Raphael Stevens

JetBlue CEO Robin Hayes will step down next month, the company said Monday.
The airline’s chief operating officer, Joanna Geraghty, will take the helm.
The departure comes as JetBlue is in the process of trying to acquire budget carrier Spirit Airlines.

Robin Hayes, CEO of JetBlue Airways, speaks to guests following the airline’s inaugural flight from John F. Kennedy Airport in New York to London Heathrow Airport in London on Aug. 12, 2021.
Chris J. Ratcliffe | Bloomberg | Getty Images

JetBlue CEO Robin Hayes will step down next month, the company said Monday. The airline’s chief operating officer, Joanna Geraghty, will take the helm.
The departure comes as JetBlue tries to acquire budget carrier Spirit Airlines, a nearly $4 billion combination that the New York-based carrier argues will help it grow and better compete against larger rivals such as Delta and United.

The U.S. Department of Justice sued to block the merger last year. A decision by a federal judge in Boston is expected in the coming weeks after a trial that wrapped up late last year.
Hayes, a more than three-decade airline industry veteran, cited the high-pressure nature of the job in announcing his resignation via a company statement.
“It’s bittersweet to retire from this airline I love, but I will always feel a part of the JetBlue team and be rooting for its continued success,” Hayes said. “However, the extraordinary challenges and pressure of this job have taken their toll, and on the advice of my doctor and after talking to my wife, it’s time I put more focus on my health and well-being.”
Hayes will remain on the board of directors until he leaves his post on Feb. 12, at which point he will stay on as a strategic advisor and Geraghty will join the board.

Joanna Geraghty, president and chief operating officer of JetBlue Airways, speaks during a Bloomberg Television interview at the World Aviation Festival in London on Sept. 5, 2019.
Chris Ratcliffe | Bloomberg | Getty Images

Geraghty has spent about two decades at JetBlue, the majority of the relatively young carrier’s lifespan. During that time, the airline expanded internationally and launched a business class.

But JetBlue, whose flights are concentrated in the heavily congested New York-area airspace and other busy patches of the country such as Florida, has struggled in recent months.
Geraghty will be tasked with righting the ship and, if the DOJ is unsuccessful in blocking a Spirit tie-up, overseeing that merger process. JetBlue plans to convert Spirit’s bright yellow and densely packed planes into its own cushier configurations.
Geraghty was named COO in 2018 and headed parts of the business, including its growing network and its revenue management.
Correction: This story has been updated to correct that Robin Hayes will remain on JetBlue’s board of directors until he leaves his post as CEO on Feb. 12, 2024.Don’t miss these stories from CNBC PRO: More

The CEO of brand management firm Authentic Brands Group said Shein’s annual revenue is “a lot more” than $30 billion annually. 
As a private company, Shein does not disclose its financials, but Authentic’s CEO Jamie Salter is familiar with them because of a partnership he inked with the company last summer.
If Shein’s sales are “a lot more” than $30 billion annually, it would put the company’s sales in line with those of Zara’s owner Inditex and above those of H&M.

Shoppers walks past advertisements on the opening day of fast-fashion e-commerce giant Shein, which hosted a brick-and-mortar pop up inside Forever 21 at the Ontario Mills Mall in Ontario on Oct. 19, 2023.
Allen J. Schaben | Los Angeles Times | Getty Images

ORLANDO, Fla. — Little is known about how much revenue Shein draws or just how profitable it is.
But the fast-fashion company’s sales are “a lot more” than the $30 billion it reportedly brings in annually, one of the retailer’s key partners said Monday.

“Shein is the fastest growing fashion retailer in the world, if not the biggest fashion retailer in the world,” Jamie Salter, the founder and CEO of privately owned brand management firm Authentic Brands Group, said during a fireside chat at the ICR Conference in Orlando.
“There’s talks that they do 30 billion, do they do 40 billion? Do they do 35 billion? I’m not going to tell you exactly what they do, but I can tell you they do a lot more than $30 billion,” Salter continued in an apparent reference to Shein’s annual sales. 
As a private company, Shein does not disclose its financials. However, it may soon have to after the retailer confidentially filed to go public in the U.S., following torrid growth and months of efforts to resolve a range of concerns lawmakers had about its business practices.
However, Salter is familiar with Shein’s financials because of a partnership he inked with the company last summer. As part of the deal, Shein acquired about a third of Sparc Group, a joint venture that includes Authentic and Simon Property Group. Sparc took a minority stake in Shein.
Sparc is the operator of Forever 21, which Authentic owns. As part of the partnership, Shein has begun selling a co-branded clothing line with Forever 21 and hosting pop-up events at the retailer’s many mall stores. 

