The Best One Yet - 🖼️ “Mirror, mirror, doing pushups'' — Lululemon’s Mirror. United’s supersonic. Jokr’s super delivery.

Episode Date: June 7, 2021

Investors didn’t care about Lululemon’s clothes... They focused on Lululemon’s Mirrors. United Airlines is re-introducing supersonic jets because in business, if you’re on-time, you’re late. And Jokr’s 15-minute deliver-your-cravings startup introduces a new industry in the US: Super Delivery.$LULU $UAL $ACIC (Archer) $DALGot a SnackFact? Tweet it @RobinhoodSnacks @JackKramer @NickOfNewYorkWant a shoutout on the pod? Fill out this form:https://forms.gle/KhUAo31xmkSdeynD9Got a SnackFact for the pod? We got a form for that too:https://docs.google.com/forms/d/e/1FAIpQLSe64VKtvMNDPGSncHDRF07W34cPMDO3N8Y4DpmNP_kweC58tw/viewformLearn more about your ad choices. Visit podcastchoices.com/adchoices Hosted on Acast. See acast.com/privacy for more information.

This is Nick. This is Jack. And this is Snacks Daily. It is Monday. Welcome back, Monday, May 7th. June 7th. It's June 7th. It's June 7th.

Nick, I should remind you, this coming Sunday is Father's Day. It is. Human Imperfections, by the way. And that includes Podfathers. Are you saying what I think you're saying? Not yet. Not yet. No, no, no.

There's time in a place for everything. In the meantime, this is the best Snacks Daily we've ever done. Honestly, this is the best yet. For our first story, Lulu Lemon reported earnings on Thursday. But investors didn't care about the strength. You got your pants. No, they didn't. It was all about Lulu Lemons, mirrors.

Capital M. Capital M. That's key. Look in the mirror. Proper now. Trademark. Pat. Second story.

What do we got? United Airlines is making supersonic travel a thing again. They're launching speed of sound flights because in business, if you're on time, you're late. You want to go 1.7 times the speed of sound. For our third and final story, Joker thinks Amazon is a joke. So instead of two-day delivery, they're doing 15 minutes. New industry, Jack and I have noticed. And we're calling it.

it super delivery. But Snackers, before we hit those three fantastic stores. Wonderful mix today, Jack. I love this. Last week, we saw a sports record. Jack, you got your Babe Ruth rookie card. Didn't sell for $1 million. Didn't sell for $2 million. Sold for $6 million. The Colossus of Clout is worth more than LeBron, more than Mickey Mantle, more than Honest Wagner. Combined? No. Not combined. Now the 19-year-old great bandbino of baseball, Mr. Babe Ruth, he would have spat out an NFT like chewing tobacco. This was a real paper. card. It would have put in a hot dog instead. Now, it got us thinking. We all talk about sports collectors items. We do. We do. We do. What about business memorabil? Jack and I are talking on

weekend, what would a physical piece of financial news history go for these days? We thought we're on to something. We did. So we spent the weekend jumping in snack style with one goal. It was a disproportionate amount of time. Find the most cool, most random, most satisfying business collectors item on the planet on eBay. Okay. This one was really excited. Please whip this up for us, Jack. There is on eBay a first generation iPod. Yes, from Apple. Unopened in the case. That's going to say you back. If you want an unopened iPod, $21,995. It's so expensive because it doesn't have the wheel, it doesn't have a touchscreen. It has four physical up, down, left, right, buttons. All right, let's say you're not a tech guy. Maybe you're interested in Nike founder Phil Knight's executive

leather briefcase from 1982. How much is that going to cost, Jack? 10 grand. This thing is gorgeous. It is. Although we looked at the fine print, it's also rare and it's unused. Then we clicked on the zucking tab of eBay and we found an original printed Facebook prospectus, which is the S-1 that was used for their IPO roadshow back in 2012. You want one of these gem pieces of paper that's nine years old from Facebook. It's going to cost you $500. Nick and I got a shout out for the CEOs listening out there. If you got something rare, something sentimental, some business thing, send them our way.

CEOs, empty your oak wood and desks, Jack, let's hit our three stories. You're tuned in the snacks daily. We spoke to the lawyers and we got to get something legal out the way. The snacks about to hear ain't food. It's air candy. They don't reflect the views of the robberhood family. It's all informational just so. We're not recommending any securities.

It's not a research report or investment advice. Not an offer or sale of a security. Right. Snacks is digestible. Business news for you. Rapper Her Financial LLC, member Fenra slash SIPC. For our first story, Lulu Lemon sales almost doubled last quarter, but nobody is focused on Lulu Lemon.

The star of Lulu this year is Lulu's mirrors. Okay, Jack, this is straight up jumping in snack style. I'm walking down Union Street in San Francisco, lovely street, and let me tell you, there is only one store that has both a line and a bouncer for that line. That store. What's that? Well, actually, it's Lou Lemon. I guess we kind of gave it away in the beginning.

