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Crypto-friendly travel site marks U.S. debut with dogecoin payment option

2021-06-29T21:14:00.007+00:00

Germany-based travel site GetYourGuide has debuted U.S. offerings and the ability to pay with dogecoin.

GetYourGuide

German travel booking site GetYourGuide marked its expansion into the U.S. market Tuesday with the announcement that it now accepts dogecoin for payment.

The Berlin-based firm, which says it's booked 45 million-plus tours in 170 countries to date, is offering activity, attraction and tour bookings in major American destinations such as Hawaii; Las Vegas; Los Angeles; Miami; New Orleans; New York; Orlando, Florida; and San Francisco. In addition to dogecoin, processed via BitPay, the site accepts major credit and debit cards, as well as PayPal and Google Pay.

GetYourGuide co-founder and CEO Johannes Reck said in a statement that the firm is "beyond excited" to enter the U.S. market as the world exits pandemic lockdown and people can venture out on holiday again.

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"The challenges many faced over the past year sent people into a virtual spiral — Netflix bingeing, increased social app use and a renewed interest in stock and cryptocurrency trading, such as dogecoin," he said. "Why waste time worrying about hourly fluctuations in doge when we can invest in making memories by experiencing the best of the real world?"

GetYouGuide joins a growing list of travel providers accepting dogecoin and various other cryptocurrencies for payment. In April, the Bobby Hotel in Nashville, Tennessee, began accepting dogecoin and other cryptocurrencies for overnight stays and event bookings via BitPay.

Airfare website Cheapair.com, Latvian carrier Air Baltic and Richard Branson's Virgin Galactic have long accepted bitcoin. Expedia stopped directly accepting bitcoin back in 2018, but 700,000 Expedia Group hotels and accommodations have been available via booking platform Travala, which accepts 30 cryptocurrencies, since 2020.

The 3,500-room Resorts World Las Vegas, which opened June 24 on the Strip as Sin City's first major new casino resort in a decade, will also take cryptocurrency for select payments through a partnership with U.K. crypto exchange firm Gemini.

GetYourGuide chief marketing officer Emil Martinsek said the firm has something for everyone visiting one of its U.S. destinations, which also include Atlanta, Boston, Chicago, Dallas, Philadelphia, Phoenix, Tampa, Florida, and Washington, D.C.

"No matter if you are an art fanatic, outdoor enthusiast, home chef, adrenaline junkie or an avid traveler wanting to truly get under the surface of your next destination, GetYourGuide is your companion to unlocking the most unforgettable experiences," he said, in a statement.

Offerings include walking tours with local experts, regional culinary tours, cooking and craft classes, "skip-the-line" tickets to iconic attractions and so-called bucket-list experiences.

Eli Lilly CEO says drugmaker will keep looking for ways to cut insulin costs as Walmart debuts lower-price rival

2021-06-29T21:14:00.005+00:00

An Eli Lilly & Co. logo is seen on a box of insulin medication in this arranged photograph at a pharmacy in Princeton, Illinois.

Daniel Acker | Bloomberg | Getty Images

Eli Lilly CEO David Ricks said he welcomes new competition from Walmart, even as the retailer undercuts the drugmaker's prices on fast-acting insulin.

Walmart announced Tuesday that it will sell a lower-price version of the notoriously expensive diabetes drug, starting this week.

"Any efforts to smash through that and deliver better value to patients, I'm for," Ricks said in an interview Tuesday on CNBC's "Squawk on the Street."

Walmart developed the less expensive version of analog insulin with Novo Nordisk. The fast-acting insulin will cost about $73 for a vial or about $86 for a package of prefilled insulin pens. It will be available exclusively at Walmart and Sam's Club for adults and children with a prescription.

Insulin has become a focal point in lawmakers' debate over soaring drug prices — especially since it is a 100-year-old medication and one that can be lifesaving for millions of Americans diagnosed with diabetes. Eli Lilly is among the companies that have faced pushback for its prices by politicians on both sides of the aisle, including former President Donald Trump.

Ricks said the company's leaders "welcome anyone who wants to lower the price of insulin" — including the big-box retailer.

"We always look at new solutions ourselves, and this is an interesting development and we'll look at further options," he said. "If we can reach one more patient with more affordable insulin, we're going to try to do that."

Ricks said Eli Lilly continues to seek ways to reduce costs for people with diabetes. He pointed to two related efforts: The launch of a half-price, generic version of insulin, called insulin lispro, in early 2019 and the cap on out-of-pocket cost for insulin at $35 per month, which began as many Americans struggled with finances during the coronavirus pandemic.

Those moves, in part, were a response to fierce criticism by lawmakers and a subpoena by the state of New York.

Eli Lilly's generic version costs nearly twice the price of Walmart's at $137.35 per vial.

Over the past 20 years, the number of adults diagnosed with diabetes has more than doubled, according to the Centers for Disease Control and Prevention. About 34.2 million U.S. adults have the disease, which ranks as the seventh-leading cause of death in the country, the CDC said.

Looming lockdown in Bangladesh threatens apparel retailers H&M, Levi's, S&P Global says

2021-06-29T21:14:00.003+00:00

In this photo illustration Levi's 501 blue jeans by U.S. clothing manufacturer Levi Strauss are seen on March 8, 2018 in Berlin, Germany.

Sean Gallup | Getty Images

Apparel retailers including H&M and Levi Strauss are at risk of facing heightened supply chain disruptions, as regions of Southern Asia are bracing for intense lockdowns as Covid-19 cases spike, fueled by the more contagious delta variant, according to a new report.

A new wave of Covid cases, especially along the Indian border, has prompted the government of Bangladesh to require its population of nearly 170 million people to remain at home for seven days, beginning this Thursday. The result will likely mean factories across the region will be forced to shut down, halting manufacturing. It marks Bangladesh's most severe lockdown to date, with people only allowed to leave their homes for emergencies.

A new analysis from Panjiva, a business line of S&P Global Market Intelligence, points out that this marks a stark reversal from a trend spotted earlier on in the pandemic. Then, Bangladeshi apparel manufacturers suffered from orders being canceled by retailers in Europe and the Americas, where Covid restrictions were much tighter.

Still, Panjiva's data show Bangladeshi exporters of apparel to the United States have been more resilient than nearby regions during the pandemic. Shipments in the three months ended April 30 are down by just 1.6%, compared with the same period of 2019, the firm said. Exporters from India and Sri Lanka, in contrast, dropped 10.1% and 6.4%, respectively.

Among the major retail brands with a presence in Bangladesh, shipments linked to H&M increased 13.5% in the three-months ended May 31, compared with the same period of 2019, Panjiva found. While imports associated with Levi's fell 47.8%, and those with Calvin Klein-owner PVH dropped 68.7%.

Representatives from H&M, Levi's and PVH didn't immediately respond to CNBC's requests for comment.

According to a September analysis of U.S. International Trade Commission data by the Peterson Institute for International Economics, Bangladesh has been gaining market share as China has become less competitive in labor-intensive sectors including apparel.

The additional supply chain disruptions will be hitting retail companies at a time when resources are already strained due to a number of factors. A shortage of shipping containers and a dearth of truck drivers have left inventory backlogged for weeks. This is typically a time when retailers are placing orders for the holiday season to ensure shelves are stocked during peak winter shopping.

The risk companies face is running into out-of-stocks, leaving customers to look elsewhere.

