Clear eyes, full aisles… (Joe Raedle/Getty Images)
Beyond Meat hired Kim Kardashian as its “chief taste consultant” this week — a dramatic (and likely pricey) bid to reverse slumping sales. But the move may’ve flopped after social-media sleuths noticed Kim didn't seem to actually bite into any Beyond products in its latest ad.
Stocks closed higher yesterday after the Fed indicated it’s prepared to move ahead with more rate hikes to tame inflation. The major indexes are on track for a rare week in the green.
Wedding tuxes and golf clubs… Americans are stocking up ahead of the first summer with (mostly) no Covid restrictions. Yesterday, shares of Nordstrom and Dick’s Sporting Goods jumped 10%+ as IRL and outdoor events pushed their sales above pre-pandemic levels. But both Nordie and Dick’s also reported higher inventories, a theme in recent retail earnings:
New luggage > 100-piece puzzles… When the first wave of the pandemic caused a collapse in demand for discretionary goods (think: TVs, appliances), retailers stopped taking new orders and factories halted production. But as demand quickly snapped back, stores rushed to stock up on those items.
It’s the “bullwhip effect” in action... aka: when distortions in demand cause companies to order too much too late. While retailers risk losing billions of dollars in sales from sitting on excess supply, widespread markdowns could cool inflation by making goods more affordable for price-sensitive shoppers. Now all eyes turn to Costco's earnings today: the wholesaler keeps inventories slim on purpose, so any mention of a glut in supply could signal a wider problem for the retail industry.
Can't do this one on TurboTax... The median pay for CEOs of America's largest companies hit a record $14.7M last year (nine chief execs got packages worth $50M+). That was a year when the S&P 500 rose 27%, which translated to big shareholder returns. Now the S&P is down 18% for the year, and investors are protesting meaty exec-pay packages.
Eyes on the price... While tech stocks are leading the market plunge, tech-exec comp has never been higher. But it's not all cash $$: about two-thirds of CEO comp is made up of stocks or equity awards, which usually vest over years. The idea: CEOs will work harder to boost shareholder value if their pay is directly tied to their company's stock price (but it doesn’t always work that way).
It's not just about falling stock prices... Exec-pay scrutiny is part of a wider movement where investors seek progress from leaders on environmental, social, and governance issues. For example, Amazon investors challenged the company not only on exec pay but also on working conditions, climate impact, and tax transparency. But shareholders rejected all 15 proposals.
Authors of this Snacks own shares of Amazon, Bitcoin, Uber, and Walmart