Author

admin

Browsing

Hundreds of millions of Hindu devotees have bathed in sacred waters, despite concerns over overcrowding and water pollution, as the world’s largest religious gathering wrapped up Wednesday in India’s northern state of Uttar Pradesh.

Over the last 45 days, more than 620 million people – nearly a third of India’s roughly 1.4 billion population – have attended the Maha Kumbh Mela, or the festival of the Sacred Pitcher, on the riverbanks in the city of Prayagraj, in a spectacle of color and expression of faith.

Followers have come to take a holy dip in the Triveni Sangam, the confluence of three holy rivers – the Ganges, Yamuna and the mythical Saraswati – to purify their sins and take another step closer to “spiritual liberation.”

Every 12 years the festival carries the prefix “Maha,” which means great, as it’s the largest gathering of the Kumbh Mela that’s held every three years in one of four cities.

“It is a unique, once in a lifetime experience,” said Sushovan Sircar, 36, who works as an independent consultant in Delhi. “People from all over India are here, as I saw number plates of cars from almost every state.”

deadly crowd crush, where pilgrims were killed in a rush to take a holy dip in Prayagraj, on Wednesday, January 29.” class=”image_expandable__dam-img image_expandable__dam-img–loading” onload=”this.classList.remove(‘image_expandable__dam-img–loading’)” onerror=”imageLoadError(this)” height=”1067″ width=”1600″ loading=”lazy”>

Though this year’s festivities have been marred by two separate, deadly crowd crushes, millions have turned out for the festival despite concerns of overcrowding and reports of “unsafe” levels of contamination in key bathing sites.

A report from the Central Pollution and Control Board (CPCB), part of India’s Environment Ministry, last month found high levels of coliform faecal bacteria in the Ganges and Yamuna rivers, despite the government touting sustainable initiatives and sanitation efforts.

Uttar Pradesh’s Chief Minister Yogi Adityanath denied the accuracy of the government report, insisting that the water was not just safe for bathing, but also for the Hindu ritual of drinking a handful after bathing.

Attendees often submerge themselves fully, sometimes drinking or collecting the sacred water in containers.

‘My sins are cleansed, but not my body’

Sircar, the independent consultant from Delhi, said he bathed in the water at Sangam point – the confluence of the three rivers considered to be the most auspicious place to bathe and where most people take their dip – twice last week.

“There is a concern because there is nothing I can do about the contamination in the water. In your mind you tell yourself, this part looks clean, spend a few minutes in, recite prayers and come out,” said Sircar.

“I took a shower for sins and then another shower for the contamination,” he laughed. “So you need a bath after the bath… My sins are cleansed, but not (my) body.”

Before the festival began, India’s top environmental court directed the state and federal pollution boards to ensure the river water was clean enough to drink and bathe in. It called for increasing monitoring and sample collecting of the Ganges and Yamuna rivers and ensuring that no untreated sewage or solid waste would be discharged.

But a report submitted by the federal pollution board on February 3 stated that faecal coliform levels, a key indicator of untreated sewage and faecal matter in water, were far above the safe limit set by the board of 2,500 units per 100 millilitres.

At various parts of the Ganges and Yamuna rivers around Prayagraj levels were more than 1,000 over the safe limit, according to the report.

Adityanath said his government was continually monitoring the water levels to ensure its quality.

“We have ensured that the water quality has been maintained,” said Kumbh Mela officer Vivek Chaturvedi.

Aishwary Sharma, 31, a finance professional in Delhi, said he took a dip in the rivers despite knowing it could be polluted.

“I think it is quite evident that the Ganga and Yamuna are not clean rivers,” he said. “(But) there are many things that are bad for you… The air we breathe is so toxic for our health… It is just another thing that is polluted that could have a harmful impact on my health.”

For others, their faith and participating in the sacred festival was more important than their concerns.