Well, you did give it away. But in this day and age, you don't have a line without a bouncer. Because if there's no bouncer, people would just... What's the point in line? This is like Carbone trying to get the reservation in 2017. But Lulu, based on that anecdote from Nick, it's like an Apple store or Trader Joe's. People are trying to get in there. I think we covered every array of target audience there.

Now, Lulu Levin Stock Snackers, it's actually down this year, even though you're nine to five in leggings. I haven't worn cotton in like two years. No, you haven't. You're synthetic. That's why sales last quarter were one. $2.2 billion from February to April, up 57% from the pre-pandemic quarter equivalent. I mean, Jack, can we sprinkle a little context onto my biker shorts? Yes, how fast is that?

It's a smidge faster sales growth than Gap's Athleta-A-athleisure brand. Okay, so you're wearing more Lycra out there, and more of that synthetic polyurethrain fiber happens to also be Lulu Lemon. But funny thing, beyond the top-line numbers we have to tell you about. This was hilarious. The executive team mentioned the word Lulu Lemon, 25 times in their call with analysts after the report was released. Jack and I were curious, we control left a little bit further and notice this.

They mentioned the word mirror 40 times. In fact, the analysts on this conference call asked about Mirror not only in the first question, but in the second question, the third question, and the fourth question on a Lulu Lemon earnings call. Wall Street is focused on how Mirror is doing because the acquisition by Lou Lemon was one year ago for $500 million to acquire this fitness tech company. Mirror, it is like the peloton of floor workouts. It's the mirror, but it's more than a mirror. It looks like a West El mirror.

It does. But it's just leaning against the wall, and it's gorgeous as furniture until you want to use it as fitness equipment. And then it changes from a mirror to a talking screen. And at about $2,000, it's basically like the restoration hardware of sweat. But it yells at you to do more reps. It's a mean restoration hardware. So you're wondering how the integration is going. Mirror mirrors are in 90 Lou Lemon stores right now, but they're planning to get that up to

200 stores by the end of the year. And they're going to have guides in each of the stores to show you how to use the mirrors, basically ripped used car salesman kind of a situation. A salesman with fantastic quads. Fantastic. That's why you're going to buy this thing. Now, they're also building out studios interestingly because Jack, they're going to need some content to put into these mirror of workout videos. Just like Peloton has studios where they need to film fitness instructors, so does mirror. And Jack, apparently neither you and I, even though we love our mothers, have been nice enough to our mothers lately because Mother's Day crushed it for mirror sales this year. Lou Lemon is on pace to sell 275 million worth of mirrors kicked off by an awesome Mother's Day

sale. This is an aggressive Mother's Day gift. We think the next step for Lou Lemon is the ultimate direct-to-consumer channel. I love the way you put a check. Cut out the middleman, Lulu Lemon, and instead of buying Lulu Lemon clothes from your computer, buy your shorts from the mirror itself. Cut out the laptop and let Lulu Lemon exercises buy the stuff sweat to face. So, Jack, what's the takeaway for our buddies over at Lulu Lemon? Lulu may have found the rare growth gaugement deal. Snackers, when it comes to acquisitions, there are a whole bunch of strategies out there. Maybe you're doing it to gain IP, maybe to learn something, diversify, squash a future

competitor, Kaka Facebook. But for most, it falls into two buckets. You're either trying to grow the number of customers or engage your existing customers even more. Interestingly, the data shows that mirror owners tend not to have Lulu Lemon gear. And Lulu Lemon gear wares tend not to own expensive mirrors. So there's no overlap in the two customer bases. Now there isn't. So Lulu Lemon's existing shoppers may end up buying a mirror and become more engaged with the

Lulu Lemon brand. And mirror owners who don't have any Lulu Lemon may finally get introduced to Lulu Lemon mid-workout on their mirrors and their new customers. So this could be both an engagement of the current base of Lululemon. Lemon customers and growing to the mirror customer base. And by next year, Lou Lemon will probably have made more money from acquiring mirror than they actually spent on acquiring mirror. In two years, it looks like the sales will completely pay back the acquisition price.

Because they found the rare growth gaugement acquisition. For our second story, are you doing it? Are you doing it? Patience, my friend. I thought this was the bodfather moment. I'm not going to lie. I really thought this was it. Second story, after decades, United Airlines is looking to bring that commercial aviation faster than the speed of sound. It just ordered 15 jets from Boom, Supersonic. Boom, Supersonic. When someone says they're an engineer, here's the thing.

The first thing you're thinking, Jack, is you're like, are you doing apps or are you doing space? Do you code? Yeah. Or do you explode? What am I endorsing you for on LinkedIn? This could go very badly. Snaggers, Boom Supersonics is a startup based in Denver, Colorado. And their engineers are designing jets.

