1 00:00:02,720 --> 00:00:10,559 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. You're listening to the 2 00:00:10,600 --> 00:00:14,560 Speaker 1: Bloomberg Intelligence Podcast. Catch us live weekdays at ten am 3 00:00:14,600 --> 00:00:18,520 Speaker 1: Eastern on Applecarplay and Android Auto with the Bloomberg Business App. 4 00:00:18,640 --> 00:00:21,840 Speaker 1: Listen on demand wherever you get your podcasts, or watch 5 00:00:21,960 --> 00:00:23,480 Speaker 1: us live on YouTube. 6 00:00:23,960 --> 00:00:26,520 Speaker 2: A lot of tech stories out there, including the one 7 00:00:26,520 --> 00:00:29,800 Speaker 2: here Microsoft here. The question is I guess the information 8 00:00:30,560 --> 00:00:34,320 Speaker 2: was out earlier that multiple Microsoft divisions lowered how much 9 00:00:34,560 --> 00:00:37,680 Speaker 2: salespeople are supposed to grow their sales of certain air 10 00:00:37,760 --> 00:00:40,919 Speaker 2: products after many missed sales goals in the fiscal year 11 00:00:40,920 --> 00:00:43,440 Speaker 2: and in June. That's what the Information Reporter earlier. Today, 12 00:00:43,479 --> 00:00:48,600 Speaker 2: Microsoft though, has not lowered sales quotas and targets for salespeople. 13 00:00:48,600 --> 00:00:51,879 Speaker 2: That's according to CNBC. They reported that on air, siting 14 00:00:52,400 --> 00:00:54,639 Speaker 2: an emailed statement for Microsoft. So I don't know what's 15 00:00:54,640 --> 00:00:56,600 Speaker 2: going on out there. Microsoft stocks down a little bit 16 00:00:56,640 --> 00:00:59,440 Speaker 2: here on a Rod Rana, technology analyst to Bloomberg Intelligence 17 00:00:59,520 --> 00:01:04,800 Speaker 2: joins this year just kind of put that information reporting 18 00:01:04,840 --> 00:01:06,920 Speaker 2: the CNBC kind of rebutting it. I mean, just give 19 00:01:06,959 --> 00:01:09,040 Speaker 2: us a sense of kind of AI sales how this 20 00:01:09,080 --> 00:01:12,120 Speaker 2: thing is kind of progressing, because I can't imagine there's 21 00:01:12,120 --> 00:01:14,600 Speaker 2: any material slowdown in AI from what I've heard. 22 00:01:15,760 --> 00:01:17,839 Speaker 3: Yeah, Aulso when you look at there are two different 23 00:01:17,840 --> 00:01:21,760 Speaker 3: elements of it. One is the AI infrastructure piece of it. Well, 24 00:01:21,800 --> 00:01:24,240 Speaker 3: there is no slowdown in Microsoft at that point in fact, 25 00:01:24,280 --> 00:01:27,679 Speaker 3: that Microsoft is capacity constraints right now. But to be honest, 26 00:01:27,720 --> 00:01:29,800 Speaker 3: that's not the sales quota somebody is looking at it. 27 00:01:29,840 --> 00:01:33,000 Speaker 3: That just comes in because you're hosting somebody's model, or 28 00:01:33,000 --> 00:01:36,560 Speaker 3: you're trying to get you're hosting chat GPT. The sales 29 00:01:36,600 --> 00:01:40,400 Speaker 3: quotas would be for products such as you know, Microsoft Copilot, 30 00:01:40,600 --> 00:01:44,760 Speaker 3: Office Copilot, Getthub Copilot, all those products. And you know 31 00:01:44,800 --> 00:01:47,440 Speaker 3: that's not the same for everything. There are certain products 32 00:01:47,440 --> 00:01:49,880 Speaker 3: that sell better than the others because of the use 33 00:01:49,920 --> 00:01:52,880 Speaker 3: case of it. Kittub Copilot, for example, because it's a 34 00:01:52,920 --> 00:01:57,640 Speaker 3: coding software platform. The Microsoft Office Copilot is a good 35 00:01:57,720 --> 00:02:01,040 Speaker 3: piece of software or copilot, but it's very expensive. It's 36 00:02:01,080 --> 00:02:03,160 Speaker 3: I think thirty dollars per use of per month, so 37 00:02:03,400 --> 00:02:06,840 Speaker 3: it's not an Apple set of apples comparison throughout the board. 38 00:02:07,040 --> 00:02:08,920 Speaker 3: One of the things that we've been talking about is 39 00:02:09,360 --> 00:02:12,320 Speaker 3: even when you look at the broader tech spending, there 40 00:02:12,360 --> 00:02:14,960 Speaker 3: is a big slowdown when you exclude AI. So that 41 00:02:15,000 --> 00:02:18,840 Speaker 3: could be one reason that enterprise are not comfortable spending 42 00:02:18,880 --> 00:02:22,160 Speaker 3: that level of money right now on those individual software pieces. 43 00:02:22,480 --> 00:02:24,919 Speaker 3: The second piece could be the implementation part of it. 44 00:02:25,000 --> 00:02:28,480 Speaker 3: Because you're buying these sometimes there's data products that you 45 00:02:28,520 --> 00:02:32,560 Speaker 3: have to include in your core software or your core applications, 46 00:02:32,720 --> 00:02:34,680 Speaker 3: and that may take time. So there is a lot 47 00:02:35,560 --> 00:02:38,440 Speaker 3: to be digest from a macro piece. I don't think 48 00:02:38,440 --> 00:02:39,880 Speaker 3: there is any slowdown. 