Brew Markets – November 26, 2025

Episode: Meet Nuuly: Urban’s Rental Gem & Petco: An Old Dog Learns New Tricks
Host: Ann Berry
Podcast: Brew Markets
Theme: Today’s episode dives into three standout market stories: Urban Outfitters’ thriving rental arm Nuuly, Petco’s struggle to reinvent itself, and updates from Dell’s earnings tying into the AI boom. Ann and co-host John Croteau break down earnings, business models, and the broader implications for each industry.

Main Theme Overview

Ann Berry delivers a rapid, insightful rundown of the day’s top stock market stories with a focus on what they reveal about broader consumer and investor trends. This episode centers on:

• Urban Outfitters’ Nuuly emerging as a winner in clothing rental
• Petco’s turnaround efforts in a tough pet retail market
• Dell’s surprising earnings, bolstered by AI and ongoing PC dominance
  Other topics include a viral Campbell’s controversy and the latest in autonomous vehicles via Uber.

Key Discussion Points & Insights

1. Nuuly: Urban Outfitters' Rental Gem

(Begins ~01:00)

• Urban Outfitters’ Quarterly Strength:
  Urban, bolstered by brands like Anthropologie and Free People, posts record sales of $1.5B ([01:05]).
• Nuuly’s Explosive Growth:
  Although under 10% of Urban’s business, Nuuly—their clothing rental division—outpaces Rent the Runway, boasting 400,000+ subscribers and 50% revenue growth for the quarter.
  Logistics operations have expanded to a 1 million sq ft facility in Kansas City ([01:25]).
• Rental’s Consumer Appeal:
  Ann highlights that rental appeals due to “the real desire for constant newness, cheaper options and a focus on sustainability” ([01:42]).
• Execution & Logistics:
  Nuuly’s operations are more streamlined compared to Rent the Runway, which has “burned cash” and watched its stock drop 99% over five years.
  • “Where Rent the Runway proved the concept… It has failed to execute over time.” —Ann Berry ([02:12])
• Revenue Quality:
  The $98/month subscription creates predictable, recurring revenue, with Nuuly alone adding 3.5 percentage points of revenue growth to total sales ([02:42]).
• Competitive Edge:
  “Part of its inventory conveniently sits inside the stores of Urban Outfitters brands already… which helps to boost its margins.” ([02:56]) Easy return options at Urban stores double down on convenience ([03:06]).
• Market Reception:
  Urban stock jumped 13% on earnings news, up 90% over 12 months. Ann cautions the stock looks “a little toppy” but acknowledges the current win ([03:19]).
• Industry Implications:
  “The most interesting thing here? We'll see if others follow Urban into the clothing rental space.” ([03:31])

2. Dell: The OG Tech Giant Evolving for AI

(Begins ~04:35)

• Dell’s Legacy:
  Founded 40 years ago by Michael Dell, now at a $90B market cap ([04:55]).
• Earnings Beat:
  Q3 revenue: $27B (up 11% YoY), earnings per share up 39%, $1.2B in operating cash flow. Stock up 6.5% on the day ([05:15]).
• AI Impact:
  Dell raises its full-year guidance, specifically citing higher AI shipment targets:
  “Dell did say its AI shipment guidance... should go up from 20B to 25B as the new target.” ([06:05])
• On-Premise vs. Cloud:
  Dell focuses on enterprise on-premise AI—servers and GPU-equipped solutions for businesses, responding to security and resilience concerns as many companies seek hybrid (cloud + physical) environments ([06:45]).
• PC Business:
  Still core: ~50% of revenue. Windows 10 support ending is driving PC refreshes and upgrades to Windows 11 ([08:02]).
  • Dell holds 15% of worldwide PC shipments ([08:02]).
  • Ann: “We do need to remember there is other hardware out there, trying to find its way as all this evolves.” ([08:11])
• Michael Dell’s Wealth:
  Michael Dell’s net worth recently hit $154B—“up $30 billion since the start of the year” ([08:48]).