Very little is known about Shein’s financials, but bits and pieces have leaked to the press in recent years as the retailer has geared up for an initial public offering. The best Shein revenue figure available came in a Wall Street Journal story in May, which said the company did $23 billion in sales in 2022, citing people close to the company.
The outlet reported that Shein had set a target to grow sales by 40% in 2023, which would have brought its revenue above $30 billion. It is unclear if the company hit that goal. 
Shein did not immediately respond to CNBC’s request for comment.
If Shein’s sales are “a lot more” than $30 billion annually, its revenue would still be far smaller than that of retail giants such as Walmart and Amazon, which do hundreds of billions in sales annually. However, the figure would put it at least in line with Zara’s owner Inditex, which posted €32 billion in sales in 2022, and H&M, which saw about $22 billion in sales that year.
A sales total above $30 billion would mean Shein dwarfs American retailers such as Abercrombie & Fitch and American Eagle, which most recently reported annual sales of $3.7 billion and $5 billion, respectively. 
During the discussion, Salter talked about Authentic’s story, its growth plans and how he decided to partner with Shein. When asked what some of his biggest mistakes were, he said one was not acknowledging the competitive threat posed by Shein and China-based online marketplace Temu earlier. 
“My partner, [Simon Property Group CEO David Simon] said, ‘Why are you going partners with Shein? Like you think that’s the right decision?’ and I said, ‘David, it’s the right decision, we cannot beat them. Their supply chain is too good. They know what’s going on. They’ve figured this out. We need to partner with them,'” Salter recalled. “So I was the brave one that said, ‘Let’s go partner with these guys.'” 
Salter said the partnership is still in its early stages. “We’re dating right now,” he said, as the two companies are still learning how to trust each other. 
“The pop-ups have been huge home runs and, you know, Forever 21 by Shein has been good, has not been great, but it’s just early. So the jury’s still out,” said Salter. “You’re dealing with some people that, they don’t speak the language the same way we do, they have a different set of rules than we do and trust factor, it takes time, you know? You don’t learn to trust somebody in 15 minutes. You have to earn that trust. … It’s a work in progress.” Don’t miss these stories from CNBC PRO: More

Abercrombie & Fitch, American Eagle Outfitters and Lululemon all raised their fiscal fourth-quarter outlooks after drawing shoppers during the holiday season.
Holiday results have struck a positive note, with sales rising in November and December year over year, according to Adobe Analytics and Mastercard SpendingPulse.
Investors are starting to get a clearer picture of which companies captured more of holiday shoppers’ dollars.

Combination showing store signage from Abercrombie & Fitch and Lululemon stores.
Getty Images

Abercrombie & Fitch, Lululemon and American Eagle Outfitters all raised their fiscal fourth-quarter outlooks Monday, saying they drew customers looking for holiday gifts and items for themselves in November and December.
Yet, Wall Street greeted the news with varying levels of enthusiasm. Shares of Abercrombie and American Eagle rose about 6% on Monday. Lululemon shares barely budged on Monday after investors weighed the higher forecast against concerns that the athletic apparel retailer may face tougher competition in the months ahead.

Urban Outfitters shares also popped in extended trading after the retailer announced strong holiday-quarter sales weeks before its earnings report.
The companies shared the latest quarterly forecasts ahead of meetings with investors and analysts at the ICR Conference this week in Orlando. Other retailers are also expected to release holiday updates during the three-day event.
So far, holiday spending estimates have struck a positive note. Online sales rose 4.9% year over year to $222.1 billion in November and December, according to Adobe Analytics. Retail sales during the holiday season, excluding automotive sales, grew 3.1% in the U.S. year over year, according to preliminary data from Mastercard SpendingPulse, which tracks in-store and online retail sales across all types of payment.
Yet, it’s still unclear which retailers captured more of those dollars spent by holiday shoppers.
American Eagle looks like a winner. It said quarter-to-date revenue is up about 8% as of Dec. 30, with its namesake brand’s sales increasing by the high single-digits and Aerie increasing by the low teens. It said it expects both revenue and operating profit to be better than expected for the fiscal fourth quarter.

