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Speaker 1: Broadcasting live to New York Bloomberg even to Washington, d C.

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Speaker 1: Bloomber to Boston Bloomberg twelve under to San Francisco Bloomberg nine,

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Speaker 1: to the country's US exam General one nine and around

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Speaker 1: the globe the Bloomberg radios and Bloomberg dot com. This

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Speaker 1: is taking Stock, coming up on taking Stock, the chief

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Speaker 1: chief executive of a company that has been so disruptive

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Speaker 1: to the razor industry that its main rival, Gillette, was

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Speaker 1: compelled to launch an online subscription service, and they even

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Speaker 1: filed a patent lawsuit against this startup based in Los

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Speaker 1: Angeles Dollar Shave Club. We've got the CEO and the

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Speaker 1: chief Product innovation officer. Now we've got Charlie Pots in

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Speaker 1: the news room with the Bloomberg Business Flash and I

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Speaker 1: thank you very much, Kathleen, thank you, Pim, the dal

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Speaker 1: the SMP, Nestack. They are all law right now. S

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Speaker 1: and P five hundred index down sixteen points, the drop

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Speaker 1: of eight tens of one percent. We're brought to you

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Speaker 1: by National Realty Returns on cash in rented real estate.

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Speaker 1: Find them at n r i E dot net. Stocks

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Speaker 1: are falling for the first time in four days. Reversing

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Speaker 1: much of yesterday's rally is Disappointing results from Macy's to

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Speaker 1: Walt Disney heightened concern that American consumers remain hesitant to

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Speaker 1: booth spending. Disney is now down four point two percent,

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Speaker 1: reigniting fears of media investors with second quarter results that

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Speaker 1: missed analysts estimates. Stan Myers is with Piper Jaffrey in

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Speaker 1: Los Angeles. He's got a by rating on the stock

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Speaker 1: along with a one twenty dollar price target. On the call,

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Speaker 1: management didn't particularly give a lot of color on subscriber growth,

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Speaker 1: but you know in the filings that did say that

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Speaker 1: the subscriber growth was down one percent compares to two

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Speaker 1: percent last last quarter. So we see some deceleration subscriber

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Speaker 1: growth that's likely not pricedents as stock. Macy's outlook is

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Speaker 1: renewing concerns about the broader industry, sending shares of retailers

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Speaker 1: and apparel makers tumbling. Macy's stock down today by fourteen

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Speaker 1: points six percent, Gold up twelve seventy the ounce hired

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Speaker 1: by one percent to twelve seventy seven. Fifty SMP down fifteen,

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Speaker 1: a drop of eight tenths of one percent down industriels

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Speaker 1: down one eight five, a drop of one percent, and

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Speaker 1: has stacked down eight tenths of one percent. Crude oil

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Speaker 1: up a dollar forty three a barrel forty six O nine.

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Speaker 1: Again there a three tenths of one percent, So again

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Speaker 1: recapping stocks lower across the board this Wednesday, SMP down fifteen,

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Speaker 1: a drop of eight tenths of one percent. Three thirty

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Speaker 1: two on Wall Street. Now we'll look at other news

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Speaker 1: from around the world. Charlie, thank you from the Bloomberg

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Speaker 1: news room. I'm Mark Crumpton. This news update is brought

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Speaker 1: to you by the Jeep Grand Cherokee, the most awarded

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Speaker 1: suv ever. The Grand Cherokee continues to raise the bar

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Speaker 1: with its luxurious interior and legendary four by four ability.

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Speaker 1: Drive one at your local Jeep dealer today. Presumptive Republican

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Speaker 1: presidential nominee Donald Trump says he's narrowed his list of

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Speaker 1: choices to be his running mate to five or six people. Trump,

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Speaker 1: speaking with Associated Press, says he has not ruled out

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Speaker 1: former presidential candidate New Jersey Governor Chris Christie. Trump says

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Speaker 1: a candidate with political experience as a priority because he

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Speaker 1: wants a vice president to help him with legislation getting

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Speaker 1: things through Washington. Other Republicans who have suggested they are

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Speaker 1: open to being on Trump's ticket include former Texas Governor

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Speaker 1: Rick Perry and former Arizona Governor Jan Brewer. Michael Barr

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Speaker 1: Bloomberg Radio. Vice President Biden tells ABC's Good Morning America

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Speaker 1: the constant attacks coming from Republicans could be Donald Trump's undoing.

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Speaker 1: I feel confident that Hillary will be the nominee, and

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Speaker 1: I feel confidished with me the next president. A new

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Speaker 1: poll indicates Mr Trump has polled almost even with Mrs

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Speaker 1: Clinton nationally. Secretary Clinton draws. Mr Trump wins the support

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Speaker 1: of fort of likely vote is in the Reuters IPSOS

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Speaker 1: online national poll. The deadline to challenge local property tax

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Speaker 1: assessments in New York is coming up soon. State tax

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Speaker 1: officials say the so called grievance state deadline is made

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Speaker 1: twenty four. Property owners who believe the market value listed

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Speaker 1: on their local assessment is significantly higher than it should

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Speaker 1: be have until that day to file for a review.

