1 00:00:05,320 --> 00:00:06,720 Speaker 1: This is what the Flux. 2 00:00:06,760 --> 00:00:09,119 Speaker 2: I'm Brett and I'm justin and it's Monday, the twenty 3 00:00:09,119 --> 00:00:09,680 Speaker 2: third of March. 4 00:00:09,760 --> 00:00:13,039 Speaker 1: Doesy wait? Last Monday we asked the ASEX to please, 5 00:00:13,240 --> 00:00:16,040 Speaker 1: for the love of portfolio, stopped the bleeding. This Monday, 6 00:00:16,079 --> 00:00:17,919 Speaker 1: I regret to inform you we were down one point 7 00:00:17,920 --> 00:00:20,960 Speaker 1: seven percent again last week. This is the third weekly 8 00:00:21,000 --> 00:00:23,400 Speaker 1: loss for the AX and the ASEX is now down 9 00:00:23,440 --> 00:00:26,720 Speaker 1: eight percent since the Iran war began. Oh, at this point, 10 00:00:26,840 --> 00:00:29,720 Speaker 1: the only thing going up is petrol prices and investor anxiety. 11 00:00:30,040 --> 00:00:32,760 Speaker 2: True Flux, am, we are getting to the end of March. 12 00:00:32,880 --> 00:00:34,760 Speaker 2: Scary how quickly this year is going. And if you 13 00:00:34,760 --> 00:00:36,919 Speaker 2: haven't checked your credit score in twenty twenty six yet, 14 00:00:37,040 --> 00:00:39,240 Speaker 2: now is absolutely the time. In the Flux out the 15 00:00:39,240 --> 00:00:41,400 Speaker 2: credit score tracker shows if your score has gone up, 16 00:00:41,440 --> 00:00:43,599 Speaker 2: it's gone down and if you've been making your repayments 17 00:00:43,600 --> 00:00:44,800 Speaker 2: on time. So if you want to see what the 18 00:00:44,800 --> 00:00:46,440 Speaker 2: banks see about you, and make sure to download the 19 00:00:46,479 --> 00:00:48,479 Speaker 2: Flux app and check out our credit score. 20 00:00:48,360 --> 00:00:51,360 Speaker 1: Talk three magnificent stories today, doesy boy? Let's do it 21 00:00:51,400 --> 00:00:54,480 Speaker 1: for our first premier investments. The owner of Smingle and 22 00:00:54,520 --> 00:00:57,760 Speaker 1: Peter Alexander, has announced flat profit for the last half, 23 00:00:57,760 --> 00:01:00,040 Speaker 1: with one of its brands carrying the weight of the 24 00:00:59,800 --> 00:01:01,440 Speaker 1: world on its shoulders. 25 00:01:01,960 --> 00:01:04,120 Speaker 2: The colorful pens just aren't flying off the shelves like 26 00:01:04,160 --> 00:01:06,200 Speaker 2: they used to be. Man, So what's going on here? 27 00:01:06,319 --> 00:01:09,120 Speaker 1: So? Premier Investments is the retail empire behind brands like 28 00:01:09,160 --> 00:01:10,680 Speaker 1: Smiggle and Peter Alexander. 29 00:01:10,720 --> 00:01:13,200 Speaker 2: It's also the company that sold apparel brands to Maya 30 00:01:13,319 --> 00:01:15,680 Speaker 2: for around nine hundred mil last year and owns a 31 00:01:15,760 --> 00:01:18,320 Speaker 2: Chunky Steak in Maya and Brevel and b Man. Premier 32 00:01:18,360 --> 00:01:20,840 Speaker 2: Investments just announced a net profit of nearly one hundred 33 00:01:20,840 --> 00:01:22,920 Speaker 2: and two million dollars for the half, which was zp 34 00:01:22,959 --> 00:01:24,720 Speaker 2: point four percent on the previous half. 35 00:01:24,720 --> 00:01:26,919 Speaker 1: But as boy, that's doing a bit of accounting yoga, 36 00:01:26,959 --> 00:01:29,440 Speaker 1: isn't it. It is once you strip out the impact 37 00:01:29,480 --> 00:01:31,920 Speaker 1: of selling down at Steak in Maya, propits actually fell 38 00:01:32,080 --> 00:01:34,640 Speaker 1: thirteen percent. And this is where the story splits in two. 39 00:01:34,840 --> 00:01:37,320 Speaker 2: On the one side, you've got kids stationary brand Smiggle, 40 00:01:37,360 --> 00:01:39,240 Speaker 2: which has been on a bit of a dry spell. 