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| Here's your daily business briefing. - 👟 Crocs hits $4B annual revenue record
- 🌬️ Deep Dive: U.S. onshore wind recovery
- 💊 Eli Lilly, Novo Nordisk's growth on weight-loss drug
Thanks for reading! Shriram
p/Shriram | |
| 1 | | Crocs ($CROX) achieved a historic annual revenue of almost $3.96B, reflecting an 11.5% rise compared to the prior year's $3.55B. In the fourth quarter, revenue reached $960.1M, a 1.6% increase from last year's period, while net income surged to $253.6M, an 84% rise from $137.7M. More: - The American footwear company saw a 13.3% growth in revenue in 2023, topping $3B, and an 18.5% increase in direct-to-consumer (DTC) revenue.
- In February 2022, Heydude — a brand that Crocs purchased for $2.5B — saw a 6% increase in annual revenue to $949M, with operating profitability surpassing $200M.
- Even though Heydude performed well overall, its fourth-quarter revenues dropped by 18.5% to $228M.
- In 2024, Crocs intends to open up to 30 outlet outlets for Heydude and maintain partnerships and collaborations to increase brand awareness.
- The Colorado-based firm projects 3% to 5% annual revenue growth, anticipating a 4% to 6% increase for its namesake brand and stable to slightly higher revenues for Heydude.
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| 2 | | 
What the numbers say: In 2023, onshore wind installations in the U.S. totaled 7 gigawatts, showing improvement from the previous year but down from the peak of 17 gigawatts in 2020. Projections suggest a rebound in the sector, with anticipated installations of 8.4 gigawatts in 2024 and a goal of nearly 20 gigawatts by 2030, bolstered by the extension of tax credits through 2030, instilling confidence among developers and accelerating the energy transition in the U.S. Relevance: The U.S. onshore wind sector's revival is vital for clean energy goals and aligning with President Biden's carbon reduction targets, with the Inflation Reduction Act offering crucial support through tax credits. The IRA's extended certainty and focus on energy communities are favorable for wind development and investment in the U.S. More data: The U.S. onshore wind sector, despite grappling with challenges like inflation and supply-chain issues, is poised for expansion, marked by manufacturers' facility expansions and major project orders. On the other hand, the offshore wind industry is experiencing uncertainty and project delays, but these adjustments may have long-term benefits for the sector. | | | |
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| 3 | | Eli Lilly ($LLY) and Novo Nordisk ($NVO) are experiencing significant share price growth driven by the success of their weight-loss drugs, known as GLP-1 agonists, in a high-demand market. Both companies' shares are trading near record highs, with valuation multiples comparable to high-growth tech stocks, featuring Eli Lilly's PE multiple at 56.17 and Novo Nordisk's at 35.84, far surpassing the healthcare sector's PE multiple of 18.7. More: - Eli Lilly is now the ninth-largest U.S.-listed firm based on market valuation, surpassing even Tesla, and Novo Nordisk temporarily held the top spot among European companies.
- Over the next three years, Eli Lilly's revenue is expected to expand by 76% to $60.39B, while Novo Nordisk's revenue is expected to rise by 68% to $56M.
- Analysts predict that over the next 12 months, Eli Lilly's market capitalization will increase by 7.4%, while Novo Nordisk's worth may decrease by 3%.
- Potential threats to the recent surge in the companies' stocks include rising production expenses and the risk of significant drops in product prices.
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| 4 | | Target ($TGT) is launching "Dealworthy," a wallet-friendly in-house brand featuring 400 items, from daily essentials like phone chargers to disposable plates, with prices starting below $1. This strategic initiative aims to attract cost-conscious customers with affordable alternatives, responding to market demands for a robust value tier against competitors like Walmart and dollar stores. More: - Most products are priced under $10, and certain electronics are available at half the cost of competing brands at Target.
- Due to poor positioning and assortment, Target is discontinuing its prior low-cost brand, Smartly, and replacing it with Dealworthy products.
- Target's other low-cost brand, Up&Up, is undergoing a revamp, presenting products priced above Dealworthy but still under $15.
- Target's sales declined for two consecutive quarters despite strong private label sales exceeding $30B annually.
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| 5 | | DraftKings' ($DKNG) Q4 results, reporting a 44% YoY revenue growth, fell short of expectations with a loss per share of $0.10 and revenue at $1.23B, below the anticipated $1.24B. DraftKings increased its projection for the fiscal year 2024 from $350M to $450M to $410M to $510M. More: - The company revealed a $750M cash and stock acquisition of the lottery app Jackpocket, projecting potential revenues of up to $260M and adjusted EBITDA ranging from $60M to $100M by 2026.
- CEO Jason Robins noted NFL game outcomes as challenges in the quarter, impacting DraftKings, but emphasized a strong customer experience exceeding expectations.
- The number of average monthly unique payers climbed by 37% to 3.5M, and the average revenue per MUP increased by 6% over the prior year.
- The Boston-based sports-betting giant now offers mobile sports betting in 24 states after extending its Sportsbook product to Vermont and Maine.
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| 6 | | A New York Federal Reserve study reveals that between Q1 2019 and Q3 2023, Americans under 40 witnessed an 80% surge in total wealth, reaching $9.5T, outpacing the wealth growth of older age groups. In comparison, Americans aged 40–54 saw a 10% increase, and those over 55 experienced a 30% gain during the same period. More: - Stocks played a central role in driving wealth gains for younger generations, driving a 50% increase in the value of financial assets for younger Americans since 2019, boosted by pandemic stimulus checks.
- The percentage of younger adults' financial assets comprising riskier assets, such as stocks, increased from 18% in 2019 to 25% in Q3 2023.
- Despite substantial wealth growth, those under 40 remain the least affluent, with $9.5T compared to $29T for ages 40–55 and $104T for those over 55.
- A study led by Rob Gruijters from the University of Cambridge reveals that, at the age of 35, the median millennial has 30% lower wealth than the median boomer at the same stage of life, with figures at $48,000 and $63,100, respectively.
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| 7 | | Quick Hits: - Twenty top technology companies, including Microsoft, Meta, Google, Amazon, IBM, Adobe, and Arm, pledged to collaborate in countering AI misinformation in preparation for the 2024 elections.
- Intuitive Machines' shares rose following an update confirming the excellent health of its moon lander mission, IM-1, which was launched on a SpaceX rocket with a landing target set for Feb. 22.
- Activist investor Carl Icahn has reached an agreement to secure board seats at JetBlue after disclosing a 10% stake in the airline earlier in the week.
- Former President Trump has introduced a sneaker line named Trump Sneakers, now open for online preorders, offering three distinct styles, including high tops and laceless athletic shoes in red and white.
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 | 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 | |
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