1 00:00:05,240 --> 00:00:07,880 Speaker 1: This is what the flacks. I'm bred and I'm justin 2 00:00:07,960 --> 00:00:09,520 Speaker 1: and it's Monday, the eighth of December. 3 00:00:10,039 --> 00:00:11,879 Speaker 2: We know that the cost of living is really biting, 4 00:00:11,920 --> 00:00:14,760 Speaker 2: but here's one more proof point for you. Doctors say 5 00:00:14,800 --> 00:00:17,239 Speaker 2: the number of Australians dropping out of gold to health 6 00:00:17,239 --> 00:00:20,520 Speaker 2: insurance policies is on the rise. In fact, the cost 7 00:00:20,520 --> 00:00:23,239 Speaker 2: of premiums has doubled over the last sixteen years, which 8 00:00:23,320 --> 00:00:26,439 Speaker 2: is significantly faster than inflation, and that puts a whole 9 00:00:26,520 --> 00:00:28,800 Speaker 2: lot more pressure on the public health system. 10 00:00:28,960 --> 00:00:31,120 Speaker 1: Very true. Flex Sam ever, felt like you're winging it 11 00:00:31,120 --> 00:00:34,320 Speaker 1: with your finances, Well, it can sometimes have some pretty 12 00:00:34,320 --> 00:00:36,680 Speaker 1: big consequences down the road, and your twenties and thirties 13 00:00:36,760 --> 00:00:39,600 Speaker 1: is the perfect time to start building good money foundations. 14 00:00:39,600 --> 00:00:41,440 Speaker 1: To in the Flux app that we share buy smart 15 00:00:41,479 --> 00:00:43,360 Speaker 1: money moves that you can make in your twenties and 16 00:00:43,360 --> 00:00:45,920 Speaker 1: thirties to really set your financial future up right now. 17 00:00:45,960 --> 00:00:47,760 Speaker 1: To make sure to download the Flux app and check 18 00:00:47,800 --> 00:00:48,120 Speaker 1: it out. 19 00:00:48,159 --> 00:00:51,760 Speaker 2: Three massive stories today Juzzy Boy, let's do it for 20 00:00:51,800 --> 00:00:55,400 Speaker 2: our first. The company behind Smiggle and Peter Alexander twelve 21 00:00:55,400 --> 00:00:58,400 Speaker 2: percent share price drop because school students are not digging 22 00:00:58,520 --> 00:01:00,320 Speaker 2: Smiggle's colorful stationary anymore. 23 00:01:00,400 --> 00:01:02,680 Speaker 1: Must say it is quite excy that stationary b man. 24 00:01:02,680 --> 00:01:04,280 Speaker 1: So tell me what's going on here? And this news 25 00:01:04,319 --> 00:01:06,040 Speaker 1: got you speechless, doesn't it? Juzzy boy Well. 26 00:01:06,040 --> 00:01:08,800 Speaker 2: Premier Investments is the ASX listed a retail group behind 27 00:01:08,800 --> 00:01:12,119 Speaker 2: Peter Alexander and Smiggle. It previously owned Dottie and Jackie, 28 00:01:12,160 --> 00:01:14,920 Speaker 2: Portman's and JJ's before it sold them off to Maya 29 00:01:15,080 --> 00:01:17,480 Speaker 2: more than eight hundred million dollars in my shares and 30 00:01:17,560 --> 00:01:20,920 Speaker 2: Judge Boy. Premier Investments kept its two Golden Children in 31 00:01:20,959 --> 00:01:21,760 Speaker 2: its portfolio. 32 00:01:21,800 --> 00:01:25,039 Speaker 1: Golden Child one Smiggle, the stationary retailer that sells scentered 33 00:01:25,080 --> 00:01:28,000 Speaker 1: pens and sparkly stickers at ridiculously high prices. 34 00:01:28,080 --> 00:01:30,839 Speaker 2: Golden Child number two Peter Alexander, the retailer that turns 35 00:01:30,840 --> 00:01:33,720 Speaker 2: sleepwear into an actual category as opposed to sleeping in 36 00:01:33,720 --> 00:01:34,720 Speaker 2: an old T shirt. 37 00:01:34,760 --> 00:01:37,840 Speaker 1: But now b Man Golden Child one aka Smiggle is 38 00:01:37,880 --> 00:01:39,880 Speaker 1: turning into a bit of a problem child. 39 00:01:40,240 --> 00:01:43,559 Speaker 2: Premier shared an earnings update that badly missed expectations. 