49 00:02:40,040 --> 00:02:43,720 Speaker 4: Honor on how is Microsoft tracking against its competitors in 50 00:02:43,800 --> 00:02:45,360 Speaker 4: terms of AI software. 51 00:02:46,280 --> 00:02:48,880 Speaker 3: It is doing much better than everybody else. But again 52 00:02:49,160 --> 00:02:53,200 Speaker 3: with the caveat because they host chatchipt. This is when 53 00:02:53,200 --> 00:02:55,920 Speaker 3: they invested in chat GPT, you know, I don't know 54 00:02:55,960 --> 00:02:58,639 Speaker 3: six seven years ago. That is part of that thing 55 00:02:58,800 --> 00:03:01,680 Speaker 3: was when you're running that application, it runs on their cloud. 56 00:03:01,919 --> 00:03:03,840 Speaker 3: So when you see that, you know, within a three 57 00:03:03,919 --> 00:03:06,400 Speaker 3: year period you have what five hundred and six million 58 00:03:06,480 --> 00:03:09,520 Speaker 3: users out there when we use chat GPT, a large 59 00:03:09,560 --> 00:03:12,679 Speaker 3: portion of that revenue flows into Microsoft Cloud. So when 60 00:03:12,840 --> 00:03:15,440 Speaker 3: they are the ones that have seen the first phase 61 00:03:15,480 --> 00:03:18,560 Speaker 3: of the big benefit of AI. But as we have said, 62 00:03:18,720 --> 00:03:21,239 Speaker 3: you know many times before, all the other vendors will 63 00:03:21,240 --> 00:03:24,000 Speaker 3: see that down the road. When adoption grows in other 64 00:03:24,040 --> 00:03:26,880 Speaker 3: areas of the ecosystem. 65 00:03:27,080 --> 00:03:31,040 Speaker 2: Salesforce reports after the close here what should we expect 66 00:03:31,080 --> 00:03:32,240 Speaker 2: from them? 67 00:03:32,400 --> 00:03:34,320 Speaker 3: Yeah, it goes back to the first piece of what 68 00:03:34,360 --> 00:03:37,280 Speaker 3: I said was enterprise spending is week when you're looking 69 00:03:37,360 --> 00:03:40,400 Speaker 3: at Fortune two thousand companies, they're not hiding at that 70 00:03:40,440 --> 00:03:43,000 Speaker 3: same pace that they used to and we will exclude 71 00:03:43,000 --> 00:03:46,920 Speaker 3: AI companies from it. And that is that weighs on 72 00:03:47,080 --> 00:03:50,880 Speaker 3: the sales of somebody like a salesforce, somebody like a 73 00:03:50,920 --> 00:03:55,320 Speaker 3: workday because they build on a per head basis. So 74 00:03:55,720 --> 00:03:58,200 Speaker 3: when these companies are not hiding at that same rate, 75 00:03:58,480 --> 00:04:01,120 Speaker 3: Salesforce has a tough time to grow their subscription base. 76 00:04:01,440 --> 00:04:03,000 Speaker 3: And you know, we think it is going to be 77 00:04:03,160 --> 00:04:05,120 Speaker 3: very much in line with what they had last time, 78 00:04:05,240 --> 00:04:08,680 Speaker 3: somewhere around at nine ten percent, which is not bad, 79 00:04:08,760 --> 00:04:10,280 Speaker 3: but it's not very exciting as well. 80 00:04:11,080 --> 00:04:13,000 Speaker 2: I mean, is that enough for the stock to be 81 00:04:13,080 --> 00:04:15,920 Speaker 2: down as much as it is here to date? 82 00:04:16,080 --> 00:04:18,279 Speaker 4: I mean it just seems like thirty percent down. 83 00:04:18,360 --> 00:04:20,960 Speaker 2: You're exactly down thirty percent for this is a company 84 00:04:20,960 --> 00:04:23,680 Speaker 2: that just has has been such a great growth story. 85 00:04:24,480 --> 00:04:26,880 Speaker 3: Yeah, so when you and you know, when you look 86 00:04:26,920 --> 00:04:29,600 Speaker 3: at last year, there was a lot of excitement when 87 00:04:29,600 --> 00:04:32,400 Speaker 3: they launched a product called Agent Force, which was their 88 00:04:32,520 --> 00:04:35,680 Speaker 3: answer or the AI answer to the rest of the universe. 89 00:04:36,080 --> 00:04:38,720 Speaker 3: But what happened was the adoption rate has not been 90 00:04:38,760 --> 00:04:41,640 Speaker 3: as strong as the initial you could say the demo 91 00:04:41,880 --> 00:04:43,760 Speaker 3: was so if you look at the stock price, it 92 00:04:43,839 --> 00:04:45,640 Speaker 3: kind of went out quite a bit of when they 93 00:04:45,720 --> 00:04:49,240 Speaker 3: first launched that particular product. Now this year it's not 94 00:04:49,320 --> 00:04:51,040 Speaker 3: showing up in the numbers, and this is one of 95 00:04:51,120 --> 00:04:53,640 Speaker 3: the reasons you're not seeing the stock recovering from that. 96 00:04:54,440 --> 00:04:56,920 Speaker 4: What about Oracle, It seems like there's some worries around 97 00:04:56,960 --> 00:04:59,440 Speaker 4: artificial intelligence