Hey Snackers,
The French are unimpressed with a new Russian law, which states that only Russian sparkling wine can be called "champagne." Now, Moet is suspending champagne shipments to Russia. You get what you Putin.
Stocks dipped after the long weekend, pulling back from last week’s record highs.
Cancel the IPO honeymoon... Celebrations didn't last long for Didi Chuxing. Last week, the Chinese ride-hail giant raised $4.4B in the largest US IPO of the year — and the biggest IPO by a Chinese company since ecomm giant Alibaba in 2014. Didi notched a $68B market cap on its first trading day (two-thirds of an Uber). But that's how it started.
Control > success... Five years ago, China might've hailed Didi's blockbuster IPO as a source of national pride. This year, China is driving the flops of its own biggest IPOs as it reminds tech companies who's in charge:
The theme has shifted for investors... It used to be: "Invest in China's growth opportunity." Now it's more like: "Invest in China at your own risk." Didi warned of this risk in its IPO filing, saying that if the Chinese government changes its interpretation of regulations or finds that Didi isn't compliant, the company could face "severe penalties." Zooming out, investors' opportunity is the growing size of China’s consumer market. The risk is the Chinese government's growing oversight.
All about that CURV... Torrid is the largest direct-to-consumer brand of women’s plus-size clothing in North America. You might remember it as a sub-brand of Hot Topic (RIP studded belts). Six years after breaking up with checkered skinny jeans, Torrid has its own hot topic: a successful IPO. Torrid stock has jumped 15% since its NYSE debut last week — ticker symbol: CURV.
Don't curve your enthusiasm... The plus-sized market is significant, and it's growing. In the US, it serves a whopping 90M women wearing sizes 10 and up. Torrid says many brands treat plus-size customers as an afterthought, which is why the market has been underserved. Torrid's biggest strength: putting that customer base front-and-center.
Torrid turned fit into a brand... and won strong customer loyalty. 78% of plus-size women say they would spend more on clothes if they had more options available in their size. Urban Outfitter's blind spot is Torrid's super power: Last year, Torrid had an 82% customer retention rate. By dedicating itself to the needs of a broad, unsaturated market, Torrid is tapping into a key opportunity.
Authors of this Snacks own shares of: Apple
ID: 1711349