David Jones is in the red again but its private equity owners are going all-in with a $190 million debt boost.
Tesla saw $150 billion USD wiped off its value late last week after Elon Musk and Donald Trump bromance is officially over.
Hermès Australia is defying the cost-of-living crisis after record sales in Australia… and sending a a huge chunk back to Paris.
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Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:05):
This is what the Flux. I'm Brett and.
Speaker 2 (00:07):
I'm just in as Monday, the ninth of June.
Speaker 1 (00:09):
No rest for us today, Juzzy boy. Now get this one.
Australia is officially back in a per capita recession. While
GDP increased in the March quarter by zero point two percent,
it dropped by zero point two percent per person or
per capita in that quarter. And while this sounds bad,
it's just a technical measure and it might actually be
helpful for the RBA if it wants to justify another.
Speaker 2 (00:30):
Drop thingers crossby Man. Speaking of the RBA dropping cash rates, now,
we know that when the cash rate drops, all lenders
start clamoring your business once again, which is why it
is such a good time to look at refinancing your homelan.
We cover it all in the Flux app, including script
for negotiating your homelan. Make sure it download the Flux
app and check it out.
Speaker 1 (00:47):
Three highly informative stories today, Juzzy boy, let's do it
for our first. David Jones is in the red again,
but its private equity owners are going all in with
a one hundred and ninety million dollar debt boost.
Speaker 2 (00:59):
A modern gloves for a very old name, b Man,
So tell me more.
Speaker 1 (01:02):
Well, David Jones was founded in eighteen thirty eight and
is the oldest department store in Australia.
Speaker 2 (01:06):
Now you might remember it was acquired by Woolworth's Holdings,
a South African retailer, back in twenty fourteen for two
point one billion dollars.
Speaker 1 (01:13):
Not the Woolworth's in Australia.
Speaker 2 (01:15):
But be Man, it's fair to say Wooworth's Holdings, the
South African company, took it from coture to end of
season clearance racks. Yeah.
Speaker 1 (01:22):
Then in twenty twenty two it was acquired by the
private equity company Anchorage Capital for one hundred million dollars.
Speaker 2 (01:28):
And now David Jones is a private company, it doesn't
need to publicize its accounts anymore.
Speaker 1 (01:32):
But filings with ACIK show that David Jones just slid
to a seventy four point four million dollar loss in
the twelve months to June twenty twenty.
Speaker 2 (01:40):
Three, despite turning a two hundred and eighty nine million
dollar profit in the five months prior.
Speaker 1 (01:45):
But Jaziboy Anchorage is not given up.
Speaker 2 (01:48):
In fact, it's doubling down. Be Man, It's investing sixty
five million dollars into tech upgrades for David.
Speaker 1 (01:53):
Jones on top of a one hundred ninety million dollar
debt facility.
Speaker 2 (01:56):
And that is a lot of money going into a
company in a declining set of retail.
Speaker 1 (02:01):
Yeah, so what is the key learning here?
Speaker 2 (02:02):
The department store business model ain't what she used to be.
Speaker 1 (02:05):
In fact, Juzzy Boy, over the last two decades, the
entire segment has been in structural decline.
Speaker 2 (02:10):
Department stores once the crown jewels of retail.
Speaker 1 (02:14):
For Juzzy Boy. Another example in the US, Barney's New
York shut down in twenty nineteen after nearly a century
of selling luxury clothes.
Speaker 2 (02:21):
Then there was Lord and Taylor, another department store in
the US, the shutdown after one hundred and ninety five years.
Speaker 1 (02:26):
And Hudson's Bay, one of the oldest department stores in
the world, closed ninety six stores just last week.
Speaker 2 (02:31):
Then we've got Macy's in Nordstroam. They've both shrunked their
store footprint and pivoted heavily to e commerce.
Speaker 1 (02:36):
So David Jones isn't just facing a bad quarter. It's
up against a global shift in how people shop, and.
Speaker 2 (02:42):
The man history suggests that not everyone makes it through.
Speaker 1 (02:45):
For our second story, Tesla saw one hundred and fifty
billion US dollars wiped from its value a late last
week after Elon Musk and Donald Trump's bromance was officially over.
Speaker 2 (02:56):
This could be bigger than Chris Rock and Will Smith
be Man. He's potentially more bruisy, So tell me more.
Speaker 1 (03:00):
Well, juzzy boy. We know that Elon is the founder
of Tesla and part time internet troll YEP.
Speaker 2 (03:05):
He's been a key part of Tesla's two hundred and
twenty x growth since it listed on the Nasdaq in
twenty ten, and late last year, when President Donald Trump
was re elected as the forty seventh president, Tesla investors
were frothened. That was because Trump and Musk were in
full bromance mode.