there as well. We're looking at a credit 98 00:04:59,520 --> 00:05:01,559 Speaker 4: risk game and reaching as high as since two thousand 99 00:05:01,600 --> 00:05:01,880 Speaker 4: and nine. 100 00:05:02,800 --> 00:05:05,360 Speaker 3: Yeah, and that is why I think the very very 101 00:05:05,400 --> 00:05:08,400 Speaker 3: valid question is what happens to Oracle. When you look 102 00:05:08,400 --> 00:05:12,479 Speaker 3: at this entire AI bubble narrative or the framework, you know, 103 00:05:12,520 --> 00:05:14,720 Speaker 3: you have the big cloud providers that are spending the 104 00:05:14,720 --> 00:05:17,400 Speaker 3: most amount of money. We say, when you look at 105 00:05:17,400 --> 00:05:20,240 Speaker 3: somebody like an Amazon, Microsoft, and Google, they are spending 106 00:05:20,279 --> 00:05:22,760 Speaker 3: quite a bit, but they have real, you know, awesome 107 00:05:23,360 --> 00:05:25,960 Speaker 3: cash flow that's coming in. Plus they have businesses, so 108 00:05:26,040 --> 00:05:28,880 Speaker 3: even if they overbuild, they will have capacity to use it. 109 00:05:29,360 --> 00:05:32,599 Speaker 3: The bigger question is what happens to open ai oracle relationship. 110 00:05:32,920 --> 00:05:36,919 Speaker 3: Open Ai has said that they have given Oracle, you 111 00:05:36,960 --> 00:05:39,479 Speaker 3: could say, a contract of about three hundred billion dollars 112 00:05:40,080 --> 00:05:42,880 Speaker 3: to bleed in terms of sales over the next several years. 113 00:05:43,000 --> 00:05:45,840 Speaker 3: They're going to first build some massive data centers and 114 00:05:45,920 --> 00:05:48,000 Speaker 3: then they're going to use Oracle as a cloud provider. 115 00:05:48,320 --> 00:05:50,159 Speaker 3: The big question is where is opening IM going to 116 00:05:50,200 --> 00:05:53,080 Speaker 3: get money from, And that's really what's weighing on that 117 00:05:53,160 --> 00:05:55,719 Speaker 3: particular part of the equation. And to be very honest, 118 00:05:55,760 --> 00:05:59,840 Speaker 3: there is genuine reason to figure out, like how is 119 00:06:00,000 --> 00:06:02,160 Speaker 3: wi is going to raise that money and how are 120 00:06:02,160 --> 00:06:04,520 Speaker 3: they going to spend So there is some reason to 121 00:06:04,560 --> 00:06:06,960 Speaker 3: be consumed, but not so much on the credit de 122 00:06:07,000 --> 00:06:09,599 Speaker 3: false side of it, but so much more as the 123 00:06:09,720 --> 00:06:12,359 Speaker 3: estimates that are out there for the opious. 124 00:06:14,240 --> 00:06:17,320 Speaker 2: Stay with us. More from Bloomberg Intelligence coming up after this. 125 00:06:20,960 --> 00:06:24,640 Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live 126 00:06:24,720 --> 00:06:27,799 Speaker 1: weekdays at ten am Eastern on Apple, Cocklay and Android 127 00:06:27,839 --> 00:06:31,120 Speaker 1: Auto with the Bloomberg Business app. Listen on demand wherever 128 00:06:31,200 --> 00:06:34,679 Speaker 1: you get your podcasts, or watch us live on YouTube. 129 00:06:34,920 --> 00:06:38,080 Speaker 2: All right, let's talk a little retail Macy's at with 130 00:06:38,120 --> 00:06:40,480 Speaker 2: some numbers. I thought the numbers were pretty good. Stocks 131 00:06:40,520 --> 00:06:42,320 Speaker 2: off one point seven percent, So what do I know? 132 00:06:42,640 --> 00:06:45,400 Speaker 2: Mary Ross Gilbert Senior Echody Allen, she covers the retailer. 133 00:06:45,520 --> 00:06:48,960 Speaker 2: She's the expert for Bloomberg Intelligence. She's based out there 134 00:06:49,000 --> 00:06:51,839 Speaker 2: in la Mary talks us about Macy's. What do we 135 00:06:51,839 --> 00:06:53,240 Speaker 2: hear from them today with the results. 136 00:06:55,400 --> 00:06:58,760 Speaker 5: So, Paul, we saw, actually, I think great results coming 137 00:06:58,760 --> 00:07:01,640 Speaker 5: out of Macy's this morning, you see, And so when 138 00:07:01,680 --> 00:07:04,560 Speaker 5: you think about it, the stock is off, but that's 139 00:07:04,640 --> 00:07:09,040 Speaker 5: because the company put out conservative fourth quarter guidance and 140 00:07:09,080 --> 00:07:10,560 Speaker 5: that's really what they always do. 141 00:07:10,720 --> 00:07:11,840 Speaker 3: They seek to beat. 142 00:07:11,680 --> 00:07:15,080 Speaker 5: Their numbers, and so that guidance came in very close, 143 00:07:15,200 --> 00:07:17,160 Speaker 5: you know, at the high end. It's right around where 144 00:07:17,200 --> 00:07:20,120 Speaker 5: analysts are because they already saw strong results come in 145 00:07:20,120 --> 00:07:24,640 Speaker 5: from other retailers. But we think, when we think about it, 146 00:07:24,720 --> 00:07:28,640 Speaker 5: we think there's upside here. So we really view the 147 00:07:28,680 --> 00:07:32,720 Speaker 5: results as look Macy's name plate because of all the 148 00:07:32,800 --> 00:07:35,480 Speaker 5: changes that they're making, and what that means is they're 149 00:07:35,480 --> 00:07:39,280 Speaker 5: bringing in more relevant brands that are resonating with their consumer. 