41 00:01:39,360 --> 00:01:42,200 Speaker 1: Smiggle sales dropped nearly eleven percent to about one hundred 42 00:01:42,200 --> 00:01:45,200 Speaker 1: and forty million bucks, mainly because competition's ramped up. Hello 43 00:01:45,400 --> 00:01:48,320 Speaker 1: Kmart and families have tightened their spending as well. And 44 00:01:48,360 --> 00:01:50,720 Speaker 1: on the other side, you've got Peter Alexander, which is 45 00:01:50,760 --> 00:01:51,600 Speaker 1: living its best life. 46 00:01:51,680 --> 00:01:53,720 Speaker 2: Yep, it sells up nearly five percent to over three 47 00:01:53,840 --> 00:01:54,880 Speaker 2: hundred and twelve million. 48 00:01:54,920 --> 00:01:58,760 Speaker 1: Bakarunis we will not give up a cozy matching PJ set. 49 00:01:59,440 --> 00:02:00,840 Speaker 2: So what is the key leading here? 50 00:02:01,040 --> 00:02:03,200 Speaker 1: Just because brands sit under the same roof, it doesn't 51 00:02:03,200 --> 00:02:06,240 Speaker 1: mean they thrive in the same economy. Right now, Smiggle 52 00:02:06,280 --> 00:02:09,480 Speaker 1: is struggling well, Peter Alexander is quietly performing. If you 53 00:02:09,520 --> 00:02:11,960 Speaker 1: look at them on face value, they're both consumer retail 54 00:02:12,000 --> 00:02:13,560 Speaker 1: and they're both discretionary spending. 55 00:02:13,600 --> 00:02:15,040 Speaker 2: So be man at what is the difference. 56 00:02:15,200 --> 00:02:18,200 Speaker 1: Well, for Smiggle, its core customer is young families, and. 57 00:02:18,160 --> 00:02:21,320 Speaker 2: These are the same group who are facing significant financial 58 00:02:21,360 --> 00:02:23,560 Speaker 2: pressure right now. In fact, nearly fifty two percent of 59 00:02:23,600 --> 00:02:25,840 Speaker 2: families say they found it hard to afford all the 60 00:02:25,840 --> 00:02:28,519 Speaker 2: items that children need for school according to the Smith Family, 61 00:02:28,560 --> 00:02:30,880 Speaker 2: So buying a glittery notebook for twenty nine ninety five 62 00:02:31,000 --> 00:02:32,920 Speaker 2: kind of feels like an unnecessary cast. 63 00:02:32,960 --> 00:02:35,639 Speaker 1: But Peter Alexander has a broader customer base but has 64 00:02:35,639 --> 00:02:37,240 Speaker 1: positioned itself for gifting. 65 00:02:37,360 --> 00:02:40,000 Speaker 2: Think Mother's Day, Father's Day, Birthdays, Valentine's Day. 66 00:02:40,080 --> 00:02:42,799 Speaker 1: You know, it's a small treat that still feels reasonable 67 00:02:42,840 --> 00:02:44,040 Speaker 1: even when budgets are tied and. 68 00:02:44,040 --> 00:02:46,320 Speaker 2: A man in top of conditions like now, The brands 69 00:02:46,320 --> 00:02:48,799 Speaker 2: that win are the ones that either feel essential or 70 00:02:48,880 --> 00:02:52,919 Speaker 2: easy to justify. For our second story, Lamborghini has ditched 71 00:02:52,960 --> 00:02:56,799 Speaker 2: its plans for a full electric vehicle, apparently after customer backlash, 72 00:02:56,800 --> 00:02:59,240 Speaker 2: because it wouldn't have an engine raw. As they say, 73 00:02:59,320 --> 00:03:00,639 Speaker 2: at the big of the E go the loud of 74 00:03:00,680 --> 00:03:02,160 Speaker 2: the engine, So tell me more. 75 00:03:02,360 --> 00:03:05,480 Speaker 1: Lamborghini is the Italian luxury car maker that was founded 76 00:03:05,520 --> 00:03:06,679 Speaker 1: in nineteen sixty three. 77 00:03:06,720 --> 00:03:09,360 Speaker 2: It was built to compete head on with another Italian 78 00:03:09,400 --> 00:03:11,480 Speaker 2: luxury car maker, Ferrari and Juzboy. 79 00:03:11,560 --> 00:03:14,200 Speaker 1: The Lambo is known for its high performance supercars and 80 00:03:14,440 --> 00:03:15,119 Speaker 1: very loud. 81 00:03:14,880 --> 00:03:18,000 Speaker 2: Engines aka their announcement that I have arrived. 