Brooks Running Company CEO Jim Weber told CNBC's "Squawk Box" on Tuesday that his company is running on a roughly 80-day cycle for shipping, compared with what used to take just 40 days.

"There's no question the supply chain is strung out in our industry," he said.

Shaq shoots down LeBron's comments about why so many NBA players were injured this year

2021-06-29T21:14:00.001+00:00

Shaquille O'Neal

Scott Mlyn | CNBC

Shaquille O'Neal is firing back at Lebron James over his criticism of the NBA and its schedule this year. In an interview with CNBC, the former Los Angeles Lakers star and TNT broadcaster said he thinks players need to stop complaining about the busy playing schedule this season.

"When you're living in a world where 40 million people have been laid off and I'm making $200 million, you won't get no complaining from me," O'Neal said. "I'd play back to back to back to back to back," he added.

"I'm not knocking what anybody said, but me personally, I don't complain and make excuses, because real people are working their tail off and all we gotta do is train two hours a day and then play a game for two hours at night and make a lot of money ... So my thought process is a little different."

O'Neal's comments come after James' criticism that the schedule was at fault for the plethora of high-profile injuries this year, a claim the league has disputed.

"They all didn't wanna listen to me about the start of the season. I knew exactly what would happen ... These injuries isn't just "PART OF THE GAME". It's the lack of PURE RIM REST," James said in a series of tweets on June 16.

James' Lakers were eliminated in the first round of the NBA playoffs by the Phoenix Suns.

"This is the first time in a while that juggernauts have been gone," O'Neal said.

Despite this, he still likes the potential storylines for the finals of two small-market teams (Atlanta and Phoenix) or a scenario pitting the strength of a young Giannis Antetokounmpo (Milwaukee) versus an aging Chris Paul (Phoenix).

"May the best team win," he said.

In addition to talking basketball, O'Neal shed light on his newest business venture: esports. The big man was a key player in laying the groundwork for a new partnership between The General insurance company and NRG's team for the popular game Rocket League. Shaq is a part owner of NRG and a longtime brand ambassador of The General.

In April, The General bought naming rights for NRG's Rocket League team, and the team is now called "The General Insurance NRG." The company says it's the first Rocket League naming rights agreement. Financial terms of the deal were not released, and O'Neal didn't disclose the size of his stake.

O'Neal said while he is not a gamer he has seen the success of esports first-hand through his children, who are active players. He said he got his first taste of esports at a Staples Center event that he attended with his kids and immediately was attracted to the excitement, energy and competitive spirit and knew it would be a good investment.

"I like what the esports community is doing — a lot of scholarships, people are making a real living from it, and, you know, some of these esports guys are already legend," he said.

O'Neal has investments in nearly every sector from food and beverage to health to automobiles. He said he looks at three things when deciding to invest: Will it change people's lives, does he believe in it, and will it have longevity?

"My system has been safe and proven, and I haven't lost a lot," he added.

See the the full interview below:

Correction: This story has been updated to reflect that The General bought naming rights for NRG's Rocket League team, and the team is now called "The General Insurance NRG."

Walmart Unveils Low-Price Insulin As More Patients With Diabetes Struggle To Pay For Drug

2021-06-29T12:15:00.003+00:00

A diabetic draws insulin from vial.

CNBC - Adam Isaak

Walmart said Tuesday it will offer a less expensive version of insulin that could better fit into the budgets of millions of Americans who don't have health insurance or struggle to pay for the lifesaving diabetes drug.

Starting this week, the retailer will sell an exclusive private-label version of analog insulin, ReliOn NovoLog, to adults and children who have a prescription. The drug will be available at its membership-based Sam's Club in mid-July. The insulin will cost about $73 for a vial or about $86 for a package of prefilled insulin pens.

The insulin is the latest addition to Walmart's private brand of diabetes products, ReliOn. It already sells a low-price version of insulin for about $25 as part of the line, but that is an older formulation that some doctors and advocates say is not as effective at managing blood sugar swings as newer versions of insulin, called analogs.

With the move, Walmart will bring its long-time focus on "everyday low price" to a drug that is a medical necessity for a growing number of Americans. More than 34 million people in the U.S. - or nearly 11% of the population - have diabetes, and about 1.5 million Americans are diagnosed every year, according to the American Diabetes Association. That percentage is about 14% among Walmart shoppers, said Warren Moore, Walmart's vice president of health and wellness, on a call.

As the number of people with diabetes climbs, the cost of the 100-year-old drug has soared rather than fallen and drawn scrutiny from lawmakers. The annual cost of insulin for people with Type 1 diabetes in the U.S. nearly doubled from $2,900 in 2012 to $5,700 in 2016, according to the most recent data available from the Health Care Cost Institute. Some of the top manufacturers of insulin, including Sanofi and Eli Lilly, have been grilled by politicians during congressional hearings for hiking prices of the critical drug. In some cases, the companies have responded to criticism by rolling out limited, reduced price programs.

Dr. Cheryl Pegus, Walmart's executive vice president of health and wellness, said Walmart's version of the drug will expand access to care as it undercuts the typical price and puts analog insulin within reach of more people. She said Walmart worked directly with manufacturer Novo Nordisk to reduce costs. The price difference with branded competitors will be as much as $101 per vial of insulin or up to $251 per pack of prefilled insulin pens, Pegus said.

"This price point, we hope, will improve and hopefully revolutionize the accessibility and affordability of insulin," she said on a call with reporters. "We know that many people with diabetes struggle to manage this chronic condition because of its financial burden."

Walmart, already the nation's largest employer and grocer, has made a bigger push into health care as it tries to leverage its massive reach for other money-making opportunities. It has opened 20 clinics next to its stores with budget-friendly medical care, such as $30 annual checkups or $25 dental cleanings. It bought a telehealth company, MeMD, in May for an undisclosed amount as a way to provide care virtually. And it has pressured the pharmacy industry on price before by launching a prescription program that sells monthly supplies of many widely used generic drugs for $4.

Yet the retail giant is treading in a complex industry that has tripped up other large, influential corporate players. Haven, a joint venture of Amazon, Berkshire Hathaway and JPMorgan Chase, disbanded early this year about three years after the companies heralded plans to disrupt health care with lower costs and improved outcomes.

Walmart has lost some of the key talent it recruited to lead and expand its health and wellness efforts, including Sean Slovenski, formerly senior vice president of Walmart health and wellness; and Dr. Tom Van Gilder, who had become its first full-time chief medical officer.

Etsy CEO bets on e-commerce growth in Brazil with $217 million Elo7 deal

2021-06-29T04:14:00.001+00:00

Etsy, the online crafts marketplace, is banking on Latin America to be a growth catalyst for the e-commerce company with the acquisition of the Brazilian online marketplace Elo7.

Etsy shares jumped 7% Monday after it announced the $217 million deal to acquire Elo7, which Etsy CEO Josh Silverman called "the Etsy of Brazil."

"This is all about growth potential over the medium and over the long term," he said in a "Mad Money" interview. "The opportunity for Brazil's e-commerce sector to grow faster than the U.S., we think, is very meaningful over time."

The e-commerce market in Latin America has a penetration rate of less than 10%. The market could produce about $29 billion of revenue this year and is forecast to grow at a 26% clip annually, according to the market research firm Euromonitor.

Similar to Etsy, Elo7 allows merchants to set up an online shop and sell items to buyers. The site, among the largest online marketplaces in Brazil, boasts of having 56,000 sellers and serving nearly 2 million shoppers.

