Retail (Cue the Scarlet 22, Paint with Distressed Lipstick)

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We've been very good diversifying our content away from that old #retailapocalypse + "Amazon Effect" narrative. If we do say so ourselves. But, sadly, retail issues haven't gone away and, in certain cases, they may actually be coming back. To point, this week The Wall Street Journal reported (paywall, upshot here if you don't have access) that rue21 is ALREADY struggling - mere months after emerging from bankruptcy. If so, Kirkland & Ellis LLP may want to hold off on celebrating this particular Turnaround Award.

Elsewhere in "deeply distressed" retail, Revlon Inc. ($REV) is busting the oft-repeated broad-brush narrative (by Jim Cramer and others) that beauty is killing it. Clearly not all beauty. 

Busted Beauty: Giants Show Some Slow Down

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Revlon, Ulta Beauty and Sephora All Show Declines

Ruh roh. Blaming (i) a migration of consumers to specialty beauty retailers, (ii) ecomm, (iii) store closures, (iv) inventory reductions among mass retail partners, and (v) inventory rebalancing, Revlon Inc. ($REV) reported dogsh*t numbers this past week with EBITDA numbers posting nearly 49% below analyst estimates. The bonds promptly traded down. Curiously, Ulta Beauty Inc. ($ULTA) equity is off roughly 25% the last three months. Sephora ($LVMH), too, is experiencing lower numbers and "traffic is slowing down a bit...." But, don't worry: beauty is impervious to ecommerce because women want to try makeup in store. Mmmm hmmm.