The Best One Yet - 🩴 “Stilettos or Furkenstocks?” — Birkenstocks’ comfy IPO. Bed Bath & Beyond’s resurrection. Big Oil’s electric slide.

Episode Date: August 2, 2023

Birkenstock just enjoyed a Barbie bump and is reportedly planning to IPO as soon as September — Because Birkenstock is a Cinderella story… literally. Big Oil is quietly making a major pivot — From oil to EVs (meet the new boss, same as the old boss). And Bed Bath & Beyond has been resurrected — Overstock.com just relaunched Bed Bath & Beyond thanks to a trick we call “Brand Arbitrage.” Subscribe to our daily newsletter at news.tboypod.com $CROX $OSTK $XOM Learn 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. It's Wednesday, Ceviche Wednesday, August 2nd, and today's pod is the best one yet. Best pod we've ever done, Jack. Today, the T-Boy newsletter launches. The first email is in the inboxes right. Meow, Jack. The first T-Boy newsletter is the best T-boy newsletter yet.

Until the next T-boy newsletter, technically. That's true. And yet is you can subscribe at news.tieboypod.com. In the meantime, while you're going to that website, Jack and I, We'll talk about our first story. What is it, Jack? Birkenstock. The king of comfy shoes, the queen of cork, is reportedly IPOing as early as September. Birkenstock is a Cinderella story, literally. For our second story, it's big oil.

Big oil is quietly making a transformative pivot from oil to electric. Jack, you got a good song in mind for this one? Meet the new boss, same as the old boss. We hear you, Pete Townsend, third and final story. And our third and final story is Bed Bath and Beyond. It has been resurrected. It's back from the dead. And it's all thanks to a little thing Jack and I call brand arbitrage.

But Yeties, before we hit that fantastic mix of stories. What an intro and what a mix, Jack. I love what you're putting out today. Last week, we told you that Twitter changed their name to X. Because Elon's obsessed with the letter X. Well, this week, Elon changed Twitter's sign on top of their headquarters. orders to X. Until San Francisco made him take down the sign that said the letter X. But Nick and I decided in the meantime to call up our lawyers.

You want the truth? There are huge legal issues with the name X. You can't handle the truth. Because single letters, it turns out, are the most popular corporate names to trademark. And X is one of the most popular letters to be trademarked. We jumped in T. Ward style to the U.S. Patented Trademark Office. X, the letter X, is trademarked by 900 different companies. For thousands of different uses.

That's right. There's an X real estate company. There's an X T-shirt company. There's an X dating app company. There's even an X-chainsaw company. True story. Now, Elon's X app doesn't do T-shirts, dating, real estate, or chainsaws. Yet.

So far, it's just a social media company that wants to be a finance company, too, that also wants to do video games and eventually everything. But Jack, therein lies the problem. One of those 900 companies is Microsoft. They have a trademark on the letter X for video games. And the other problem is the company Meta, which has a trademark X for social media. Those are a couple of big companies to pick a fight with over one letter. So it looks like Elon planted his flag on the letter X.

But its rivals and hundreds of other companies have already planted their flags there. Which begs the question why? Why, X, why? Is it because of Z? L-M-N-O-P? QR-S-T-U-V. So yet he's here is Jackson my question for this Saviche Wednesday. What should Twitter have renamed?

That's not X. What name should Twitter have that's not in the alphabet? What should Elon rename Twitter to that he won't get sued for? Hit us up for T-Boy pod, Jack. Let's hit our three stories. What's a better name for Twitter than X? 15 years before this song, two boys from the Northeast met in the dorm.

They had an idea to cause a cultural storm. It's the best one yet, but the best is anore. That's it. I don't even do they need to practice. 50% that's a fat tip. Tea Boy City on your at list. If you know, you know, because we're ready to go. We can't wait no more, so just start the show.

Start the show. For our first story, Birkenstock, the king of the clog, the queen of comfort, the Kaiser of the Cork, is going to IPO this fall. Because Birkenstock became the Cinderella of business, literally. But Jack, before we jump in T-Boystock, can we talk about the Barbie bump? I wish I could get a Barbie bump. What do you got to do to get a Barbie bump? We're in slamming salmon right now. That's our logo.

At the end of the movie, they asked Barbie to choose between the Barbie world. Stilettos. Or the real world. Birkenstocks. And that magnificent cameo for Birkenstocks resulted in a 346% jump in Google searches. But yet he's here's what's so exciting for Birkenstock. This happened when they were 249 years old. Birkenstock was born in Deutschland 249 years ago.