"Brazil is one of the biggest economies in the world, but its e-commerce sector is still in just the early days of penetration, so we think e-commerce is really poised for growth in Brazil," he said. "It's really well positioned, we think, to capitalize on it, so we think it's a perfect marriage."

The Elo7 acquisition comes weeks after Etsy announced it would purchase London-based marketplace Depop for more than $1.6 billion to expand its presence in Europe.

Depop goes after millennial and Gen Z consumers through social shopping, which leverages technology to replicate parts of the in-person shopping experience.

Juul agrees to $40 million settlement in North Carolina teen marketing lawsuit

2021-06-28T20:14:00.003+00:00

Packages of Juul mint flavored e-cigarettes are displayed at San Rafael Smokeshop on November 07, 2019 in San Rafael, California. Juul, a leading e-cigarette company, announced that it is halting sales of their popular mint flavor e-cigarette after the release of two studies that showed a surge in teen use.

Justin Sullivan | Getty Images News | Getty Images

Juul Labs has agreed to pay North Carolina $40 million and change its business practices in the state.

Regulators and health officials have blamed the company for the surging popularity of e-cigarettes among teens in recent years. In 2019, federal data found that more than 1-in-4 high school students had used an e-cigarette in the past 30 days, up from 11.7% just two years prior. As of 2020, that number fell to 19.6% of high school students amid greater regulatory scrutiny and the coronavirus pandemic.

"North Carolina is now the first state in the nation to hold Juul accountable for its instrumental role in creating a youth vaping epidemic," North Carolina Attorney General Josh Stein said at a press conference revealing the agreement Monday.

North Carolina kicked off its investigation in 2018 and announced the lawsuit the following year. In May, the judge for the case ruled that Juul destroyed documents, provided thousands of pages of irrelevant information and ignored related court orders. The company faced millions of dollars in fines tied to that decision, but the agreement announced Monday will wipe that slate clean.

Under the agreement, Juul will not be able to target its advertising to minors, use anyone in its marketing materials who is younger than 35 years old or pay for influencers to promote its products, among other restrictions. The deal also places limits on the number of devices and pods that North Carolina consumers can buy every month and year. The $40 million will go toward helping teens who are addicted to e-cigarettes, funding preventive programs and the cost of the litigation.

"This settlement is consistent with our ongoing effort to reset our company and its relationship with our stakeholders, as we continue to combat underage usage and advance the opportunity for harm reduction for adult smokers," a Juul spokesperson said in a statement to CNBC.

The company also said it looked forward to working with Stein and with other manufacturers on developing potential industrywide marketing practices and that it supported the use of the money to reduce underage use.

At least nine other states have followed North Carolina's lead with their own suits, and a coalition of 39 states is currently investigating Juul.

But those aren't the only legal cases with Juul at the center. Tobacco giant Altria is squaring off against the Federal Trade Commission regarding its 2018 investment in the start-up. The agency is arguing that the Marlboro maker engaged in anticompetitive practices when the two companies were trying to strike a deal. Since it made the initial $12.8 billion investment in Juul, Altria has written down its value three times, slashing its value by $11.2 billion.

Here are 5 ways to spend money that can actually make you happier

2021-06-28T20:14:00.001+00:00

Patrik Giardino | Stone | Getty Images

It's no surprise that Americans are ready to start spending as the Covid pandemic eases.

After being cooped up for a year, people are opening their wallets for anything from dining out to shopping for merchandise and vacations.

But will your buying spree bring you joy?

It depends, said researcher Elizabeth Dunn, PhD, chief science officer for financial technology firm Happy Money and author of "Happy Money: The Science of Happier Spending."

As her book suggests, Dunn conducts research on spending and happiness. Everyone's needs are different, so she first advises you identify what purchases are making you happy, and which ones are not. It's also a good time to look back on what you discovered you could live without during the pandemic.

"So much of our spending is habitual," said Dunn, who is also a professor in the Department of Psychology at the University of British Columbia.

"I run to the coffee shop and buy a latte because that's what I did yesterday," she added. "We can stop and think, is this actually making me happy?"

She also cautions about retail therapy — the idea that spending money on something material will help you feel better.

It could give you an immediate boost, but it may not be long-lasting, Dunn explained.

"Buying a lot of material things just doesn't seem to deliver much in the way of lasting happiness compared to some of these other purchases that we might make," she said.

Over a third of Americans engage in retail therapy, a new survey from U.S. News & World Report found. Of those who do, about 34% said they do it frequently and almost 51% said they don't have a budget.

If you have the money in your budget and you are looking to find joy when making purchases, here are five ways to do it.

Buy experiences

Research shows that people tend to get more happiness out of buying experiences rather than material things, Dunn said.

"Experiences tend to be more tightly connected to our sense of self," she explained.

"People feel that their experiential purchases contribute more to their life stories, are more unique to them."

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They are also less likely to exhibit buyer's remorse because experiences are relatively difficult to compare, whereas material things are easy to compare.

Plus, experiences tend to bring people together.

"Coming out of the pandemic, but also all the time, because we're human, when we are able to build and reinforce our connections with other people, that's a really important source of happiness," said Dunn.

Make it a treat

SolStock | Moment | Getty Images

We get used to the things we have all the time, but when they're a treat, they tend to bring more happiness.

In one of Dunn's studies, participants were given chocolate. Those who gave it up for a week enjoyed it more than those who were able to have it every day, she said.

Identify things you originally enjoyed but now take for granted.

"Just taking a break from them can be a way to both cut down on spending, while also potentially increasing our happiness," Dunn said.

Since the pandemic forced a break from many of our habitual purchases, it's a good opportunity to bring each one back one at a time, Dunn suggests.

Buy time

One underutilized strategy for increasing happiness is spending money to get more time in your daily life.

"People who use their money to buy their way out of the things they hate doing are happier than those who don't," Dunn said.

That can mean hiring a cleaning person or family helper to run errands.

Pay now, consume later

Marko Geber | DigitalVision | Getty Images

If you pay in advance for an experience you are doing in the future, you get to capitalize on a pleasurable period of anticipation, Dunn said.

"When we invest in our future selves, when we sort of pay upfront for things we're going to enjoy later, that does seem to be at least 'correlationally' linked to better financial outcomes, as well."

Invest in others

Singapore Wants To Be An E-commerce Hub as Asia's Digital Economy Grows

2021-06-28T03:14:00.003+00:00

Singapore wants to become a leading e-commerce hub in Asia - but there may be challenges ahead.

As the pandemic reshapes consumer behaviour worldwide, more and more people in the region are shopping online and Southeast Asia's digital economy saw significant growth.

"E-commerce in Southeast Asia - it's surging. But what sets Singapore apart (is) its policies and its initiatives that help cultivate an environment for the digital industry and the digital economy to thrive," said Ben King, country director at Google Singapore.

Still, the city-state faces a skills shortage for digital talent - and that's critical for its ambition to become a global e-commerce player, he told CNBC's Christine Tan.

The problem that we're seeing is not necessarily jobs - it's skills. There's an urgent need to help the workforce build digital skills to take on these jobs. - Ben King, Country Director at Google Singapore.

To address the issue, the government partnered with Google under the Skills Ignition SG initiative, to provide jobs training for those looking for a digital career.

"The one challenge we see in realizing this vision of Singapore really becoming a much more meaningful and much more advanced regional e-commerce hub is talent development," said King. "The problem that we're seeing is not necessarily jobs - it's skills. There's an urgent need to help the workforce build digital skills to take on these jobs."