The company said fiscal fourth-quarter revenue will be up low double digits and operating profit is expected to be about $130 million, compared to previous guidance of $105 million to $115 million.
American Eagle CEO Jay Schottenstein said in a news release that the retailer’s momentum “has continued into early January.”
Mall rival Abercrombie said it expects net sales to increase in the mid-teens and its operating margin to come in around 15% for the fiscal fourth quarter. That compares to its previous expectations for net sales to grow by low double digits and operating margin to be in the range of 12% to 14%. It hiked its fiscal full-year results to correspond.
In a news release, Abercrombie CEO Fran Horowitz said the women’s business for Abercrombie & Fitch is expected to hit highest-ever fourth-quarter sales. Plus, she said, its men’s business has grown, and its Hollister brand is on track for year-over-year growth and higher profits as the company offers better merchandise and manages its inventory sharply.
Lululemon gave more modest tweaks to its fourth-quarter forecast. It said it expects net revenue to be in the range between $3.17 billion and $3.19 billion for the fourth quarter. It previously anticipated a range of $3.135 billion to $3.17 billion. Diluted earnings per share are also expected to come in at a higher level, in the range of $4.96 to $5.00 for the quarter, compared to the previous range of $4.85 to $4.93.
Retail earnings season kicks off in mid-February, with names such as Walmart, Target and Home Depot. Abercrombie, American Eagle and Lululemon are expected to report full holiday results in March.Don’t miss these stories from CNBC PRO: More

The FAA grounded dozens of Boeing 737 Max 9 planes for inspections after a door plug panel blew out during an Alaska Airlines flight.
No one was injured in the accident on Flight 1282, but airlines will have to inspect their Max 9 jets.
Airlines canceled hundreds of flights and waived change fees for travelers.

The fuselage plug area of Alaska Airlines Flight 1282 Boeing 737-9 MAX, which was forced to make an emergency landing with a gap in the fuselage, is seen during its investigation by the National Transportation Safety Board in Portland, Oregon, on Jan. 7, 2024.
Ntsb | Via Reuters

Airlines have canceled hundreds of flights since the Federal Aviation Administration ordered carriers to take Boeing 737 Max 9 planes out of service for urgent inspections.
Here’s what travelers should know:

Why did the FAA ground the planes?

The FAA grounded more than 170 Boeing 737 Max 9 planes so they can be inspected after a door plug panel blew out on Alaska Airlines Flight 1282 on Friday. No one was seriously injured on the Ontario, California-bound flight, which returned to Portland, Oregon, when the incident occurred minutes into the flight at about 16,000 feet.

Which airlines are affected?

United Airlines and Alaska Airlines are the biggest operators of the Boeing 737 Max 9, with 79 and 65 of the planes in their fleets, respectively.
United canceled 229 mainline flights on Monday, representing about 8% of its schedule, according to FlightAware. The carrier has been using other types of aircraft, where possible, to avoid cancellations.
Alaska Airlines, which has fewer types of planes in its fleet compared to United, canceled 143 flights, about one-fifth of the day’s schedule.
United scrubbed 385 flights over the weekend, while Alaska canceled 328 flights.

Other carriers including Panama’s Copa and Aeromexico are affected by the inspection order. Copa has canceled more than 150 flights since Saturday, and Aeromexico has canceled 100 during that time, FlightAware shows.
The more common Boeing 737 Max 8 plane is not affected.

Can I get a refund if my flight was canceled?

United and Alaska have put travel waivers in place that allow customers to rebook their flights without paying change fees, or to cancel their flights altogether.

How long will the planes be grounded?

The FAA approved Boeing’s inspection instructions for airlines on Monday, a key step in getting the planes flying again. Still, it’s not immediately clear how long the inspections will take.
United said on Monday its inspections had turned up loose bolts on several Max 9 aircraft.
The airline said that the inspections require “a team of five United technicians working for several hours on each aircraft.”
Carriers will likely be able to return the planes to service once they comply with the inspections if they meet the standards.

Which piece of the plane failed and why?