Okay, these aren't just engineers, Jack. These are artists. Get the name of this first jet. They call it the overture. Which is a music thing. I think it is. I think it's a music thing. Because their jets go faster than the speed of sound. Mach 1.7, 55 passengers. To sit down and stand back up again. It's poetry. United just committed to buy 15 of them. If Boom Supersonics manages to produce them and get them approved. And they could buy 20 more. And this thing, it would go fast. United plans to use them for flights departing from New York City and San Francisco. But they also have a flight from New York to London that this jet will do in three and a half hours. Definitely whip out my shinole here.

If you take off from London at 12 noon London time, when are you arriving in New York? You're flying against the spinning rotation of the earth. Okay. And you land in New York an hour and a half earlier than when you took off. This isn't just commercial travel. We're talking straight up aggressive time travel here. It's five o'clock somewhere twice. This is Kurt Vonnegut style.

Jack, I think if you cross the international dateline a few more times, you actually go back a week. The continuum transfunctioner. But Snackers, here's the funny thing about airlines. They're pretty much all the same. And the one differentiator is the perk economy, the points in the hubs. United's hubs in Chicago. Delta's hub, it's in Detroit. Jack, United's points program.

It's mileage plus. Delta's, you got Skymiles. So United is finally messing with the monotony of airline offerings. Yeah, we jumped in Snacks style. Notice United has also invested in Archer, an electric aircraft startup for like short distance travel and funky ways. We covered it on this pot in February. This thing's like part helicopter.

It goes up like a helicopter. And then the blades twist 90 degrees and it shoots away like an airplane. So United's future like isn't just Boeing and it isn't just airbus like every single other major big airline. Innovative aircraft seems to be United's future differentiated. So Jack, what's the takeaway for our buddies going really fast over at United? If you're on time, you're late. Snackers, here's the thing about supersonic commercial travel. It is an innovation that mankind had already achieved a few decades ago.

Remember the Concord? You've seen pictures of this. It's got a skinny body and a nose that slightly dips down. And the last flight was 2003 when it was retired because it was like really expensive and really polluting. So United's new supersonic jet, it's going to run on Rolls-Royce engines that are 75% more efficient, apparently, and run on cleaner fuel. And for those reasons, takeoff of the first flight is not going to be until 2026. And that's a test flight.

And that's an optimistic estimate. Very optimistic. It sounds far off. But the headed development over United explains why investing so early is so critical for an airline. Aerospace takes a long time to innovate. And so if you don't start setting these opportunities out now, you'll have missed them. Jack, if you're an airline that waits until 2026 to invest in Supersonic, you're too late. For our third and final story, this one is wide.

Joker is offering up 15-minute delivery and got investments from SoftBank and from Tiger Global and they get you stuff really fast. SoftBank and Tiger Global, that's like the Yankees and Red Sox of VC. As their CEO put it, they have launched the Amazon on steroids in New York City. We call it super delivery. Now Snackers. First, there was the Wells Fargo wagon. There was a beautiful memory. Then came the FedEx Express.

Then Amazon Prime two-day free shipping. And then came Amazon. one day free shipping. And then things got really interesting. Yeah, they did, Jack. Amazon Instant was two-hour shipping. And then we got into Insta-Cart, which was one hour delivery. And then we got GoPuff.

Yes, we do. Half hour delivered. Okay, so we went from days to minutes. Behold Snackers, 15-minute grocery delivery from an app called Joker. This isn't on-demand delivered. This is pre-demand. The delivery guy's like at your door. He's like, you want this.

You're like, no, I didn't. And I, oh wait, I did want the ice cream. The founder calls it Amazon on steroids and they started this spring, experimenting in Latin America. Jack, 15 minutes delivery. There are only 14 other companies that can beat you at this game. The limit does not exist. It does not. And they just launched in New York City last week.

So we know what you're thinking. The first question here, how is 15 minute delivery even physically possible? Are they only hiring track stars for the delivery? You'll walk in. You're doing the job interview. Chris, can you sit there? And we're going to need to know your 40 times. You're like ex-athlete, is that D-1 or D-3?

Well, the way they pull off 15-minute delivery at Joker is that delivery depends entirely on insane proximity. Joker, which drops the E, by the way, it's just J-O-K-R. They actually have a network of small, nimble dark stores. Yes, dark stores. That's the secret to Joker. Basically, Joker moved into apartment 3A down the street from your buddy Timmy. Every dark store is a tiny little convenience store built just for delivery, and they deliver within a one-mile radius to hit their 10-minute delivery goal.