Speaker 1 (03:20):
But as basically we all predicted, this brotherhood has come
to a very swift ending. After Musk criticized Trump's new Big, Bad,
Beautiful Bill yep.
Speaker 2 (03:29):
Musk claimed it undid all of his doge government spending carts.
Speaker 1 (03:33):
Then Trump tweeted back that Musk had Trump derangement syndrome,
and then.
Speaker 2 (03:38):
There was a live tweeting match between the two of them, or.
Speaker 1 (03:40):
As we like to call it insult Tennis.
Speaker 2 (03:42):
Next minute, Tesla's share price filled fourteen percent.
Speaker 1 (03:45):
And Juzzy boy. The worry isn't just brused egos here,
there's fear for what this may mean for Tesla.
Speaker 2 (03:51):
Yeah. Trump even signaled he may terminate government contracts with
all of Musk's companies.
Speaker 1 (03:56):
So it's no surprise that Tesla had its biggest one
day fall ever.
Speaker 2 (04:00):
So what is the key leading here?
Speaker 1 (04:01):
When you're trying to build the future of any industry,
it does pay to stay friendly with the current government.
Speaker 2 (04:06):
Aka the people writing the laws.
Speaker 1 (04:09):
For example, Jazi Boyd, Tesla has been heavily fueled by
government love over the years.
Speaker 2 (04:13):
Electric vehicle buyers received subsidies which help drive sales for
Tesla cars.
Speaker 1 (04:17):
There were favorable conditions for Tesla as Trump pushed tariffs
on European and Chinese electric vehicle makers.
Speaker 2 (04:23):
And then there have been big procurement deals like Tesla's
supplying government fleets.
Speaker 1 (04:27):
They're on top of that, Tesla investors were hoping for
more loose regulation around self driving technology, and.
Speaker 2 (04:33):
That's why Tesla's share price jumped nearly fifteen percent when
Trump was first elected.
Speaker 1 (04:37):
And Tesla's share price jumped sixty two percent in the
thirty days after the election.
Speaker 2 (04:41):
But all of this can go in an instant when
the bromance breaks.
Speaker 1 (04:44):
Up, and if Trump creates more difficult conditions for Tesla,
it could chip away at Tesla's future revenue and market share.
For our third and final Storymez Australia is defying the
rise in cost of living after records says in Australia
because many people just can't stop buying damn Burken bags.
Speaker 2 (05:01):
While some people are cutting back on brunch, be men.
Ermez customers are splashing four thousand dollars on a phone case.
So what is going on here?
Speaker 1 (05:07):
Well? Ermez was founded in eighteen thirty seven in Paris
and is known for its ultra luxury handbags, silk scarves
and its leather goods justin Boy.
Speaker 2 (05:15):
And of course the famously unattainable Burken bag.
Speaker 1 (05:19):
We'd be talking ranging from thirty thousand dollars to five
hundred thousand US dollars.
Speaker 2 (05:24):
And be man who said cost of living crisis because
it certainly wasn't Umez customers.
Speaker 1 (05:28):
We'll get this one. Ermez Australia racked up five hundred
and seventy eight million dollars in revenue in twenty twenty four,
and that.
Speaker 2 (05:34):
Was a jump of twenty one percent from twenty twenty three.
Speaker 1 (05:37):
Doll made one hundred and four point five million dollars
per Rofferini.
Speaker 2 (05:40):
And b Man. Ermez has more than doubled its revenue
in Australia in just the last four years.
Speaker 1 (05:44):
While other luxury brands are slowing down globally, Ermez continues
to ride high because.
Speaker 2 (05:48):
Luxury isn't dead. It's just very very exclusive.
Speaker 1 (05:52):
Interesting call. So what would you say is the key
learning here?
Speaker 2 (05:55):
Most products get less desirable the more expensive they are,
but some luxury goods operate in.
Speaker 1 (05:59):
A different world, into the concept of a veblen good,
a type of product where demand actually increases as the
price increases.
Speaker 2 (06:07):
The more exclusive and price it is, the more people
want it. In fact, the man Ames controls supply so
tightly the buyers often have to build up a purchase
history just to be offered a bag.
Speaker 1 (06:17):
And not only are Ome's bags a status symbol, but
supposedly they're also a good investment as well.
Speaker 2 (06:22):
Amezz's burken bags had an average annual increase in value
of fourteen point two percent between nineteen eighty and twenty fifteen.
Speaker 1 (06:29):
That outperformed the S and P five hundred, which returned
an average of ten percent. So not only do Burke
and buyers get to sling a little bit of luxury
on their shoulder, but they get to sell it for
a great return.
Speaker 2 (06:39):
If they ever take it off. Yep, Flex Am refinance
your homeland can say thousands of dollars every single year,
but the biggest thing we hear from the flexdam is
how do I even do it? That's why we've broken
it down in the Flux app. Make sure to check
it out in the Flex app to renegotiate your homeland.