150 00:07:39,840 --> 00:07:43,960 Speaker 5: Not only that, but the stores look brighter. There's really 151 00:07:44,080 --> 00:07:48,040 Speaker 5: kind of exciting music in the stores, the store associates 152 00:07:48,120 --> 00:07:51,640 Speaker 5: are more engaged with the customer. We've noticed that on 153 00:07:51,680 --> 00:07:55,080 Speaker 5: our channel texts, particularly on Black Friday, we saw more 154 00:07:55,160 --> 00:07:58,000 Speaker 5: traffic in the store than we've seen in years past. 155 00:07:58,480 --> 00:08:02,040 Speaker 5: So we think that the change is that CEO Tony 156 00:08:02,120 --> 00:08:05,720 Speaker 5: Sprain is making and he's really taking his cues from 157 00:08:05,720 --> 00:08:09,560 Speaker 5: what he's done at Bloomingdale's. It's resonating, it's working, and 158 00:08:09,600 --> 00:08:12,760 Speaker 5: so we think this momentum is building and we certainly 159 00:08:12,800 --> 00:08:15,040 Speaker 5: saw it in the third quarter numbers with comp sales 160 00:08:16,000 --> 00:08:19,360 Speaker 5: two point seven percent for the Go Forward stores, and 161 00:08:19,440 --> 00:08:22,560 Speaker 5: so with that, I mean that's a big improvement sequentially, 162 00:08:22,960 --> 00:08:25,800 Speaker 5: and so we think that's building going into the fourth 163 00:08:25,880 --> 00:08:30,000 Speaker 5: quarter and just with the constant improvement that we're seeing there. 164 00:08:31,080 --> 00:08:33,280 Speaker 4: So when most people think about the retail space right now, 165 00:08:33,320 --> 00:08:36,520 Speaker 4: a lot of people think about the transition to e commerce, 166 00:08:36,559 --> 00:08:38,400 Speaker 4: but it sounds as though from what you're explaining, a 167 00:08:38,400 --> 00:08:40,679 Speaker 4: lot of people are going there in person. I mean, 168 00:08:40,679 --> 00:08:43,360 Speaker 4: I'm looking at Coohal's, I'm looking at Dillard's. All of 169 00:08:43,400 --> 00:08:46,600 Speaker 4: these stocks are up pretty substantially on the year, alongside Macy's. 170 00:08:47,120 --> 00:08:50,280 Speaker 4: What are they doing in particular that's really attracting customers 171 00:08:50,360 --> 00:08:52,920 Speaker 4: to come through the doors. Is it also collaborations with 172 00:08:53,000 --> 00:08:54,120 Speaker 4: celebrities by chance? 173 00:08:56,040 --> 00:08:58,920 Speaker 5: Yes, you raised a valid point, and it is. It 174 00:08:58,960 --> 00:09:04,120 Speaker 5: does include collaborations. So for example, they Aqua, you know, 175 00:09:04,160 --> 00:09:07,480 Speaker 5: they're under their Bloomingdale's brand, currently has a collab going 176 00:09:07,520 --> 00:09:12,760 Speaker 5: out with a designer out of Lawn and so yes, 177 00:09:12,800 --> 00:09:16,880 Speaker 5: these collaborations also even you know, they'll have some events. 178 00:09:17,440 --> 00:09:20,800 Speaker 5: But all of that is is certainly drawing in new customers, 179 00:09:20,800 --> 00:09:24,520 Speaker 5: and I think Macy's nameplate could certainly do more on 180 00:09:24,559 --> 00:09:26,840 Speaker 5: that end. They had their first collab with their on 181 00:09:26,960 --> 00:09:29,840 Speaker 5: thirty fourth brand this year, but we think we're going 182 00:09:29,880 --> 00:09:31,920 Speaker 5: to see more next year because if you look at 183 00:09:31,920 --> 00:09:34,920 Speaker 5: what Dillard's has been doing over the last few years, 184 00:09:35,240 --> 00:09:38,720 Speaker 5: and they have a different business model than Macy's does. 185 00:09:38,800 --> 00:09:42,760 Speaker 5: They're not really promotional. For example, for Black Friday, they 186 00:09:42,840 --> 00:09:46,120 Speaker 5: just had clearance sales and it was pretty comparable to 187 00:09:46,200 --> 00:09:48,640 Speaker 5: last year, so that didn't mean that the rest of 188 00:09:48,679 --> 00:09:52,400 Speaker 5: the merchandise was on sale. Macy's the you know, as 189 00:09:52,480 --> 00:09:56,959 Speaker 5: far more promotional. But by doing collaborations, you know, by 190 00:09:57,000 --> 00:10:00,319 Speaker 5: getting celebrities involved. So for example, for the holiday, they 191 00:10:00,320 --> 00:10:05,480 Speaker 5: have Jennifer Hudson that's you know, fronting their campaign for 