82 00:03:18,240 --> 00:03:21,880 Speaker 1: Back in twenty twenty one, Lamborghini laid out an electrification roadmap, 83 00:03:21,960 --> 00:03:24,440 Speaker 1: saying that its first EV would arrive by twenty twenty eight. 84 00:03:24,480 --> 00:03:27,680 Speaker 2: In twenty twenty three, they revealed their first EV concept car. 85 00:03:27,800 --> 00:03:31,560 Speaker 2: But now Lamborghini's officially scrapped all of their electric figal plans. 86 00:03:31,680 --> 00:03:34,040 Speaker 2: And why is that customers pushed back hard. 87 00:03:34,200 --> 00:03:37,080 Speaker 1: Yeah, the Lambo CEO said that their buyers don't want 88 00:03:37,120 --> 00:03:38,000 Speaker 1: a quiet car. 89 00:03:38,360 --> 00:03:40,120 Speaker 2: Yep. They want a car that sounds like it's about 90 00:03:40,160 --> 00:03:42,680 Speaker 2: to take off, even when it's just going for brunch yep. 91 00:03:42,840 --> 00:03:45,440 Speaker 1: The type of raw that keeps up households very late 92 00:03:45,480 --> 00:03:46,400 Speaker 1: at night. I would know. 93 00:03:46,520 --> 00:03:49,200 Speaker 2: And the man fun fact for you, Lamborghini only sold 94 00:03:49,280 --> 00:03:52,240 Speaker 2: just under eleven thousand cars last year globally. So when 95 00:03:52,240 --> 00:03:55,640 Speaker 2: your entire customer base is that small, you listen very closely. 96 00:03:56,160 --> 00:03:57,600 Speaker 2: So what is the key learning here? 97 00:03:57,680 --> 00:04:00,880 Speaker 1: You don't mess with what customers actually value in luxury. 98 00:04:00,960 --> 00:04:04,360 Speaker 1: Lamborghini's mistake was not investing in electric vehicle now. It 99 00:04:04,400 --> 00:04:06,840 Speaker 1: was assuming that its customers are valued the same things 100 00:04:06,840 --> 00:04:08,000 Speaker 1: as the broader car market. 101 00:04:08,040 --> 00:04:10,480 Speaker 2: For most car buyers. Electric vehicles could offer a lower 102 00:04:10,560 --> 00:04:12,920 Speaker 2: running costs, a bit of sustainability, and of course some 103 00:04:13,000 --> 00:04:15,720 Speaker 2: new tech. But does boy Lamborghini buyers aren't buying the 104 00:04:15,760 --> 00:04:18,240 Speaker 2: car so that they can just commute to work. Now, 105 00:04:18,440 --> 00:04:21,600 Speaker 2: they're buying a feeling and of course a big roaring announcement. 106 00:04:21,800 --> 00:04:23,960 Speaker 1: Yeah, and when you strip that out, you risk stripping 107 00:04:23,960 --> 00:04:26,080 Speaker 1: out the entire reason someone buys the product in the 108 00:04:26,080 --> 00:04:26,880 Speaker 1: first place. 109 00:04:26,640 --> 00:04:29,160 Speaker 2: And be man. Back in twenty twenty one, Lamborghini announced 110 00:04:29,160 --> 00:04:33,120 Speaker 2: a one point five billion euro investment into electrification. 111 00:04:32,640 --> 00:04:35,640 Speaker 1: And now they'll be substantially writing down the value of 112 00:04:35,640 --> 00:04:36,240 Speaker 1: this investment. 113 00:04:36,279 --> 00:04:38,200 Speaker 2: But in their view, it's worth it to ensure they 114 00:04:38,240 --> 00:04:43,280 Speaker 2: don't alienate what their customers actually value. The For our 115 00:04:43,360 --> 00:04:46,279 Speaker 2: third and final story, flight center share price has taken 116 00:04:46,320 --> 00:04:49,400 Speaker 2: off after acquiring a creative agency as it starts to 117 00:04:49,400 --> 00:04:50,960 Speaker 2: look to sell more than just flights. 118 00:04:51,200 --> 00:04:53,920 Speaker 1: Looks like flight Center isn't just booking your Barley trip anymore. 119 00:04:53,960 --> 00:04:56,680 Speaker 1: They're planning the whole corporate offside as well. Tell me more. 120 00:04:56,720 --> 00:04:59,680 Speaker 2: Okay, so, flight Centers, the ASX listed travel company, started 121 00:04:59,720 --> 00:05:02,240 Speaker 2: as a humble Aussie shop front back in nineteen eighty two. 122 00:05:02,400 --> 00:05:06,120 Speaker 1: Interestingly, flight Center still has a massive physical store footprint globally. 