“What (most people) are interested in is their devotion and religion and that they want to take that holy dip,” said Sunny Parasher, 34, from Panchkula in Haryana state.

“Where there is devotion, where there is religion, there is no question,” he said.

Kalpana Mishra, 55, a housewife from Prayagraj, said she would not take another holy dip after reading the pollution board’s report.

“What does being a literate person mean if you hear all this and still decide to go?” she asked.

Exposure to faecal contamination can cause water borne diseases such as typhoid, diarrhoea, cholera, gastroenteritis, E-coli, skin disease and vomiting, health experts warn.

Push to clean the rivers

Indian Prime Minister Narendra Modi has made cleaning the Ganges, India’s holiest river, a priority since first taking office in 2014 – with billions of dollars spent or pledged on sewage treatment, cleaning surface waste and afforestation in the decade since.

The Ganges, a lifeline for 400 million people who live and work along it, runs through 50 Indian cities that pump out about 3 billion liters of sewage every day – only a fraction of which is treated before it reaches the river, according to the World Bank.

The Yamuna, a tributary of the Ganges, has also for decades been plagued by the dumping of toxic chemicals and untreated sewage.

Ahead of the festival, Indian authorities touted this year’s gathering as a “Green Kumbh,” with sustainable initiatives such as a ban on single-use plastics, eco-friendly toilets, electric rickshaws and an army of 15,000 sanitation workers hired to clean up after major bathing days.

The Ministry of Culture said in January that the festival had been “meticulously planned to uphold hygiene and ecological balance” and would “set an example for future large-scale events worldwide” in environmental responsibility.

Protecting and cleaning the river was even a major theme at a conference held on the sidelines of the festival with religious and environmental leaders coming together for the first time on how religious institutions can address the climate crisis.

“If there is no water in the rivers, there is no Kumbh. We don’t consider it water, we consider it nectar,” said Indian spiritual leader Swami Chidanand Saraswati at the meeting. “If we all do not make efforts to protect it, then the next (Kumbh Mela) will be on mere sand.”

But complicating the green efforts was the enormous crowd size at this year’s Kumbh Mela, which saw 250 million more people than originally expected, according to one expert. Authorities had planned for about 400 million people to attend over the six-week gathering, with about 9 million people per day, but about 620 million people attended in total, according to government figures.

“It is a mammoth task to take care of such a crowd,” said Dr Nupur Bahadur, an associate director with The Energy and Resources Institute (TERI), a research institute that looks at wastewater management, established by the Indian government.

River contamination could be better managed by adopting better on-site prevention and disinfection methods, Bahadur said.

One of them could be halting the dip after every 12 hours for one hour” and letting fresh water run through the bathing areas before “the dips can be restarted,” she said.

Bahadur said that while the festival’s “massive increase in footfall” strained its infrastructure, it has still been “the best human effort possible” in such a situation.

Prayagraj resident Mishra said she will be happy when her city gets back to normal.

“My eyes are constantly burning and there is so much dust,” she said. “I want the festival to end so I can get back to my life.”

This post appeared first on cnn.com

The parents of an 8-year-old girl who died after they withheld her insulin, encouraged by members of a small Christian sect who believed God would save her, have been sentenced to at least 14 years in prison.

Elizabeth Struhs died in January 2022 on a mattress on the floor of her home in Toowoomba, west of Brisbane, five days after her father Jason Struhs, 53, declared that she no longer needed medication for Type 1 diabetes.

Her mother, Kerrie Struhs, 49, encouraged Elizabeth’s father to withhold her insulin, as did 12 other members of a Bible-based sect known as “The Saints,” who were also found guilty of manslaughter.

Sect leader Brendan Stevens, 63, was handed a prison sentence of 13 years by Justice Martin Burns in the Queensland Supreme Court on Wednesday. Eleven other members of the sect, who sang and prayed while Elizabeth died, were also due to be sentenced.

It’s not the first time Jason and Kerrie Struhs have been prosecuted for failing to give Elizabeth medical care.