40 00:01:43,640 --> 00:01:45,640 Speaker 1: Yeah It's guidance came in at one hundred and twenty 41 00:01:45,680 --> 00:01:48,080 Speaker 1: million dollars for the first half of FY twenty six, 42 00:01:48,160 --> 00:01:51,280 Speaker 1: which was fifteen percent below its expected guidance. And be Man, 43 00:01:51,480 --> 00:01:53,840 Speaker 1: might I remind you that Smiggle, which is under before me, 44 00:01:54,120 --> 00:01:56,640 Speaker 1: still doesn't have a CEO, and I believe it hasn't 45 00:01:56,640 --> 00:01:59,040 Speaker 1: had one since September of twenty twenty four. Next Minute, 46 00:01:59,040 --> 00:02:02,280 Speaker 1: Premier Investments share dropped twelve percent on this news. Huge, 47 00:02:02,280 --> 00:02:04,640 Speaker 1: So what's the key learning here? Leadership stability is often 48 00:02:04,680 --> 00:02:07,920 Speaker 1: an underrated driver of company value. Think about a Jazzy Boy. 49 00:02:07,960 --> 00:02:10,760 Speaker 2: Investors want to know who is steering the ship, especially 50 00:02:10,840 --> 00:02:12,080 Speaker 2: when a brand is under pressure. 51 00:02:12,120 --> 00:02:14,720 Speaker 1: Yeah, we know that a strong CEO or COO provides 52 00:02:14,800 --> 00:02:17,760 Speaker 1: clarity on company strategy, but also creates the roadmap for 53 00:02:17,840 --> 00:02:20,720 Speaker 1: turning around a struggling division, and when those roles are vacant, 54 00:02:20,800 --> 00:02:24,440 Speaker 1: it can create a leadership vacuue. Not to mention uncertainty 55 00:02:24,520 --> 00:02:27,400 Speaker 1: and by g the market's hate uncertainty. Get this one, 56 00:02:27,480 --> 00:02:27,919 Speaker 1: Juzi boy. 57 00:02:27,919 --> 00:02:30,079 Speaker 2: A corporate finance study of six hundred and eighty seven 58 00:02:30,200 --> 00:02:33,880 Speaker 2: unplanned CEO departures shows a direct link between the absence 59 00:02:33,919 --> 00:02:36,840 Speaker 2: of a permanent leader and a decline in shareholder value. 60 00:02:36,880 --> 00:02:39,480 Speaker 1: Interesting, and be Man, Sniggle hasn't had a CEO for 61 00:02:39,520 --> 00:02:40,640 Speaker 1: fifteen months. 62 00:02:40,400 --> 00:02:42,600 Speaker 2: Now, chuck On top of that, little kiddies ain't buying 63 00:02:42,600 --> 00:02:44,360 Speaker 2: smiggle pencil cases anymore. 64 00:02:44,000 --> 00:02:46,160 Speaker 1: And all of a sudden, you've got a company desperate 65 00:02:46,200 --> 00:02:48,320 Speaker 1: to find a CEO who can turn this ship around. 66 00:02:48,360 --> 00:02:51,519 Speaker 2: For our second story, Spotify has just delivered its biggest 67 00:02:51,520 --> 00:02:54,320 Speaker 2: ever Wrapped launch, with more than two hundred million users 68 00:02:54,360 --> 00:02:55,840 Speaker 2: jumping in within twenty four hours. 69 00:02:55,919 --> 00:02:58,680 Speaker 1: Oh nobody gets people clicking faster than finding out they 70 00:02:58,720 --> 00:03:01,680 Speaker 1: listen to Taylor Swift forty seven thousand minutes. Tell me more. 71 00:03:01,680 --> 00:03:01,960 Speaker 1: All right? 72 00:03:01,960 --> 00:03:04,799 Speaker 2: So Spotify is the Swedish audio streaming platform that now 73 00:03:04,840 --> 00:03:07,919 Speaker 2: has more than six hundred million users worldwide, and each year. 74 00:03:07,800 --> 00:03:11,840 Speaker 1: Since twenty sixteen, Spotify has released their Wrapped feature in December. 75 00:03:11,440 --> 00:03:14,240 Speaker 2: Which basically gives each user a personalized overview of their 76 00:03:14,240 --> 00:03:15,519 Speaker 2: listening habits for the past year. 77 00:03:15,560 --> 00:03:17,639 Speaker 1: You're listening age based on the music you listened to. 78 00:03:17,960 --> 00:03:19,040 Speaker 1: Mine was sixty seven? 79 00:03:19,280 --> 00:03:20,160 Speaker 2: Your favorite podcast? 80 00:03:20,200 --> 00:03:24,200 Speaker 1: Two ahem, AHM and b Man. Wrapped twenty twenty five 81 00:03:24,280 --> 00:03:27,440 Speaker 1: hit over two hundred million engaged users in its first 82 00:03:27,480 --> 00:03:28,440 Speaker 1: twenty four hours. 