Brew Markets – Episode Summary

Podcast: Brew Markets
Host: Ann Berry
Episode: Puma v. Nike: Sportswear Wars Go Global + AT&T Dials Up Bundles
Date: January 28, 2026

Overview

This episode of Brew Markets features Ann Berry and John Curto breaking down key market movers, with deep dives into:

• The evolving global sportswear battle as Anta acquires a significant stake in Puma, intensifying competition with Nike.
• AT&T’s latest strategy update, mergers, and efforts to turn steady industry growth into market excitement.
• Other earnings season highlights, including Seagate (STX), Texas Instruments (TXN), Corning (GLW), and Starbucks (SBUX).
• Closing market headlines, including the S&P 500’s milestone and the Federal Reserve’s latest rate decision.

The theme centers on adaptation and longevity—how established companies maneuver for growth amid shifting competitive and technological landscapes.

Key Discussion Points and Insights

1. Anta’s Stake in Puma: Sportswear Rivalries Escalate (00:32 – 04:50)

- The Deal

• Chinese sportswear giant Anta, already the top domestic brand in China and owner of Fila, Jack Wolfskin, Wilson, and Arc’teryx, announces plans to acquire a 29% stake in Puma for €1.5B in cash.
• The stake comes from the Pinault family, who control luxury group Kering (Gucci, Bottega Veneta).
• Anta’s brands are global, with significant reach outside China, and Armor Sports (Wilson, Arc’teryx) is now listed on NYSE.

- Strategic Implications

• "With the deal, Anta expands its reach into athletic footwear, setting it up squarely against Nike." (00:52, Ann Berry)
• Anta aims to leverage Puma’s European brand equity while accelerating Puma’s growth in Asia, using a playbook proven successful with Arc’teryx’s rapid expansion in China after Anta’s acquisition.

- Nike’s Turnaround and Challenges

• Nike is 15 months into a turnaround—new CEO Elliot Hill (since Oct 2024), inventory refreshes, store reformatting by sport, leadership changes, and women’s wear push.
• Recent challenges: China sales fell 17% last quarter (Dec 2025), prompting a 1% workforce cut mainly in the U.S. distribution centers as Nike pushes automation.
• Market reactions: Puma stock flat on the news, reflecting uncertainty over Anta’s strategic value versus losing Pinault/Kering as a major stakeholder. Anta’s shares slipped over market doubts if it overpaid for Puma.

- Memorable Quote

• "The market's trying to figure out if gaining this Chinese strategic shareholder and the promise of growth into Asia is better or not than losing the Pinault family’s focus." (03:47, Ann Berry)

2. AT&T Adapts: Bundles, Acquisitions, and Churn Control (05:33 – 14:44)

- Earnings Highlights

• AT&T stock up 5% post-earnings: Revenue $33.5B (+3.7% YoY), adjusted EPS $0.52 (beat by $0.06).
• "AT&T…only 11 companies have been listed on the NYSE longer." (06:27, John Curto)
• Steady, “utility-like” growth—host describes her phone as a utility product.

- Core Segments & The 'Convergence' Push

• Three main segments: mobile, broadband (fiber), legacy copper-wire landlines.
• "AT&T is so in on convergence that it is revising its operating segments… like fiber and wireless being smushed together for the consumer." (11:19, Ann Berry)

- Customer Growth and Retention

• 421,000 postpaid additions (monthly bill customers, slightly below estimates) but churn (customer loss) came in lower than expected.
• Promotional activity was disciplined: fewer discounts, focused on value.
  • "Discipline in offering the right value proposition is the way it got there. So not giving away the farm on discounts and still delivering up pretty good subscriber growth." (09:13, Ann Berry)
• Bundling gains: 42% of AT&T fiber households also have wireless, enabling discounts and driving growth.

- Acquisitions and Capital Deployment

• Acquiring Lumen ($6B) for new market expansion.
• $20B for spectrum from EchoStar—addresses long-standing spectrum shortages per CFO Pascal Desroches interview.
• $4.2B free cash flow last quarter; $45B+ to be returned to investors in next three years (dividends & buybacks). Dividend: $11/share.

- Pet Peeves and Transparency

• Ann Berry dislikes when companies (including AT&T or Netflix) combine or hide segment data:
  • "More is more, more is fine, but reducing it I don’t like so much." (12:57, Ann Berry)

- Notable Moment

• Light banter on logistical pains of moving and cable installation, but surprisingly positive reviews of Verizon’s technicians.

