Hey Snackers,
That Taco Bell hotel we told you about? It sold out in two minutes.
Investors were buying too as the S&P 500 hit (another) fresh record high — the holiday-shortened week kicked off with a trade war truce boost.
The Women's World Cup is handing Nike (multiple) records
Technically... Nike reported its earnings last week. Technically it missed analysts' expectations for the 1st time in 7 years. But we're more focused on CEO Mark Parker's call with investors after the earnings report. Just in time for today's USA vs. England World Cup match, he thinks 2019 is a "true tipping point" for women's sports.
Women are winning Nike... 14 of the 24 Women’s World Cup teams enjoy a Nike swoosh across the chest. And the combo of Nike spending big on this ad, covering almost 2/3 of the jerseys, and record TV ratings are doing it. These Nike stats just arrived:
- The US Women's National Team jersey is the #1 selling soccer jersey — men's or women's — ever sold on Nike.com.
- And enthusiasm for women's apparel has extended to bras — Parker announced Nike's now the biggest seller of bras across North America.
Nike vs. Lululemon... That's the biggest matchup worth watching right now. Both are focusing on the opposite genders in the same (non-US) places. It's a fight worth watching.
- Lulu’s 5-year plan: Double men’s sales and quadruple international sales (especially in China) since the majority are sold to North American women.
- Nike’s focus: Sell more to women and to China — 75% of its apparel sold is to men, and China is its fastest-growing market with nearly 20% of all sales.
StubHub creates VIP status for your buddy who drops $10K/year on tickets
Don't sing along with the peasants... If you have a 5-digit budget for T-Swift or GNR concerts, then you're qualified for StubHub Beyond, the new loyalty club for event go-ers who spend $10K/year on the ticket platform. StubHub is owned by eBay, and its parent company wants high-rollers to feel special with "Beyond."
We want to be on this list... To get frequent and big-spending customers even more frequent and liberal with their wallets, StubHub's hooking them up three ways:
- Exclusive events: Think private tour and batting cage experience at Yankee Stadium (it's event #1, starting Thursday). Or VIP tailgate at the Masters golf tournament.
- Cancellation forgiveness: If you can't make the 3rd day of Lollapalooza, you'll get 1 full refund per year, no questions asked. None.
- Exclusive support line: Because, of course.
- The Key is exclusive loyalty: With so many secondary market ticket sellers, Beyond could incentivize loyalty to StubHub.
This is a classic 80/20 situation... Surprised StubHub's doing so much for such a tiny fraction of customers? Don't be. It's not uncommon in business for 80% of profits to come from 20% of users. That's why companies spend an outsize amount of resources keeping high-spenders happy. So expect the VIP-ification (TSA "Clear" > TSA "Pre-check" > TSA "please remove your shoes and prepare for pat down") of corporate America to continue.
Deutsche Bank is reportedly planning to lay off over 20% of its workers
Aiming for that 9-to-1 job?... According to Bloomberg, Deutsche Bank's NYC-based workers are leaving the office post-lunch for beers nearby. According to other sources, the big German bank expects the CEO to announce layoffs of up to 20K of its 91.5K workers. Now that Deutsche's savior mega-merger with Commerzbank is off, it's taking out the axe.
1 number says it all... The stock has fallen 80% in the past 4 years, and is down almost 95% from its pre-financial crisis highs. One crucial financial metric shows just how little confidence investors have in management to make money:
- Book Value = value of a company on paper: Deutsche Bank's balance sheet says it's got $71B of net worth.
- Market Value = value of a company according to its stock price: Wall Street investors think Deutsche is worth just $16B based on where the shares are trading.
- Price/Book ratio: Divide those two. The resulting Price/Book ratio helps us realize that investors are only giving the bank 22 cents of credit for each dollar of paper value. Investors think Deutsche Bank is worth less than the bank does.
It's a vicious cycle... After the financial crisis almost destroyed European economies, the continent responded with tough banking regulations. Sadly, the banks responded by making fewer loans, which slowed economic growth, which hurt corporate profits, which hurt the banks. That cycle has just been on repeat over the past decade — Now Deutsche's a shadow of its pre-'08 self.
What else we’re Snackin’
- Flagrant: MSG Networks stock dips after the Knicks lose out on adding Kevin Durant to the roster
- (vroom): The European Union requires electric cars to add sounds so pedestrians can hear them — and BMW hired composer Hans Zimmer for the job
- Slipping: OPEC, the oil cartel of top-producing countries, met up and decided to keep production levels cut into 2020 to keep your oil prices up
- Networked: Girlboss founder Sophia Amoruso launches a LinkedIn for professional women (resumés are out)
- Caught: Facebook's HQ in Menlo Park received a package containing hazardous materials, detecting it in the mail facility
- Donated: Warren Buffett's donating $3.6B of Berkshire Hathaway stock to 5 foundations
Tuesday
- The USA faces off against England in the World Cup soccer semi-finals at 3pm ET, 12pm PT