Hey Snackers,
The real skinny legend: Boston's famous "Skinny House" — not even 10 feet wide – is back on the market for a big $1.2M.
Stocks closed at records again yesterday, still riding high after the FDA's first official Covid vax approval. Meanwhile, Covid hospitalizations of kids have reached their highest levels on record.
OnlyFans backtracks on its sex ban: why it’s hard for “vice companies” to play both sides
Lots to unpack... Creator subscription platform OnlyFans is famous for #NSFW adult content, but it's been focused on growing its "SFW" creators (like: yoga instructors and Cardi B). Last week, OnlyFans said it would ban "sexually-explicit conduct" by October 1, citing pressure from financial partners. The bombshell decision drew backlash from sex workers, who’ve fueled the platform's rapid growth. Yesterday, OnlyFans did a stunning 180:
- OnlyFans scrapped the major policy change, saying it received assurances from its banking partners that'll allow it to "provide a home for all creators.”
- In context: OnlyFans keeps 20% of subscription sales, and creators keep the rest. Creators have earned $5B+ on its platform — and 300 creators earn $1M+/year.
The "vice" problem... OnlyFans is one of the most profitable Creator Economy platforms, especially since the pandemic. Within a year, it grew from 20M+ users to a stunning 120M+ users. It raked in $375M in revenue last year, and is expected to hit $1.2B in revenue and $417M in pre-tax profit this year. Despite those enviable numbers, OnlyFans has reportedly struggled to find investors.
- Many VC funds have "vice clauses" that prevent them from investing in industries like: tobacco, alcohol, drugs, porn, weapons, and sex-tech. That limits OnlyFans' fundraising potential.
- Vice clauses can also impact investment choices of public funds (think: mutual and pension funds), governments, endowments, and other institutional investors. That could hurt OnlyFans if it decides to IPO.
Zoom out... Vice clauses limit investment in many industries, and are designed to avoid risk. With OnlyFans, some financial partners are concerned about a potential for sexual exploitation of minors — and the legal liability that carries. Mastercard, Visa, and Discover cut ties with Pornhub last year after the site was accused of being complicit in trafficking child abuse imagery.
It’s hard to play both sides... The "vice" identity isn't something companies can dabble in without tradeoffs. For "vice companies," it's hard to please both investors and the community, since success is often rooted in the "vice." They have to plant their flags somewhere, and risk alienating either investors or users. OnlyFans tried to have both — that backfired, so it decided to take the risk with investors.
Dick's Sporting Goods is thriving because the athleisure life just won't stop
YouTube: 15-minute killer ab workout... You've seen it 1000X. Shares of Dick’s Sporting Goods jumped 13% yesterday, after the self-explanatory company revealed quarterly sales were 45% higher than pre-pandemic levels. During the corona-conomy, we abandoned gyms in favor of at-home workouts and park jogs. Dick's sales of workout clothes, sneakers, and golf clubs spiked. But even as gyms reopen, the athleisure lifestyle is sticking — and Dick's stock has more than doubled this year.
Year(s) of the yoga mat... Retail spending is rebounding as recovery continues, and is on track to pass pre-pandemic levels. Part of the boost: some pandemic trends are still trending. Sales of activewear, athleisure, "comfort clothes," and sports gear are booming.
- Avoiding gyms: Sales of health and fitness equipment more than doubled from March to October, and the market is expected to continue growing in the coming years.
- Getting outside: Four in 10 former gym members plan to switch to running or outdoor exercise this year, according to a recent survey.
- Staying comfy: Urban Outfitters sales more than tripled last quarter, thanks to a big boost from its Free People activewear sub-brand, “Movement.”
The future is active… and retailers are trying to keep pace. Companies that offer activewear lines or sports gear, like Urban and Dick’s, saw sales surpass pre-pandemic levels. Retailers that haven’t focused on athleisure haven't seen the same benefits: Sales at fashion-forward Nordstrom were still below pre-pandemic levels last quarter. Now, Dick’s is opening a new outdoors-focused store concept this fall, and Urban plans to open 20+ new Movement stores this year and next.
What else we’re Snackin’
- Charge: Delta will charge unvaccinated employees an extra $200 per month for health insurance if they choose to stay unvaxed.
- Boost: J&J says a second dose of its Covid vax was found to generate a strong immune response, justifying a booster shot.
- Hacky: Google, Microsoft, and others plan to spend billions on cybersecurity after attending the White House's summit on rising cyber threats.
- Vote: Facebook is reportedly considering forming an election commission to advise it on thorny election-related decisions — it's no stranger to election drama.
- Glossy: Ulta's sales soared 60% last quarter, as shoppers rushed to the beauty retailer to restock their makeup bags. IRL face is replacing Zoom face.
- Give: Pinduoduo, the Chinese ecomm giant that connects farmers with consumers, is donating its entire quarterly profit to rural China (#FarmToPeople).
Thursday
- Weekly jobless claims
- Earnings expected from TD Bank, Dell, Dollar General, HP, Peloton, Dollar Tree, J.M. Smucker Company, Gap, and Abercrombie & Fitch
Authors of this Snacks own shares of: Delta, Microsoft, Google
ID: 1813069