Latest / What the Flux / Myer re-commits to private labels | Airbnb's new growth strategy | Nike's share price jumps 7% on major news

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Myer re-commits to private labels | Airbnb's new growth strategy | Nike's share price jumps 7% on major news · What the Flux

• 0:05
  Speaker 1: This is what the plus.
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  Speaker 2: I'm justin and I'm past deep, and it's Monday, the
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  Speaker 2: twenty third of September AHG.
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  Speaker 1: More than five million Aussies receiving Central Link income support
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  Speaker 1: have seen a cash boost in their accounts from last Friday.
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  Speaker 1: Get this people on the age Pension, Disability Support Pension
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  Speaker 1: or Caress Pension, we'll see payments increased by over twenty
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  Speaker 1: eight dollars a fortnite for singles or forty two dollars
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  Speaker 1: a Fortnite for couples, all thanks to the twice a
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  Speaker 1: year indexation jing blut Spam.
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  Speaker 2: We're so excited to roll out our new series in
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  Speaker 2: the Flux App, where you ask and we answer. Flux
• 0:35
  Speaker 2: users submit their toughest money questions and we provide actionable
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  Speaker 2: tips to tackle those tricky financial situations. This week we
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  Speaker 2: talk about new couples moving in together and how to
• 0:45
  Speaker 2: manage all those expenses. So make sure to check it
• 0:47
  Speaker 2: out in the Flux App.
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  Speaker 1: Three financially awkward.
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  Speaker 2: Stories Today, let's get into it.
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  Speaker 1: For our first. Maya shares have dropped over ten percent
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  Speaker 1: after it suffered a fall in its annual sales, but
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  Speaker 1: it plans to double down on a struggling brands.
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  Speaker 2: Maya seems really desperate for little transformation. Here, tell us
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  Speaker 2: what's going on.
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  Speaker 1: Okay, so she we know Maya. It's the Australian Department.
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  Speaker 1: So that's been around since nineteen.
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  Speaker 2: Hundred and While it was the epitome of fashion in
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  Speaker 2: Australia back in the day, it's been off its game
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  Speaker 2: in the past ten years.
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  Speaker 1: Yeah, Maya's currently valued it around seven hundred and twenty
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  Speaker 1: four million bucks, which is a far cry from its
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  Speaker 1: peak valuation of two point two billion dollars back in
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  Speaker 1: two thousand and nine.
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  Speaker 2: And now Jazz Maya has just released its annual results
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  Speaker 2: and it's fair to say investors are unimpressed.
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  Speaker 1: Yeah, we're talking sales down two point nine percent on
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  Speaker 1: the year before, which could.
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  Speaker 2: Be considered okay in the current retail environment.
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  Speaker 1: But then investors got hit with its net profit down
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  Speaker 1: twenty six percent on FI twenty.
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  Speaker 2: Three and Jazz A big part of this drop in
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  Speaker 2: net profit was the underperformance of its own brands Assassin, Bide,
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  Speaker 2: Marx and David Lawrence.
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  Speaker 1: But a she rather than shunning these brands and shipping
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  Speaker 1: them away, Maya is actually doubling down on them.
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  Speaker 2: Yeah. It reckons that by being more hands on with
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  Speaker 2: these brands, it'll be able to improve its thin margins
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  Speaker 2: and its image with customers.
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  Speaker 1: Because the margins of a partment store selling only other
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  Speaker 1: brands can be a raise.
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  Speaker 2: A thin So what's the key learning here?
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  Speaker 1: To build a healthy brand, you need to have healthy margin.
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  Speaker 2: You see, Jaz, While Maya generated over three point two
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  Speaker 2: billion dollars in sales, it's ebit was only about one
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  Speaker 2: hundred and sixty two million.
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  Speaker 1: So that's an EBIT margin of just four point nine percent.
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  Speaker 2: So if Maya's going to re establish itself as a
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  Speaker 2: successful fashion retailer in Australia, it needs to shift away
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  Speaker 2: from those thin margins.
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  Speaker 1: And actually it seems like my strategy here is to
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  Speaker 1: grow its own pool of brands so it can have
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  Speaker 1: more control over its margins.
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  Speaker 2: That's why Myra is so keen to invest in its
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  Speaker 2: slower brands like sassen By, which it was previously considering
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  Speaker 2: selling off.
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  Speaker 1: And it's also why earlier this year we had plans
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  Speaker 1: to acquire JJ's Just Jeans, Portmans and Dotty from Premier Investments.
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  Speaker 2: Looks like Meya's keen to sell more of its own
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  Speaker 2: brands and it's adopting more of a mid market image
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  Speaker 2: in the process.
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  Speaker 1: For our second story. Airbnb has seen a significant shift
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  Speaker 1: in its accommodation demands, so now it has a brand
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  Speaker 1: new focus for growth.
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  Speaker 2: New focus only quirky. Airb's like the flying saucer house.
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  Speaker 2: What's going on here?
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  Speaker 1: I'm not sure about that, So she airbb's been around
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  Speaker 1: since two thousand and seven, when it's bounders rented out
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  Speaker 1: air mattresses on the floor to make some extra muler
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  Speaker 1: during a design conference.
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  Speaker 2: And since then it's completely disrupted the travel accommodation industry.