192 00:10:05,559 --> 00:10:11,200 Speaker 5: the holiday, and they're also engaging with social influencers. So yes, 193 00:10:11,520 --> 00:10:14,680 Speaker 5: all of that is resonating. We're seeing it with other brands, 194 00:10:14,760 --> 00:10:18,320 Speaker 5: like for example, with American Eagle, which just tapped Martha 195 00:10:18,440 --> 00:10:21,040 Speaker 5: Stewart and that that's appealing to gen z. 196 00:10:22,000 --> 00:10:22,439 Speaker 4: Oh wow. 197 00:10:22,559 --> 00:10:24,000 Speaker 2: So one. 198 00:10:25,160 --> 00:10:29,319 Speaker 5: Yeah, So these bold campaigns that these brands are doing, 199 00:10:29,440 --> 00:10:33,520 Speaker 5: Macy's is also getting involved there and they're dipping their 200 00:10:33,559 --> 00:10:35,360 Speaker 5: to I would say they're dipping their toe in the water. 201 00:10:35,440 --> 00:10:38,520 Speaker 5: But I think we're going to see that increase, you know, 202 00:10:38,600 --> 00:10:42,000 Speaker 5: and build as we get into twenty twenty six. And 203 00:10:42,040 --> 00:10:44,400 Speaker 5: when you talk about the digital business, because of course 204 00:10:44,440 --> 00:10:48,240 Speaker 5: you're always hearing, let's say, stronger growth on digital. For example, 205 00:10:48,280 --> 00:10:51,360 Speaker 5: when we looked at Black Friday, you know, over the 206 00:10:51,400 --> 00:10:55,520 Speaker 5: weekend through Cyber Monday, the sale strength was really led 207 00:10:55,800 --> 00:10:59,360 Speaker 5: by digital. Digital was up double digits versus you know, 208 00:10:59,480 --> 00:11:02,360 Speaker 5: load to mid single digits for in the store, So 209 00:11:02,440 --> 00:11:07,199 Speaker 5: I think that's really positive there. So when we look 210 00:11:07,240 --> 00:11:10,040 Speaker 5: at Macy's, a third of their sales come from digital, 211 00:11:10,120 --> 00:11:13,319 Speaker 5: so still in store is very big, but it's also 212 00:11:13,480 --> 00:11:17,280 Speaker 5: omni channel well, the ability to buy online, take back 213 00:11:17,320 --> 00:11:19,880 Speaker 5: in store or buy online, pick up in store. 214 00:11:20,679 --> 00:11:23,000 Speaker 2: Well, when I walked to Penn Station today, I'm going 215 00:11:23,040 --> 00:11:25,520 Speaker 2: to walk past Macy's as I always do, but today 216 00:11:25,559 --> 00:11:27,120 Speaker 2: I'm going to go in. Okay, I'm going to do 217 00:11:27,160 --> 00:11:29,360 Speaker 2: a store walk. Is what the kid? What the retail 218 00:11:29,400 --> 00:11:31,000 Speaker 2: anamals call it a store walk? And I'm going to 219 00:11:31,080 --> 00:11:33,640 Speaker 2: check if John Tucker's would an escalator. 220 00:11:33,760 --> 00:11:35,040 Speaker 4: Still there, We're counting on you. 221 00:11:35,160 --> 00:11:39,240 Speaker 2: Okay, report back, Mary, just real quick, thirty seconds. What's 222 00:11:39,280 --> 00:11:40,960 Speaker 2: macy saying about the consumer out there? 223 00:11:42,559 --> 00:11:45,360 Speaker 5: Yeah, so they're saying that the lower end consumer is 224 00:11:45,440 --> 00:11:49,400 Speaker 5: really feeling pinched and that's where they're seeing some challenges 225 00:11:49,440 --> 00:11:51,520 Speaker 5: on some of the price increases on their lower price 226 00:11:51,559 --> 00:11:55,640 Speaker 5: point items. But the higher middle income, in the higher 227 00:11:55,640 --> 00:12:00,920 Speaker 5: income consumer is resilient and they haven't lashed or battered 228 00:12:00,960 --> 00:12:04,160 Speaker 5: and I with higher prices that they took to offset 229 00:12:04,240 --> 00:12:05,640 Speaker 5: tariffs and they're still buying. 230 00:12:06,720 --> 00:12:09,800 Speaker 2: Stay with us. More from Bloomberg Intelligence coming up after this. 231 00:12:13,760 --> 00:12:17,440 Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live 232 00:12:17,520 --> 00:12:20,600 Speaker 1: weekdays at ten am Eastern on Apple, Cocklay and Android 233 00:12:20,640 --> 00:12:23,920 Speaker 1: Auto with the Bloomberg Business app. Listen on demand wherever 234 00:12:24,000 --> 00:12:27,120 Speaker 1: you get your podcasts, or watch us live on YouTube. 235 00:12:27,720 --> 00:12:30,600 Speaker 2: We continue to get some earnings from the retailers. Today, 236 00:12:30,640 --> 00:12:34,160 Speaker 2: Dollar Tree came out with some numbers, pretty good numbers. 237 00:12:34,200 --> 00:12:36,000 Speaker 2: The street likes that. The stock's up three point four 238 00:12:36,040 --> 00:12:40,040 Speaker 2: percent today. Dollar Tree is up fifty percent year to date, 239 00:12:40,080 --> 00:12:44,040 Speaker 2: So a great move for that company, that stock. Let's 240 00:12:44,080 --> 00:12:47,600 Speaker 2: turn to Lily Meyer here, Bloomberg Deals reporter for Bloomberg News. 241 00:12:47,640 --> 00:12:51,120 Speaker 2: She covers all the retail companies out there. Talk to 242 00:12:51,200 --> 00:12:53,320 Speaker 2: us about Dollar Tree. What did they say here in 243 00:12:53,360 --> 00:12:54,280 Speaker 2: the latest earnings. 