Okay, Bergenstock is older than Germany, the United States, and electricity. It was founded in 1774. This is by far the oldest company we've ever covered on this pot. You know what? They ain't stopping. Their revenue numbers are still peaking. They don't look a day past 120, Nick. No, you don't, Bergenstock. No, you don't.

Sales jumped 29% less. here for Birkenstock to $1.3 billion. Jack, can we sprinkle on a little context here? That's four times the revenue of Albers. And that's not all, because this private old company plans to IPO as soon as September, according to Bloomberg. Birkenstock was owned by the Birkenstock family for 247 years until it was bought two years ago by a private equity firm.

When it was bought two years ago, the company was worth $4 billion. Sit down, stand up, and be comfy again. But now it's expected to IPO for at least double that valuation. Why? It's because Americans are cuckoo for cocoa pups and Birkenstocks. Birkenstock joins the long list of German things that are more popular in America than they are in Germany. Exactly. Like Bierstein's, Bratwurst, Yeagermeister, David Hasselhoff. Schnelle, Machinzee Schnell, Jack. Birkenstock, a German thing more popular in America than in Germany.

By the way, how many pairs do you have this stuff now? I don't want to round on you. Dry. Jack, I haven't heard this much German since cool running. You're called dry Birkenstock, ah, yeah? But yet he's here's what Jack and on. I found fascinating about this story. Birkenstock's success is a lesson in timing. Birkenstock has been around for so long. It was inevitable that it was in the right place at the right time.

Because Birkenstock was founded in 1774 by cobbler Johann von Berkenstock. And that was the best PR moment for sandals since Jesus. Yeah, it was. And then his great, great grandson, Conrad Birkenstock, invented the iconic cork footbed. The iconic cork footbed. I do not record a podcast unless my arches are being hugged by cork. It's a good podcasting shoe. It's the best thing to happen to corks since champagne.

But then, after World War II, Birkenstock enjoyed another sales surge. Yes, they hit an inflection point. Veterans needed orthopedic support from all those injuries they got on the battlefield. So they bought Birkenstocks. Then Birkenstock hit another inflection point in the 1960s. California hippies, free spirit. They wanted their free toes to be out, so they exported Burkinstocks to the United States. United States. But that's not all. Then Birkenstock hit another inflection point just a few years ago.

The comfort economy that came with the pandemic. It pushed Crockstock to an all-time high and Birkenstock too. And now Birkenstock is enjoying another sales surge with another cultural boost. The latest boost for Birkenstock is shockingly high fashion. Birkenstock has been embraced by Paris Fashion Week, as Tim Gunn would say, make it work. Burkonstock is doing collaborations with Christiane Dior, Valentino, and Mugatu. Todd, you know I don't like a foamy latte. So, Jack, what's the takeaway for our buddies over at Birkenstock? It's a Cinderella brand, literally.

It went from downmarket to upmarket. Yeties, there's one thing Jack and I have told you that is nearly impossible to pull off in all of business. That's going from down market to upmarket, from frog to prince, from servant to Cinderella. But over the course of 250 years, Birkenstock did it. They've gone from casual brand to premium brand, from function to fashion. From low price to high price, something nearly impossible to pull off. We've seen plenty of companies go in the other direction. Tesla started expensive and then it got cheaper.

Tiffany did the same thing. Their jewelry was expensive. Now they have more affordable versions. But honestly, to go the other way around, that is rare. Jack and I never see it. That is a Cinderella story. Burkinstock is the biggest brand that we've seen pull it off. and it's been huge for Burke's profits.

And they did it all with cork, not a glass slipper. For our second story, shocker, big oil is plotting a pivot from oil to electric vehicles. Meet the new boss, same as the old boss. Yet is the oil giants announced quarterly earnings last week. Jack, what was the theme here? Take out your tiniest violin ever. Last year, oil companies were quietly fist-bumping as high gas prices meant record, profits. But this year, with gasoline prices down about 25%, big oil profits were slightly less big.

They're not guzzling as much Dom pairing you on this year. Exxon Mobil and Chevron, both based in Houston, Texas, reported that their profits last quarter fell by about half compared to last year. But that half is still $14 billion between the two of them. Pretty good half. I'll take that half, Jack. That's quite a few lists. That's a huge half. Here's the problem for oil yetty. Short term, the oil market's recovery from the war in Ukraine is hurting their profits. But long term, big oil has a much bigger issue. Yes, it does, Jack. And what is that? It's the transition to electric cars that the whole world is undergoing. But his oil is the most steadily demanded product in the United States by far, isn't it?