Speaker 1 (06:52):
Thanks for listening and we'll see you on Wednesday.
This is what the Flux. I'm Brett and.
Speaker 2 (00:07):
I'm just in as Monday, the ninth of June.
Speaker 1 (00:09):
No rest for us today, Juzzy boy. Now get this one.
Australia is officially back in a per capita recession. While
GDP increased in the March quarter by zero point two percent,
it dropped by zero point two percent per person or
per capita in that quarter. And while this sounds bad,
it's just a technical measure and it might actually be
helpful for the RBA if it wants to justify another.
Speaker 2 (00:30):
Drop thingers crossby Man. Speaking of the RBA dropping cash rates, now,
we know that when the cash rate drops, all lenders
start clamoring your business once again, which is why it
is such a good time to look at refinancing your homelan.
We cover it all in the Flux app, including script
for negotiating your homelan. Make sure it download the Flux
app and check it out.
Speaker 1 (00:47):
Three highly informative stories today, Juzzy boy, let's do it
for our first. David Jones is in the red again,
but its private equity owners are going all in with
a one hundred and ninety million dollar debt boost.
Speaker 2 (00:59):
A modern gloves for a very old name, b Man,
So tell me more.
Speaker 1 (01:02):
Well, David Jones was founded in eighteen thirty eight and
is the oldest department store in Australia.
Speaker 2 (01:06):
Now you might remember it was acquired by Woolworth's Holdings,
a South African retailer, back in twenty fourteen for two
point one billion dollars.
Speaker 1 (01:13):
Not the Woolworth's in Australia.
Speaker 2 (01:15):
But be Man, it's fair to say Wooworth's Holdings, the
South African company, took it from coture to end of
season clearance racks. Yeah.
Speaker 1 (01:22):
Then in twenty twenty two it was acquired by the
private equity company Anchorage Capital for one hundred million dollars.
Speaker 2 (01:28):
And now David Jones is a private company, it doesn't
need to publicize its accounts anymore.
Speaker 1 (01:32):
But filings with ACIK show that David Jones just slid
to a seventy four point four million dollar loss in
the twelve months to June twenty twenty.
Speaker 2 (01:40):
Three, despite turning a two hundred and eighty nine million
dollar profit in the five months prior.
Speaker 1 (01:45):
But Jaziboy Anchorage is not given up.
Speaker 2 (01:48):
In fact, it's doubling down. Be Man, It's investing sixty
five million dollars into tech upgrades for David.
Speaker 1 (01:53):
Jones on top of a one hundred ninety million dollar
debt facility.
Speaker 2 (01:56):
And that is a lot of money going into a
company in a declining set of retail.
Speaker 1 (02:01):
Yeah, so what is the key learning here?
Speaker 2 (02:02):
The department store business model ain't what she used to be.
Speaker 1 (02:05):
In fact, Juzzy Boy, over the last two decades, the
entire segment has been in structural decline.
Speaker 2 (02:10):
Department stores once the crown jewels of retail.
Speaker 1 (02:14):
For Juzzy Boy. Another example in the US, Barney's New
York shut down in twenty nineteen after nearly a century
of selling luxury clothes.
Speaker 2 (02:21):
Then there was Lord and Taylor, another department store in
the US, the shutdown after one hundred and ninety five years.
Speaker 1 (02:26):
And Hudson's Bay, one of the oldest department stores in
the world, closed ninety six stores just last week.
Speaker 2 (02:31):
Then we've got Macy's in Nordstroam. They've both shrunked their
store footprint and pivoted heavily to e commerce.
Speaker 1 (02:36):
So David Jones isn't just facing a bad quarter. It's
up against a global shift in how people shop, and.
Speaker 2 (02:42):
The man history suggests that not everyone makes it through.
Speaker 1 (02:45):
For our second story, Tesla saw one hundred and fifty
billion US dollars wiped from its value a late last
week after Elon Musk and Donald Trump's bromance was officially over.
Speaker 2 (02:56):
This could be bigger than Chris Rock and Will Smith
be Man. He's potentially more bruisy, So tell me more.
Speaker 1 (03:00):
Well, juzzy boy. We know that Elon is the founder
of Tesla and part time internet troll YEP.
Speaker 2 (03:05):
He's been a key part of Tesla's two hundred and
twenty x growth since it listed on the Nasdaq in
twenty ten, and late last year, when President Donald Trump
was re elected as the forty seventh president, Tesla investors
were frothened. That was because Trump and Musk were in
full bromance mode.
Speaker 1 (03:20):
But as basically we all predicted, this brotherhood has come
to a very swift ending. After Musk criticized Trump's new Big, Bad,
Beautiful Bill yep.
