The Best One Yet - 👖 “They don’t fit (at all)” — Levi’s wardrobe refresh. Black Widow’s playbook. Flipkart’s $38B secret war.

Episode Date: July 13, 2021

Turns out 35% of us saw our waist sizes change in one direction or another, so Levi’s is making some changes too. Black Widow isn’t just a superhero movie that just dropped… it’s the playbook for how to premier future films. And Flipkart just hit a whopping $38B valuation as the ecommerce icon of India, but it’s really part of a secret war between Walmart and Amazon.$LEVI $DIS $WMT $AMZNGot 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 Tuesday. Tea Boy Tuesday, July 13. Nick, the Dow Jones Industrial average is about an avocado slice away from 35,000 points. So close. We're double where we were five years ago, Jack, when it comes to our buddy the Dow.

I know. And hopefully tomorrow we can celebrate 35K because Wall Street loves round numbers. They love round numbers and they love our best pod yet of which this is. Jack, first story. Fun fact, 35% of us saw our waistlines change. in the past year. Some bigger, some smaller. Guess how we know that statistic.

Levi's earnings report, it told us we jumped in snacks. For our second story, for the first time in two years, we have ourselves a Marvel blockbuster movie, Black Widow. Black Widow, this is the future of launching blockbusters. For our third and final story, Flipkart just hit a whopping $38 billion valuation. Not too shabby. This is the online shopping giant of India. But here's the real story.

Amazon and Walmart, they're taking over the world in two. different ways. But Snackers, before we hit those three stories. Best Tuesday yet. I love this mix, Jack. Congratulations to Sir Richard Branson for rocketing 55 miles above the earth. But here's what Jack and I are thinking. The real Rocket Man of the month, he hit a home run and last night's home run derby. And he's pitching and hitting in tonight's Major League Baseball All-Star game. I mean, Jack, forget the billionaire CEOs. Have you heard of Shohei Otani? Six foot four, 27 years old, This Japanese baseball legend snackers, he plays for the LA Angels. And Shohei may or may not be a snacker also leads the American League in home runs with 32 and

triples with four. That's impressive. But here's the catch. Shohei plays both ways. That's right. He's not just a hitter. Shohei is also a pitcher. He throws 101 miles per hour and has the hardest pitch to hit his splitter in all of baseball.

And tonight, Shohei is starting. pitcher and the lead-off hitter simultaneously for the American League in the All-Star game. He was in the home run derby. He's starting at pitcher and he's hitting lead-off. This is unprecedented. So, Jack, you know what this means. We got to whip out the whiteboard over here. Did you just slacks or Isaac Newton? If Shohay pitched to Shohay, could Shohay strike out himself? Or would Shohay hit a dinger off himself? Because if an unmovable Shoeh hits an unstoppable show hay, what happens to show hay? I'm not a physics major, but he is a lot like Babe Ruth.

Yeah, he is. If Babe Ruth had quit smoking, bought a Peloton and did like an Oatly Juice cleanse, six nights out of the week. And if Babe Ruth had replaced hot dogs with sashimi. Snackers, you're going to hear about the billionaire space race all week between Richard Branson and Jeff Bezos. But here's the real rocket man, the guy on Earth. On the pitchers mound, in the dugout, stealing bases, it niggers. He's everywhere.

Let's in our three stories. You're tuned into snacks daily. We spoke to the lawyers and we got to get something legal out the way. The snacks about the hearing food is 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. Snacks is digestible. Business news for you. Robahood Financial, LLC, member FINRA slash SIPC. For our first story, Levi's is loving our changing bodies and our changing styles. And change of pants also means changing shirts. More on the takeaway. But first, can we talk about the huge quarter going on down the street over Levi's Jack?

Yes, San Francisco-based jeans icon had $1.3 billion in sales of jeans last quarter, which is up 156% from the year before. They're trying on a $65 million in profit. Oh, and this summer sales expected to be. 2019's summer sales from two years ago. Yes. So Levi's is fully, fully back from the pandemic, baby. But here's what Jack and I find fascinating about Levi's earnings. It actually wasn't the numbers. Yeah, the real headline was a news nugget from the CEO in his remarks after the earnings came out. Here's what he said. He said, 35% of consumers in the United States have changed waste sizes

during the pandemic. Voluntarily or involuntarily, our wastes are either bigger or small. Now, you got a new body. That means, you know, you need new pants to fit into that new body. Yeah. So that is one way. The pandemic has actually been good for Levi's business. But Snackers, it's not just our changing bodies. We have a trend warning for you.