83 00:03:28,480 --> 00:03:31,680 Speaker 2: That's nineteen percent higher than last year, when Spotify included 84 00:03:31,720 --> 00:03:35,440 Speaker 2: an AI podcast which completely flopped and b Man. 85 00:03:35,560 --> 00:03:38,240 Speaker 1: The biggest markets for Wrapped were in the US, in India, 86 00:03:38,360 --> 00:03:40,119 Speaker 1: Indonesia and Thailand as well. 87 00:03:40,240 --> 00:03:43,280 Speaker 2: Nothing like building network effects with your scarily rich data. 88 00:03:43,920 --> 00:03:45,280 Speaker 1: So what is the key learning here? 89 00:03:45,320 --> 00:03:47,880 Speaker 2: The most valuable customer acquisition channels are often the ones 90 00:03:47,920 --> 00:03:48,760 Speaker 2: you never pay for. 91 00:03:49,120 --> 00:03:51,360 Speaker 1: When Rapped first started, it was positioned as a form 92 00:03:51,400 --> 00:03:53,840 Speaker 1: of self expression for all of Spotify's listeners. 93 00:03:53,840 --> 00:03:56,640 Speaker 2: Beju boy, It's turned into millions and millions of unpaid 94 00:03:56,640 --> 00:03:57,800 Speaker 2: promotions across the world. 95 00:03:57,840 --> 00:04:00,720 Speaker 1: Get this in its verse twenty four hours, listeners shared 96 00:04:00,720 --> 00:04:04,080 Speaker 1: their Spotify Wrapped more than five hundred million times on 97 00:04:04,120 --> 00:04:05,240 Speaker 1: their socials. 98 00:04:04,800 --> 00:04:06,840 Speaker 2: Which is forty one percent more than last year. That 99 00:04:06,920 --> 00:04:10,120 Speaker 2: means hundreds of millions of brand ambassadors. That means hundreds 100 00:04:10,120 --> 00:04:13,400 Speaker 2: of millions of people broadcasting Spotify's product and brand to 101 00:04:13,440 --> 00:04:15,880 Speaker 2: their entire social circle. And because it comes from friends 102 00:04:16,000 --> 00:04:19,039 Speaker 2: rather than ads, it carries more trust and far more reach. 103 00:04:19,240 --> 00:04:21,560 Speaker 2: So Jazi boy, it's a reminder that the strongest growth 104 00:04:21,640 --> 00:04:25,120 Speaker 2: levers often come from creating something people genuinely just want 105 00:04:25,160 --> 00:04:27,279 Speaker 2: to share, and not something that you just push it them. 106 00:04:27,320 --> 00:04:29,680 Speaker 1: For our third and final story. 107 00:04:29,440 --> 00:04:32,679 Speaker 2: Lululemon's founder is trolling the current CEO as he claims 108 00:04:32,680 --> 00:04:36,720 Speaker 2: the company he started has lost its cool factor shots. 109 00:04:36,320 --> 00:04:37,880 Speaker 1: By it and I can tell you, man, this is 110 00:04:37,880 --> 00:04:39,920 Speaker 1: getting a little bit nasty, so tell me more so. 111 00:04:40,000 --> 00:04:43,160 Speaker 2: Lululemon pretty much invented ath leisure back in nineteen ninety eight. 112 00:04:43,240 --> 00:04:45,600 Speaker 1: Yeah, and since then it's built a cult following around 113 00:04:45,640 --> 00:04:49,000 Speaker 1: its leggings as well as its overall premium lifestyle brand. 114 00:04:49,040 --> 00:04:50,640 Speaker 2: The founder of Lula Lemon goes by the name of 115 00:04:50,760 --> 00:04:53,680 Speaker 2: Chip Wilson, and he's been a pretty controversial figure. 116 00:04:53,760 --> 00:04:55,719 Speaker 1: Yeah. He stepped down from his role as CEO in 117 00:04:55,760 --> 00:04:57,680 Speaker 1: two thousand and five and stepped off the board in 118 00:04:57,720 --> 00:05:00,520 Speaker 1: twenty fifteen after making lots and I mean lots of 119 00:05:00,560 --> 00:05:02,000 Speaker 1: inappropriate comments and jasboy. 120 00:05:02,040 --> 00:05:04,599 Speaker 2: While Lula Lemon has grown rapidly over the last decade, 121 00:05:04,600 --> 00:05:07,239 Speaker 2: twenty twenty five has been a year two forget Yeah. 122 00:05:07,080 --> 00:05:09,240 Speaker 1: It's been a year that rivals such as Alo and 123 00:05:09,400 --> 00:05:12,480 Speaker 1: Vory have really stepped into the upscale at leisure market. 