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Speaker 1: This is what the Flux. I'm Brett and I'm Justin

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Speaker 1: and it's Friday. They're twenty eight the November Chuzzi Boy.

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Speaker 1: Another day, another spotlight on Optus Again. Optus warned that

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Speaker 1: it suffered another triple zero call outage near Melbourne, impacting

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Speaker 1: about fourteen thousand users. And that's two months after a

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Speaker 1: broader disruption and a commitment to do better. So it's

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Speaker 1: fair to say that Optus is not on the Australian

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Speaker 1: Communications and Media Authorities Gift list this Christmas could be.

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Speaker 2: On the naughty list if you ask me to be man.

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Speaker 2: Uh huh dam. We are back this Friday with our

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Speaker 2: weekly game at quick Sticks where we give play fifty

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Speaker 2: bucks to the fastest and smartest person in the Flux community.

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Speaker 2: So if you want to play quick Sticks and ads

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Speaker 2: a three business or finance questions correctly and make sure

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Speaker 2: you download the Flux out turn your notifications on to

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Speaker 2: kick off your weekend on a high.

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Speaker 1: Three riveting stories today, Juzzy Boy, let's do it for

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Speaker 1: our first Temple and Webster's shares have crashed over thirty percent,

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Speaker 1: even though the company saw strong revenue growth and record

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Speaker 1: customer numbers.

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Speaker 2: Investors fell out their cheap Temple of Webster chairs. Be

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Speaker 2: man out to this news, So tell me.

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Speaker 1: What So, as we've spoken about many times before, Temple

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Speaker 1: and Webster is one of Australia's biggest online furniture and

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Speaker 1: homewares retailers, founded in.

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Speaker 2: Twenty eleven during the early boom of online shopping.

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Speaker 1: Listed in twenty sixteen and at share price polummeted.

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Speaker 2: But it came good during the COVID years when it

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Speaker 2: did a full turnaround and at share price went Bisier.

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Speaker 1: And Judge wait. Temple and Webster continued to share their

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Speaker 1: growth story to the market.

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Speaker 2: Revenue from July to November this year jumped eighteen percent

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Speaker 2: year on.

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Speaker 1: Year, Active customers hit record levels and average order values

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Speaker 1: are up three percent. But investors, we're having none of

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Speaker 1: these results. And I mean nada, zilch zero.

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Speaker 2: I see man. Analysts are expecting around it twenty three

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Speaker 2: percent revenue growth for the heart.

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Speaker 1: So it's reported eighteen percent fell short of the mark.

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Speaker 2: Next minute, templan Wors' share price plummeted more than thirty

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Speaker 2: percent to an eleven month low.

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Speaker 1: When you miss consensus, the market makes you pay for it.

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Speaker 2: So what is the key leading here.

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Speaker 1: Consensus is the average what analysts think a company will deliver.

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Speaker 2: It's a benchmark that fund managers use to judge whether

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Speaker 2: a business is outperforming or underperforming.

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Speaker 1: Now, juse boy, if a company beats consensus, the share

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Speaker 1: price usually lifts.

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Speaker 2: That's because the market then upgrades its expectations of future profit.

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Speaker 1: But if a company misses consensus even slightly, the price

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Speaker 1: can fall hard.

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Speaker 2: Because the market needs to reset those future assumptions.

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Speaker 1: In Temple and Webster's case, there was a five percent

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Speaker 1: gap between its consensus revenue growth and its actual growth.

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Speaker 2: And while that may sound small to you, be man,

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Speaker 2: that gap matters.

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Speaker 1: Well high growth businesses like Temple and Webster. They get

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Speaker 1: valued very generously based on their future earnings. Juzzy boy.

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Speaker 2: Yeah, it's a high risk, high reward game that has

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Speaker 2: been paying off for Temple and Webster in the past, but.

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Speaker 1: In this half that game punished them.

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Speaker 2: So it's no surprise. Jerry Harvey, the founder of Harvey Norman,

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Speaker 2: claims it Temple and Webster is overpriced. Tabuggery.

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Speaker 1: For our second story, Aware Super, one of Australia's biggest

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Speaker 1: super funds, has spent nearly fifty million dollars on marketing

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Speaker 1: over the last year as the race for super dollars

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Speaker 1: heats up.

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Speaker 2: Nothing like seeing my superannuation dollars going into marketing tell

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Speaker 2: me more so, Juzzy boy.

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Speaker 1: We know that Australia's super industry is an apps loop

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Speaker 1: behemoth right now.

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Speaker 2: It's estimated there is more than four point three trillion

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Speaker 2: dollars in super money around Australia.

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Speaker 1: And it continues to grow year over year as more

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Speaker 1: Australians are forced to contribute money.

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Speaker 2: So it's fair to say the competition for those super

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Speaker 2: dollars is turning quite fierce.

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Speaker 1: And now it's been revealed that Australia's industry super funds

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Speaker 1: are spending tens of millions of dollars on marketing and sponsorships.

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Speaker 2: Every year to woo new super customers. Yeah.

