| |
| Hello Insiders, Tuesday's edition of Inside Business takes a look at: - The modest rise in June U.S. retail sales
- H&M expanding its product range with makeup, sofas, and crocs
- Morgan Stanley exceeding expectations in wealth management
Also, remember to send us your suggestions for future newsletter topics. If you find this newsletter helpful, please share it with your friends and colleagues. Shriram
p/Shriram | |
| 1 | | Retail sales in the U.S. increased 0.2% MoM and 1.5% YoY in June. The increase was driven by strong sales of motor vehicles followed by furniture and appliances but came in lower than the expected 0.5% MoM gain. Excluding autos, food services, building materials, and gasoline, retail sales increased 0.6%. More: - Furniture and home appliances saw a modest increase of 1.4% and 1.1%, respectively.
- The weakest gains were seen in the clothing and restaurant categories, up 0.6% and 0.1%, respectively.
- Sales were up at seven of the 13 categories, but building materials stores, grocery stores, and gas stations saw declines.
|     | |
| 2 | | 
What the numbers say: The amount of money H&M made in 2022 was roughly the same as it was six years earlier. For the six months that concluded on May 31, the company recorded a 9% increase in revenue, with a growth rate of 1% when currency fluctuations are taken out of the equation. To boost sales, H&M is expanding its product range by opening separate stores for beauty and home, incorporating homeware sections into existing stores, and broadening its range of beauty and personal care products. Relevance: The COVID-19 pandemic, high inventory, and rivalry from online rivals like Shein have all slowed H&M's sales growth in recent years. Due to perceptions of less fashionable clothing and a lack of energy in its stores, the brand has lost momentum with young female clients, which make up its core demographic. More Info: Selling products from well-known brands like Crocs, Levi's, and Superdry is one way H&M is expanding its product line to appeal to a wider audience. Additionally, the business is putting its efforts into bolstering its subsidiary brands, which have outperformed its core businesses in terms of sales growth, such as Cos, Weekday, and & Other Stories. | | | |
| A message from our sponsor, RYSE. |  | | The Hottest (And Coolest) Innovation In Smart Home Tech
Ring 一 Acquired by Amazon for $1.2B
Nest 一 Acquired by Google for $3.2B If you missed out on these spectacular early investments in the Smart Home space, here’s your chance to grab hold of the next one. RYSE is the tech startup that’s in pole position to dominate the Smart Shades market, and their exclusive public offering of shares priced at just $1 is closing soon. The Smart Home space is scorching and best-in-class specs (and 6 issued patents) have RYSE positioned as the next industry heavyweight: - Unmatched Convenience: Their tech makes manual shades smart in under 5 minutes.
- Affordable Luxury: Priced at $169 vs. competitors’ pricing of up to $1,000 per window.
- Retail Distribution: Scheduled to launch in 100+ Best Buy stores by this summer.
Get a piece of RYSE before their brand becomes synonymous with Smart Shades. Learn More | |
|
| 3 | | Morgan Stanley outperformed expectations in the second quarter, with earnings of $1.24 per share and revenue of $13.46B, exceeding estimates of $1.15 per share and $13.08B, respectively. However, the company experienced a 13% decline in profit to $2.18B, attributed to reduced trading outcomes and costs related to layoffs. More: - The company's wealth management sector saw revenue increase 16% to $6.66B despite a difficult market environment, with $90B in net new client assets.
- Revenue for the institutional securities sector fell by 8% to $5.65B as a result of decreased trading.
- At $1.08B, investment banking revenue remained largely constant from the prior year.
- Within a year, James Gorman, the current CEO of Morgan Stanley, will leave the position and step back to an executive chairman role. Three internal candidates will compete to become CEO.
| | | |
| 4 | | Berkshire Hathaway sold 70% of its stake in Activision Blizzard in Q2, just prior to the judge's approval of Microsoft's acquisition of the video game publisher. The sale reduced Berkshire's stake to 14.7 million shares, valued at $790M. More: - Activision Blizzard is the maker of popular video games such as Call of Duty and World of Warcraft.