It is not clear what caused the door plug to blow out during the flight. The piece of the aircraft sits where an emergency exit would be on planes that carry more travelers. On planes that are configured for fewer passengers, like United’s and Alaska’s, a traveler sitting in the cabin wouldn’t know that a door-shaped piece is cut in the fuselage.
The National Transportation Safety Board has recovered the door, which was spotted by a schoolteacher in Oregon. Examining the door, its fasteners and other details will be key to the NTSB’s investigation into the rare accident, but results of that could take weeks, if not months, to piece through.Don’t miss these stories from CNBC PRO: More

Johnson & Johnson said it will acquire Ambrx Biopharma for $2 billion, picking up a drugmaker specializing in one of the hottest areas of cancer treatment.
The deal, which was announced on the first day of the annual JPMorgan Healthcare Conference, makes J&J the latest drugmaker to bet on antibody-drug conjugates, or ADCs.
The acquisition also comes as J&J scrambles to fill a revenue hole that’s approaching in 2025.

An entry sign to the Johnson & Johnson campus shows their logo in Irvine, California on August 28, 2019.
Mark Ralston | AFP | Getty Images

Johnson & Johnson on Monday said it will pay $2 billion in cash to acquire Ambrx Biopharma, a drugmaker specializing in one of the hottest areas of cancer treatment.
Ambrx is aiming to target multiple cancers with drugs called antibody-drug conjugates, or ADCs, which are described by researchers as “guided missiles” to directly target and kill cancer cells and minimize damage to healthy tissue.

The deal, which was announced on the first day of the annual JPMorgan Healthcare Conference, makes J&J the latest drugmaker to bet on ADCs following similar moves by other large rivals – including Pfizer, AbbVie and Merck – over the last year. 
The acquisition also comes as J&J scrambles to fill a revenue hole that’s approaching in 2025, when its top-selling drug Stelara, which is used to treat a long-lasting autoimmune disease called psoriasis, is expected to face generic competition. 

More CNBC health coverage

“Ambrx’s pipeline and ADC platform present exciting future opportunities to deliver enhanced, precision biologics as we look to transform the treatment of cancer and improve patients’ lives,” Dr. Yusri Elsayed, J&J’s global therapeutic area head of oncology, said in a release.
Under the terms of the deal, J&J will pay $28 a share for Ambrx, or about double the firm’s Friday closing price of $13.63. J&J expects to close the deal in the first half of 2024.
Shares of Ambrx more than doubled Monday to just under that purchase price, while J&J’s stock closed effectively flat. 

Don’t miss these stories from CNBC PRO: More

After record-high used vehicle prices declined notably in 2023, pricing is expected to be relatively stable this year.
Cox expects wholesale prices on its Manheim Used Vehicle Value Index, which tracks prices of used vehicles sold at its U.S. wholesale auctions, will end the year up 0.5% from December 2023.
The slight increase would compare with a 7% decline in 2023 and a nearly 15% drop in 2022 from inflated prices during the coronavirus pandemic.

Used cars for sale at Lee Auto Mall on Wednesday, August 16, 2023. (Staff photo by Brianna Soukup/Portland Press Herald via Getty Images)
Brianna Soukup | Portland Press Herald | Getty Images

DETROIT — Used vehicle prices are expected to stabilize this year, after buyers of pre-owned cars and trucks got more relief in 2023 following a stretch of record prices.
Automotive data firm Cox Automotive expects wholesale prices on its Manheim Used Vehicle Value Index, which tracks prices of used vehicles sold at its U.S. wholesale auctions, will end 2024 only 0.5% higher than in December 2023. Pricing will fluctuate month to month due to selling seasonality and other factors, according to Cox.

The slight increase would compare with a 7% decline in 2023 and nearly 15% drop in 2022 from inflated prices during the coronavirus pandemic. At that time, availability of new vehicles fell to record lows due to supply chain and parts problems that interrupted vehicle production.
“2024 is looking to be less volatile than 2023, but we’ve been taught to expect the unexpected in the wholesale market,” Jeremy Robb, Cox Automotive senior director of economic and industry insights, said in a release.
The stability is a win for potential car buyers. However, used vehicle prices are still higher than they were before the pandemic. Retail prices for consumers traditionally follow changes in wholesale prices, but they have not fallen as quickly as wholesale prices in recent years.
Cox reports the average listing price of a used vehicle was $26,091 as of last month, down 3.9% from a year earlier and 7.5% lower than the roughly $28,200 to end 2021. Average listing prices for used vehicles were less than $20,000 in 2019, according to Cox.
Used vehicle sales are expected to increase by less than 1% to 36.2 million, according to Cox Automotive. That forecast includes 19.2 million in used vehicle retail sales.