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Speaker 1: In first place comes Aware Super, who spent forty eight

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Speaker 1: point six million dollars on marketing last year, including sponsoring

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Speaker 1: the GWS Giants and Netball New South Wales. We've got

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Speaker 1: host Plus and the Australian Retirement Trust were not far

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Speaker 1: behind with around thirty five million buckers each, and they man.

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Speaker 2: Retail super funds. Supposedly the for profit ones, they actually.

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Speaker 1: Spent far less, and now the regulators are asking a

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Speaker 1: few pointed questions.

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Speaker 2: In particular since their industry and not for profit super funds.

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Speaker 1: Yeah, the industry super funds need to prove that these

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Speaker 1: sponsorships and flashy campaigns actually benefit their end members.

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Speaker 2: So what is the key leading here?

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Speaker 1: If it not for profit is spending members money, they'd

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Speaker 1: better be able to prove it actually helps members.

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Speaker 2: You see the man. Industry funds argue that marketing is

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Speaker 2: actually for the long term best interests of their current customers.

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Speaker 1: Marketing attracts new members, New members boost their scale, larger scale,

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Speaker 1: reduces member fees, and ultimately the notion is that it

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Speaker 1: costs their current members less over the long term. But juseboy,

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Speaker 1: marketing spend that benefits the brand without improving financial outcomes

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Speaker 1: becomes pretty difficult to justify.

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Speaker 2: Yep. The retail funds, which are for profit, can argue

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Speaker 2: that marketing is a commercial cost of doing business, but

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Speaker 2: even they are spending less.

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Speaker 1: Colonial First State, for example, they spend just over five

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Speaker 1: million bucks on marketing last year, and Old Vanguard they

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Speaker 1: spent just under eight million bucks.

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Speaker 2: So industry super funds are spending a lot more and

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Speaker 2: right now OPRAA isn't convinced that all that spend is justified.

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Speaker 1: For our third and final story, skin Candy, the Australian

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Speaker 1: body piercing and jewelry business, is getting ready for a

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Speaker 1: four hundred million dollar IBO, but it does not have

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Speaker 1: history on its side, and.

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Speaker 2: I've been a big fan of skin Candy in the past.

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Speaker 1: Pans So skin Candy, for those who are not aware,

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Speaker 1: is a Queensland born body piercing and jewelry business that

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Speaker 1: started back in twenty ten with just one store.

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Speaker 2: But over the past fifteen years it's growing to over

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Speaker 2: ninety stores across Australia and New Zealand.

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Speaker 1: Now skin Candy service isn't just the standard ear piecing

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Speaker 1: number Juzzy Boy.

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Speaker 2: You can piece elips, your eyebrowity, belly button as well

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Speaker 2: as sixty five other body placements.

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Speaker 1: Too much information that Juzzy Boys just slow down, But.

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Speaker 2: They also sell the billing that you need for your

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Speaker 2: fresh piercing as well.

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Speaker 1: Up until now, skin Candy has been funded by private equity,

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Speaker 1: but now they're looking to pierce into the public markets.

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Speaker 2: Yep, skin Candy's preparing for a twenty twenty six IPO

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Speaker 2: and they're gunning for a four hundred million dollar valuation

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Speaker 2: to expand their business into the US.

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Speaker 1: But history shows jusey boy that beauty related IPOs do

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Speaker 1: not always go as plants.

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Speaker 2: That's true, So what is the key learning here?

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Speaker 1: Public markets love a beauty story, but they hate unpredictable earnings, and.

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Speaker 2: A major challenge for beauty retailers is the consumers can

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Speaker 2: be a little bit volatile with their beauty spending.

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Speaker 1: In recent years, the demand for body piercings has really

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Speaker 1: own as people view piercings as a form of self expression.

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Speaker 2: Like yourself. But if piercings go out of fashion, the

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Speaker 2: business can lose their sales pretty pretty quickly.

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Speaker 1: We've seen it happen before with Silk Laser Clinics.

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Speaker 2: Yes, Silk had the private equity backing and then listed

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Speaker 2: on the ASEX with an enterprise value of one hundred

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Speaker 2: and sixty mil But once.

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Speaker 1: It hit the ASX, it or really battle to keep

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Speaker 1: up with high investor expectations.

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Speaker 2: And three years later it was taken private by Woolworths

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Speaker 2: at one hundred and eighty million dollar valuation because it

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Speaker 2: didn't quite light up the markets. So even with fast

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Speaker 2: growth and the strong demand from skin candy. They need

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Speaker 2: to show that their march into stable and their earnings

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Speaker 2: are predictable to win the hearts and minds of investor.

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Speaker 2: Flucks aam. If you want to CHICU weekend off and

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Speaker 2: a high rolling into December with fifty bucks in your pockets,

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Speaker 2: there's one way to do it in the Flux Up

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Speaker 2: today with our weekly quiz quick Sticks. All you've got

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Speaker 2: to do is be the fastest and the smartest answer

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Speaker 2: three business and finance questions directly, and the money could

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Speaker 2: be yours. To download the Flux Up and turn your

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Speaker 2: notifications on.

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Speaker 1: Thanks for listening and we'll see you on Monday