244 00:12:54,440 --> 00:12:56,920 Speaker 6: Yeah, so dollar Tree did well this quarter at matt 245 00:12:57,000 --> 00:13:01,480 Speaker 6: expectations on revenue and same store sale, and it raised 246 00:13:01,520 --> 00:13:05,320 Speaker 6: its profit outlook for the year. I think they really 247 00:13:05,320 --> 00:13:08,359 Speaker 6: have hit a niche in being able to capture consumers, 248 00:13:08,760 --> 00:13:12,199 Speaker 6: both lower end consumers who need cheaper goods and then 249 00:13:12,280 --> 00:13:14,600 Speaker 6: high income consumers who are looking to trade down. 250 00:13:15,160 --> 00:13:17,640 Speaker 4: So, I mean, what do we think about elasticity of 251 00:13:17,679 --> 00:13:19,800 Speaker 4: the lower end consumer right now? Because I mean, if 252 00:13:19,840 --> 00:13:21,600 Speaker 4: you think about Walmart, I used to think of this 253 00:13:21,640 --> 00:13:24,480 Speaker 4: as a company that you know, was a cheaper place 254 00:13:24,559 --> 00:13:26,200 Speaker 4: to shop, but it seems as though it's appealing to 255 00:13:26,320 --> 00:13:29,280 Speaker 4: multiple consumer types. But it seems as though Dollar Tree 256 00:13:29,320 --> 00:13:31,520 Speaker 4: really is a great place for the lower end consumer. 257 00:13:31,880 --> 00:13:34,560 Speaker 6: Yeah, and actually recently Dollar Tree has been looking to 258 00:13:34,679 --> 00:13:37,520 Speaker 6: kind of break into that higher income shopper as well. 259 00:13:37,600 --> 00:13:41,040 Speaker 6: So it has this pricing strategy, so it has some 260 00:13:41,320 --> 00:13:44,200 Speaker 6: products that are still cheaper, but then it has some 261 00:13:44,360 --> 00:13:47,320 Speaker 6: it's getting more products that are more expensive. 262 00:13:48,280 --> 00:13:52,760 Speaker 2: What is Dollar Tree saying about its core consumer out there? 263 00:13:53,320 --> 00:13:55,160 Speaker 2: Who is that core consumer and how are they behaving? 264 00:13:55,520 --> 00:13:55,720 Speaker 7: Yeah? 265 00:13:55,760 --> 00:13:58,080 Speaker 6: So I think it's core consumer is still a lower 266 00:13:58,160 --> 00:14:01,000 Speaker 6: income shopper. Eighty five percent of their products are two 267 00:14:01,040 --> 00:14:03,559 Speaker 6: dollars an under, so they really still have a lot 268 00:14:03,559 --> 00:14:06,559 Speaker 6: of value. So they're seeing those shoppers continue to go in. 269 00:14:06,640 --> 00:14:09,960 Speaker 6: But this quarter they saw traffic down and they attributed 270 00:14:10,000 --> 00:14:11,520 Speaker 6: that to tariff increases. 271 00:14:12,280 --> 00:14:14,080 Speaker 4: See I missed when things were actually a dollar, a 272 00:14:14,120 --> 00:14:15,240 Speaker 4: dollar Tree, a dollar general. 273 00:14:15,720 --> 00:14:19,720 Speaker 2: Did you say two dollars? I remember? Should we change 274 00:14:19,720 --> 00:14:22,680 Speaker 2: the name? And I remember it? John, and I remember 275 00:14:22,680 --> 00:14:26,320 Speaker 2: the five and dime and Penny can do it yep, exactly, 276 00:14:26,480 --> 00:14:28,600 Speaker 2: dating ourselves ourselves, all. 277 00:14:28,560 --> 00:14:30,960 Speaker 4: Right, So what's the takeaway in terms of the outlook. 278 00:14:31,000 --> 00:14:33,280 Speaker 4: I mean, you talked about tariff still being a drag here. 279 00:14:33,680 --> 00:14:36,120 Speaker 6: Yeah, so tariffs will really dragged this quarter. They said 280 00:14:36,120 --> 00:14:38,440 Speaker 6: that's gonna lessen. So I think this was the quarter 281 00:14:38,480 --> 00:14:41,720 Speaker 6: where we're really seeing the biggest tariff impact. It'll be 282 00:14:41,800 --> 00:14:46,000 Speaker 6: really interesting to see what they predict for consumers next year. 283 00:14:46,160 --> 00:14:49,120 Speaker 6: I'm interested to hear about that and also what they 284 00:14:49,160 --> 00:14:51,440 Speaker 6: see for holiday if they continue to see high income 285 00:14:51,480 --> 00:14:53,120 Speaker 6: shoppers trading down for gifts? 286 00:14:53,400 --> 00:14:58,080 Speaker 2: Is dollar stores do they see a surgeon sales seasonal 287 00:14:58,120 --> 00:15:00,280 Speaker 2: surge and sales from holiday sales? Is that? Do they 288 00:15:00,280 --> 00:15:02,120 Speaker 2: see that like a department store would. 