AMC: The Taylor Swift Effect

And, Levi Strauss has wholesale softness.

Today is Friday, October 6, 2023.

The Early Bird Index today is 52.64.

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AMC: The Taylor Swift Effect

AMC Entertainment (AMC: AMC) jumped 1.57% in after-hours trading on Thursday after announcing the record ticket sales for the upcoming Taylor Swift concert film.

Details: AMC said that it has already sold more than $100 million in advance tickets globally for the concert film Taylor Swift: The Eras Tour. The movie shattered AMC’s U.S. record for the highest ticket sales revenue during a single day.

Background: Taylor Swift announced weeks ago that a film documenting her recent concert would be released in theatres on October 13.

Powering the Story: AMC really needs this Taylor Swift film to be a mega-hit. Although AMC benefited from all of the ticket sales generated from the summer blockbusters, the company was forced to sell additional shares in order to shore up its finances. Investors were not pleased.

Stock Price: AMC is down 72% this year.

Final Thoughts: AMC is trading at $8 per share. It hasn’t traded that low since the meme stock mania in 2021.

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Notable Earnings Today: N/A.

Notable IPOs Today: Falcon's Beyond Global, Inc. Class A Common Stock (Nasdaq: FBYD), Spark I Acquisition Corp. Unit (Nasdaq: SPKLU).

Notable Equity Crowdfunding Campaigns Ending Today: Loaded Dice Brewery (Mainvest), LAX Food Hall (Honeycomb), Flourish & Foundry (Mainvest), Seek.The.Beat (Honeycomb), Kahuna Cannabis (Mainvest).

Notable Economic Events Today: Unemployment Rate (8:30 a.m. ET), Average Hourly Earnings (8:30 a.m. ET), Nonfarm Payrolls (8:30 a.m. ET), Labor Force Participation Rate (8:30 a.m. ET).

Levi Strauss Has Wholesale Softness

Shares of Levi Strauss (NYSE: LEVI) ticked down 1.29% in after-hours trading on Thursday after the clothing company posted disappointing financial results.

Financials: Levi Strauss reported earnings of 28 cents per share and revenue of $1.5 billion; both were below estimates.

Details: Net revenues in the direct-to-consumer business increased 14%. Net revenues in Asia grew by 12%.

Yes, But: Net revenues in the Americas decreased by 5%. Wholesale net revenues declined 8%, with Levi Strauss saying that it experienced “continued softness in the wholesale channel, primarily in the U.S.” The gross margin fell 130 basis points.

Outlook: The company expects net revenues for the current year to be flat to 1%. Its earnings range will now be on the low end of its previous guidance.

Quote: “We have commenced an initiative to review our operating model and cost structure that should drive agility and material cost savings beginning in 2024.” - Harmit Singh, chief financial and growth officer.

Final Thoughts: Levi Strauss is down 15% this year. It’s another rough quarter of disappointing financial results for the company, which now has to cut costs in order to grow.

MGM Reports Cyberattack Cost

MGM Resorts (NYSE: MGM) reported on Thursday that the recent cyberattack against the company will cost about $100 million.

Final Thoughts: This financial hit could limit MGM’s growth. The stock is up only 4% in 2023.

Trends to Watch

Blockbuster Deal: Exxon Mobil Closing In on Megadeal With Shale Driller Pioneer (Wall Street Journal)

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