In 2019, Elizabeth, then 6, was hospitalized for a month after becoming gravely ill from undiagnosed and untreated diabetes. At the time, her father rejected the sect’s insistence that God would heal her and eventually took his daughter to hospital.

That time, Jason Struhs pleaded guilty to “failing to provide the necessaries of life to Elizabeth” and was given a suspended sentence after testifying against his wife. Kerrie Struhs pleaded not guilty and was given an 18-month sentence.

What happened next all but sealed Elizabeth’s fate.

While Kerrie Struhs was in prison, her husband’s 17-year opposition to the sect crumbled, the trial heard, and he became “baptized” as its newest member.

Elizabeth died just three weeks after her mother was released from prison on parole, telling her parole officer that she’d withhold her daughter’s treatment again, if given the choice. She also said she wouldn’t intervene if anyone tried to help Elizabeth – but no one did.

A ‘miracle’ recruit

The couple at the center of the case had a long and often combative relationship.

Jason Struhs told police that his wife wasn’t very religious during the first few years of their marriage, but that changed when she met sect leader Brendan Stevens and his wife Loretta in 2004.

As Kerrie Struhs grew closer to the Stevens family, she began to reject medical treatment. Jason Struhs remained a staunch non-believer, who insisted that their eight children be vaccinated.

The couple’s conflicting beliefs caused friction in the household, and for a time Jason moved to the garage to “escape the tension.” He worked night shifts and preferred to stay away from the house, either working or playing golf, he told police, according to court documents.

Kerrie Struhs told police her husband was an “angry man” who didn’t believe in God, and that she was planning to leave him after her release from prison in December 2021.

But she changed her mind after she discovered that Jason had joined the church, describing him as much calmer, like a “new person.”

“The change in him has been unbelievable,” she told police.

Jason Struhs told police he had a “mental breakdown” after Kerrie went to prison and sought support from sect members.

To the church, the conversion of someone once vehemently opposed to their teachings was something of a “miracle” – proof that God had cured his anger.

A small home-based sect

When Jason Struhs declared in early January 2022 – just five months after joining the sect – that Elizabeth no longer needed insulin, church members were elated.

Their campaign to convince him that Elizabeth could be cured by God had worked.

Within days her condition deteriorated, and even as she lay dying with the insulin in the cupboard, no one gave it to her or suggested they seek medical help.

As Elizabeth became sicker, vomiting then unresponsive, Jason Struhs seemed to waver in his conviction, but church members rallied around him, encouraging him to follow God’s will.

They sat at Elizabeth’s bedside, singing and praying. “Whatever the Lord’s plan is for us, we will follow it,” Stevens later told police.

Elizabeth died on January 7, 2022, of diabetic ketoacidosis, a complication caused by a lack of insulin and medical treatment for diabetes – the same condition she had in 2019.

The sect continued to sing, dance and pray around her body for 36 hours before Jason Struhs said it was time to phone police.

For years, the sect’s beliefs were reinforced by their leader, Brendan Stevens, who taught his followers to reject modern medicine but denied any responsibility for Elizabeth’s death.

In 2022, as Elizabeth’s condition deteriorated, Stevens told her parents, “This is just a little trial to prove that you all are truly faithful to our faithful God,” according to court documents.

Stevens’ wife Loretta, 67, and six of their adult children – Therese, Andrea, Acacia, Camellia, Alexander and Sebastian Stevens, ages 24 to 35, were also convicted, along with Elizabeth’s older brother Zachary Struhs, 22.

The others included Lachlan and Samantha Schoenfisch, a married couple aged 34 and 26, and Keita Martin, 24, who went to school with the Stevens children and moved in with the family when she was 17. During the trial, their family members told the court they’d become increasingly concerned about their extreme religious beliefs.

But not all were taken in by Brendan Stevens.