A group of Black Friday online shopping purchases photographed in delivery boxes filled with polystyrene packing pellets, taken on September 13, 2019.

The U.S. tech giant has also been focused on helping to reskill people who have been impacted by the pandemic.

"What we've really designed that program to do is to meet the needs of Covid in real time. It's really geared towards taking people who have found themselves out of work, providing opportunities for them to train over a six- or a nine-month window," King said.

"What we're trying to do is develop skills that we think are going to be pivotal to the development and the evolution of e-commerce across the region."

Shifts in Consumers Trends

Despite the pandemic headwinds, internet usage across Southeast Asia continued to surge.

Some 40 million new users in the region joined the internet last year, according to an e-commerce report on Southeast Asia by Google, Temasek and global consultancy Bain & Company.

The pandemic has brought about a "permanent and massive digital adoption spurt," the report said.

About 36% - or more than 1 in 3 digital service consumers - were new to online services. Among them, 90% intend to continue using these services even after the pandemic, the report said.

The three key pillars of the smart nation (are) really to have a digital economy, a digital government - but also a digital society. - Selena Ling, Chief Economist, OCBC Bank.

In order for Singapore to capitalize on these trends, several factors need to come together to fuel that growth, said Selena Ling, chief economist at OCBC Bank in Singapore.

"You need to have a fairly internet savvy population, high mobile penetration (and) good internet connectivity which is affordable," she said. Plenty of offerings in terms of both goods and services are also essential, she added.

As part of Singapore's e-commerce strategy, the government plans to launch two 5G networks across the city-state by 2025. 5G networks are the next generation of mobile internet connectivity that promise faster speeds.

They will "form the backbone" of Singapore's digital economy and boost the infrastructure's capacity to manage large online sales orders internationally, according to the Ministry of Trade and Industry.

The Singapore government has taken the lead by putting in place a "smart nation" strategy, OCBC's Ling pointed out.

"The three key pillars of the smart nation (are) really to have a digital economy, a digital government - but also a digital society. So, it does cover all the requirements to have a successful e-commerce strategy," she explained.

Jim Cramer says to buy Nike on a pullback after its recent blowout quarter

2021-06-25T23:14:00.005+00:00

CNBC's Jim Cramer on Friday advised investors to wait for shares of Nike to cool down before buying after the stock rallied double digits on a quarterly report that beat expectations by a long shot.

"While the stock's far from cheap, business is booming, so you've got my blessing to buy some Nike the next time it pulls back," the "Mad Money" host said.

Nike, which last hit a record high in January, saw shares jump to new highs after many market players took the wrong side of the trade ahead of the report, said Cramer, himself among the doubters. The stock closed at a record $154.35 per share Friday, gaining more than 20 points on unusually high trading volume powered by the surprise numbers.

"Mega-capitalization companies don't usually see their stocks spike more than 15% on great earnings unless a lot of people were very, very wrong — or of course very, very short — going into the quarter," Cramer said.

Cramer's charitable trust, ActionAlertsPlus.com, unloaded its position in the stock in recent months in anticipation of disappointing results. The investing club will likely reload on the stock at a later date, he said.

In breaking down the numbers from the fiscal fourth quarter, Cramer said concerns about political relations with China, a key growth market for Nike, domestic shipping delays due to Winter Storm Uri earlier this year and a slowdown in athleisurewear sales are a number of issues that worried investors.

Those concerns were all put to rest after Nike beat earnings by 42 cents and delivered a big surprise on the top line. The company printed quarterly earnings of 93 cents per share on $12.34 million in revenues, nearly double that of a year ago.

"The next time an iconic company like Nike looks like it's getting itself into political trouble, you need to be a buyer, not a seller, because these guys know what they're doing," Cramer said.

Boat maker Brunswick sees revenue growth but faces low inventory levels due to consumer demand, CEO says

2021-06-25T23:14:00.003+00:00

Boat maker Brunswick will have low inventory by the end of 2021 as it continues seeing strong revenue growth and consumer demand, Brunswick CEO David Foulkes told CNBC on Friday.

While Foulkes said he expects Brunswick to meet its production forecast for 2021, he noted that the company is still recovering from pandemic-induced supply chain disruptions and labor shortages.

"We're producing as much as we can, but we will still be in a very low inventory situation by the time we get through this year," Foulkes said on CNBC's "Power Lunch." He said it will probably take more than two years to meet retail demand and backfill the industry pipeline at current production rates.

"We ended last year with unusually low inventory levels, and we're obviously a very seasonal business so we're producing pretty constantly through the year, but we need inventory to meet the needs of the peak selling season, which is really now for the Northern markets," the executive explained. "So this is more about an inventory haul that was created last year in combination with just tremendous levels of retail demand."

He said Brunswick is being "creative" to get the labor it needs and is producing "very efficiently and very effectively" to deal with the various disruptions.

Foulkes said Brunswick is seeing strong revenue growth, with overall company revenues up by more than 40% in the first quarter. He noted that its engine business now accounts for more than 45% of the U.S. market. The boat maker is the largest recreational marine company in the world, with 17 brands, including Mercury Marine, Boston Whaler and Freedom Boat Club.

Boat sales soared last year during the pandemic as many Americans adapted to flexible work environments that allowed people to spend extra time outdoors, and demand has continued to climb in the first half of 2021. Sales of boats, marine products and services in the U.S. reached a 13-year high in 2020 to $47 billion, an increase of 9% from the previous year, according to the National Marine Manufacturers Association.

Dealerships have since been struggling to maintain inventory, with manufacturers expanding production capacity to meet consumer demand.

Tractor Supply CEO says inflation and supply chain delays will be challenges for foreseeable future

2021-06-25T23:14:00.001+00:00

Honoree Hal Lawton accepts award on stage during the 2019 Fashion Scholarship Fund Awards Gala on January 10, 2019 in New York City.

Cindy Ord | Getty Images

Tractor Supply Company has increased some prices in the face of inflation and supply chain constraints, headwinds that the retailer's CEO said he believes are here for the foreseeable future.

"We have had some moderate price increases across our business. To date our customers have not demonstrated any elasticity or concerns there," Tractor Supply CEO Hal Lawton said on Friday during an interview at the National Retail Federation's online conference.

"It's our obligation to try to keep the prices as low as we can for them, even as we navigate this inflationary environment that we are in that I suspect is more structural than transient, despite some of the other rhetoric," Lawton said.

The company is facing price increases across the board, including the costs of raw materials and the transportation of goods.

"There is inflation in the market across almost all facets," Lawton said. "A big raw material component for us is corn, and we've seen corn prices up dramatically over the last three months. Another big raw material component for us is steel. We've seen significant increases there — not to mention the freight cost increases and the cost of imports."

Lawton also said he doesn't expect delays in the supply chain to go away anytime soon.

"There's substantive disruption occurring in the supply chain," Lawton said. "I think we are going to see it this way for quite some time as we migrate through the second half of the year. This is going to be an issue for us for the foreseeable future."

Despite significant delays in its supply chain and increased demand, the company has been able to maintain enough stock in its stores due to its relationship with its suppliers, Lawton said.

As with other retailers, the delays the company is experiencing are occurring at all stages of the supply chain, which is why it could take time to get back up to speed.

"It's really in all facets of the supply chain, whether it's back in the ports in China, whether it's the ports here in the United States, access to containers and them being in the right locations, ships, truck drivers, obviously labor to run your distribution centers, you could go on and on," Lawton said.

