Ben Gilbert: evaluation

Transcript context

…Yup. That's 100% what it is. Like we're saying, it's not really that different than Netflix acquiring or producing content for Netflix. Right, they just monetize in a different way. Footwear is almost 3S the apparel business on a revenue basis. At least by revenue, footwear is still their bread and butter. In part, it's just selling sneakers to people that go wear sneakers every day and wear them out once or twice a year. They need to go buy some more sneakers, and that's most people in the world. It's a pretty incredible market that they now get to address $150 billion athletic footwear market. It's crazy. When you look at this pretty interesting thing that they list, which is their wholesale equivalent revenue breakdown, which is basically saying, yeah, we sell some of this direct, but we want to put apples to apples and make these unit sales adjusted as if they were all sold through our wholesale channel. Men's is 51%, women's is 21%, kids' is 12%, and the Jordan brand broken out separately. All of this excludes Jordan. The Jordan brand is the $6.6 billion business that makes up the other 16% of that pie chart. Holy God. Men's inclusive of Jordan, if you just assume Jordan is three quarters men, that means that they're selling 64% of their product to men. Remember when I said at IPO, they sell sneakers to men, it's the same business as it was, but a super different business that it was at the same time. In some sports specifically just to dive into one example, they have a near monopoly in basketball shoes. Nike and the Air Jordan brand's share of performance basketball was 86%. The stats is a few years old. It was right before the pandemic, but the dominance was even more prevalent in the lifestyle basketball category where they have 96% share. I have to wonder, the other shoe companies who are still doing big deals in the NBA, let's take Under Armour and Steph Curry here in San Francisco, what are they doing?…

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