Jayde Struhs, Jason and Kerrie Struhs’ eldest daughter, gave evidence against her parents. She left their home at age 16 for fear she’d never be accepted as gay.

In a victim impact statement read in court, Jayde Struhs said: “These people only wanted to control my family and everything they did. All for the sense of power … so they could play God.”

All 14 defendants represented themselves during a 9-week judge-only trial in 2024, however none gave or called any evidence. Speaking on their behalf, Brendan Stevens called the trial a “religious persecution.”

Jayde Struhs told Australia’s national broadcaster, the ABC, that Stevens instilled an Armageddon-style fear in his followers.

“The main … messaging that Brendan puts out there is that the world’s going to end and Jesus is going to come back and save us … if you’re not absolute in the walk of God, you’ll go to hell forever,” she said.

Cult expert Raphael Aron, director of Cult Consulting Australia, says Jason Struhs would have been under “immense” pressure to join the group and follow their beliefs.

He said prison is unlikely to change the beliefs of “The Saints,” and if members are allowed further contact with each other, it could further entrench their ideology.

“I don’t know if any group has fallen apart because the leader went to jail; he’s just seen as a martyr, basically a replica of Jesus on the cross,” said Aron. “There’s all sorts of other ways of justifying it, and they keep going.”

He said he hopes Elizabeth’s death acts as a “wake up call” to anyone who may be questioning the legitimacy of people influencing themselves or a loved one.

A major red flag is the rejection of conventional medicine, Aron said, as it allows the group to conceal abusive behavior.

“The one area in life where the groups can actually be held accountable will be through the medical world, because that practitioner has a responsibility to do something about what’s going on,” said Aron.

Sect leaders also often ban members from accessing the internet because if they did, they might find damning testimony from former members, he added.

Small groups with extreme beliefs are all but impossible to detect unless people come forward, Aron said – but in Australia, unlike the United States, there are few avenues to report them.

He’s advocating for a regulatory body with the power to investigate complaints.

“The problem is, if you go to the police and no crime has been committed, they can’t do anything, and by the time the crime has been committed, it’s too late.”

This post appeared first on cnn.com

China’s military has set up a zone for “live-fire training” about 46 miles (74 kilometers) off the southwestern coast of Taiwan without advance notice, the island’s defense ministry said on Wednesday.

It comes a day after Taiwan’s coast guard detained a Chinese-crewed cargo ship suspected of cutting an undersea cable in the Taiwan Strait.

Taiwan’s defense ministry said it detected 32 Chinese military aircraft in the Taiwan Strait starting shortly before 9am on Wednesday (7.42 p.m. Tuesday ET). It added that 22 of those aircraft flew near the north and southwest of the island and carried out a “joint combat readiness patrol” with Chinese warships, according to the statement.

“During this period, (China) blatantly violated international norms by unilaterally designating a drill zone approximately 40 nautical miles off the coast of Kaohsiung and Pingtung without prior warning, claiming it would conduct ‘live-fire training,’” the ministry said.

There was no immediate comment from Beijing on the Taiwan statement. China’s Foreign Ministry did not comment on it when asked at a regular news conference Wednesday, saying it’s “not a diplomatic issue.”

China’s ruling Communist Party claims Taiwan as its territory, despite having never controlled it, and has vowed to take the self-governing democracy by force if necessary. Under Chinese leader Xi Jinping, Beijing has significantly ramped up military, diplomatic and economic pressure on Taiwan.

Kaohsiung, a strategic commercial hub for Taiwan, is home to the island’s largest and busiest port.

Taiwan’s defense ministry said China declared the drill zone within international shipping lanes via temporary radio broadcasts, posing “a severe threat to the safety of international aviation and maritime navigation.”

“This is a blatant provocation against regional security and stability,” the ministry added.

This post appeared first on cnn.com

Israel had delayed the release of hundreds of Palestinian prisoners and detainees since Saturday in protest of what it said is the cruel treatment of hostages during their release by Hamas and demanding guarantees that future hostage releases would take place without “humiliating ceremonies.”