"Our manufacturers are having trouble keeping up and getting their assembled goods into the U.S. or getting raw materials, [and] they are having labor pressures as well," he said.

Tractor Supply's stock has risen more than 28% this year, putting its market cap at nearly $21 billion. The company has seen significant growth in its sales with over 14 million new customers in the last five quarters.

Nike Shares Surge More Than 14%, Hit Record High As $50 Billion Sales Outlook Tops Expectations

2021-06-25T14:18:00.009+00:00

Pedestrians walk past the American multinational sport clothing brand, Nike store and its logo seen in Hong Kong.

Nike shares surged more than 14% on Friday morning, hitting a record high, after the sneaker maker forecast full-year sales topping $50 billion as its North American business rebounds from the lows of the coronavirus pandemic.

And in greater China sales appear to be improving, with Nike management saying the company is confident about its ability to regain trust with customers there, amid threats to boycott Western brands over their comments expressing concern about alleged forced labour in Xinjiang.

"These are times when strong brands can get stronger, and each quarter this reality becomes even more clear," Nike Chief Executive Officer John Donahoe said during an earnings call Thursday evening.

Nike's stock was trading $152.70 at 9:35 a.m. ET. The retailer, which has a market cap of more than $211 billion, last saw its stock hit an all-time high of $147.95 on Dec. 21.

Globally, Nike is seeing shoppers splurge on new sneakers and fashion-forward sweat-suits to wear as more people begin to socialize again. The company's Jordan brand has been a particular bright spot.

During the three-month period ended May 31, Nike's total revenue nearly doubled to $12.34 billion from $6.31 billion a year earlier, topping Wall Street estimates by more than $1 billion. In North America, Nike's biggest market, sales more than doubled to a record $5.38 billion.

Following Nike's upbeat fiscal fourth-quarter results on Thursday afternoon, Cowen & Co. analyst John Kernan raised his price target to $181 from $145. Kernan said he sees a path for the company's market cap to one day surpass $300 billion.

"Management's confidence is hitting an inflection and Q4 results indicate the digitally driven acceleration in the financial model," he said in a note to clients.

According to Telsey Advisory Group analyst Cristina Fernández, Nike is benefiting from its closer connections with customers through its membership program, higher full price selling, greater use of data and a smarter wholesale model with strong partners like Foot Locker.

Telsey raised its price target on Nike shares to $180 from $160.

"The strong momentum in Nike's brand globally is more than offsetting pressure in China and supply chain constraints," Fernandez said in a note to clients.

At least 12 brokerages have already raised their price targets on Nike shares, following the company's fiscal fourth-quarter release. According to FactSet, the median target price of analysts who cover the company is now $176.90.

"The company is emerging from the Covid period into the biggest P&L evolutions in our coverage universe," Credit Suisse analyst Michael Binetti said.

Nike warrants "a significant valuation premium" compared with other global apparel and footwear brands, he added.

Amazon and Google Face UK Competition Probe Over Fake Reviews

2021-06-25T14:18:00.007+00:00

The Amazon logo displayed on a smartphone and a PC screen

London - Britain's competition regulator on Friday launched a formal probe into Amazon and Google over concerns they haven't done enough to tackle fake reviews.

"We are investigating concerns that Amazon and Google have not been doing enough to prevent or remove fake reviews to protect customers and honest businesses," Andrea Coscelli, chief executive of the CMA, said in a statement.

"It's important that these tech platforms take responsibility and we stand ready to take action if we find that they are not doing enough."

Misleading consumer reviews have proven to be a big problem in e-commerce, and Amazon is a prime target for brands looking to hype up their products online with fake, favorable write-ups. Last month, the company called on social media firms to help it weed out dishonest reviews.

The Competition and Markets Authority began an initial investigation into the issue of fake reviews back in May 2020. Earlier that year, it had gotten Facebook and eBay to remove several groups and accounts that engaged in trading fake reviews.

Then, in April this year, the CMA said Facebook had removed thousands more groups that were dealing in false and misleading reviews and had made further changes to its systems to identify, remove and prevent such content from appearing on its platforms.

On Friday, the CMA focused on Amazon and Google, saying it was going to look into whether they had done enough to detect and remove fake reviews. The probe will also examine whether the companies penalize reviewers or firms to deter them from posting misleading scores.

The watchdog added it was worried Amazon's systems are failing to prevent sellers from manipulating product listings, giving the example of merchants co-opting positive reviews from other products.

The CMA hasn't yet decided whether Amazon and Google have broken the law at this stage, however it said it would take enforcement action - including taking the companies to court if necessary - if they are found in breach of consumer protection law.

Amazon said it devotes "significant resources" to preventing fake or incentivized reviews.

"We work hard to ensure that reviews accurately reflect the experience that customers have had with a product," a company spokesperson told CNBC.

"We will continue to assist the CMA with its enquiries and we note its confirmation that no findings have been made against our business."

Google said the company's policies "clearly state reviews must be based on real experiences."

"When we find policy violations, we take action - from removing abusive content to disabling user accounts," a spokesperson told CNBC.

"We look forward to continuing our work with the CMA to share more on how our industry-leading technology and review teams work to help users find relevant and useful information on Google."

It's the latest in a string of investigations into digital giants. Just three days ago, the European Union launched another antitrust probe into Google investigating whether the internet search giant was favoring its own online display advertising technology services.

Britain's CMA is aiming to take a growing role in scrutinizing major U.S. tech firms after Brexit. The watchdog has been tasked by the government with setting up a new Digital Markets Unit to police competition in the U.K.'s internet market.

Cramer advises Carvana investors lock in gains after dueling analyst calls

2021-06-25T05:17:00.005+00:00

CNBC's Jim Cramer on Thursday advised Carvana shareholders to lock in gains after a big surge in the stock.

"I still think Carvana's a great long-term story, and I'd never recommend shorting the stock. But if you've owned it for this terrific run, maybe ... take some off the table as used car sales are showing signs of slowing in price increases," he said on "Mad Money."

"Carvana's [stock has] come roaring back lately, but this is the rare turbo-charged growth name that's actually somewhat hostage to the broader economy," he added.

The comments come one day after Carvana, an online used car marketplace, was the target of conflicting analyst recommendations.

In a note out Tuesday, investment bank Jefferies kept its buy rating and raised its price target on Carvana shares to $400 from $375. Jefferies cited a low supply of used cars across the industry and strong demand. Meanwhile, JPMorgan downgraded the stock to neutral from overweight, though it kept its price target at $325 per share.

Carvana's stock closed at $304.51 on Thursday, up 43% from a 2021 low of $219.40 in May. Shares peaked at $323.39 after rallying from less than $30 apiece at the start of Covid-19 lockdowns in the U.S. last year.

"I'm leaning toward JP Morgan's suddenly more bearish perspective in part because it seems more forward-looking than the more bullish analysis from Jefferies," Cramer said.

"When you look closely at the Jefferies [data], it sure looks like April was better than May, which was better than June," he continued. "That's called cadence, and the cadence of the quarter is going in the wrong direction. That jives with what I've heard from the rest of the industry."

Starbucks CEO denies reports of shortages in cups and coffee

2021-06-25T05:17:00.003+00:00

Starbucks CEO Kevin Johnson on Thursday denied reports that the coffee company is running low on key supplies, telling CNBC it has enough cups and coffee to serve customers.

