Good morning readers. Starting Wednesday, travelers can renew their passports online, bypassing the snail mail process. The State Department's beta program, re-launched after a 2023 hiatus, opens limited daily slots at 1 p.m. ET for eligible applicants—those over 25 with passports issued between 2009 and 2015. Expect processing times of six to eight weeks, similar to mail-in renewals. While the system aims to streamline the process, expedited service isn't available yet. Feedback-driven improvements include a refined web interface and photo upload tool.

Check the State Department's site for full details.

Let’s jump into today’s storylines.

In today’s digest:

• Don’t look now, but Abercrombie is making a comeback

• Headline Hustle: Fed holds rates steady and hints at one rate cut this year (as opposed to 3), heavy rain in South Florida causes governor to declare an emergency, Sony becomes first studio to own a theatre chain in 75 years

• Zyn's supply squeeze sparks social media frenzy

• Pulse Points: What’s Trending

RETAIL

From not to hot: Abercrombie’s stellar comeback turns heads and profits

Once synonymous with moody lighting and exclusive vibes that only catered to the 'cool kids,' Abercrombie & Fitch is having a moment that’s hard to ignore. Whisper it, but Abercrombie is cool again, and it’s not just the scent of cologne that’s drawing people in—it’s a dramatic turnaround that has both Millennials and Gen Zers taking notice.

A brand reborn

In what could be dubbed a retail resurrection, Abercrombie has shifted from its polarizing past to a powerhouse present. Recent findings by Morning Consult show the brand hitting record high favorability ratings, particularly among younger consumers. And it looks like the company’s allure is stronger than ever, with young adults now tagging the brand as “hip,” “stylish,” and a “good value.”

Investors, take note: if you had bet on Abercrombie a year ago, you’d be sitting prettier than with almost any other stock—yes, even outpacing Nvidia. The secret? A relentless drive towards inclusivity and affordability without sacrificing style. Abercrombie today is less about logo-laden exclusivity and more about versatile, value-for-money fashion that appeals across demographics.

The strategic shift is paying off

Under the guidance of CEO Fran Horowitz, the company has not only reinvented its wardrobe but its whole business model.

• Today, Abercrombie's stores are more inviting, their inventory more curated, and their appeal more universal. They consistently deliver what consumers want, whether they're at the gym or gearing up for a weekend getaway.

• The result? Net sales rocketed to $1 billion in the first quarter alone, with growth projected to continue into 2025.

What’s more, the brand has also turned social media buzz into a significant business boon. According to Zachary Warring of CFRA Research, Abercrombie’s digital and social media strategy might just be the best in the business, with influencers championing their products in a way that feels authentic, not forced.

Big picture: With a strategy that spans from gym wear to wedding wear, Abercromie’s meticulous understanding of its audience’s lifestyle has paid dividends. And if the current trajectory is anything to go by, the horizon holds not just a revival but a revolution in retail.

IN THE KNOW

Headline Hustle

🏦 Fed keeps interest rates steady, hints at just one rate cut this year. The Federal Reserve will keep its benchmark lending rate unchanged for the seventh time, signaling fewer rate cuts than previously anticipated. The Fed now projects just one rate cut this year, down from the three forecasted in March, and expects inflation to be more persistent. Fed Chair Jerome Powell noted that while May's Consumer Price Index showed improvement, more evidence of sustained inflation reduction is needed before cutting rates.

⛈️ Heavy rain in South Florida prompts Gov. Ron DeSantis to declare an emergency. Parts of South Florida, including Miami and Fort Lauderdale, experienced severe flooding Wednesday night due to torrential rains. Governor Ron DeSantis declared an emergency in several counties. The National Weather Service warned of "life-threatening flooding," urging residents to avoid heading out at all costs. The heavy rain also led to several flight cancellations and delays at major airports. Flood watches remain in effect, with more rain expected, potentially turning into a tropical depression by week's end.

🎥 Sony Pictures acquires Alama Drafthouse, becoming the first studio to own a theatre chain in 75 years. For the first time in over 75 years, a major Hollywood studio will own a movie theater chain. Sony Pictures has acquired Alamo Drafthouse, the seventh-largest theater chain in North America, from Altamont Capital Partners, Fortress Investment Group, and founder Tim League. The Paramount Consent Decrees, which prohibited studios from owning theater chains, were abolished in 2020. Alamo Drafthouse CEO Michael Kustermann will continue to lead the company, now under Sony’s newly formed Sony Pictures Experiences division.

BUSINESS

The "Zyndemic" that’s sweeping the nation

In a twist that could only happen in today's meme-driven culture, America's latest shortage isn't about toilet paper or gas—it's about Zyn, the nicotine pouch that's become too popular for its own good. Dubbed the "Zyndemic" by social media wits, the craze has left shelves empty and consumers scrambling.

Zyn, the discreet little pouch that tucks into the cheek without a spit, has seen its popularity skyrocket, thanks to a robust wave of "Zynfluencers" on social media. But as demand surged, supply sputtered. The result? A nationwide shortage that's not just a nuisance but a full-blown crisis for those hooked on the product.

On platforms like Twitter and Instagram, users have taken to chronicling their plight with a mix of humor and despair. Store shelves are bare, and the brand’s website lists many flavors as back-ordered, leaving consumers to rummage through cars and drawers for any forgotten stash.

The fix is in—almost

Philip Morris, the tobacco titan behind Zyn, is hustling to ramp up production at its Owensboro, Kentucky facility, with promises of relief by year's end. A new factory is also on the horizon, aiming to meet the insatiable demand that even the manufacturer hadn’t anticipated.

A pouch of patience: For now, Zyn aficionados might need to exercise something they’re not used to: patience. As production slowly catches up to consumption, users are contemplating extreme measures—from interstate shipments to potentially quitting the habit altogether.

SNIPPETS

Pulse Points

• Broadcom reported second-quarter earnings on Wednesday that exceeded analysts' expectations and announced a 10-for-1 stock split, which will begin trading on a split-adjusted basis on July 15.

• Apple briefly surpassed Microsoft on Wednesday to become the world's most valuable company following its announcement of a push into artificial intelligence during its developers conference keynote on Monday.

• House Republicans voted Wednesday to hold Attorney General Merrick Garland in contempt of Congress for refusing to release audio recordings of President Joe Biden's interviews with former special counsel Robert Hur, who investigated Biden’s handling of classified material and chose not to bring charges.

• Jerry West, NBA legend and inspiration behind the league’s logo, passed away at 86.

• Netflix announced Wednesday it will live stream a hot dog eating competition between champions Joey “Jaws” Chestnut and Takeru Kobayashi on Labor Day, titled “Chestnut vs. Kobayashi: Unfinished Beef.”

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