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Meta’s biting gold, Adidas x Allbirds collab, Nike’s nightmare 👀

Plus, How Snapchat’s new ad is differentiating it from other social media apps

Author

Wishu
February 05, 2024

Hey!

Welcome back to another DTC edition. We have exciting news to share, so let’s get right into it…drum rolls

DTC performance reports are out, and it’s raining gold!

A 201% income quarterly growth for Meta: Meta’s metaverse vision might be murky, but the social media giant has posted a solid 25% YoY revenue increase and a 201% jump in net income YoY in its Quarterly reports.

Fun Fact: Meta added 2 million users in North America and 2.11 billion users worldwide, marking a 6% YoY increase. These are interesting numbers, given Facebook’s near saturation in markets. 

Skechers’ salt and pepper results: Footwear giant Skechers saw a 4.4% YoY increase in revenue growth in its Q4, but the revenue spurt wasn’t enough to drive its wholesale business, which saw an 8% decline in quarterly results. 

Amazon’s Ad business grows further: Amazon’s advertising business surged 27% YoY to $14.7 billion in the Q4 of 2023. Amazon also begins Prime Video ads. Its overall net sales jumped by 14% to $170 billion in Q4.

Starbucks is raking in the money with its loyalty memberships: Starbucks Rewards members have spent the most in Q1 of 2024. Users used the app’s mobile order and pay capabilities for over 30% of all purchases. The Rewards loyalty program membership has reached 34.3 million active members, 13% yoy for Q4 of 2023. 

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But not everywhere is raining gold..

Here’s what happening at Nike-town! 

Nike has ran off-course: The sportswear giant is witnessing its worst slump in a decade. The reasons? costly restructurings, uninspiring marketing, and stagnant innovation.

Here’s the perfect meme for it…

M&As and all the handshakes in the town

  • NFL partners with Gamefam: NFL x Gamefam collab for a gaming event is timed to the Super Bowl. The event will launch across various Roblox spaces. The event activation will center around Gamefam’s newly launched SpongeBob simulator from February 2 to February 19.

  • Adidas Join hands with Allbirds: Adidas and Allbirds are collaborating on a limited edition sneaker - a 2.94 kg CO2e sneaker. The multi-color version, available in men's and women’s sizing for $120, is already selling out. 

  • Is Reddit’s IPO Coming in March?: Reports state March as the IPO launch date, but there’s a catch. The IPO may no longer be valued at $15 billion but at just $5 billion. The original $15 billion valuation is too far-fetched a number concerning Reddit has just $800 million in annual ad revenue. 

Fun Fact: X has 3x Reddit users and is valued at $19 billion. Snapchat has 5x Reddit users and is valued at $27 billion. 

Snack-sized DTC bytes:

  • H&M sees a sudden change in leadership: Daniel Erver has taken over as the new CEO of H&M after Helena Helmersson resigned unexpectedly. H&M’s performance vis-a-vis its rivals Shein and Inditex hasn’t been great. In December, H&M’s shares fell by 12%. 

  • Lululemon enters men’s footwear with casual sneaker launch Cityverse, the brand’s everyday shoe debut, launches this month and also marks the first footwear style available to men.

  • Threads is still alive and kicking: The X clone, Meta’s baby Threads, has reached a user base of 130 million. Nowhere near close to X with its 500-million-strong army, but Threads has sustained its hype and is growing steadily.

We’ll see you this Friday with a fun edition of DTC World! 👋

Until then..

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