There is "no shortage of cups, no shortage of coffee," Johnson said in an interview with Jim Cramer set to air on "Mad Money."

Johnson was responding to earlier reports — including one from The Wall Street Journal — that said some Starbucks stores were short on cups and coffee syrups, among other things, as traffic at Starbucks rebounds from last year's slowdown. The article cited information from some store workers and an unnamed spokeswoman who said select markets were being hampered by the shortages.

To be sure, Johnson said Starbucks continues to face operational challenges elsewhere that are testing the resiliency of the company's supply chain.

"We've had some shortages in the bakery case, that certainly is true," he said. "If there's one area we've been focused on it's our supply partners who assemble breakfast sandwiches and some of the food items in our bakery case. That's where we've seen some pressure."

Starbucks shares moved 0.39% higher Thursday to close at $111.99. The stock is up less than 5% year to date.

Nike earnings and sales beat estimates as retailer books record revenue in North America

2021-06-25T05:17:00.001+00:00

Nike on Thursday reported fiscal fourth-quarter earnings and sales that topped analysts' estimates, fueled by record revenue in its largest market, North America.

It also offered a better-than-expected sales outlook for the upcoming year, driven by optimism around its women's category, apparel business and Jordan brand.

Nike continues to benefit from consumers seeking out comfortable clothing to wear for workouts but also around the house. Even as people return to schools, offices and other social settings, many are still searching for relaxed options such as sneakers and stretchy pants.

Nike also saw a boost to its wholesale business — something that was largely inactive a year earlier during the Covid pandemic, when shopping malls and department stores had to temporarily shut their doors and put orders for merchandise on pause. Some of Nike's key wholesale partners include Dick's Sporting Goods, Foot Locker and JD Sports.

Nike shares jumped more than 12% in after-hours trading.

Here's how the company did during its fiscal fourth quarter, compared with what analysts were anticipating, using Refinitiv estimates:

Earnings per share: 93 cents vs. 51 cents expected
Revenue: $12.34 billion vs. $11.01 billion expected

Nike's net income for the period ended May 31 rose to $1.5 billion, or 93 cents per share, compared with a loss of $790 million, or 51 cents per share, a year earlier. That topped analysts' forecast of 51 cents per share, using Refinitiv data.

Total revenue rose to $12.34 billion from $6.31 billion a year earlier, topping estimates for $11.01 billion. Sales were aided by the company selling more goods at full price and relying less on markdowns.

In North America, Nike's biggest market, sales more than doubled to a record $5.38 billion as the company surged from a year earlier when the Covid pandemic was hitting the retail industry the hardest. The region's sales were up 29% on a two-year basis.

In Greater China, sales were up just 17% at $1.93 billion. Though China is typically one of the fastest-growing markets for Nike, consumers in China have threatened a boycott after some Western brands including Nike expressed concern about allegations of forced labor in Xinjiang.

Management said Thursday that Nike is seeing improvement in China sequentially month by month.

"Building on our 40-year history in Greater China, we continue to invest in serving consumers with the best products Nike has to offer in locally relevant ways," CFO Matt Friend said during a post-earnings conference call.

Digital sales were up 41% compared with the prior year and rose 147% compared with the same period in 2019.

The company said its membership model is helping to fuel its e-commerce business. Online purchases from Nike members, who receive first access to exclusive products and other perks, hit a record $3 billion during the fourth quarter. Nike said it now has more than 300 million members globally.

"Fueled by our momentum, we continue to invest in innovation and our digital leadership to set the foundation for Nike's long-term growth," said Nike CEO John Donahoe.

In fiscal 2022, Nike is expecting revenue to grow a low double-digit percentage, surpassing $50 billion. Analysts were looking for annual revenue of $48.5 billion.

The company anticipates the first half of the year to grow faster than the second half, Friend said.

"It's important to note as we normalize our post-pandemic business and continue to reshape the marketplace, we do not expect quarter-by-quarter growth to be linear," he said.

Nike also anticipates supply chain delays and higher logistics costs will persist throughout much of fiscal 2022. The headaches have been plaguing much of the retail industry for months now. A shortage of containers and a dearth of truck drivers, among other factors, have stalled merchandise from getting from ports to warehouses to shoppers' homes.

Nike shares are down more than 5% year to date. The company has a market cap of $211 billion.

Find the full earnings press release from Nike here.

Supply chain pressures are still a problem due to workforce shortages, manufacturing group says

2021-06-24T20:14:00.007+00:00

Supply chain disruptions and inflated prices are not abating yet, National Association of Manufacturers CEO Jay Timmons told CNBC on Thursday.

"We're seeing rising cost pressures" due to workforce shortages and demand exceeding supply, Timmons said on "Squawk on the Street." "What that's doing is it's causing bottlenecks in a lot of the supply chain for manufacturers who make the finished goods."

Timmons, whose Washington-based group is the largest manufacturers trade association in the U.S., said he's hopeful that supply bottlenecks won't be seen in the future as the economy continues to ramp up from the depths of the Covid pandemic.

However, he added that "it is a problem right now and manufacturers are trying their best to deal with it."

The nation's manufacturing skills gap, which is expected to result in 2.1 million unfilled jobs by 2030, could cost the U.S. economy as much as $1 trillion, according to a new study by Deloitte and The Manufacturing Institute. Manufacturers in the U.S. need to fill 4 million jobs by 2030, the study showed.

Though the manufacturing industry has regained 63% of jobs lost during the pandemic, the majority of manufacturers surveyed in the study still expect a long-term challenge in attracting and retaining workers in 2021 and beyond. Finding the right talent is also 36% harder than it was in 2018, according to the survey.

"We have had a skills gap, if you will, unfilled jobs for many, many years," Timmons said. "It actually went down to the lowest level during the pandemic that we had seen — of 300,000 open jobs in manufacturing. But today, there's an astounding 851,000 jobs that are open in manufacturing."

In an effort to shrink those numbers by about 600,000 by 2025, Timmons said the NAM is looking to attract a new generation to pursue a career in "modern" manufacturing.

"We know that there is a very large focus by manufacturers to invest their next dollar here in the United States, to hire the next worker here in the United States," Timmons said. Manufacturing is "going strong" because of past policies supporting positive job creation rates and future policies supporting significant infrastructure investment, he said.

Rite Aid shares plummet; CEO cites Covid uncertainty for drug store chain's cautious outlook

2021-06-24T20:14:00.005+00:00

Rite Aid CEO Heyward Donigan told CNBC on Thursday she's "cautiously optimistic" the U.S. would avoid another round of strict Covid restrictions despite the presence of the delta variant.

"We all hope that enough people get vaccinated that we don't have the variant become so significant that our markets shut down again," Donigan said on "Squawk Box."

Even so, the chief executive said the drug store chain was being judicious with its financial projections due, in part, to how unpredictable the coronavirus pandemic's impact on business has been.

Shares of Rite Aid sank roughly 14% on Thursday, sending the company's stock market value under $1 billion, as Wall Street digested mixed first-quarter results and weaker earnings guidance.

Rite Aid's forecast for adjusted EBITDA — earnings before interest, taxes, depreciation and amortization — came in at $440 million and $480 million in fiscal year 2022, below estimates of $524 million, according to FactSet.

"We're being very cautious because we had a miss last quarter due to the complete meltdown, I'll call it, of cough, cold, flu — both in the pharmacy and in the front end because there just was no cough, cold, flu," Donigan said, alluding to the recent surprisingly calm flu season in the U.S. and its impact on Rite Aid.