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  Speaker 1: We're talking more than seven million active listings across two
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  Speaker 1: hundred and twenty countries.
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  Speaker 2: But Jaz now Airbnb is facing some interesting challenges.
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  Speaker 1: Talk me through them.
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  Speaker 2: So there's been a crackdown from local governments on short
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  Speaker 2: term rentals.
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  Speaker 1: There's been increasing competition from other travel platforms like book
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  Speaker 1: dot com, which now also offers homes as well.
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  Speaker 2: And more recently, customers have also been tightening their wallets.
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  Speaker 1: But she don't pack up your bags yet on Airbnb
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  Speaker 1: because their CEO said it's got a new focus to
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  Speaker 1: address these challenges, and that is they're going all in
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  Speaker 1: on growing their long term stays.
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  Speaker 2: We're talking stays between thirty to ninety days.
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  Speaker 1: And airbb's hoping this might help them avoid the wrath
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  Speaker 1: of many cities globally looking to tighten the rules around
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  Speaker 1: short term vacation rentals.
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  Speaker 2: So what's the key learning here?
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  Speaker 1: Companies sey to adapt their business models to make growth
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  Speaker 1: or risk getting evicted.
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  Speaker 2: You see, jas with housing shortages becoming a hot topic,
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  Speaker 2: governments are side eyeing platforms like Airbnb for exacerbating the problem.
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  Speaker 1: Yeah, cities like Athens and Barcelona, they've started to tighten
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  Speaker 1: rules around short term rentals. So actually, as local governments
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  Speaker 1: try to balance tourist demands with their own residents' needs,
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  Speaker 1: Airbnb needs to stay ahead of the curve.
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  Speaker 2: And over the past few years, stays of more than
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  Speaker 2: twenty eight days have jumped from thirteen percent of all
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  Speaker 2: stays to now being around eighteen percent.
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  Speaker 1: Ye. So airbb's shifting gears to longer term stays where
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  Speaker 1: the rules are a little bit more flexible and they
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  Speaker 1: can dodge some of that regulatory rap. For our third
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  Speaker 1: and final story, Nike has seen its share price pop
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  Speaker 1: more than seven percent after announcing and new CEO, Geez.
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  Speaker 2: That's really got to hurt the self esteem of the
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  Speaker 2: CEO stepping down, Tell me what's happening here?
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  Speaker 1: Okay, so we ordered the OG sporting footwear and clothing
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  Speaker 1: company started back in nineteen sixty four.
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  Speaker 2: Under the name Blue Ribbon Sports.
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  Speaker 1: That's true, and since then, Nike's gone on to become
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  Speaker 1: the world's most valuable brand.
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  Speaker 2: And it sells more than eight hundred million pairs of
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  Speaker 2: shoes each year or twenty six pairs per second.
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  Speaker 1: Wow. Naichi. Despite Nike's huge brand and the huge market value,
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  Speaker 1: they weren't quite satisfied with their direct consumer online retail strategy.
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  Speaker 2: So it hired John Donahoe, a former eBay and Bain
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  Speaker 2: consulting exec, to lead Nike.
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  Speaker 1: Since twenty twenty, well, Nike's online sales have grown, its
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  Speaker 1: overall sales have been dropping for the first time in years.
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  Speaker 2: Even goats of bad season, I guess, and.
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  Speaker 1: Nike lost market Chad and added ass and on and
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  Speaker 1: Howker as well.
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  Speaker 2: So now Nike has appointed a new old CEO to
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  Speaker 2: replace John Donahoe.
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  Speaker 1: Yeah. The new CEO, Elliot Hill, had worked at Nike
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  Speaker 1: for thirty two years before hanging up the boots in twenty.
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  Speaker 2: Twenty and now he's back like a retro Jordan drop,
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  Speaker 2: and Nike's share price has jumped more than seven percent
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  Speaker 2: on the news.
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  Speaker 1: Because clearly investors are backing the previous management strategy.
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  Speaker 2: So what's the key learning here?
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  Speaker 1: Sometimes the best move is bringing back a seasoned pro
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  Speaker 1: who knows the game inside out.
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  Speaker 2: Kind of like MJ returning to the bulls.
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  Speaker 1: Yeah, time it again. Companies like Apple and Starbucks Disney
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  Speaker 1: It turned to former CEOs and key leaders to reignite
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  Speaker 1: their growth.
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  Speaker 2: Steve Jobs at Apple brought the company back from the
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  Speaker 2: brink of bankruptcy.
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  Speaker 1: Howard Chilter Starbucks also rejuvenated the company, and Bob.
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  Speaker 2: Iger returned to Disney in twenty twenty two.
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  Speaker 1: But achie, why investors and staff love bringing back an
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  Speaker 1: old favorite so much.
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  Speaker 2: Elliott Hill doesn't need a crash cause on Nike's operations
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  Speaker 2: or its culture.
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  Speaker 1: He's already built that trust and he moves the Nike terrain.
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  Speaker 2: So does he can jump straight into tackling Nike's falling
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  Speaker 2: share price.
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  Speaker 1: After a year in which Nike's share price has dropped
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  Speaker 1: over thirty percent, It's better say investors were pretty excited
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  Speaker 1: to see changing the leadership flux fam. We love receiving
• 6:37
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  Speaker 2: Thanks for listening and we see you on Wednesday.