3. Seagate’s Surprise Surge: Data Storage and AI Tailwinds (14:44 – 18:34)

- Strong Quarter and Relevance to the AI Boom

• Seagate stock up as much as 20%, hitting all-time highs after strong earnings: $2.83B revenue (+22% YoY), $3.11 EPS (beat by $0.20).
• Bullish guidance (revenue nearly $3B next quarter, $3.40 EPS).
• Seagate has successfully pivoted to new magnetic recording tech, boosting per-drive capacity (30% improvement) and margins—key for the AI buildout.
  • Analyst commentary: "The move was executed near flawlessly." (17:04, Ann Berry quoting market reaction)

- Market Impact and Analyst Turnarounds

• Even previous bears (e.g., Susquehanna) upgraded Seagate:
  • "We acknowledge that our…hard disk drives industry thesis has proven incorrect." (17:22, Ann Berry quoting Susquehanna)
• Seagate shares: +188% past year, +332% past 6 months. Western Digital (WDC) and SanDisk also up.

- Thematic Insight

• Comparison to Nvidia and Texas Instruments: established hardware makers tapping new lifecycles through AI demand and product adaptation.

4. Spotlights: Corning, Starbucks, and the Fed Decision (19:15 – 24:18)

- S&P 500 Milestone (20:51)

• S&P 500 crossed 7,000 for the first time, closing flat. Dow also flat; Nasdaq +0.2%.

- Fed Holds Rates Steady (21:15)

• Chairman Powell: "Economic activity has been expanding at a solid pace… the housing sector has remained a weak spot." (21:21, Ann Berry quoting Powell)
• Labor market shows stabilization; inflation still above 2% target.

- Corning (22:01)

• Corning follows $6B Meta fiber optics deal (from last episode) with strong FY25 results: $16B in core sales (+13%), +30% core EPS.
• Shares down 5% on valuation concerns after previous rallies; 60x P/E seen as stretched even after beat.

- Starbucks Turnaround (23:21)

• Starbucks shares up 3.5% despite missed estimates—positive same-store sales (+4% U.S., +5% intl.) and transaction growth for first time in two years.
• CEO Brian Niccol: “Back to Starbucks” plan and new service initiatives credited.
• Ann Berry to attend Investor Day for first-hand turnaround insights.

Notable Quotes & Memorable Moments

| Timestamp | Speaker | Quote/Note | |-----------|-------------|--------------------------------------------------------------------| | 00:52 | Ann Berry | "With the deal, Anta expands its reach into athletic footwear, setting it up squarely against Nike." | | 03:47 | Ann Berry | "The market's trying to figure out if gaining this Chinese strategic shareholder and the promise of growth into Asia is better or not than losing the Pinault family’s focus." | | 09:13 | Ann Berry | "Discipline in offering the right value proposition...not giving away the farm on discounts and still delivering up pretty good subscriber growth." | | 11:19 | Ann Berry | "AT&T is so in on convergence that it is revising its operating segments…like fiber and wireless being smushed together for the consumer." | | 12:57 | Ann Berry | "More is more, more is fine, but reducing it I don’t like so much." | | 17:04 | Ann Berry | "The move was executed near flawlessly." (regarding Seagate’s pivot)| | 17:22 | Ann Berry | "We acknowledge that our…hard disk drives industry thesis has proven incorrect." (quoting Susquehanna) | | 21:21 | Ann Berry | "Economic activity has been expanding at a solid pace… the housing sector has remained a weak spot." (quoting Powell) |

Timestamps for Key Segments

• Anta/Puma Deal & Nike Analysis: 00:32 – 04:50
• AT&T Earnings, Bundling & M&A Strategy: 05:33 – 14:44
• Seagate, Texas Instruments & Tech Hardware: 14:44 – 19:15
• Market Close, Fed & Survey Headlines: 20:51 – 24:18
• Starbucks Turnaround & Investor Day Preview: 23:21 – 24:18

Tone & Language

Ann Berry and John Curto maintain an engaging, conversational yet analytical tone, mixing personal anecdotes, technical explanations, and occasional industry “pet peeves” with succinct, accessible breakdowns of financial news. Their style is upbeat, curious, and sometimes gently irreverent (“I understand why America has run on Dunkin…” 24:18), making the content accessible even to listeners less versed in finance.

For Listeners Who Haven’t Tuned In

This episode gives a sharp snapshot of how established and emerging brands in both consumer and tech sectors are finding new routes to growth—whether it’s Anta’s cross-continental sportswear gambit, AT&T’s consolidation push, or Seagate’s rebirth in the AI economy. Ann and John demystify not just the headlines but the business strategies—and market moods—driving today’s biggest tickers.