- Buffett began acquiring shares of Activision Blizzard in Q4 of 2021, purchasing a total of 49.4 million shares at an average price of $68.34 per share for a total investment of approximately $3.75B.
- Microsoft is the maker of the Xbox gaming console, and the deal, which is expected to close in 2023, would create the world's third-largest gaming company.
| | | |
| 5 | | Taco Bell prevailed in a trademark dispute with Taco John's over the phrase "Taco Tuesday" in a decision fittingly announced on Tuesday. The USPTO ruling allows Taco Bell to use the phrase in its advertising and marketing materials without fear of legal action from Taco John's. More: - Taco John's said in a statement that it wouldn't be worth the estimated $1M it would cost to defend the trademark.
- The chain had held the trademark since 1989.
- "Taco Tuesday" is now a generic term that any restaurant can use, except in New Jersey, where Gregory's Restaurant and Bar in Somers Point owns the trademark.
- Taco Bell filed a separate petition seeking to end Gregory's trademark.
- The resturant's owner vowed to defend the trademark.
| | | |
| 6 | | Chipotle has signed a franchise agreement with Kuwait's Alshaya Group to open its first-ever outlets in the Middle East next year. Chipotle will initially operate two restaurants each in Kuwait and Dubai. More: - Chipotle partnered with Alshaya, a local franchise retail operator, to expand into new markets for the first time, specifically Canada and Europe, where it operates over 50 company-owned locations.
- In the Middle East, Chipotle hopes to uphold its "Food with Integrity" tenet through the use of localized menu changes and fresh, genuine ingredients.
- Chipotle CEO Brian Niccol said, "Although Chipotle is franchising in the Middle East, there are currently no plans to do so in the U.S."
- With a gain of more than 50% in 2023, Chipotle's stock has been one of the best performers in the restaurant industry.
| | | |
| 7 | | Quick Hits: - It's true: there really is a once-in-a-lifetime IRS kickback available to 80% of businesses. Apply Now.*
- AT&T Inc. shares plunged by almost 7%, hitting a three-decade low, as analysts cut their ratings on the stock due to reports of the company leaving hazardous lead cables buried throughout the U.S.
- Tesla aims to enlarge its factory in the Berlin area to boost its annual manufacturing capacity to 1 million vehicles.
- Ron DeSantis' presidential campaign has received over 67% of its funding from donors who have given the maximum legally allowed and cannot donate anymore, raising concerns about his ability to survive as a challenge to Donald Trump.
- The dollar lost ground against a number of currencies on Monday, capping off its biggest weekly loss of the year as Treasury yields declined, but it managed to hold onto its one-year high while the market was unaffected by any major factors.
- Level up your AWS knowledge. Packed with tips and tricks, the Amazon Web Services Cookbook is a must-have resource for both novices and experts.*
*This is a sponsored listing. | | | |
| Upcoming Events | | JUL
20 | | How to Set Up a Fundraising Campaign | | | | | | | JUL
25 | | Lacework hosts former CEO of Starbucks, Jim Donald, for a fireside chat on what CEOs need to know about cybersecurity.* | | | | | | | JUL
31 | | #TwoCents Discussion Community Challenge | | | | | | | OCT
16 | | Meet Our Fund 5, Building and Investing in AI | | | | | | * This is a sponsored event | | | |
Term of the Day Options: Options provide the right but not the obligation to buy or sell an underlying asset from another party at a fixed price over a specified time. Question of the Week Do you think it's ever acceptable to bring politics into the workplace? Join the conversation |
INSIDE BUSINESS LEADERBOARD (7 DAYS) |
 | Freelance Writer | | Shriram is pursuing Master’s in Business with Marketing at Warwick Business School. He worked as a Senior Consultant in Tech and Political Consultancies before his Masters. He is passionate about Tech, Marketing, Strategy, Anthropology and Politics. He is also the Postgraduate Ambassador for Warwick Business School. | | This newsletter was edited by Aaron Crutchfield | |
| |
| |
|
| |
