Five interesting things that Hodges Capital research analysts discovered this week...

#1 DIFFICULT GAME CONDITIONS: According to Reuters, GameStop faces another series of layoffs attributed to decreased fourth-quarter revenue, low consumer spending, and competition from e-commerce companies. The exact number of affected jobs is unspecified, but GameStop had about 8,000 full-time and 18,000 part-time employees as of February. The company, which had previously reduced its workforce in December 2022, saw its revenue fall from $2.2 billion in the previous year to $1.8 billion in 2023. In an effort to reduce costs, GameStop also exited markets in Ireland, Switzerland, and Australia.  

#2 A GROWING AUDIENCE: According to ESPN, ABC/ESPN’s telecast of South Carolina’s thrilling 87-75 win over Iowa averaged 18.9 million viewers. The game was the most-watched college basketball game – men’s or women’s – in ESPN’s history. The title game had nearly double the number of viewers as last year’s Iowa-LSU title game.  

#3 BIG IMPACT: “The 2024 total solar eclipse will only last in Dallas County for less than four minutes, but the opportunity for the city and its outlying suburbs is enormous,” said Ray Perryman, founder and CEO of the Perryman Group. The direct tourism impact for the cities of Dallas, Plano, and Irving is estimated at $148 million, and the direct impact for the state of Texas is estimated at $428 million.

#4 IN NEED OF REPAIR: The American Road & Transportation Builders Association (ARTBA), a trade group, says one out of every three bridges in the US, or 6,100 miles worth of bridge, needs repairs or replacement. The Infrastructure Investment and Jobs Act (IIJA) of 2021 dedicated $40 billion to bridge repairs over the next five years. Still, the ARTBA estimates the real price of fully modernizing America’s crossings at as much as $320 billion.

#5 THE ICONIC TUPPERWARE BRAND: Founded in 1946 by chemist Earl Tupper, the company’s popularity exploded in the 1950s as women of the post-war generation held “Tupperware parties” at their homes to sell food storage containers. According to Reuters, Tupperware Brands recently warned investors that it was not certain its business could continue as a going concern and would face a liquidity crunch due to slumping demand for its iconic food storage containers.

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