operated restaurants and 74 franchised restaurants.

Consumer Cyclical Featured Retail

Alibaba Group Holding Ltd | Annual Report 2023

2023 is destined to be a year filled with significance in Alibaba history. Just before the end of the fiscal year, we announced a decision with far-reaching impact – after 24 years, Alibaba is evolving from a single company into a new governance model of “1+6+N” in which major business groups and various companies have independent operations. “1” represents Alibaba Group’s holding company, “6” refers to six major business groups – Cloud Intelligence Group, Taobao and Tmall Group, Local Services Group, Alibaba International Digital Commerce (AIDC) Group, Cainiao Smart Logistics Network Limited, and Digital Media and Entertainment Group, and “N” refers to various businesses such as Alibaba Health, Sun Art Retail, and Freshippo. Each entity in the “6+N” will establish its own board of directors that will provide oversight and support to the chief executive officer of the business.

Consumer Consumer Defensive Farm Products

Cal-Maine Foods Inc | Annual Report 2023

On July 25, 2023, Cal-Maine Foods filed their annual 10-K report with the SEC. While the company reported record fourth quarter net income of $110.0 million and net sales of $593.0 million, a closer look at the filing reveals some concerning details. Cage-Free Conversion: A Costly Endeavor One of the most notable announcements in the report was the approval of a $55.3 million capital project to convert existing layer capacity to cage-free capacity for approximately 1.5 million cage-free hens. While this move towards more humane and sustainable practices is commendable, it comes at a significant cost to the company. The […]