Hamas released six Israeli hostages from Gaza on Saturday in two public ceremonies and one private transfer, in what was the final return of living hostages in the first phase of a ceasefire deal that began last month.

Israel was expected to free 620 Palestinian prisoners and detainees, including 23 children and one woman — but Israeli officials delayed that release.

Hamas accused Israel of violating the truce with the delay, casting some uncertainty over the precarious ceasefire deal, and said talks on a second phase would not be possible until they are freed.

On Wednesday, an Israeli source familiar with the talks said a new agreement had been reached to transfer the remains of four hostages held in Gaza in exchange for the release of the 620 Palestinian prisoners and detainees.

Hamas confirmed that an agreement with Israel had been made through Egyptian mediators, but did not specify how many Israeli hostages and Palestinian prisoners and detainees would be released.

Hamas and its allies continue to hold 63 Israeli hostages in Gaza. At least 32 of those are believed to be dead, according to the Israeli government – one of whom, the soldier Hadar Goldin, has been held since 2014.

The 42-day truce between Israel and Hamas is set to expire this weekend unless an agreement is struck to extend it. The two sides were meant to begin talks on a permanent end to the war in early February, but those discussions have not begun yet.

This is a developing story and will be updated.

This post appeared first on cnn.com

An airline traveler has spoken of his shock after cabin crew sat him next to the body of a fellow passenger who had died during the flight.

Ring recalled watching the crew try to revive the woman.

“Unfortunately, the lady couldn’t be saved, which was pretty heartbreaking to watch,” he told Nine.

The crew then tried to wheel the body toward the business class section but were unable to maneuver it through the narrow aisle, Ring said.

“So they looked a bit frustrated and then they just looked at me and saw seats were available beside me… and they just said to me, can you move over please?” he said. “And I just said, ‘yes, no problem,’ and then they placed the lady in the chair that I was in.”

Ring then sat next to the body for the roughly four remaining hours of the flight, he said, despite there being other empty seats on the plane.

Another passenger offered Colin an empty seat across the aisle from Ring, where she sat for the rest of the flight.

“I was really shocked,” Colin told Nine, calling the experience “traumatic.”

“We totally understand that we can’t hold the airline responsible for the poor lady’s death, but there has to be a protocol then to look after the customers that are on board,” she said.

After the flight landed, Ring said passengers in his area were told to stay put until ambulance workers and police officers arrived to remove the body.

“I can’t believe they told us to stay,” he said, adding he was present when ambulance officers pulled away the blanket.

The couple said they weren’t immediately contacted by the airline, which they said owes them “a duty of care.”

Ring said he expected the airline to offer counseling support.

Qantas Airways, through which the couple bought their tickets, said they were in touch with Colin and have followed up with Qatar Airways.

“The process for handling incidents onboard an aircraft like this is managed by the operating airline, which in this case is Qatar Airways,” it said in a statement.

Meanwhile, Ring and Colin are trying to process the tragedy.

“I don’t really know how I feel,” Ring told Nine.

“And would like… to talk to somebody and to make sure I’m alright.”

This post appeared first on cnn.com

The US Consumer Confidence Index® came in much lower than expectations, and the Expectations Index fell to 72.9. A fall below 80 signals a recession ahead, enough to elevate the fear of economic weakness. As a result, the stock market sold off. But after 11:30 AM ET, the buyers came in, and the market rebounded from its lows. However, the rebound wasn’t enough to make much of a dent, except for the Dow which closed in the green. 

If you regularly monitor breadth indicators, you may have noticed that the New Highs – New Lows Index ($NYHL) was up over 150%. This caught my attention. The broader equity indexes were falling significantly, yet the new highs were way higher than the new lows. That was unusual, but since the stock market is known for pulling surprises when you least expect it to, it’s helpful to look under the hood to determine if the stock market is strong or weak. 