289 00:15:02,480 --> 00:15:04,520 Speaker 6: Yeah, I don't know if it's the same surge, but 290 00:15:04,680 --> 00:15:06,560 Speaker 6: you know, they sell a lot of gift wrapping and 291 00:15:06,640 --> 00:15:09,840 Speaker 6: gift bags and some of those smaller gifts stocking stuffers, 292 00:15:09,880 --> 00:15:11,440 Speaker 6: so I think they see a lot of that around 293 00:15:11,480 --> 00:15:12,119 Speaker 6: the holidays. 294 00:15:12,600 --> 00:15:14,320 Speaker 4: So what are we seeing in terms of just the 295 00:15:14,320 --> 00:15:16,560 Speaker 4: broader read on the retail space. This kind of gives 296 00:15:16,600 --> 00:15:18,320 Speaker 4: us a picture of the lower end consumer, But what 297 00:15:18,360 --> 00:15:19,480 Speaker 4: are you seeing across the board? 298 00:15:19,840 --> 00:15:22,880 Speaker 6: So broadly, we're really still seeing consumer spend. So there 299 00:15:22,880 --> 00:15:25,400 Speaker 6: hasn't been that massive pullback that I think some of 300 00:15:25,480 --> 00:15:28,720 Speaker 6: us were imagining might happen. We're still seeing consumer spend, 301 00:15:28,760 --> 00:15:31,080 Speaker 6: but they're really value driven, so they're looking for the 302 00:15:31,080 --> 00:15:34,240 Speaker 6: best deals they can get. They're trading down when they 303 00:15:34,240 --> 00:15:36,360 Speaker 6: need to. They're stocking up on essentials. 304 00:15:37,320 --> 00:15:41,920 Speaker 2: How promotional are retailers right now? Because I mean, I know, 305 00:15:42,200 --> 00:15:44,840 Speaker 2: talking to Punam Gooyle, the retail analysts of Bloomberg Intelligence, 306 00:15:44,880 --> 00:15:47,400 Speaker 2: he says, you know, the more promotions you see out there, 307 00:15:47,440 --> 00:15:49,320 Speaker 2: that's going to be that goes right to the margins, 308 00:15:49,360 --> 00:15:52,400 Speaker 2: the profit margins of some of these retailers. What are 309 00:15:52,400 --> 00:15:54,240 Speaker 2: we seeing this season, that's a good question. 310 00:15:54,320 --> 00:15:57,040 Speaker 6: So this season, we've actually seen some retailers pull back 311 00:15:57,080 --> 00:16:01,000 Speaker 6: on deals to protect their margin. So companies are doing 312 00:16:01,000 --> 00:16:02,920 Speaker 6: that as part of a broader strategy, and then some 313 00:16:03,000 --> 00:16:05,640 Speaker 6: are having to do that because of tariff. So you know, 314 00:16:05,720 --> 00:16:08,640 Speaker 6: for Black Friday, typically they'd offer big discounts and some 315 00:16:08,720 --> 00:16:11,040 Speaker 6: are pulling back or not offering discounts at all. 316 00:16:11,800 --> 00:16:14,920 Speaker 4: So consumers have still been broadly spending in the retail space. 317 00:16:15,000 --> 00:16:16,240 Speaker 4: What are they spending on? 318 00:16:16,440 --> 00:16:16,720 Speaker 5: Is it? 319 00:16:16,920 --> 00:16:20,080 Speaker 4: You know, are we spending money on essentials right now, 320 00:16:20,160 --> 00:16:21,200 Speaker 4: skipping this lurging? 321 00:16:21,680 --> 00:16:24,960 Speaker 6: Yeah, yeah, that's exactly it. So this Black Friday, we 322 00:16:25,000 --> 00:16:26,680 Speaker 6: talked to a lot of folks who were saying they're 323 00:16:26,680 --> 00:16:29,960 Speaker 6: going to just get essentials this Black Friday, so instead 324 00:16:29,960 --> 00:16:33,960 Speaker 6: of buying you know, a Lake Crusette, Dutch oven they were. 325 00:16:34,000 --> 00:16:35,880 Speaker 6: We talked to someone who instead was going to buy 326 00:16:35,920 --> 00:16:38,320 Speaker 6: like three bags of forty pound dog food. 327 00:16:38,560 --> 00:16:43,880 Speaker 2: Oh okay, yeah, I don't have a dog for them, 328 00:16:43,960 --> 00:16:45,000 Speaker 2: right yeah. 329 00:16:45,520 --> 00:16:49,800 Speaker 6: Dot Com so really using you know, deals to get 330 00:16:49,800 --> 00:16:52,360 Speaker 6: things that they need for themselves rather than getting that 331 00:16:52,400 --> 00:16:53,880 Speaker 6: big ticket item they waited for. 332 00:16:54,400 --> 00:16:57,560 Speaker 2: What I learned from talking to retail folks is omni 333 00:16:57,840 --> 00:17:02,000 Speaker 2: channel retail, which is you use both the online and 334 00:17:02,080 --> 00:17:04,320 Speaker 2: the bricks and mortar and maybe you look at something 335 00:17:04,320 --> 00:17:06,359 Speaker 2: online then you want to go touch and feel it, 336 00:17:06,440 --> 00:17:07,720 Speaker 2: or maybe you order it then you pick it up 337 00:17:07,760 --> 00:17:10,360 Speaker 2: at the store. Omni channels that still a thing. 