Speaker 2 (03:29):
Musk claimed it undid all of his doge government spending carts.
Speaker 1 (03:33):
Then Trump tweeted back that Musk had Trump derangement syndrome,
and then.
Speaker 2 (03:38):
There was a live tweeting match between the two of them, or.
Speaker 1 (03:40):
As we like to call it insult Tennis.
Speaker 2 (03:42):
Next minute, Tesla's share price filled fourteen percent.
Speaker 1 (03:45):
And Juzzy boy. The worry isn't just brused egos here,
there's fear for what this may mean for Tesla.
Speaker 2 (03:51):
Yeah. Trump even signaled he may terminate government contracts with
all of Musk's companies.
Speaker 1 (03:56):
So it's no surprise that Tesla had its biggest one
day fall ever.
Speaker 2 (04:00):
So what is the key leading here?
Speaker 1 (04:01):
When you're trying to build the future of any industry,
it does pay to stay friendly with the current government.
Speaker 2 (04:06):
Aka the people writing the laws.
Speaker 1 (04:09):
For example, Jazi Boyd, Tesla has been heavily fueled by
government love over the years.
Speaker 2 (04:13):
Electric vehicle buyers received subsidies which help drive sales for
Tesla cars.
Speaker 1 (04:17):
There were favorable conditions for Tesla as Trump pushed tariffs
on European and Chinese electric vehicle makers.
Speaker 2 (04:23):
And then there have been big procurement deals like Tesla's
supplying government fleets.
Speaker 1 (04:27):
They're on top of that, Tesla investors were hoping for
more loose regulation around self driving technology, and.
Speaker 2 (04:33):
That's why Tesla's share price jumped nearly fifteen percent when
Trump was first elected.
Speaker 1 (04:37):
And Tesla's share price jumped sixty two percent in the
thirty days after the election.
Speaker 2 (04:41):
But all of this can go in an instant when
the bromance breaks.
Speaker 1 (04:44):
Up, and if Trump creates more difficult conditions for Tesla,
it could chip away at Tesla's future revenue and market share.
For our third and final Storymez Australia is defying the
rise in cost of living after records says in Australia
because many people just can't stop buying damn Burken bags.
Speaker 2 (05:01):
While some people are cutting back on brunch, be men.
Ermez customers are splashing four thousand dollars on a phone case.
So what is going on here?
Speaker 1 (05:07):
Well? Ermez was founded in eighteen thirty seven in Paris
and is known for its ultra luxury handbags, silk scarves
and its leather goods justin Boy.
Speaker 2 (05:15):
And of course the famously unattainable Burken bag.
Speaker 1 (05:19):
We'd be talking ranging from thirty thousand dollars to five
hundred thousand US dollars.
Speaker 2 (05:24):
And be man who said cost of living crisis because
it certainly wasn't Umez customers.
Speaker 1 (05:28):
We'll get this one. Ermez Australia racked up five hundred
and seventy eight million dollars in revenue in twenty twenty four,
and that.
Speaker 2 (05:34):
Was a jump of twenty one percent from twenty twenty three.
Speaker 1 (05:37):
Doll made one hundred and four point five million dollars
per Rofferini.
Speaker 2 (05:40):
And b Man. Ermez has more than doubled its revenue
in Australia in just the last four years.
Speaker 1 (05:44):
While other luxury brands are slowing down globally, Ermez continues
to ride high because.
Speaker 2 (05:48):
Luxury isn't dead. It's just very very exclusive.
Speaker 1 (05:52):
Interesting call. So what would you say is the key
learning here?
Speaker 2 (05:55):
Most products get less desirable the more expensive they are,
but some luxury goods operate in.
Speaker 1 (05:59):
A different world, into the concept of a veblen good,
a type of product where demand actually increases as the
price increases.
Speaker 2 (06:07):
The more exclusive and price it is, the more people
want it. In fact, the man Ames controls supply so
tightly the buyers often have to build up a purchase
history just to be offered a bag.
Speaker 1 (06:17):
And not only are Ome's bags a status symbol, but
supposedly they're also a good investment as well.
Speaker 2 (06:22):
Amezz's burken bags had an average annual increase in value
of fourteen point two percent between nineteen eighty and twenty fifteen.
Speaker 1 (06:29):
That outperformed the S and P five hundred, which returned
an average of ten percent. So not only do Burke
and buyers get to sling a little bit of luxury
on their shoulder, but they get to sell it for
a great return.
Speaker 2 (06:39):
If they ever take it off. Yep, Flex Am refinance
your homeland can say thousands of dollars every single year,
but the biggest thing we hear from the flexdam is
how do I even do it? That's why we've broken
it down in the Flux app. Make sure to check
it out in the Flex app to renegotiate your homeland.
Speaker 1 (06:52):
Thanks for listening and we'll see you on Wednesday.
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