Trend alert. We are at the start of a new 15-year denim super cycle. That's right. Days are 24 hours, years are 365 days. And apparently genes require 15 laps around the sun to actually change. That's right. 15 years ago, the denim trend was low-rise jeans, extremely below the belly butt. Basically a sub-leg situation. When the low-rise trend ended, you had the skinny jeans trend, and that's been the trend for the past 15 years, skinny jeans. For women, that's meant tapered legs.

For men, that's the slim-fit pants where you got concerns that they're going to burst open every time you sit down. I'm not going to lie, Jack. This is my nightmare. I already get chills wearing jeans. The idea that painting my body is very. I'm concerned. Actually, I don't even know if I can continue with the podcast. Jeans are your nightmare. Skinny jeans are your worst. Cackies are nice for everybody. But skinny jeans are over there. It's good news for you because Gen Z has canceled the skinny jeans.

The CEO of Levi's went so far as to drop. It looks like he said loose and baggy, I think, three times each check. Yeah. He then went on to say that half of Levi's sales are bagger fits jeans. Let that sink in. Half of Levi's sales are this new baggier jeans. Right. Mom jeans, boyfriend jeans.

the high waists and the oversized leg silhouettes. That's what selling it. You spent a year in Lulu Lemon sweatpants and now we're seeing the sweatpantsiness going on in the jeans. The CEO thinks, actually, we're going to see 90 styles again. Interesting. Bell bottoms. Jinkos, those extremely baggy pants. Yeah, Jinkos, you could fit a family of four underneath there, Jack. It's going to look like Joey Triviani, like a 96 sitcom wardrobe. Basically, if you want to look good in jeans, your icon is going to be Uncle Jesse's wife.

Levi's stock is up two and a half. percent since announcing this on Friday. And Wrangler's stock is up too because people need to buy new jeans for their new bodies. So, Jack, what's the takeaway for our buddies over at Levi's? Levi's benefits from those two new trends we talked about, but there's also spillover trends. Snackers, another wild quote, Jack and I noticed from the CEO of Levi's. As bottoms change, this has an impact on tops. You're going to need a hoarderogh refresh. Think about it. If you have a new pair of boot fit jeans, you might need a new pair of boots to match the jeans. To pair of with them. And then while you're at it, maybe a crop top to pair with the whole thing, it's a

wardrobe refresh. Once that full outfit set has changed, you might be open to totally new outfits. So first, your waistline changed and then your jeans changed. At the same time, jeans trends were also changing. And now entire wardrobes might change as a result. Changing sizes, changing trends. Then you get these spillover trends. All of these are good for new clothing sales for retailers like Levi's. For our second story, if you saw the Black Widow movie this weekend, you didn't just see a superhero movie. Disney just showed you the playbook for movie debuts in the post-pandemic era. Black Widow, I mean, first of all, Jack, the name's already scary.

And then Scarjo can kill you. Yeah, she stars as the Russian superhero of the Marvel Cinematic Universe. Yeah, she does. And this was like long away to. After several delays, Garlet Johansson played Natasha Roe. Romanov, aka the Black Widow. In Soviet Russia, comic books review. Not too shabby a debut either.

80 million dollars were sold in movie theater tickets in the U.S. and another 78 million in box office abroad. I mean, we're talking best opening weekend of the pandemic. They beat Fast and the Furious whatever number we're on these. Big time. They beat F-9. F-9. Just round up.

It could be 14 at this point. It's no longer a keyboard key. It's a Vin Diesel movie. Now, all of that is interesting. But frankly, the Vin Diesel stat here, what Disney just told us. Yeah, this is Ben Diesel's chest muscles right here. Disney just told us they made another 60 million on top of those other two numbers. They did.

In extra streaming revenue for this movie. Stand up, sit down, stand back up again. But Snackers, this means we got to introduce something here. The PSVOD. PSVOD, premium streaming video on demand. Actually, the worst acronym we've ever. ever heard, we did not come up with this, but it is a thing. PSVOD Snackers is what Disney did for Black Widow this past weekend.

If you were a Disney Plus subscriber already, you still have to pay an extra 30 bucks to watch Black Widow. Every time you say PSVOD, Jack, a juice cleanse in Los Angeles dries up. Now, PSVOD is different than pay-per-view because pay-per-view for like a boxing thing, that's only for a live event. PSVOD is on demand. Okay, so we whipped out the whiteboard on this one. Let's check out what Black Widow did over the weekend when it comes to premium streaming video on demand. Since they did 60 million in revenue for the streaming, that means two million households paid the extra $30.