The Market’s Heart Beat

Looking through the rest of my charts in my Market Analysis ChartList — a part of my daily routine — one that I found interesting is the SPDR S&P 500 ETF (SPY) with the Percent Above Moving Average oscillators in the lower panels (see chart below).

FIGURE 1. DAILY CHART OF SPY. The percentage of S&P 500 stocks trading above their 50-, 100-, and 200-day simple moving averages are above 50 but watch these oscillators closely as they indicate the health of the overall market. Chart source: StockCharts.com. For educational purposes.

It’s interesting to note that the percentage of S&P 500 stocks trading above their 50-, 100-, and 200-day simple moving averages (SMAs) started to decline at the end of September 2024. The SPY was still trending higher and it wasn’t till December when it started to pull back.

The September pullback coincided with a relatively low percentage of stocks trading below their moving averages and declined further during the January 2025 pullback. But the oscillators recovered from these levels and as of now, even though SPY bounced off its 100-day moving average, they are not close to the previous lows. The good thing is they are all above their 50 threshold level. You can’t say the same for the Nasdaq stocks.

The chart below replaces SPY with Invesco QQQ Trust (QQQ) and analyzes the percentage of Nasdaq stocks trading above the 50-, 100-, and 200-day SMAs. They are trading at levels seen in August 2024, which is when QQQ went through a -15.56% pullback.

FIGURE 2. DAILY CHART OF QQQ. Although the QQQ is holding on to the support of its 100-day SMA, the percent of stocks trading below their moving averages are below 50, which is a bearish indication. Chart source: StockCharts.com. For educational purposes.

The Technology sector witnessed a four-day losing streak and was the worst-performing sector in the last week. Tech stocks are facing many headwinds — tariffs, AI unwinding, and chip availability, to name a few. Investors are rotating out of Tech stocks and moving into the offensive sectors — Consumer Staples, Real Estate, and Health Care. 

The Bottom Line

The broader stock market is at an interesting juncture and could go either way. SPY and QQQ are holding on to the support of their 100-day SMA but two important news events could shake things either way — NVIDIA earnings and Personal Consumption Expenditures Price Index (PCE). The rest of the week could be a bumpy ride.

If you haven’t done so, apply the percentage of stocks trading above significant moving averages oscillator. Percentage Above Moving Average indicator is available for several indexes. Try them out and see which ones give you a good “under the hood” look at the broader market.


StockChart Tip. Click the charts of SPY and QQQ in the article to see a live chart.

Then, save the charts to one of your ChartLists. Not sure how to create ChartLists? Check out this tutorial.



Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

JPMorgan Chase CEO Jamie Dimon on Monday said the U.S. government is inefficient and in need of work as the Trump administration terminates thousands of federal employees and works to dismantle agencies including the Consumer Financial Protection Bureau.

Dimon was asked by CNBC’s Leslie Picker whether he supported efforts by Elon Musk’s Department of Government Efficiency. He declined to give what he called a “binary” response, but made comments that supported the overall effort.

“The government is inefficient, not very competent, and needs a lot of work,” Dimon told Picker. “It’s not just waste and fraud, its outcomes.”

The Trump administration’s effort to rein in spending and scrutinize federal agencies “needs to be done,” Dimon added.

“Why are we spending the money on these things? Are we getting what we deserve? What should we change?” Dimon said. “It’s not just about the deficit, its about building the right policies and procedures and the government we deserve.”

Dimon said if DOGE overreaches with its cost-cutting efforts or engages in activity that’s not legal, “the courts will stop it.”

“I’m hoping it’s quite successful,” he said.

In the wide-ranging interview, Dimon also addressed his company’s push to have most workers in office five days a week, as well as his views on the Ukraine conflict, tariffs and the U.S. consumer.

This post appeared first on NBC NEWS

Denny’s is the latest nationwide restaurant chain to announce surcharges for meals that include eggs in response to a nationwide shortage that has sent U.S. prices skyward.

