Hey Snackers,
ABC has named its first-ever senior singleton to star in the upcoming “Bachelor” spinoff, “The Golden Bachelor.” Gerry Turner, a 71-year-old grandpa, widower, and retired restaurateur. Hobbies include hosting BBQs, playing pickleball, and (soon) dating 30 women at the same time.Â
The Dow sailed into its eighth straight day of gains — its longest green streak since September 2019 — as earnings results kept rolling in.
AT&T halts removal of lead cables as toxic corporate legacies rear their costly heads
Buried but not forgotten… The Wall Street Journal recently published a bombshell report identifying 2K+ toxic lead-sheathed cables across the US, owned by telecom titans including AT&T and Verizon. Telecoms started moving away from lead-covered cables in the 1950s, but left many in the ground. One big shocker from the report: soil and water near dozens of the cables was found to contain levels of lead that far exceeded EPA safety recommendations, suggesting leaching. FYI: health experts caution that no amount of lead exposure is safe — and that it can hurt kids’ development.Â
The latest: AT&T said it’d pause the planned removal of cables from California’s Lake Tahoe as it holds off for additional testing.
Like a lead balloon… Telecom stocks sank this week, with AT&T hitting a 30-year low on Tuesday as investors worried about potential lawsuits.
Costly consequences… The buried lead cables aren’t going anywhere soon, with one analyst saying they could take decades to deal with. Experts say it could cost up to $60B to remove and properly dispose of them. And even that presents health risks: The Journal reported that a 2010 internal AT&T report said that removing the cables could lead to worker overexposure.
Past mistakes can haunt future profits… The telecom industry isn’t the first to face a housekeeping hangover. Last month 3M agreed to pay a $10.3B settlement after US cities said the company’s chemicals polluted drinking water for decades. Earlier this year Johnson & Johnson said it’d pay a ~$9B settlement related to a decade-plus legal battle over its talcum powder. Asbestos-related court battles and settlements have been ongoing since at least the early ’70s, but the EPA is still fighting to ban remaining uses of asbestos.
Kim K’s Skims notches a $4B valuation by modernizing (and stretching) the shapewear industry
Bigger than a KUWTK premiere… Kim Kardashian’s Skims brand hit a $4B valuation after announcing a fresh $270M in funding yesterday. Skims debuted in 2019 as a direct-to-consumer shapewear brand, launching its merch in several skin tones and sizes (think: XXS to 6X). Last year Skims scored a $3.2B valuation as it expanded into new categories — from PJs and swimwear to $40 crop tops (a men’s line is coming this fall).
Tight returns: Skims’ CEO says the biz is now profitable and expects to rake in $750M in sales this year, 50% more than in 2022.
New shelf: The shapewear star plans to use its fresh funding to build brick-and-mortar stores and open its first flagship locations in NYC and LA next year.
Ice Spice approved… Celeb-backed businesses like Skims and Rihanna’s Savage X Fenty have breathed new life into bodywear as the pandemic comfort trend stays hot. Both brands have leveraged viral social campaigns, limited product drops, and strong reviews to build hype. It’s paying off: 11M+ people have been on Skims’ wait lists in the past year, with most items selling out in minutes. Savage X Fenty is said to be worth $3B, and could be going public soon. Lizzo's shapewear brand, Yitty, expects to make $100M this year after launching in April ’22.
Brands can redefine categories… Shapewear has been around since the days of corsets, but Skims shook up the industry with a modern makeover. By moving beyond the "slimming is better" mindset and embracing different styles, Skims extended the trend and set a new standard. It’s having a halo effect: two years after Skims launched, OG shapewear biz Spanx became a billion-dollar brand for the first time in over a decade.
What else we’re Snackin’
Tested: Tesla reported its best-ever quarterly sales after delivering a record 466K EVs. It slashed prices on its models, but Tesla’s profit was up a better-than-expected 20%, though its margins shrank.Â
UnMooch: Netflix added nearly 6M subs last quarter, attributing the stronger-than-expected growth to its password crackdown (your ex finally got their own account). But the stock fell after the streamer missed on revenue.Â
Barb: Over 100 brands, including Bloomingdale’s and Gap, have struck deals with toy icon Mattel to sell Barbie-themed wearables (picture: hot-pink Crocs) ahead of the premier. Mattel’s franchise flywheel is paying off.Â
Jet: United reported all-time-high quarterly earnings and lifted its annual outlook as international vacay demand takes off. It recently reached a preliminary deal to boost pilots’ pay after years of talks.Â
Wrong: A new paper from researchers at Stanford and UC Berkeley appears to support the growing suspicion that OpenAI’s GPT-4 is getting dumber. No one seems to know why.
Thursday
Earnings expected from Abbott, American Airlines, Blackstone, Capital One, Johnson & Johnson, Kenvue, Nokia, and Philip Morris
 Authors of this Snacks own shares of Tesla and Mattel