3. Petco: Reinventing an Old Dog

(Begins ~11:00)

• Petco’s Woes:
  Once a darling of the pandemic pet boom, Petco’s stock has plunged 86% since its 2021 IPO. Market cap now around $1B ([11:07]).
• Earnings Highlights:
  Revenue: $1.5B (down 3.1% YoY); same-store sales down 2.2%.
  However, adjusted EBITDA rose 17% to ~$99M due to cost-cutting.
  Marketing spend held steady; overhead reductions drove improved margins ([11:59]).
• Guidance & Market Response:
  Despite the drop in sales, Petco raised full-year guidance; stock popped ~20% on the news—“to me that is all about that increase in profitability.” ([12:59])
• The Real Challenge:
  Pet humanization isn’t enough—where are people spending? Chewy and Amazon make pet-supply delivery easy.
  John: “If I’m buying shoes, I want to go to Foot Locker... but [for] dog food or a toy... that seems really easy to order from Amazon or subscription from Chewy.” ([13:47])
• Competitive Strategy:
  Petco aims to compete by enhancing physical retail experiences, events, and in-person services (hospital, grooming)
  • CEO Joel Anderson: “We believe in the universal truths of pet parenthood, the boundless boops, Petco missing slippers, late night zoomies…” ([14:20])
• Membership & Services Expansion:
  Testing a revamped loyalty/membership program for 2026 ([15:03]).
  Expanding “hospital and grooming appointments” as a competitive moat ([15:15]), leveraging data to blur the lines between retail and services—e.g., linking vet recommendations with purchases ([15:51]).
  • John’s take: “Maybe you should change to a more expensive dog food that we sell outside.” ([16:27])
• Merchandising for a Modern Customer:
  Petco expands into pet tech—cameras, remote feeders, etc. ([16:57])

4. Other Market Stories at a Glance

• Uber launches driverless robotaxis in Abu Dhabi:
  First deployment in the Middle East, in partnership with Chinese firm WeRide; reflects global push for AVs ([18:00]).
• Campbell’s Soup 3D Printed Chicken Rumor:
  Viral tapes catch an IT VP making disparaging claims about Campbell’s (“highly processed food for poor people”; 3D-printed chicken).
  Company swiftly denies any such practices:
  • “No, we do not use 3D printed chicken, lab grown chicken, or any form of artificial or bioengineered meat in our soups.” —Campbell’s statement ([20:35]) Ann contextualizes: Lab-grown meats are not science fiction, but not used by Campbell’s today ([22:16]).

Notable Quotes & Memorable Moments

• Ann Berry on Nuuly’s Business Model ([02:39]):
  “Nuuly’s $98 per month fee means that revenue is predictable and it’s recurring. So I’m not a skeptic about Nuuly. It’s likely, in my opinion, to keep eating Rent the Runway’s lunch and gaining share—and doing so profitably.”

• John on Petco’s Struggles ([13:47]):
  “If I’m buying shoes, I want to go to Foot Locker… but in terms of dog food or a toy, to me that seems really easy to order from Amazon or subscription from Chewy.”

• Petco's CEO via earnings release ([14:20]):
  “We believe in the universal truths of pet parenthood, the boundless boops… Petco missing slippers, late night zoomies, and everything in between.”

• Ann on Dell’s Resilience ([08:11]):
  “We do need to remember there is other hardware out there, trying to find its way as all this evolves, where shares for Dell are up 15% year to date. And after 40 years it does seem that Dell still evolving, still moving…”

• On Campbell’s Soup Rumors ([20:35]):
  “No, we do not use 3D printed chicken, lab grown chicken, or any form of artificial or bioengineered meat in our soups.” —Campbell’s statement

• Ann’s historical aside ([22:16]):
  “Even [Winston Churchill] was contemplating a possibility that one day, you know, a chicken breast could be grown in a petri dish in a lab. So this is happening… but Campbell’s is clarifying today. They don’t use 3D printed chicken.”

Timestamps for Key Segments

• Nuuly & Urban Outfitters Analysis: 01:00 – 04:30
• Dell’s Earnings & Legacy, AI Push: 04:35 – 10:25
• Petco’s Turnaround, Services, and Pet Retail Trends: 11:00 – 17:30
• Uber Driverless News: 18:00 – 19:37
• Campbell’s 3D Printed Chicken Controversy: 19:37 – 22:44

Tone and Style

• Direct, conversational, slightly irreverent
• Ann blends insider insight with accessible takes (“We’ll keep watching!”)
• John brings wry humor—playful skepticism, sharp questions, and clever wordplay (“I do detect a little cynicism…”)
• Occasional pop culture references and personal anecdotes

Summary Takeaways

• Urban’s Nuuly proves clothing rental can be both scalable and profitable, in contrast to original pioneer Rent the Runway.
• Petco’s survival may depend on reinventing the in-store experience and merging retail with services, much like big-box human retailers.
• Dell’s embracing of on-premise AI shows that legacy hardware players can still surprise, even four decades in.
• Even century-old brands like Campbell’s must now address viral rumors with direct consumer comms.
• Modern markets reward agility, recurring revenue, and a readiness to pivot or double-down on experience—whether in fashion, pets, or tech.

For listeners and investors alike, Brew Markets delivers distilled, actionable market analysis with a side of personality—perfect for keeping up with both big-picture shifts and quirky corporate news.