And using data, Joker stocks these mini-fulfillment centers with just stuff it knows is going to be on-demand. The Van Lohen ice cream, caramel flavor, it knows you're going to want that. So at Amazon, you got a 100,000 square-foot fulfillment center off the interstate. Over at Joker, they got like a 10-square-foot closet off 8th Street. Okay. So that's how they do it. Second question, how on earth could this be profitable? Yes.

Super delivery. How does this work? Because there's no order minimum. There's no delivery fee. And we checked, this isn't a gig economy thing. All the deliverers are full-time Joker employees, which is more expensive. That means you can order a pack of gum for $3. Okay.

And they will deliver it to you in 15 minutes for $3. They claim they can also deliver profitability to their shareholders. So, Jack, what's the takeaway for our buddies over at Joker? Relationships are Joker's competitive advantage. Snackers, the first use case that you're going to have if you use a super delivery app like Joker is this. Oh, Jack, I first. forgot. I'm in the middle of hosting my buddies for a nice dinner, pasta primavera, and I forgot the Parmesan. You forgot an ingredient, so you use a 10-minute delivery app. It's a small order. It's

just a little bit of cheese. But you get so much satisfaction because Joker came in in the clutch and saved the day. And that's how Joker hopes to grow the relationship with you, the consumer, out of desperation you had. And gratitude for saving the day. Meanwhile, Joker's founding team is ridiculously connected to the entire delivery industry. One co-founder, is the founder also of Food Panda, which he's sold to delivery hero, which is like the DoorDash of Europe. And the other co-founders from Jet.com and from Walmart. So from day one, Joker cut out every middleman possible. If they're selling a Coke, they bought it directly from Coca-Cola. And that lets Joker offer the same price as Walgreens, but at a bigger profit than Walgreens.

Relationships are Joker's competitive advantage. Jack, and you'll welcome us back from the weekend and whip up the takeaways over there. LidLLLen sales are growing very fast, as more people ditch cotton. for Lycra. Mir was the star because of growth engagement acquisitions. The supersonic jet that United has ordered has a flex capacitor in there somewhere. Yeah, no, Jack, if you're on time, you're late. Joker is proving there is no limit to delivery times.

Relationships, that's how you pull off super delivery. Now, time for our snack fact of the day. This one sent in by our Robin Hood Snack Snack Snackers. So, Jack, you want to take it away? 90 years ago, James Truslow Adams coined the phrase, the American Dream. In his book, The Epic of America. Okay, we'll go deeper. Each man and each woman shall be able to attain to the full of stature in which they are innately capable and be recognized by others for what they are, regardless of the fortuitous circumstances of birth or position. Beautiful

pros. We know it today as the American Dream. And in our newsletter, Robin Hood Snacks, we ask you what's required to achieve the American Dream today. Seven percent of the 3,000 respondents said privilege or luck is required. 40% of you said it was hard work. 43% said it's a combination of hard work and privilege and luck. But you also were split down the middle on whether the American dream still exists today. Snackers, we got a whole newsletter today dedicated to the status of the American dream in Robin Hood Snacks. Check it out at Snacks.com.

And Jack, let's do this tomorrow. I am in. I'm in. Let's do it. And before we go, congrats to Snacker Adrian Vischer, who just got an internship in New York City. and is on a particular crew team. That crew team is the fighting mules of Colby College, and they just beat up Connecticut College in a Neskak rowing battle.

Happy birthday to Shaman Hazim over in Hong Kong. And Tofunmi in Chicago. And also Todd Johnson, also in Chicago. And Cody McLarend in Kansas. And also to Jen Bannam, also in Kansas. Happy Birthday, Apé Tripati in Missouri. And to Tim Delcayroy in Santa Cruz. And Matt DeLeon in Emerillo, Texas.

And Blair Lawless, happy birthday in Lexington, Kentucky. and KVVu in Atlanta, Georgia. And Tim Semenoff over in Los Angeles. Congrats to Kyle Radzak for getting a new job at Lowe's over in North Carolina. And to Jeney, who's quitting her job down in Illinois? Not too shabby. And on Friday's snack fact, we said that Brian Levy was from the Dominican Republic. He's from Panama.

We love the snack fact. Thanks for the heads up, Brian. Oh, by the way, if anybody's celebrating anything today, making a tea boy. Please do. Celebrate the wins. This is Jack. I own stock of Amazon.

Nick owned stock of Apple and Lulu Lemon. we both own stock of Pelton. The Robin Hood Snacks podcast you just heard reflects the opinions of only the hosts who are associated persons of Robin Hood Financial LLC and does not reflect the views of Robin Hood Markets, or any of its subsidiaries or affiliates. The podcast is for informational purposes only and is not intended to serve as a recommendation to buy or sell any security and is not an offer or sale of a security. The podcast is also not a research report and is not intended to serve as the basis of any investment

decision. Robin Hood Financial LLC, member FINRA, SIPC. The Continuum Transfunctioner.