The 27th ICR Conference brought together 3,200 attendees from public and private companies and the entire Wall Street ecosystem, including 37 Investment Bank sponsors and a record number of institutional investors and private equity professionals.
- 3,200 Total Attendees
- 225 Companies
- 124 Public
- 101 Private
- 585 Equity Research Reports Published
- 505 Institutional Investors (+20%)
- 498 Private Equity / Venture Attendees from 248 Firms
- 2,900 Total Meetings (booked through the conf. portal)
- CNBC Live Broadcast, 35 Reporters and 300 Media Placements
We take pride in running this event as well as stewarding its growth. This year, growth in participation seemed to be driven by the renewed optimism in the Consumer sector. More companies are back on the offensive, and with better strategies; long-only institutional investor attendance and interest was notably higher; and for private equity there is a pent-up need to take actions ranging from monetizing investments to putting funds to work. Last year, we categorized the overall ICR Conference mood at this event as hopeful. This year, there was definitely a more positive tone and good energy, and even enthusiasm and a sense of urgency.
Takeaways From Companies and Analysts:
- Companies emphasized operational improvements through technology integration and productivity initiatives, with Walmart notably highlighting how investments in technology are generating strong returns and demonstrating how data utilization and scale are key drivers of sustainable growth.
- Management teams believe that the broader consumer environment remains relatively healthy, while still impacted by multi-year stacked inflation for some segments of the population.
- Holiday sales were generally better than expected across most retailers, centered around peak selling periods.
- Underlying dynamics are improved for the capital markets from a year ago: credit markets are open, there is stability in interest rates, inflation is under control, consumer confidence is improved and stable, and there is optimism around a deregulatory environment with the new administration.
- Risks that were discussed: interest rates pushing higher at the longer end, tariffs likely coming – although categories like apparel are rumored to be spared, and margin recapture getting more challenging. Also, while institutional investors are hungry for new ideas, they are a bit valuation sensitive after recent share appreciation driven in part by the expectation build leading up to Holiday performance.
Consumer/Retail: Broadly Healthier and More Dynamic
After meetings with a wide variety of participants this year, we sensed that optimism has definitely returned, that management teams know where to focus their energy and investments and that many are executing well, and that capital markets activity will definitely pick up in 2025 and 2026. There were some recurring themes plus new areas of focus including the IPO window opening, the hot Consumer Services sector, the next phase for Retail/Omni-Channel, and the benefits of technology and innovation.
IPOs: Bankers we met with expect a good IPO calendar in the first quarter of 2025; though it will not include many Consumer/Retail companies. There are more companies eyeing a second-half 2025 window, or starting the process this year to be ready for 2026.
Services: A lot of money has been targeted at Consumer Services companies over the past few years, and that is where many discussions were focused at the Conference — both putting money to work and looking for ways to monetize investments. Examples of Home Services companies that have attracted private equity include Leaf Home (Leaf Filter, etc.), Power Home Remodeling, and Len the Plumber; and there are many more in auto and healthcare. Some PE funds did express some anxiety at the Conference around where valuations have climbed to, but the high fragmentation and attractive opportunity for a roll-up strategy combined with the defensible nature of these businesses is still very appealing.
Softgoods: Unlike Services, a lot of private equity money has been avoiding or altogether boycotting anything to do with Apparel / Softgoods Retailing. However, there are signs that this industry is getting healthier and that “disruption” is past its peak impact. We heard from a lot of focused management teams who have invested in technology and innovation, solved their CAC issues, re-emphasized profitability and strong cash flow, and balanced their businesses across channels and geographies. ANF’s performance over the past two years, and URBN’s more recently, has piqued curiosity if not actually raised interest in the sector (even for the almost-forgotten old guard) among public and private investors. Amer Sports’ shares have doubled from its initial listing price a year ago and the company even raised $1.0 billion in a follow-on primary offering in December, which bodes well for the next wave of IPOs. The innovation theme was pervasive in Walmart’s presentation focused on Walmart Connect. They also touched on last year’s focus, which was Integrated Commerce – and then announced a luxury marketplace relationship with resale platform Rebag; and this is on the heels of Saks Global’s recent acquisition of Neiman Marcus (which also involves Amazon and Authentic Brands Group), and the upcoming closing of Mytheresa’s (first-time presenter this year) transformative acquisition of YOOX Net-a-Porter Group. And finally, Knitwell unveiled in its presentation what it has been building for the past 10+ years, with brands including Talbots, Ann Taylor, Chicos, and more — a “wow” moment for many in the audience, while Tailored Brands (Men’s Wearhouse and Jos. A. Bank) also impressed with its strong re-emergence. So, established companies are refocusing and/or creating strategic opportunities, and new brands are emerging as well. Don’t give up on this industry, there are a lot of interesting things happening!
Beauty: At the start of 2025, investor interest in Beauty is tilting positive – following 2024 when the category moderated after experiencing high growth during COVID years. Excitement for Beauty is being driven by consumer desire for newness, their penchant to purchase across various brands and price points, as well as an increase in distribution points especially ecommerce. In fact, ecommerce is expected to grow to 26% of total retail sales in 2025 up six percentage points from 2019. And, increased distribution is giving beauty brands access to more consumers with Ulta Beauty’s expansion into Target and Sephora in Kohl’s. This has provided the platform for Indie brands to showcase their products, gain awareness, consumer trial and drive sales. In addition, acquisitions continue in the category with Helen of Troy, adding Olive & June a fast-growing, high-margin nail care brand to its fold; Lake & Skye was acquired by Tru Beauty & Fragrance; and private equity fund Auréa Group announced investments into haircare brands, Zenagen and ACT/IV. Finally, spotlighting a couple of other presenters: Waldencast’s Milk Makeup spoke of its unprecedented demand for its Cooling Water Jelly Tints, and AV Laboratories showcased its patented technology AVL SOM3® inspired by over 25 years of stem cell research.
Home Furnishings: We headed into the Conference on the heels of an improvement in furniture category sales trends in Q424 and public companies like RH and Arhaus who reported meaningful improvement in their demand comps for Nov/Dec. It does appear that the post-pandemic normalization that has lasted three years may finally be ending, which bodes well for the industry as we move through 2025 and into 2026, and places the space back on investor radars with expected benefits from improving housing trends / lower rates. Havertys spoke to a still cautious consumer and believes its sales are highly levered to new housing starts. The team’s tone overall was constructive at the Conference with the new CEO optimistic about product offerings and new store potential. La-Z-Boy said, “We are pleased with our performance and where we sit today” and believes the company has a compelling strategy in an industry that is on the verge of an inflection point. Lovesac focused on telling its innovation story following the 2024 product launches and December investor day, reiterated its strong market share gains over the last few years and exuded confidence in the team’s ability to build on the gains going forward. Bob’s Discount Furniture delivered an upbeat presentation focused on its customer value proposition, significant whitespace for growth and strong new store model.
A Positive Year to Come for ICR Conference Participants
If the attendance and enthusiasm are any indication, 2025 portends to be an active and positive year for our Conference participants. The overall backdrop for the Sector is stable, and companies across industries seem healthier, properly focused, and back to playing offense and creating value. So, let’s go!