That's a lot just in the opening weekend. That's a lot of people streaming Black Widow instead of popping to the theater for $60 worth of pop. The reason Disney's CEO loves this so much, PSVOD is a profit puppy. It is typically Snackers. Here's how the business model breaks down. A studio only takes home half of a movie ticket sales because the other half goes to a theater like AMC. But for Black Widow on Disney Plus, Disney gets to keep almost all of those $30 for the movie. They only have to give up the 15% app tax to like Apple TV, Roku, or Amazon Firestack.

Ipsopacto here's the movie math on this one single $30 streaming sale is greater than $2.15 movie theater ticket sales for Disney. So, Jack, what's the takeaway for our buddies over at Disney? Black Widow could be the new playbook for the post-pandemic movies. Snackers, if there's one thing Jack and I loved talking about over the last year, it was the Hamilton moments of streaming. Yeah, streamers streamed their best movies at no extra cost to get you to sign up for their service. Case the point, Disney did this with Hamilton, offering it at no extra cost so you'd sign up for Disney Plus. HBO Max is doing the same thing this weekend with LeBron Space Jam 2 coming out that you don't

have to pay extra for. And Peacock is doing the same thing with the Olympics, offering it at no extra cost in a desperate attempt for you to finally be one of the few people who subscribes to Peacock. I'm actually one of the few of the proud of the peacockers. I know. You guys should get together. It could be a nice small barbecue jack. But Snackers, now that Disney gave away so much of their premium content for pretty much free, they earned a hundred million strong subscriber base and they're not going to give away their best stuff anymore for free. So instead, Disney is now offering customers an expensive choice. Yes.

Pay a lot to watch a blockbuster in movie theaters or pay a lot to watch the blockbuster from the comfort of your living room. Well, with Black Widow this weekend, we learned that it made a ton of money in theaters and a ton of money through streaming. It was a smashing success for Disney whose stock is up 4% on the news. Interesting. AMC, their stock's down 8% on news that Disney can make so much money without their help. More interesting. We expect other. movie studios to follow Disney's lead with this specific rollout model.

To watch a blockbuster, you're going to have to pay big in the theaters or pay big for streaming at home. Or just wait a few months until it comes out on streamer for free. Like a loser. I'm just kidding. That's what I've done for every movie this year. I'm watching A Quiet Place 2 this weekend after waiting 45 days. We're both losers.

I'm offended. For our third and final story, Flipcar just hit $37 billion. evaluation as the Amazon of India. But the real story here is actually Walmart versus Amazon. Okay, Jack, honestly, just was kind of shocked by these numbers. Chinese population, 1.398 billion. India's population, 1.339 billion people. Here's what's shocking.

That's extremely close. India caught up like the Milwaukee Bucks. I think India's about to overtake China as the most populous country. That's a big deal. And that's why Flipkart is a big deal. the Indian e-commerce leader based in Bangalore. Yeah, they're 14 years old, and it's your standard online marketplace, but it focuses on the Indian consumer.

Think like what Alibaba is for China, FlipCard is for India. And because India is basically one huge polyglot, it works in seven languages. So they're doing everything in Hindi to Punjabi. They're covering those local dialects and local languages. And since India has very few bars, it must work, Flipkart, on phones that have very little cell service. India is literally number 77 in the world when it comes to 4G strength. So you need to be able to buy stuff with the minimal bandwidth.

So it's your standard online marketplace. It is. But adapted to the Indian market. Which is a surging huge market. Flipcard says they have 350 million monthly users. That's big. Which you can compare to Amazon Prime's 200 million strong. And if you're doing that, the first thing you're going to think of is, wow,

FlipCart really big. That's a huge deal. But the average Indian consumer makes an income. of $6,700. Meanwhile, the average American consumer is priming nearly like 10x that on a weekly basis because he got to have the refills of the refills. So there's your context. Flipcard has a bigger user base, but each user has way fewer dollars to spend than Amazon. Add all that up. And that led us to the news yesterday. Flipkart, a pre-IPO company, we're sumo, we're straight up missing out on it, just raised enough money to hit a whopping $37 billion dollar valuation, one of the

biggest unicorns on planet. All right. Here's the question you might ask about the Amazon of India. The first thing you think it's knackers, does Flipkart compete with Amazon in India? The answer is yes. Flipkart has 32% of the e-commerce market in India. It does. Amazon has 31%. But the number one question you should be asking about Flipkart's big fundraise, who is really behind Flipkart? And the answer is actually Walmart. One of the first pods I ever recorded with Nick Martel was back in the summer of 2018. It's when Walmart announced they were requiring 75% of Flipkart. I think we were wearing the exact same things as we are today. Walmart, ipso facto basically owns Flipkart. Whatever profit that Flipkart manages to salvage over there,

