Discover the fascinating dynamics of the corrugated fiberboard industry and how International Paper's stock is influenced by e-commerce trends. Dive into the history of packaging, the rise of a new CEO focused on European market expansion, and the competition between paper and plastic in berry packaging. Plus, explore the evolution of sneaker culture, the generational shifts in preferences, and Nike's bold new campaign that challenges its iconic brand narrative. Personal anecdotes and market insights make for an engaging discussion!
28:48
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Quick takeaways
International Paper shows potential for growth under new leadership focusing on restructuring and core profit increases in the container board market.
Nike is attempting to realign its strategy towards sports footwear to regain market share amidst competition, despite mixed results from recent efforts.
Deep dives
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International Paper's Market Position and Turnaround
International Paper, primarily known as a box manufacturer, is experiencing a resurgence under new leadership after a significant period without stock gains. The company controls a large portion of the North American container board market and is focusing on increasing its core profits significantly. The new CEO, Andrew Silvernail, aims to implement the Pareto principle to streamline operations, which includes restructuring and closing underperforming plants. Analysts predict substantial growth in EBITDA and stock value as container board prices increase, indicating a promising future for the company.
Nike's Struggles and Market Challenges
Nike is facing significant challenges as it attempts to regain market share amid declining sales and competition from other brands. The company's recent strategies have been criticized for focusing too heavily on lifestyle shoes while neglecting performance footwear, leading to opportunities for competitors like Hoka and On. With new leadership in place, Nike is attempting to realign its sales strategy towards sports and improve its brand image, although results so far have been mixed. Analysts express cautious optimism about Nike's return to form, noting its past strengths in advertising and product quality.
Don’t say cardboard—it’s corrugated fiberboard. Jack discusses International Paper’s stock tear, plus Nike’s slump. Jackson can’t give away his clothes.