"We just didn't realize how far down, how evaporated that business would actually be. So as we look forward, we think we need to be very cautious and prudent in our guidance," said Donigan, who has been CEO of Pennsylvania-based Rite Aid since August 2019.

"We are expecting some improvement. We're not expecting full improvement," Donigan added.

She also acknowledged, "It's very hard, it remains very hard to predict, a full-year result in a retail pharmacy in the middle of a pandemic because we are … still in the throes of this to some degree."

The company projected full-year revenue of between $25.1 billion and $25.5 billion, which exceeded Wall Street's expectations of $24.66 billion, according to FactSet.

Rite Aid's outlook is not factoring in potential Covid vaccine boosters or vaccinations for children under the age of 12, Donigan noted. Trials examining the vaccine in kids under age 12 are currently ongoing.

The Food and Drug Administration cleared Pfizer's Covid vaccine for use in kids ages 12 to 15 a little more than a month ago. Moderna, which also makes a two-dose vaccine, has asked the FDA to expand its emergency use authorization to cover adolescents from 12 to 17.

Darden Restaurants CEO says speculation is driving up real estate prices

2021-06-24T20:14:00.003+00:00

A customer arrives at a Darden Restaurants Inc. Olive Garden location in San Antonio, Texas, U.S., on Thursday, June 14, 2018.

Callaghan O'Hare | Bloomberg | Getty Images

Darden Restaurants isn't seeing many deals on real estate right now despite the high number of permanent restaurant closures from the pandemic.

"There's tremendous speculation in the real estate market driving prices," CEO Gene Lee told analysts on Thursday during the company's quarterly earnings call.

Lee did not elaborate on what the speculation means for Darden. However, restaurant chains that survived the downturn were expecting to snap up closed locations at a discount or receive more accommodations from landlords, like permission to build a drive-thru lane.

Industry tracker Black Box Intelligence estimates that 12% of full-service restaurants in the U.S. that were open before the pandemic have closed.

Private equity firms and other investors have swooped in, betting on commercial real estate. The Wall Street Journal reported in May that commercial real estate prices have been climbing since July, wiping out almost half of the pandemic declines.

During its fiscal fourth quarter, Darden opened 14 new restaurants, bringing its total restaurant count to 1,834 across its portfolio, which includes Olive Garden, LongHorn Steakhouse and The Capital Grille. In fiscal 2022, it expects to add about 35 to 40 new locations.

Shares of Darden rose 3% in afternoon trading after the company topped Wall Street's estimates for the company's fourth-quarter earnings and revenue. The company said diners are returning to its restaurants, bringing same-store sales nearly back to pre-pandemic levels.

OIive Garden parent's same-store sales near pre-pandemic levels as Covid restrictions ease

2021-06-24T20:14:00.001+00:00

A take-out order from a Darden Restaurants Inc. Olive Garden location is arranged for a photograph in Tiskilwa, Illinois, U.S.

Daniel Acker | Bloomberg | Getty Images

Darden Restaurants on Thursday reported that its fiscal fourth quarter same-store sales nearly returned to 2019 levels as states rolled back dining restrictions.

The company also released an outlook for fiscal 2022, predicting that that its total sales for the year will top pre-pandemic revenue.

Shares of the company rose more than 2% in morning trading.

Here's what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

Earnings per share: $2.03 adjusted vs. $1.79 expected
Revenue: $2.28 billion vs. $2.19 billion expected

The Olive Garden parent reported fiscal fourth-quarter net income of $369 million, or $2.79 per share, up from a loss of $479.7 million, or $3.85 per share, a year earlier.

Excluding items, Darden earned $2.03 per share, beating the $1.79 per share expected by analysts surveyed by Refinitiv.

Net sales rose 79.5% to $2.28 billion, topping expectations of $2.19 billion. Across the company's portfolio, same-store sales rose 90.4% compared with the same quarter a year ago and fell just 0.5% compared with the period two years before.

Same-store sales at Olive Garden, which accounts for about half of Darden's revenue, surged 61.9%. Compared with the same time two years ago, same-store sales for the Italian-inspired chain were down just 1.5%. To-go orders accounted for a third of Olive Garden's sales during the quarter, even as dining room restrictions disappeared. It also broke its all-time single-day sales record on Mother's Day.

LongHorn Steakhouse was the only segment of Darden's business to report positive same-store sales on a two-year basis. Its same-store sales more than doubled compared with the year prior and rose 13.5% compared with two years ago.

As diners returned, so did the two chains' profits. The company said that Olive Garden's profits quadrupled, and LongHorn's surged nearly 1,000%. Executives said that both chains saw their highest quarterly profit of all time.

Darden's fine-dining business, which includes The Capital Grille, has been the hardest hit by the pandemic. This quarter, it reported same-store sales growth of 143% as diners finally returned to upscale restaurants. However, on a two-year basis, same-store sales were still down 10.6%.

"Upscale fine dining is performing well above where we thought it would be. And it's coming back very quickly," CEO Gene Lee told analysts.

So far in June, same-store sales across Darden's portfolio are up 2.5% on a two-year basis.

As ingredient shortages hit the restaurant industry, executives said that it has avoided significant supply chain interruptions. It has seen a few spot shortages, but the company said those were related to warehouse staffing and driver shortages, not product availability.

Executives weren't concerned about inflation in food prices, pointing to long-term contracts for their most important items, but said that they have room to raise prices if needed. They said seafood, chicken, dairy, cooking oil and packaging are driving inflation right now.

For fiscal 2022, Darden expects total sales of $9.2 billion to $9.5 billion, up 5% to 8% from pre-pandemic levels, assuming that essentially all of its locations can operate at full capacity. The company is forecasting same-store sales growth of 25% to 29%, compared with fiscal 2021. It also said it expects diluted net earnings per share from continuing operations in a range of $7 to $7.50.

The forecast is in line with Wall Street's expectations. Analysts were predicting fiscal 2022 earnings of $7.21 per share on revenue of $9.22 billion.

Darden said it will hold its annual shareholder meeting on Sept. 22.

Falling avocado shipments could hurt Chipotle's margins, analyst says

2021-06-24T02:14:00.003+00:00

Chipotle restaurant workers fill orders for customers.

Getty Images

Chipotle Mexican Grill's margins could take a hit from the predicted decline in avocado shipments next quarter, according to Truist analyst Jake Bartlett.

The Hass Avocado Board is forecasting a 5.8% decline in avocado shipments during the third quarter compared with last year. A smaller supply of avocados could cause prices to spike and make it more expensive for Chipotle to whip up its guacamole.

Bartlett estimated in a Wednesday note to clients that avocados account for only 5% to 10% of Chipotle's cost of goods sold, but they can still have a significant impact on its margins. He is forecasting that a 10% spike in the price of an avocado could drag down earnings by 10 to 12 cents per share in the third quarter.

In a statement to CNBC, CFO Jack Hartung said that the company has diversified its avocado sourcing over the last two years, so it expects less of an impact than industry projections in the third quarter.

By now, the burrito chain is very familiar with spiking avocado prices. Hartung told analysts on the company's first-quarter earnings call that the company is seeing a seasonal shift every year now.

The summer months typically usher in surging prices for avocados because Mexico, the top supplier of them to the U.S., usually ships fewer during those months. Peru, the second-highest supplier, usually sees its avocado shipments rise during the summer, thanks to reversed seasons in the Southern Hemisphere, but its production typically isn't enough to satiate American consumers. California grows about 12% of the supply.