You ready for this? According to a government agency, I forget which one. We buy 369 million gallons of gasoline every single day. 365 million gallons every day. I felt, Like I had to say that twice. But the Western world is pulling an Ozempic. They're trying to cut oil out of their diet. General Motors wants to sell 100% electric cars, just like Tesla does, by 2035. Ford, Volkswagen, and Jeep are all trying to be half electric by 2030. So, Nick, do you think Exxon is going to just sit back and let their oil business wither down to nothing as the world goes green?

Jack, are you envisioning the oil companies going down to Florida and just playing golf and pickleball all? day and then telling us about pickleball all day? Do you think ExxonMobil is going to retire to Bodealka Vista? Doesn't seem like the type, does it, Jack? No, no, no, no, no. Well, Jack and I discovered that all those oil giants are plotting a pivot to survive the electric car future, and that pivot is to lithium. Get this, Yetis, ExxonMobil is on a real estate buying spree. They've acquired a bunch of land in Arkansas because that land is rich with lithium. And why is lithium so important, Jack? Lithium is the key ingredient needed for electric vehicle batteries.

So what we're saying, Bessie, is that if you bought an electric car to protest big oil, we've got some bad news for you. Big oil is going to be making that electric car soon because they're making the battery. To quote the who, meet the new boss, save as the old boss. Big oil makes money today because you have to buy gasoline. But it's going to make money tomorrow even if you go electric. So, Jack, what's the takeaway for our buddies over? at big oil. Your industry isn't your product. It's your purpose. Yeties, Jack and I got to apologize

for a second. We're sorry. We've been saying it wrong the whole story. These companies, they're not big oil. They're big energy. Exactly. If oil companies just think of themselves as oil companies, then they will go extinct as we switch to electric. But the way Jack and I see it, if they broaden their identity from their product, which is currently oil, to their purpose, which is energy, then electric vehicles aren't a threat. They're an opportunity. ExxonMobil CEO said this last week. Extracting lithium is an extension of the current capabilities that we already have. Another way to see this bestie is Jack.

Are we a podcast company? No, we're not, Nick. We are a news information and entertainment company. We're a feeling we're the best one yet. That's why we launched a text-based email newsletter today that has nothing to do with podcasts. Okay, so Jack, is ExxonMobil an oil company? No, they're an energy company. And that is why Jack and I think you should know your industry

because it's bigger than you realize. Your industry isn't your product. It's your purpose. For our third and final story, Bed, Bath, and Beyond is alive. It's back. But he's wearing a new body. Because successful brands can have terrible business models.

Jack, can we talk about what we noticed on Tuesday, my friend? On Tuesday, yesterday, we went to Bed Bath & Beyond.com, and we noticed it was there. By the way, casual Tuesday, we just tend on Tuesdays to go to bedbath. And Bath & Beyond. It's just like our thing. Bedbath and Beyond is back. Yeah. Add a fourth B, baby.

After declaring bankruptcy in April, Bedbath and Beyond is back from three months of being dead. It is alive. The website will greet you with this message. Welcome to the bigger, better beyond. And then it says this. Overstock and Bed Bath and Beyond have merged into one home shopping destination. I'm sorry, Jack. Come again on that one?

You might have missed this, Yeties, but Overstock did what Overstock does best. They bought something cheap because nobody else wanted. And here's how it went down, Yeti's. Bedbath and Beyond declared bankruptcy because it just had more debt than it could pay back. It was overwhelmed. So when lenders took over Bed Bath and Beyond, they tried to sell off parts of it to salvage their money and minimize their losses. Wow, on June 28th, Overstock CEO popped in and this guy knows how to spot a deal. He acquired the Bed Bath and Beyond brand for just $21 million.

That's it. He bought the whole brand, all of it, for just $21 million. Now, he only bought the brand. So the stores, which were hundreds of stores, those are still shutting down. But the logo, the name, the brand are going to live on with overstock.com. Overstock is simply slapping new wallpaper over their website and changing their domain name from overstock.com to bedbath and beyond.com. All they had to do is call the IT guy in because they were an online only company. Like they didn't have to change any stores because they don't have stores.

They simply uploaded a new logo to their website. They changed the font and colors to dress up as bed bath and beyond. And here's the fascinating part. They are retiring their old brand. They're retiring overstock. They're just going to go as bed bath and beyond now. And why are they doing this? Well, it's because the overstock CEO noticed something interesting in their internal research with customers.