In a statement, the breakfast giant said that individual markets and restaurants would be responsible for deciding the surcharge price. It declined to quote any pricing examples, describing it as a ‘fluid situation.’

‘Denny’s remains committed to providing our guests with delicious meals they love at the value they expect,’ it said. ‘We do our best to plan ahead with our vendors on items like eggs to minimize the impact market volatility has on our costs and menu pricing.’

Denny’s follows Waffle House among major food purveyors announcing egg surcharges. Many local media reports have also found individual restaurants adding surcharges in recent weeks.

USDA data show a dozen eggs now cost more than $7 on average and have jumped another 10% in just the past week to a fresh all-time high as avian flu continues to spread on many of the nation’s poultry farms.

This post appeared first on NBC NEWS

Fabrics outlet Joann will shutter all of its approximately 800 locations after failing to find a buyer who would keep its stores open.

In a statement, the company said it would commence nationwide going-out-of-business sales as a stipulation of the group that won its assets at auction.

‘JOANN leadership, our Board, advisors and legal partners made every possible effort to pursue a more favorable outcome that would keep the company in business,’ the company said. ‘We are committed to working constructively with the winning bidder to ensure an orderly wind-down of operations that minimizes the impact on all our stakeholders. We deeply appreciate our dedicated Team Members, our customers and communities across the nation for their unwavering support for more than 80 years.”

Joann was founded as the Cleveland Fabric Shop by German immigrants during World War II. At one point, it was the largest fabrics retailer in the U.S.

The company went public in 2010, but was de-listed within a year. It experienced a brief revival thanks to the stay-at-home crafts boom during the pandemic. Joann went public again in 2021, but by 2023 its sales had tanked, and it filed for an initial bankruptcy proceeding in 2024.

Joann listed some 19,000 employees, most of them part-time, when it filed for its second Chapter 11 bankruptcy protection filing in January.

The company posted an extensive FAQ on its website with details about the going-out-of-business sales, which are set to commence immediately.


This post appeared first on NBC NEWS

Direct-to-consumer footwear brand Rothy’s just recorded its best year on record after the company appointed retail veteran Jenny Ming, one of the co-founders of Old Navy, as its CEO. 

Ming took the helm of the flats maker from co-founder Stephen Hawthornthwaite in January 2024. Under her direction, the company grew sales 17% to $211 million last year, its best volume year since it launched nearly a decade ago. 

Comparable sales at its stores grew 20% and it posted positive EBITDA for the full year, with margins above 10%. 

Rothy’s outperformed the U.S. footwear market, which was flat in 2024 compared with 2023, according to Circana. 

Rothy’s growth, which came from an expansion into wholesale and a focus on brick-and-mortar stores, comes as direct-to-consumer darlings find it harder than ever to survive with the pure-play models that once wowed investors at the turn of the decade. 

Once considered the future of the industry, these online-only businesses are now leaning into the retail fundamentals that have long been the building blocks of emerging brands. Wholesale partnerships are a critical customer acquisition tool, and stores still matter.

As these plucky startups contend with the challenges that come with an online-only business, the winners are adapting to a new reality where stores, wholesale partnerships and e-commerce all need to be part of the mix to ensure they can operate profitably. 

“A lot of people are like, why would you be on Amazon? Because people do a lot of searches on Amazon. If we weren’t there, and they type in Rothy’s, a competitor or somebody else would show up. So why wouldn’t we want to be there?” Ming told CNBC in an interview. “To me, it’s really thinking a little bit more holistically and broadly. What our customer would want from us is how we approach it … people shop very different today.” 

Channel diversification will never be a panacea for a business that’s inherently broken or doesn’t serve a market need. The footwear industry and specialty retail overall is more competitive than ever, and Rothy’s needs to continue its efforts to diversify, scale and expand into new categories to keep up its performance.