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Speaker 1: Global News twenty four hours a day, powered by our

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Speaker 1: journalists in more than one hundred fifty news bureaus around

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Speaker 1: the world. From the Bloomberg News Room by Mark Crumpton. Charlie,

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Speaker 1: and we thank you and again recapping a move flour

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Speaker 1: for stocks SMP down fifteen points to two thousand sixty eight.

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Speaker 1: That is a drop of eight tenths of one percent.

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Speaker 1: I'm Charlie Platon. That's sub Bloomberg Business Flash. This is

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Speaker 1: taking Stock with Kathleen Hayes and Pim Fox on Bloomberg Radio.

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Speaker 1: Like so many startups, like so many disruptors, Dollar Shaved

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Speaker 1: Club was born out of frustration. I want to start

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Speaker 1: the story from there with two very special guests now,

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Speaker 1: Michael Duban, founder and CEO of Dollar Shape Club, and

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Speaker 1: Boddy Murad, he's the chief product innovation officer. They're joining

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Speaker 1: us in studio today to tell us about how they

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Speaker 1: got started and how they are disrupting a very important industry.

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Speaker 1: So Micha, let's start with you, founder CEO Santa Monica.

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Speaker 1: I love Santa Monica. So you guys just were at

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Speaker 1: a party and you said you're sick and tired of

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Speaker 1: how razors work. Yeah. Yeah, it's a painting about to

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Speaker 1: go to the store, find a locked razor, fortress, find

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Speaker 1: the person with the key. They're always doing something else

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Speaker 1: and they prefer not to help you. And so, um,

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Speaker 1: you know, we launched Dollar Shave Club and that was

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Speaker 1: in two thousand twelve. Since then, we we've garnered three

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Speaker 1: point one million members. They get a shipment from us

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Speaker 1: every month or every other month, and we've since expanded

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Speaker 1: into non razor categories to solve larger men grooming challenges.

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Speaker 1: Go ahead, tell us about that, and then I want

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Speaker 1: to find out a little bit about the lawsuit, because

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Speaker 1: you know, you've managed to accomplish something not everybody does,

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Speaker 1: which is to get a made a consumer products company

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Speaker 1: to sue you. Yes, we're completely thrilled about it. Yeah,

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Speaker 1: I'm like that. Laura's must be thrilled about it as well.

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Speaker 1: Uh yeah, Well I think I use and and you know,

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Speaker 1: soap in order to feel fresh when they deal with this.

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Speaker 1: Yeah right. Um, well, so look, I mean there's there's

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Speaker 1: men are paying a lot more attention to their grooming

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Speaker 1: than they ever have before, and they're just as frustrated

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Speaker 1: with the shopping experience and with the products themselves. Uh

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Speaker 1: and and so that's why we went out and hired Foddy, um,

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Speaker 1: you know, a very accomplished product development specialist and innovator

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Speaker 1: to help us develop you know, lines across the bathroom.

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Speaker 1: So uh, you know, we just launched today the Wanderer,

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Speaker 1: which is our line of body washes and bar soaps,

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Speaker 1: eventually shampoo and conditioner. But we've got skin preservation stuff,

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Speaker 1: we've got hair styling creams and gels. We've got pre

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Speaker 1: and pochet, We've got one wife Charlie's a butt wipe

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Speaker 1: for men, which is a major, a major seller, a big,

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Speaker 1: big seller. Uh. And you know, we're really proud of

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Speaker 1: that stuff. And the guys, guys, um, you know, they

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Speaker 1: don't like going to the store, as we know. They

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Speaker 1: like to get and get out and get on with

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Speaker 1: their lives. And we're we're sort of a guided journey

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Speaker 1: through the grooming aisle. So funny. So, as as the

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Speaker 1: innovation officer, it seems to me there is a lot

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Speaker 1: of competition in this space though. There's a busilion, different

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Speaker 1: kinds of body washes and all kinds of razors. So

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Speaker 1: what is your challenge? What are you what are you

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Speaker 1: doing that unique different besides just allowing me to put

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Speaker 1: an order in and get it automatically. What we think

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Speaker 1: is very different and very unique about our company is

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Speaker 1: we put the consumer first. We talked to him daily.

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Speaker 1: As Michael mentioned, we have over three million members. Uh,

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Speaker 1: we tap into them. We get to know what their

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Speaker 1: problems are and we identify what the solutions will be.