Overstock customers thought that Bed Bath and Beyond was a top five retail brand. They really thought it was a great brand. Even though Bed Bath and Beyond financially was a business going. bankrupt. Great brand, terrible business. So, Jack, I just hope we have enough time. What's the takeaway for our buddies over at Bed Bath and Beyond and Overstock? This is brand arbitrage, when a successful business just needs a successful brand. Yeties, for 20 years at Overstock, revenue steadily grew as people kept going to Overstock.com. The biggest thing holding back overstock was its brand, which sounded like a 2000.com. It smelled like MySpace. On the other

In other hand, Bed Bath and Beyond was the opposite. It was a bad business, but a beloved brand. Bed Bath and Beyond did get that shout out in old school. Yes, it did. Bed Bath and Beyond had an Adam Sandler movie all about their stores. Yes, it did. And everybody has coupons from Bed Bath and Beyond pinned to their fridge. You see them every day.

Yes, we still do. So Overstock kept its successful business, but bought a successful brand. They pulled off brand arbitrage, and its stock has doubled since May because of it. because they pulled off brand arbitrage. Overstock bought a successful brand for an unsuccessful price. Hey, Hasselhoff, could you whip up the takeaways for us over there? Birkenstock is reportedly prepping an IPO just as their profits are peaking. 249 years old, and yet they're a Cinderella story, literally.

For our second story, Big Oil is squeezing as much oil profit as they can right now, but they're also pivoting to lithium. Because they're not big oil, they're really big energy. And our third and final story. Overstock is now bedbath and beyond. Because Overstock pulled off brand arbitrage. But yet, he's the pod's not over. Yet.

Here's what else you need to know today. First, President Trump was formally accused of conspiracy to defraud the United States related to the January 6th right. It's his fourth criminal indictment, and this one's the most serious one yet. And second, America's credit rating was just knocked down by Fitch from a perfect AAA to a. to a double A plus.

The ratings agency blamed our politics, specifically the debt ceiling standoffs, which are hurting our nation's financial credibility. And then, for the first time in decades, America just turned on a new nuclear reactor. This $31 billion nuclear power plant will power 500,000 homes with carbon-free electricity. And finally, the oldest man on planet Earth

just passed away, Jose Polino Gomez of Brazil. He was 127 years old. Born in 1895, Nick, that's 10 years before the first airplane. He was older than the airplane. Now, time for the best fact yet. This one sent in by legendary Yetty Savannah Westwood from lovely Orlando, Florida. Trivia. What is the fattest organ in your body?

I mean, Jack, I'm looking down. I got to go somewhere on the gut over on this thing, right? False. Oh, interesting. The fattest organ in the body. the one with the most blubber. It's not your tummy. It's your head.

Yeah, Yeti's apparently the fattest organ in your body is your brain. Your brain has more fat than any other organ. If someone calls you fat head, say, thank you. Because your brain is 60% fat. Yetis, you'll look fantastic for Cevice Wednesday, but you'll look particularly fantastic for the best day yet. And what is that, Jack? If you subscribe right now at news.t.tboypod.com to our newsletter

and read the first edition, you could win the best day yet. Jack and I are given a Yetty a full day hanging out wherever we are. We're flying you out for the best day yet. All expenses paid at our next T-Boy Live event. You'll be there. All the cookie crispy you could want. Subscribe to our newsletter at news.

This is Nick. This is Jack. And maybe you too. If you know. And before we go, a happy 40th birthday to Yeti Rich Roll, who also is cancer-free in Newburyport, Massachusetts. Just outside of us. Happy lucky number 7 birthday to Xander Cruz,

who is rocking life right now in Marietta, California. And Kathy Brueger, we know you are on a walk right now, but we also know you're celebrating a birthday in Erie, Pennsylvania. And happy birthday to Ryan Green in Little Rock, Arkansas. And Keith Finlayson is turning 40 up in Lake Orion, Michigan. Enjoy that water. Happy first birthday to Atlas Kelton in Raleigh, North Carolina. He's been listening to us since he was in utero for nine full months.

He's fluent in takeaways. And to anyone else, celebrate something today, make it a T-Boy. Celebrate the wins. This is Jack, Island Stock of Crocs and Ford, and hopefully soon, Birkenstocks too. Three pairs, just like my actual shoes. Although I should say I got Nick a pair for Christmas a couple of years. That's true, which I still have at home. I have a three birken shark, ah yeah.