75% of it ends up in Arkansas. That's fair. That's fair. By the way, Walmart is like literally so proud of Flipkart. They mentioned them four times on their last earnings call. Very happy parent. Put it up on the fridge. So, Jack, what's the takeaway for our buddies over Flipkart? To DIY or not to DIY. That is a key difference between Walmart and Amazon. Amazon. It's the existential e-commerce question snackers because Walmart and Amazon, they've taken opposite approaches to taken over the world retail. The Walmart strategy to dominate commerce is to partner up, to pay somebody else to do it. The Amazon strategy is to DIY like your old roommate just make the shelf themselves. Outside of their 5,000 megastores, Walmart's strategy

to dominate is by partnering up and paying for somebody else to do it. Amazon strategy is the exact opposite. It's do it yourself. They straight up DIY. why they're gross. Exhibit A, Walmart just invested in drone up, a startup that uses drones to deliver stuff to your door. Amazon's like, yeah, we've been developing drones in-house since 2015 once now. Exhibit B, Walmart partnered up with Thread Up to take over the secondhand clothing retail market. Amazon's like, yeah, Amazon warehouse is huge. That's our thing. Return products only. We already do that. Exhibit three, Walmart teamed up with Shopify to let third-party businesses sell their stuff on Walmart.com. Amazon yawns a couple times and then says,

Hey, third-party sellers, they're the backphone of our very own Amazon platform. Now, there are some exceptions, but generally Amazon builds. They do it themselves. While Walmart partners or pay someone else. So this flip card versus Amazon India situation, it shows off the two very different strategies of these two e-commerce rivals. Jack, can you whip up the takeaways for us over there? Levi's is selling more jeans because Americans need jeans that fit them.

Yeah, bag your styles mean we're getting a spillover trend. Oh, and if you're not wearing 90s jeans in a week, we can't sit with you. Disney perfectly executed a post-pandemic blockbuster movie debut. 30 bucks to watch at home. 30 bucks to go to the theaters. You think other movies are going to follow. Flipcar is the biggest e-commerce company in India. Walmart partners up.

Amazon. It does things itself. Now, time for our snack factor the day. This one sent in from Mr. Big Ted Kramer, originally Long Island, but now proudly Brattleboro, Vermont. Yes, Levittown, Port Washington, Brattleboro. Ever heard of it, the three biceps of Long Island? Or Brattleboro, as you call it, the sixth borough of New York City.

You're going to round up sometimes. Here's Big Ted's trivia question. Who has the record for most wins as a starting pitcher at the All-Star break? Now, Snackness, before you answer this, keep in mind the craziest part about this statistic. This guy didn't get selected as an All-Star. Even though he had the most wins for a pitcher at the All-Star break. Wilbur Wood had 18 wins at the All-Star break. in 1973, 18 wins, only halfway through the season.

I got to say, if you do pick the name of a baseball player in 1973, Wilburwood is the perfect name for that human being. Definitely has mutton chops. The only problem, though, he had 14 losses at the All-Star Break, too. So the most wins, he also had the most losses. He's basically the we work of baseball. Exploding growth, but also exploding losses. Big Ted, we always take your snack facts.

Snackers, you look fantastic today, by the way. Jack, I love him what you're wearing. It's the same thing we were wearing when we did the Walmart pod four years ago. It's a baseball shirt. If you haven't yet, ask your friends, H-Y-H-Y-S-D, that is how we grow. Have you had your snacks daily? If you know, you know. We'll see you tomorrow. And before we go, happy birthday to McGuire-Frank from lovely Poland, Ohio. And happy birthday to David Wynn over in Tübingen, Germany. Okay. Where the Spetsla is delicious. And happy birthday, Ude-Kanwar, down the street in San Francisco. Emmett Mistkel in Memphis, Tennessee.

And Lolita from Jacksonville, Florida. And Brad Simpson in Cincinnati, Ohio. Oh, and Jack, Alex Gouley, just launched a startup in New York City. We got to hear more about it. Congratulations. And happy anniversary to Derek and Bree in Yorktown Heights, New York. And Juwan and Samantha Caesar just got married in Miami. Must have been lovely.

And Donovan Howell got down on one knee and asked Becca Fickle to marry him. Even better, he sent us a picture of the ring. It is fantastic. Becca. Wow. Congratulations. And to anyone else celebrating something today, make it a team. Celebrate the wins. This is Jack. I own stock of Levi and Amazon. Nick owned stock of Shopify. And 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, Inc. 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. Like a loser.