Deferred Interest Vol. 29
Unfortunately I do not want to know your top picks for the Sephora sale
Sometimes, I really do want to throw my phone out the window.
One of the hardest things about being online every day is trying to reconcile why so many people don’t seem to care about what actually matters. Or at least, what I think irrefutably matters. Recently, that’s looked like scrolling past endless posts about everyone and their mother’s top picks for the Sephora sale. Meanwhile 42 million Americans did not receive their snap benefits at the start of November.
In New York, the governor declared a state of emergency, deploying state funds to support the 3 million New Yorkers who lost federal food assistance.
Food banks across the country are seeing an increase in demand, while also prepping for one of the busiest holiday seasons in recent memory.
Respectfully, your Rare Beauty restock is just not hitting right now.
But, one video did stop me mid-scroll. A Pittsburgh dad set up a food pantry in his front yard with his kids. The inflow of support has restored my faith in humanity.
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Anyway, back to that Sephora sale. You don’t need anything. Take whatever you were going to spend and donate it to your local food bank. With Food Bank for NYC, for example, just $1 provides up to 15 meals. One Saie Lip Gloss ($22) is the equivalent of up to 330 meals. Come on now.
If you are not able to donate financially, volunteer. Share a link. Just do something.
So no, I don’t want to know your top five Sephora picks. I want to know (1) if you’re participating in the greater good and (2) if you voted last week (hello NJ/NYC!).
If you enjoy Deferred Interest, please drop a like 🤍 (and if you’re feeling frisky, a comment) below. Your engagement brings this content to more readers. I appreciate you!
Circling back on some of those “deferred”…“interests”…
(Follow-ups on topics from past editions)
The government shutdown is now the longest in U.S. history
Today marks day 42. Roughly 1.4 million federal employees haven’t been paid and many essential employees are still working regardless. Economists are calling this the most economically damaging shutdown on record. CNN shared a helpful article, “23 effects being felt on Day 35 of the shutdown” last week that contextualized the fallout of the lapse in federal funding at this point.
Last night, the Senate passed a temporary funding bill. The House still needs to approve it, and President Trump has to sign before the government officially reopens.
The bill funds most of the government through January 30, with full-year coverage for a few agencies like the USDA. This means, if there’s a partial government shutdown at the end of January, SNAP benefits, for example, would not be in danger of running out again.
Once the government reopens, federal employees will receive back pay, hopefully offering some relief for folks like air traffic controllers, who missed their second paycheck.
Kleenex Parent Kimberly-Clark is making a $48.7B bet on Consumer Health
Kimberly-Clark announced its big strategic acquisition of Kenvue last week.
The players
Kimberly-Clark (KMB): Legacy CPG brand behind Kleenex, Huggies, and Cottonelle, now pivoting hard into health and wellness.
Kenvue: Johnson & Johnson’s former consumer health division that was spun out in 2023. Home to brands like Tylenol, Neutrogena, and Listerine.
The numbers
Deal Value: $48.7B enterprise value
Revenue: ~$32B projected for the combined company in 2025
Adjusted EBITDA (Combined): ~$7B
Synergies: $2.1B run-rate (mostly cost), expected within 3 years
Valuation Multiple: ~14.3x LTM EBITDA, or 8.8x including synergies
Ownership Post-Close: KMB shareholders ~54%, Kenvue ~46%
Expected Close: 2H 2026
Why I like this deal
With Kenvue under its umbrella, KMB is automatically “Global Health & Wellness Leader”, competing with P&G and Unilever more than ever before.
KMB has been known for it’s paper goods across Huggies, Kleenex, Kotex, and other brands. Those categories are mature and heavily commoditized.
Consumer health offers strong margins, higher brand affinity, and more diversified growth than KMB’s core categories. Kenvue, which has Tylenol, Band-Aid, Listerine, and others, brings an immediate upgrade in brand equity, retail presence, and category leadership in wellness.
We have seen this movie before. Spinoffs like Kellanova (Kellogg’s snacking business) and W.K. Kellogg (legacy cereals) have been popular M&A targets. Creating cleaner, category-specific businesses makes them easier to value, and easier to sell.
But, I am watching to see how the new marriage between KMB and Kenvue unfolds. Kenvue was spun out because it had a different brand DNA than J&J’s pharma division. Will the marketing, logistics, and innovation in this pro-forma company align in the right ways? Let’s wait and see.
Teen Vogue is getting folded into Vogue.com
It’s the end of an era.
What happened
Twenty two years post inception, Teen Vogue is folding into Vogue.com. This means Teen Vogue will no longer operate as a fully independent digital brand.
The editor-in-chief of Teen Vogue, Versha Sharma, is leaving. Much of the staff has been laid off, including key political editors. Condé Nast says the move will “make all Vogue—Teen Vogue and Vogue Business—accessible in one place” and claims the Teen Vogue identity will be maintained.
Despite what was said in the press release, the general reaction I have seen online has been one of disappointment.
Why people are upset
Loss of independent voice
Teen Vogue developed a reputation as a space that treated teens and young adults as serious, engaged citizens, not just fashion consumers. Folding it into the bigger Vogue.com umbrella risks diluting that identity.
Politics and youth representation at state
The layoffs included the politics editor and other staffers who covered social justice, public policy, labor, climate, and other topics that many felt Teen Vogue handled with fresh energy.
Representation and inclusion issues
The union noted that many laid-off staff were BIPOC women or trans. The concern is that publication built on representing new voices may lose the staffing to support that mission.
Young audience trust & culture shift
For readers who found Teen Vogue a rare place where their concerns were taken seriously, student debt, climate anxiety, labor organizing, identity politics, this consolidation feels like a retreat from that commitment.
What do you think? Will Teen Vogue remain a dedicated platform where young people are taken seriously or will it revert to a brand that speaks down to its readers instead of to them?
Save for Later
MAC Cosmetics will enter Sephora stores for the first time ever in 2026. This was probably the longest game of hard to get I’ve ever heard of. It makes sense, though. Estee Lauder has been struggling, and has recently launched a few of its brands on Amazon and TikTok Shop to bring in new customers. Bringing the beloved MAC into Sephora will only bolster its efforts across marketing and customer acquisition.
That’s all for this week! Thanks for reading.
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Jamie
Thank you for saying what needs to be said loudly. Why are we talking about lip oil sales and monogrammed robes when people are hungry? There are far more important matters at hand!!
this this this this this . Thank you for this. Saying what so many are thinking and feeling. And if they aren't, they need to reflect and take a step back.