WEBVTT - Retail Shares on the Move

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>The Stock Movers Report, your roundup of companies making moves

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<v Speaker 2>in the stock market, harnessing the power of Bloomberg Data.

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<v Speaker 1>Stock Moves It's a podcast.

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<v Speaker 3>No Pressure or alexis the bar is high? All right,

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<v Speaker 3>Let's start with Dick's Sporting Goods. This stock is down

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<v Speaker 3>two percent right now, but up eighteen percent year to date,

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<v Speaker 3>so it's been doing pretty well. And in the past

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<v Speaker 3>year it's up thirty four percent. Dix posted in earning's

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<v Speaker 3>miss for last quarter. It is trying to get foot

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<v Speaker 3>locker back to growth. Remember it bought the legacy sneaker

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<v Speaker 3>store back in September for about two and a half

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<v Speaker 3>billion dollars, so it incurred over ninety six million dollars

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<v Speaker 3>in charges related to that acquisition last quarter, and so

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<v Speaker 3>those can expenses contributed to a miss on Dick's bottom line.

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<v Speaker 3>Top line results, though, did beat expectations, and this is

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<v Speaker 3>coming from analysis at Bloomberg Intelligence. They say Dick's Sporting

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<v Speaker 3>Goods has strong momentum for its legacy business heading into

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<v Speaker 3>the summer and the back to school shopping season. My goodness,

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<v Speaker 3>back to school. We didn't even finish this school season

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<v Speaker 3>and then the World Cup, a possible catalyst for more

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<v Speaker 3>same store sales surprises. Apparently that merch is already out

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<v Speaker 3>for the stores.

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<v Speaker 1>So we're talking to merch. I mean the stock's down right, yeah.

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<v Speaker 1>So I'm sitting in the food coat yesterday having my

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<v Speaker 1>English breakfast full English. An Mary Horden comes up to

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<v Speaker 1>me and she's dressed in this gazillion, multiple, one hundred

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<v Speaker 1>dollars sparkle. I'm sitting in the first row Nick's jacket.

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<v Speaker 1>Love it, and she goes, doesn't work, And I said, well,

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<v Speaker 1>it's the knicks. It's gotta work. I mean, can you

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<v Speaker 1>imagine them?

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<v Speaker 3>They get one to test.

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<v Speaker 1>She got it at Dick's Sporting's good.

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<v Speaker 3>All right, Okay, there you go.

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<v Speaker 1>Oh let's go.

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<v Speaker 3>Let's stick with retail into a little Lulu Lemon. So

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<v Speaker 3>this stock is up better than three percent right now.

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<v Speaker 3>And we know they've been going through it. I mean

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<v Speaker 3>it's down thirty nine percent year to date, down sixty

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<v Speaker 3>percent in the past year. They're trying to get their

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<v Speaker 3>sales up. There have been executive changes at Lululemon. Well

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<v Speaker 3>now the company's making with its founder Chip Wilson. Just

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<v Speaker 3>this morning it entered an agreement with Wilson to end

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<v Speaker 3>their messy proxy fight. Wilson started that back in December.

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<v Speaker 3>He is their largest shareholder. Under terms of the deal,

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<v Speaker 3>Wilson's going to get two board seats and in exchange,

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<v Speaker 3>he is not going to bad mouth Lululemon. It says

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<v Speaker 3>any agreement for around a year and a half. So

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<v Speaker 3>what happens after that, and you can trash the place.

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<v Speaker 3>I don't know what the lawyers were thinking about there,

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<v Speaker 3>but Lulu Lemon. Yeah, it's the stock is getting a

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<v Speaker 3>nice bump today. And then Bath and body Works. Oh,

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<v Speaker 3>I just realized they're all retail stocks.

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<v Speaker 1>It's a time of year.

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<v Speaker 3>It's so true. So this is this soap and candle

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<v Speaker 3>retailer you smell at the minute you walk into the stores.

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<v Speaker 3>Stock is up twelve percent here today. It reported lower

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<v Speaker 3>first quarter sales. The company is overhauling its strategy to

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<v Speaker 3>return to growth. But you know what, even though sales fell,

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<v Speaker 3>they still came in better than expected. Also guidance match

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<v Speaker 3>Street estimates. Full your guidance maintained, and their CFO has

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<v Speaker 3>stick down and they're they're naming somebody else on an

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<v Speaker 3>interim basis. They expect to generate freak cash flow of

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<v Speaker 3>about six hundred million dollars. But I did not get this.

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<v Speaker 3>I did not know this, td count analyst saying there

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<v Speaker 3>is more downside risk for Bath and Body Works given

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<v Speaker 3>their exposure to the Middle East. Do you know they

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<v Speaker 3>get five percent of their sales from the Middle East.

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<v Speaker 1>I've never gotten the company. I mean, I I don't

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<v Speaker 1>care because I'm in the triple leverage all cash.

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<v Speaker 3>But it just candles are not your thing, Tom, No,

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<v Speaker 3>they're not.

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<v Speaker 1>You know, It's okay. And I guess the markups like four.

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<v Speaker 1>You got anything else?

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<v Speaker 3>I mean, I can do a little target for you.

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<v Speaker 1>Je I got, I got the an Marie coat. Here.

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<v Speaker 1>I can see you with this. Alexis the pro standard

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<v Speaker 1>Woman's New York Knicks black Legacy Varsity jets.

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<v Speaker 3>Oh a Varsity jet like with the big letters there,

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<v Speaker 3>like a big letters. And you know, do you think

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<v Speaker 3>I can expense it?

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<v Speaker 1>I would? I think expense and marine horders job expense.

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<v Speaker 1>I mean the same with Alexis Postophores.

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