124 00:05:12,520 --> 00:05:14,520 Speaker 2: In fact, lul Lemon share price is down fifty two 125 00:05:14,520 --> 00:05:15,960 Speaker 2: percent this year. If you don't mind, so. 126 00:05:15,960 --> 00:05:18,520 Speaker 1: Now be man at. Chip Wilson, the founder of lul Lemon, 127 00:05:18,640 --> 00:05:21,200 Speaker 1: has turned into Lulu's loudest critic. 128 00:05:20,960 --> 00:05:23,800 Speaker 2: Firing shots on LinkedIn and even brought a full page 129 00:05:23,839 --> 00:05:25,920 Speaker 2: ad in the Wall Street Journal to complain. 130 00:05:25,680 --> 00:05:28,080 Speaker 1: He reckons that lul Lemon hired a CEO that quote 131 00:05:28,120 --> 00:05:32,000 Speaker 1: speaks Wall Street but lacks a visionary spark, And with 132 00:05:32,120 --> 00:05:34,600 Speaker 1: Chip Wilson still holding eight percent of the company shares, 133 00:05:34,680 --> 00:05:36,359 Speaker 1: his opinions are pretty impactful. 134 00:05:36,920 --> 00:05:38,960 Speaker 2: So what is the key learning here? CEO who builds 135 00:05:38,960 --> 00:05:40,719 Speaker 2: the rocket isn't always the one who should fly it. Now, 136 00:05:40,920 --> 00:05:44,400 Speaker 2: man broadly, there are two CEO archetypes. In the left corner, 137 00:05:44,520 --> 00:05:47,440 Speaker 2: you've got your founder CEO. These are the CEOs who 138 00:05:47,760 --> 00:05:48,719 Speaker 2: started the company. 139 00:05:48,839 --> 00:05:51,440 Speaker 1: They often bring the big vision. They act on instinct, 140 00:05:51,480 --> 00:05:53,720 Speaker 1: and they understand their customers deeply, and. 141 00:05:53,640 --> 00:05:55,800 Speaker 2: That's why they're so good at building products that people 142 00:05:55,839 --> 00:05:58,159 Speaker 2: pretty much obsess over. In the right corner, you've got 143 00:05:58,160 --> 00:06:01,320 Speaker 2: the operator CEO, and these prey to CEOs are very different. 144 00:06:01,360 --> 00:06:03,839 Speaker 1: They shine once the company needs discipline. 145 00:06:03,400 --> 00:06:06,400 Speaker 2: Think scaling stores, improving margins, managing supply chains. 146 00:06:06,400 --> 00:06:09,560 Speaker 1: They're less about vision and more about systems the just boy. 147 00:06:09,600 --> 00:06:11,960 Speaker 2: When a brand is built on culture, turning it into 148 00:06:12,000 --> 00:06:14,880 Speaker 2: a numbers first machine can really drain the magic the man. 149 00:06:15,040 --> 00:06:19,480 Speaker 1: Some companies actually thrive under operator CEOs, like Microsoft with Sashanadella. 150 00:06:19,560 --> 00:06:21,559 Speaker 2: Share price up ten folt since he became CEO. 151 00:06:21,640 --> 00:06:24,200 Speaker 1: But culture led brands like lu Lemon, they need leaders 152 00:06:24,200 --> 00:06:27,599 Speaker 1: who can protect the vibe as fiercely as the financials. 153 00:06:27,080 --> 00:06:30,560 Speaker 2: And curly chip lou Lemon Wilson doesn't believe in the 154 00:06:30,600 --> 00:06:31,760 Speaker 2: current CEOs flu Sam. 155 00:06:31,800 --> 00:06:34,240 Speaker 1: It has been a big year of business news and 156 00:06:34,400 --> 00:06:37,119 Speaker 1: finance stories and we've loved chatting on the pod about 157 00:06:37,120 --> 00:06:39,719 Speaker 1: all business news stories in Australia and around the world. 158 00:06:39,760 --> 00:06:41,880 Speaker 1: Over the coming week, we're going to be doing recaps 159 00:06:41,920 --> 00:06:43,960 Speaker 1: of some of the best stories from twenty twenty five 160 00:06:44,000 --> 00:06:46,760 Speaker 1: across tech, across retail to make sure you stay tuned 161 00:06:46,839 --> 00:06:49,239 Speaker 1: to hear the greatest stories they ever lived in twenty 162 00:06:49,279 --> 00:06:49,760 Speaker 1: twenty five. 163 00:06:50,040 --> 00:06:52,800 Speaker 2: Thanks for listening and we'll see you on Wednesday.