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Speaker 1: So men are emailing you, texting you rooms. We have

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Speaker 1: everything from from live chats to SMS, two phone calls.

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Speaker 1: We bring them in for focus groups. We actually go

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Speaker 1: into their homes to understand how they're using products in

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Speaker 1: the shower, how you know they're using their grooming products.

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Speaker 1: To really understand what are their pain points, what are

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Speaker 1: the areas of grooming that they're most frustrated with, and

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Speaker 1: how can we tappen to them to help us develop

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Speaker 1: products that it's gonna be specific for them, talk directly

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Speaker 1: to them and make their grooming habits a lot healthier.

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Speaker 1: All right, So either one of you can answer this question. Um,

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Speaker 1: you know, I like the smell of the of the soap.

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Speaker 1: You've gotten a couple of mixtures here, amber, lavender, mint,

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Speaker 1: cedar wood, and so on. The razors themselves, why are

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Speaker 1: they always so expensive? Not your razors, but I'm saying

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Speaker 1: why you know you as you mentioned, you go to

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Speaker 1: the case, you try to buy the razors and you're

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Speaker 1: knocked out by the price. Why is that? I mean,

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Speaker 1: you'd have to you'd have to talk to our friends

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Speaker 1: in Cincinnati to find out why why they're so expensive? Good?

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Speaker 1: Where the where the alternative? Yes, our good friends, good

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Speaker 1: friends to each other. Well sow you you and you

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Speaker 1: are alluding to and you mentioned the patent lawsuit from Gillette.

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Speaker 1: You can you talk about that or not? No? Unfortunately

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Speaker 1: I can't. Um, you can just say you're good friends.

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Speaker 1: I can just say my good friends and you know

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Speaker 1: we're looking forward to defending ourselves. Um, and I believe

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Speaker 1: we'll be successful. So let me ask you, BOTTI. I

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Speaker 1: would guess that a lot of women are involved in

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Speaker 1: buying these products, either say hey, mi, guy really needs

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Speaker 1: this and here it is honey signing them up. Do

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Speaker 1: you hear from women as well? Absolutely? We we do

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Speaker 1: know that. UM, A lot of men's grooming products are

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Speaker 1: purchased by the girlfriends, the partners, the wives, UM. And

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Speaker 1: they do understand that they're much more educated in terms

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Speaker 1: of using products, but the guys are not so Traditionally

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Speaker 1: they buy the products for him. UM. But it's important

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Speaker 1: for them to understand actually what they're you know, what

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Speaker 1: the what what the guy's specific skin concerns are and

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Speaker 1: the fact that it's also different. We're developing products specifically

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Speaker 1: for men, we're not leveraging women's faces. And that's how

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Speaker 1: we go about it. I think the interesting thing about

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Speaker 1: about men's grooming in the age that we're living in

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Speaker 1: right now is that guys really want control over this

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Speaker 1: area of their life. They don't want to seed control

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Speaker 1: to to somebody else in their households or somebody that

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Speaker 1: they live with. Um. They recognize the direct connection that

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Speaker 1: looking good, smelling good, feeling good has on their confidence

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Speaker 1: and their success and and um. We find that guys

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Speaker 1: are becoming more thoughtful about the ingredients that go into

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Speaker 1: all of these products. Uh. And and you know that's

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Speaker 1: why we have, you know, really high standards when it

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Speaker 1: comes to formulating these things. You know, no sulfates, no parabins,

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Speaker 1: um and always really honest, uh, you know, fragrances that

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Speaker 1: you can understand like men and cedar would and and

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Speaker 1: not you know, like you know, bear Musk. I just

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Speaker 1: wanted to know who came up with the idea of

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Speaker 1: one wife, Charlie. I did. Okay, well listen, it's not

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Speaker 1: it's you know, we get a lot of laughs and

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Speaker 1: a lot of sers, but it's a serious product. It's

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Speaker 1: it sells big time. I mean, I've had people come

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Speaker 1: up to me in the airport on conference calls, put

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Speaker 1: the phone down and say, you know, Mike, You've changed

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Speaker 1: my my life, thank you, and then unzip their bag

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Speaker 1: and show me the travel whites wives. I had a

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Speaker 1: guy in a hot tub at a conference in Hawaii,

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Speaker 1: um come up to me and tell me that his

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Speaker 1: wife made him buy those because she said he wasn't

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Speaker 1: doing a good enough job. Dollars shaved cub Club, but

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Speaker 1: chief product Innovation off to Foddy Mourad and Michael Duban,

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Speaker 1: the founder retailers selling off big time to day after

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Speaker 1: Macy's fall, Shorts, Amazon, the Lone Wolf moving higher. Find

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Speaker 1: out why as we move ahead into the clothes, movers

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Speaker 1: and Shakers and more coming up on Bloomberg Radio