So far, 2021 has been a rocky road for avocado prices. They fell 26% in the first quarter due to higher shipments from Mexico and rose 4% in the second quarter, according to Bartlett. As of Friday, U.S. retail prices for the Hass variety were up 6% to $1.19, based on USDA data.

Chipotle has already raised prices this year. Earlier in June, executives said menu prices have risen about 4% to cover the cost of raising wages for its workers. Hartung said the company is monitoring rising food costs but no further increases are planned at that time.

Shares of Chipotle were up modestly Wednesday afternoon. The stock is up 5% this year, giving the company a market value of $42 billion.

Walmart's former e-commerce chief Marc Lore says brands like Warby Parker can't be replicated by big-box retailers

2021-06-24T02:14:00.001+00:00

Marc Lore, CEO, Walmart eCommerce

Scott Mlyn | CNBC

Walmart's former e-commerce chief Marc Lore sees a hot market for direct-to-consumer retailers such as Warby Parker and Allbirds, which offer something special that mass merchants such as Walmart are having a hard time replicating.

"Their products resonate with customers — a certain demographic — that are difficult for big mass merchants to replicate," Lore said in an interview with CNBC's "Tech Check" on Wednesday.

"Those companies will continue to grow and get bigger, and it's difficult for mass retailers to replicate those types of brands inside," he said. "If they were to do a private label, or something like that, it'd be really tough for those brands to have a real soul."

Lore's comments came a day after eyeglass brand Warby Parker confidentially filed for its initial public offering. Sustainable shoemaker Allbirds is also reported to be in talks with banks ahead of a potential IPO.

There's been a flurry of IPO activity within this retail sector. Some of these companies had built momentum with consumers during the pandemic. The medical scrubs start-up Figs debuted last month, following the IPO of Honest Company, Jessica Alba's baby and beauty products company.

While he was at Walmart, Lore was tasked with helping the big-box retailer spot potential acquisition targets within the direct-to-consumer space. The strategy was viewed as a way for Walmart to try to reach younger consumers with hipper merchandise. Under Lore, Walmart bought digitally native clothing brands Bonobos, ModCloth and Eloquii. Walmart ended up selling Modcloth.

Lore, who sold his online delivery start-up Jet.com to Walmart in 2016 for $3.3 billion, also helped to incubate a number of businesses internally at Walmart, including the mattress brand Allswell and the high-end concierge service Jetblack. The latter dissolved after it never took off with customers and was losing money.

"It's really difficult to create those brands inside of a mass merchant," Lore said. "Something that really makes those brands special, like Warby Parker, is that connection to the customer. ... Things that really resonate with millennial, Gen Z-type customers, you just can't create that from scratch, from a mass merchant. It's not authentic."

Lore and baseball star Alex Rodriguez are currently working together on a new venture capital firm. Called Vision Capital People, it will start with $50 million of Lore and Rodriguez's own money. Lore had previously told CNBC that the duo would be looking to spot "mega trends in retail," such as social commerce and conversational commerce, as they bet on companies.

According to Ben Sun, co-founder and general partner at the VC firm Primary Venture Partners, future growth in the retail industry will be propelled by smaller retail brands that are finding success primarily on the internet. Sun's previous investments include Jet.com, the dog food brand Ollie and the at-home fitness machine Mirror, which is now owned by Lululemon.

"E-commerce is being heavily driven off of these smaller, independent, long-tail brands that are creating great products [and] that now have a chance to reach the consumer because they aren't restricted to have to go offline, which is hard to really penetrate," Sun said in a recent phone interview.

Total e-commerce sales during Amazon Prime Day surpass $11 billion, Adobe says

2021-06-23T17:14:00.005+00:00

Getty Images

Total online retail sales in the United States during Amazon's 48-hour Prime Day surpassed $11 billion — 6.1% higher than overall e-commerce transactions generated by the 2020 event, according to Adobe Analytics data.

The total was slightly more than last year's Cyber Monday, which was the busiest digital sales day on record, Adobe said. However, the Prime Day event was for 48 hours rather than the 24-hour Cyber Monday splurge after Thanksgiving.

The index Adobe Analytics tracked looks at more than 1 trillion visits to U.S. retail sites and over 100 million items across 18 product categories.

Online retail sales amounted to $5.6 billion on Monday, the first day of Prime Day, and $5.4 billion on day two, Adobe said. That made Monday the biggest day for digital sales this year and Tuesday the second-busiest, according to Adobe. By comparison, the 48-hour Prime Day 2020 generated $10.4 billion in overall U.S. digital revenue, according to Adobe.

Sales during Cyber Monday 2020 amounted to about $10.9 billion, marking the largest U.S. online shopping day on record.

"There's a pent-up demand for online shopping as consumers look forward to a return to normalcy," said Taylor Schreiner, director of Adobe Digital insights. "The halo effect of Prime Day also played a significant role, giving both large and small online retailers significant revenue lifts."

The total sales during Prime Day includes results from Walmart, Target, Best Buy and Kohl's, which have also been offering competing markdowns this week.

Amazon Prime Day 2021 coverage

Read more about what Amazon and others have planned for this year's sales events:

Adobe said that retailers that bring in more than $1 billion in revenue each year reported a 29% increase in e-commerce sales during Prime Day compared with an average June day, while smaller retailers doing less than $10 million in annual revenue saw a 21% lift.

Adobe also found that discount levels were fairly consistent on Monday and Tuesday, with toys marked down by 12%, on average, and appliances discounted by 5%. It still said the best deals are expected to come closer to the holiday shopping season.

Correction: Headlines in this version clarify that Adobe's tally tracked overall U.S. online sales during Amazon's Prime Day event.

Track star Allyson Felix launches her own shoe brand after breaking up with Nike

2021-06-23T17:14:00.003+00:00

Allyson Felix is president of Saysh, while her brother, Wes, serves as CEO.

Source: Saysh

After breaking up with Nike in 2019 and landing a sponsorship deal with Gap's Athleta, the brand's first, track and field star Allyson Felix is launching her own shoe business.

On Wednesday, Felix debuted Saysh, which she pitches as a lifestyle brand designed with women in mind. Saysh's first product, the Saysh One sneaker, retails for $150 and is currently available for preorder in three colors. Other products are in the works, according to the company's website.

Customers are also able to buy membership to the "Saysh Collective," which comes with workout videos and occasional interactions with Felix. An annual membership costs $150, while a monthly pass goes for $10.

The announcement comes after Felix finished second in the 400 meter at the U.S. Olympic Track and Field trials this past weekend, clinching her spot in the Tokyo Olympics. Felix is the most decorated female track and field star in U.S. history.

Time first reported on Felix's shoe launch. In an interview with the magazine, Felix said the women's footwear market is underserved, and that the mentality has often been to "shrink it and pink it."

"It's really about meeting women where they are," Felix said. "It's for that woman who has been overlooked, or feels like their voice hasn't been heard."

Felix departed a deal with Nike in 2019 after she said the company wanted to pay her 70% less following her pregnancy. She has since been invested in raising awareness around health-care inequities facing Black mothers.

Felix serves as Saysh president, while her brother and business partner Wes holds the CEO title. The company has raised $3 million in seed money from a broad range of venture investors, according to Time.

Athleta, where Felix has a multiyear sponsorship deal to design clothing, will begin to carry the shoes in the fall.

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