Soon after Rothy’s launched in 2016, it quickly made a name for itself with its ubiquitous Instagram and Facebook advertisements and an innovative approach on sustainable shoe manufacturing that included using recycled plastic to make machine washable products. By 2019, it was Meghan Markle’s flat of choice and it had developed a cult following. 

Buoyed by a record year for valuations and 0% interest rates, Brazilian footwear company Alpargatas took a 49.9% stake in Rothy’s in 2021 that resulted in a post-investment valuation of $1 billion. 

Rothy’s used the investment to build out a store fleet, but by that time, the company’s growth had stagnated and it was struggling to reach profitability. 

“Once we sort of emerged from the pandemic, you could see a lot of these digitally native brands now sort of saying, OK, now what, right? I need stores. It is so expensive to acquire customers online,” said Dayna Quanbeck, Rothy’s president. ”[With] an e-commerce model … all of your costs are variable, right? Where you really find scale and you really find profitability is where you can leverage your fixed costs, which is stores, really, and wholesale.”

Ming, who served as Old Navy’s president between 1996 and 2006 and later became the CEO of Charlotte Russe, joined Rothy’s board in 2022 and was later asked to take over as CEO. She said no at first, but later agreed to take the helm after she spent a few months consulting and saw the early innings of a transformation beginning to take shape. She immediately started focusing on improving profitability and generating sales momentum by making sure Rothy’s was selling the types of products that its customers wanted — and in the places they shopped. 

“I literally went line by line … looking at what we should spend, what we shouldn’t, you know, and rightsize marketing spend. There was things that, you know, we don’t need,” said Ming, citing office plants as one of the first things she cut. “But the main thing is, driving profitability is really in revenue. You have to be growing your sales in order to really be profitable, right?” 

That’s where Rothy’s new selling strategy came in. In 2024, it began testing with a select number of wholesale partners — Anthopologie, Bloomingdale’s, Amazon and toward the end of the year, Nordstrom.

At the same time, it continued growing its store fleet. Now, a business that drew about 99% of its revenue from its website does about 70% of sales online, with the rest balanced between stores and wholesalers. Combining profitable stores with strong wholesale partnerships, Rothy’s has been able to grow sales and become more profitable at the same time.

“If we were just digitally native forever and ever, you really just can’t get there with the cost of acquisition, with the cost of, you know, just showing up these days,” said Quanbeck. “Honestly, it’s impossible.” 

Looking ahead, Rothy’s is planning to build on its wholesale partnerships and has made stores, along with international expansion, a central part of its strategy. 

Quanbeck said it’s hard to sell customers on everything that makes the brand appealing without them being able to see it in person.

“But when you can walk into the store and you can see it visually, you have a great customer experience where we can really tell the story,” said Quanbeck “It’s additive. And we know that the lifetime value of those customers that engage with us IRL is really high.” 

Quanbeck and Ming, who are alumni of now-bankrupt Charlotte Russe, know all too well the perils of overexpanding unprofitable store fleets, and said they’re taking a balanced approach to brick-and-mortar. The 26 stores Rothy’s has are small and all are profitable and the company plans to open another eight to 10 doors this year, said Quanbeck.

Ming said Rothy’s won’t need hundreds of stores, but she’d like to see the fleet grow to 75, or perhaps even 100. 

“But we also want to make sure our wholesale partners is in the picture,” said Ming. “We’re going to be in [Nordstrom] in March … they have more stores than we will ever have, so they might be in markets that we might not decide to open a store but then we still have a partner for our customer to shop in.” 

When asked if Rothy’s will pursue an initial public offering or look to be acquired, Ming said the business isn’t there yet — and her team doesn’t need the distraction.

“We had a really great year but … I keep telling the team, one year doesn’t make it a trend,” said Ming. “So we’re really focused on this year. I think if we have another great year, you know, maybe a year or two, I think then we could really step back and say, ‘What next?’”

This post appeared first on NBC NEWS