The expected used vehicle sales compare with a “pessimistic” forecast of a 1.3% increase for new cars and trucks in the U.S. this year to 15.7 million units, according to Cox.
“For the economy and the auto market, we’re in for just 1% to 2% growth, but growth beats a recession,” Jonathan Smoke, Cox Automotive chief economist, said Monday during a call. “As we enter into 2024, new supply is back to spring 2020 levels, which favors consumers and leads to lower prices.”
Meanwhile, Cox expects all-electric vehicle sales to increase and make up more than 10% of retail new car and truck sales in 2024. That would compare with 1.1 million units, or 7.4% of retail sales, sold in 2023. More

Mark Steinberg, Tiger Woods’ longtime agent, told CNBC that the golfer made a business decision to not renew with Nike.
Woods and Nike have been partners for 27 years.
It’s not clear where Woods’ next sponsorship home will be.

Tiger Woods during the pro-am as a preview for the Hero World Challenge at Albany Golf Course in Nassau on Nov. 29, 2023.
David Cannon | Getty Images

Tiger Woods’ 27-year partnership with Nike has come to an end. The superstar golfer announced the news in a statement Monday on social media platform X.
“Phil Knight’s passion and vision brought this Nike and Nike Golf partnership together and I want to personally thank him, along with the Nike employees and incredible athletes I have had the pleasure of working with along the way,” Woods wrote.

Mark Steinberg, Woods’ longtime agent, told CNBC that the golfer made a business decision to not renew with Nike.
The announcement came after months of speculation that the two would break up. Nike confirmed the news on Instagram with a picture of Woods in his iconic red polo, saying, “It was a hell of a run.”
In a statement, the company said: “For over 27 years, we have had the honor to partner with Tiger Woods, one of the greatest athletes the world has ever seen. Throughout the course of our partnership, we have witnessed along with the rest of the world, how Tiger not only redefined the sport of golf, but broke barriers for all of sport. We watched him set records, challenge conventional thinking and inspire generations of people around the globe. We are grateful to have been a part of it. We wish him the best in the future.”
There’s no word yet on Woods’ plans for a future endorsement deal, but he said on social media, “There will certainly be another chapter.”
Some recent speculation about Woods’ next chapter have pointed to On Running, the Swiss brand that tennis great Roger Federer joined in 2019 after he left Nike.

Marc Maurer, co-CEO of On Running, addressed the speculation Monday at the ICR Conference in Orlando. “We also heard the rumors, so it’s always interesting what’s out there. We hope that Tiger finds a great new partner and it’s not going to be us,” he said.
Golf club and equipment maker TaylorMade, which Woods, 48, has used since 2017, could be another potential landing spot for the 15-time major winner. On Monday, though, TaylorMade said their relationship is for equipment only and has no additional comment on the matter.
Analysts aren’t expecting a big effect with the news as the rumors have been circulating about Woods’ departure for months.
“We continue to believe the company has endorsements with some of the biggest name athletes in the world and we would expect that trend to continue for the foreseeable future,” said Brian Yarbrough, a Nike analyst for Edward Jones.
Nike has been quietly ramping down on golf for years as it wasn’t a huge money maker for the brand. In 2016, the Oregon sports apparel maker announced it would stop making golf equipment altogether.
Yet, Woods brought significant exposure to the Nike brand. Over the course of his career, Woods made a reported $500 million from “the swoosh.”
Eric Smallwood, founder of Apex Marketing, estimates that when Woods goes four rounds, he’s providing Nike with $2 million to $4 million of exposure.
Likewise, when Woods swapped his Nikes for FootJoy shoes at the 2023 Masters, he gave the brand $3.2 million of exposure.
Woods provides even more exposure for Nike than even LeBron James due to the pace of play of golf compared to basketball, Smallwood said. “Golfers have longer longevity,” he said.
— CNBC’s Gabrielle Fonrouge contributed to this report.Don’t miss these stories from CNBC PRO: More