TBOY Lite for Friday, October 2nd

0:00This is Nick. This is Jack. It's Friday, the real Friday. October 2nd and today's pod is the best one yet. This is a team boy. Here's the top business story you need to know today. Yesterday, Kaitlin Clark dropped her first signature shoot, the Kaitlin Wands. And it destroys the shrinket and pinket business model once and for while. Shrinket and pinket, that's out. Babashti's story of the last five years. The Nike Super Slump, they pulled a hammy. A critical era of Nike was prioritizing their direct to consumer strategy, which left room on the shelves of footlocker for on, for hoca and for Brooks. And despite Ben Afflach's best efforts, Nike stock did not do it. Nike is down 76% in the last five years and is currently at a 12-year low. It's down 55% from when Jack bought it for my son as an annual gift. I know I'm excited. I did it because I also bought Maxi an adorable pair of toddler Nike's. Yeah, well, it can't go much further down Jack. It can't go much further. I'll tell our three-year-old.

1:01Now, like, Nike tried novelty and moonshots with their mind-reading sandals and their Kirkland Costco sneakers, both cool stunts. Collabbing with Costco? Good move. We applauded. But still, investors aren't giving Nike the most improved player award this year. And to add insult to ankle injury, Nike just announced earnings on Thursday as we were preparing this story and what did we see, Jack? Revenues fell 4% during the summer. Profits fell 2% and after hours Thursday, Nike stock fell 5% further down. We're gonna need some Stim, a nice bath and a couple more Advil guys. But we did notice that Nike stock was up 3% until their earnings report. And there's one reason why. Two words, two letters, Caitlin Clark. C.C., more on that in the SEC Jack. Because Caitlin Clark is the biggest brand in women's sports. She's the WNBA's Michael Jordan. Caitlin Clark, she syncs threes like red-she-dribbles like Curian Cells tickets like LeBron. And more than two years after signing an 8-year, $28 million deal with Nike, she's finally getting her MJ moment. Because for her two plus seasons in the league, Caitlin's worn Nike's on the court, but not her Nike's on the court.

2:05Until now. Because yesterday, Nike dropped the Caitlin one. That's right. And as with Mike, she's getting her own brand within Nike. Ah, the Caitlin Clark. It features two Nike swooshes, creating a double C logo that is her very own. The double C kind of looks like Chanel does with their handbags, but it's for Caitlin Clark and it's on her sneakers. Plus, Nike dropped an 18-piece apparel collection of Caitlin Clark lifestyle gear. Jackets, hoodies and t-shirts. And the shoes, they kind of look like the Kobe Sixes, I would say. But raised among the Iowa cornstocks. To quote the Schwartz from the movie Spaceballs Jack, merchandising, merchandising, merchandising. Now, the launch color that came out yesterday was Caitlin Blue. And a key feature is the goose bumps across the whole silhouette of the shoe. But besties, there are a few things Jack and I found fascinating with this launch. For instance, Nike launched it first in China last week. Strange move. Apparently America was priority number two for Nike. And if you're curious, Caitlin is just the 12th WNBA player ever and sixth currently who has her own shoe line. But the biggest surprise wasn't the random China launch strategy

3:08or the goose bumps on the shoes. No. It was the first non-Kateland person seen wearing Caitlin sneakers. That's right, because it wasn't a teammate, it wasn't a friend, and it wasn't a coach. Who wasn't Jack? Travis Scott, the rapper. Oh, and Travis Scott wasn't the only Travis. Travis Kelsey and Jason Kelsey, they also got a launch pair of Caitlin Clarks in the mail. And then box them on their podcast yesterday. It did. Yellow and red color for the chiefs. Travis called them sturdy. Yeah. Good analysis, Travis. Yeah, I like what he's putting out there, Jack. So besties, those wears, those dudes, we think that helps explain why Nike stock could go up from here. Because you can't go much further down. So Jack, what's the takeaway for our buddies over at Nike? Caitlin Clark's signature shoe will break the shrinket and pinket model forever. Yeah, he's, according to your dad's business book, to sell a predominantly male product to women, here's the formula. You shrink it and you pink it. Shrinket and pink it. You make the men's products smaller and make it pink. And somehow that justifies you raising the price when you sell it to women. Yeah, now that Jack and I have told you this, you're gonna see it everywhere.

4:08Like we've seen it with a razor, it's with shampoo, with bicycles, even with a wristwatches. It's misogynistic, but it's historically the standard. But the Caitlin won is breaking that entire business model. And the stage for the Caitlin won was set two years ago. When another female basketball shoe started appearing on NBA courts. Are we talking the Sabrina ones, Jack? Yes, the Sabrina won. Made for Sabrina Yinescu was worn by six NBA players, including Jalen Brunson during NBA games. True story, both the Sabrina's and the Caitlin's. They didn't shrink them and they didn't pink them. Although both are a Vellbone pink, we should point out. Yes, and they're actually sold as unisex. So the same shoe is marketed as a women's 11 as a men's 9. We think Travis Scott and the Kelsey Brothers are early indicators of the future buyers of this shoe. That this could be the first signature shoe of a woman that has higher sales to men. Yeah, he's you look fantastic all week. If you want to see his life, we're playing in Boston on October 14th. We got a link in the episode description. Grab tickets while you can't. Can't wait.

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