123 00:05:06,120 --> 00:05:07,880 Speaker 1: We're talking more than Fine and fifty stores. 124 00:05:07,920 --> 00:05:10,240 Speaker 2: And while flight Center still has agents that will book 125 00:05:10,240 --> 00:05:12,240 Speaker 2: your trip to Vietnam, it also now has a big 126 00:05:12,279 --> 00:05:13,560 Speaker 2: focus on corporate travel. 127 00:05:13,600 --> 00:05:15,960 Speaker 1: In fact, corporate travel accounted for fifty one percent of 128 00:05:15,960 --> 00:05:18,520 Speaker 1: the group's total transaction value in the first half of 129 00:05:18,600 --> 00:05:19,599 Speaker 1: FI twenty six. 130 00:05:19,480 --> 00:05:22,159 Speaker 2: And now flight Center's announced the acquisition of a UK 131 00:05:22,320 --> 00:05:26,320 Speaker 2: based creative agency called Fresh Approach seems. 132 00:05:26,040 --> 00:05:27,480 Speaker 1: A little strange. 133 00:05:27,720 --> 00:05:31,200 Speaker 2: Yeah, the company specialized in brand experiences and events and 134 00:05:31,279 --> 00:05:32,760 Speaker 2: corporate meetings. 135 00:05:32,360 --> 00:05:34,599 Speaker 1: And that means flight Center is trying to become a 136 00:05:34,680 --> 00:05:36,640 Speaker 1: one stop shop for corporate clients. 137 00:05:36,720 --> 00:05:38,520 Speaker 2: Yeah, they had just booking the flight to the conference. 138 00:05:38,640 --> 00:05:41,800 Speaker 2: They're running the entire conference themselves. Massive, So what's the 139 00:05:41,880 --> 00:05:44,039 Speaker 2: key learning here? The real money isn't always in the 140 00:05:44,080 --> 00:05:46,800 Speaker 2: core product, it's in earning more of the customer journey. 141 00:05:46,800 --> 00:05:49,440 Speaker 1: Flight Center has traditionally made money booking travel, but that's 142 00:05:49,440 --> 00:05:52,400 Speaker 1: a competitive and often low margin space. YEP. Their net 143 00:05:52,400 --> 00:05:54,400 Speaker 1: profit margin over the last year is three point eight 144 00:05:54,400 --> 00:05:56,720 Speaker 1: percent compared with four point one percent a year ago, 145 00:05:56,800 --> 00:05:57,200 Speaker 1: so it was. 146 00:05:57,160 --> 00:05:58,880 Speaker 2: Thin and it's getting even thinner. 147 00:05:59,000 --> 00:06:01,880 Speaker 1: So instead of just competing on flights and hotels, flight 148 00:06:01,880 --> 00:06:04,600 Speaker 1: Center is looking to expand into other services like events, 149 00:06:04,960 --> 00:06:07,760 Speaker 1: like experiences, because the more touch points you control, the 150 00:06:07,760 --> 00:06:09,400 Speaker 1: more revenue you can capture. 151 00:06:09,040 --> 00:06:11,200 Speaker 2: And the harder it is for customers to leave your 152 00:06:11,240 --> 00:06:14,119 Speaker 2: travel ecosystem plux AM. If you've applied for a credit 153 00:06:14,160 --> 00:06:16,159 Speaker 2: card or a home loan or even a car loan 154 00:06:16,160 --> 00:06:18,559 Speaker 2: over the last month, that will be impacting your credit score. 155 00:06:18,560 --> 00:06:20,040 Speaker 2: So if you want to see how it's impacted your 156 00:06:20,040 --> 00:06:22,159 Speaker 2: credit score, whether it's gone off, whether it's gone down, 157 00:06:22,200 --> 00:06:23,960 Speaker 2: and what change haes have been. We have it all 158 00:06:24,000 --> 00:06:25,720 Speaker 2: covered in the Flex app, or you can get your 159 00:06:25,720 --> 00:06:27,240 Speaker 2: credit scored to see what the banks say about you. 160 00:06:27,400 --> 00:06:28,960 Speaker 2: Download the Flex app and check it out. 161 00:06:29,000 --> 00:06:31,200 Speaker 1: Thanks for listening, and we'll see you on Wednesday.