338 00:17:10,880 --> 00:17:13,399 Speaker 6: Yeah, yeah, So we were out there on Black Friday 339 00:17:13,440 --> 00:17:15,320 Speaker 6: and some of the stores, and you know, while a 340 00:17:15,359 --> 00:17:18,200 Speaker 6: lot of people have switched their holiday shopping to be online, 341 00:17:18,240 --> 00:17:21,080 Speaker 6: we still saw a ton of people in stores, especially 342 00:17:21,119 --> 00:17:24,000 Speaker 6: at stores with really good deals and stores that appear 343 00:17:24,240 --> 00:17:28,000 Speaker 6: appealed to young shoppers. So brands like Addicted and Princess 344 00:17:28,040 --> 00:17:30,960 Speaker 6: Polly that are in malls were really flooded with young people. 345 00:17:31,720 --> 00:17:34,840 Speaker 2: Stay with us more from Bloomberg Intelligence coming up after this. 346 00:17:38,760 --> 00:17:42,440 Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us Live 347 00:17:42,520 --> 00:17:45,600 Speaker 1: weekdays at ten am Eastern on Apple, Cocklay and Android 348 00:17:45,640 --> 00:17:48,919 Speaker 1: Auto with the Bloomberg Business app. Listen on demand wherever 349 00:17:49,000 --> 00:17:52,120 Speaker 1: you get your podcasts, or watch us live on YouTube. 350 00:17:52,800 --> 00:17:55,400 Speaker 2: Let's talk a little luxury here. That's right down John 351 00:17:55,400 --> 00:17:58,760 Speaker 2: Tucker's alley. Here, Debi, and she's the expert luxury goods 352 00:17:58,760 --> 00:18:03,199 Speaker 2: analyst of Bloomberg Intelligence. She's based in London. There, just 353 00:18:03,200 --> 00:18:05,560 Speaker 2: give us some kind of a post mortem. How was 354 00:18:05,600 --> 00:18:09,280 Speaker 2: twenty twenty five for the luxury companies and maybe what's 355 00:18:09,280 --> 00:18:10,240 Speaker 2: the oulok for twenty six? 356 00:18:12,200 --> 00:18:17,359 Speaker 7: Hi. Yeah, So we started out twenty twenty five with 357 00:18:17,560 --> 00:18:20,760 Speaker 7: an expectation that we'd moved back to growth, and that 358 00:18:20,880 --> 00:18:24,120 Speaker 7: certainly didn't materialize through the first half of the year, 359 00:18:25,680 --> 00:18:28,560 Speaker 7: but we seem to be ending at around three to 360 00:18:28,600 --> 00:18:32,640 Speaker 7: four percent growth as we exit twenty twenty five. Now, 361 00:18:32,640 --> 00:18:36,439 Speaker 7: the US has been robust, Middle East doing very well, 362 00:18:36,680 --> 00:18:38,960 Speaker 7: but particularly in the first half the year, it was 363 00:18:39,080 --> 00:18:42,080 Speaker 7: China which was the drag. And what we've noticed is 364 00:18:42,119 --> 00:18:45,879 Speaker 7: we end the year. We've actually just heard on a 365 00:18:45,920 --> 00:18:49,440 Speaker 7: fireside chat over the last few days from Laurel where 366 00:18:49,440 --> 00:18:52,320 Speaker 7: they're mentioning high end beauty doing very well out of 367 00:18:52,359 --> 00:18:56,639 Speaker 7: the US, but also in China too, so they're adding 368 00:18:56,680 --> 00:18:59,680 Speaker 7: to what we've heard from the luxury companies where we've 369 00:18:59,720 --> 00:19:04,040 Speaker 7: seen two thirds of luxury companies and most of the 370 00:19:04,080 --> 00:19:07,440 Speaker 7: top ten switching to growth in China in Q three 371 00:19:07,800 --> 00:19:10,240 Speaker 7: from a low base from negatives a year ago. But 372 00:19:10,359 --> 00:19:13,960 Speaker 7: actually that we're calling green shoots into the end of year. 373 00:19:15,200 --> 00:19:17,160 Speaker 4: How are these companies holding up as it re leads 374 00:19:17,200 --> 00:19:18,320 Speaker 4: to tariff overhangs. 375 00:19:20,440 --> 00:19:23,680 Speaker 7: Yeah, so we did a lot of work around May 376 00:19:23,760 --> 00:19:26,520 Speaker 7: time and again through July and August with the different 377 00:19:26,600 --> 00:19:30,840 Speaker 7: tariff rates moving around, and what we've actually seen it 378 00:19:30,920 --> 00:19:36,400 Speaker 7: was less detrimental overall in our numbers. We probably think 379 00:19:36,440 --> 00:19:39,639 Speaker 7: that EPs won't be pulled as much as was expected 380 00:19:39,680 --> 00:19:42,880 Speaker 7: because there have been some cost savings and the biggest 381 00:19:42,920 --> 00:19:46,440 Speaker 7: companies and those that were where brands were really in 382 00:19:46,520 --> 00:19:49,959 Speaker 7: favor have managed to pass on price and generally because 383 00:19:50,000 --> 00:19:54,800 Speaker 7: these companies operate on high gross margin, the cost into 384 00:19:54,840 --> 00:19:57,520 Speaker 7: the US, they've moved around two to FOXX and on 385 00:19:57,600 --> 00:20:00,520 Speaker 7: additional price into the US as well well as two 386 00:20:00,680 --> 00:20:03,320 Speaker 7: three percent from the beginning of the year, So some 387 00:20:03,359 --> 00:20:06,320 Speaker 7: of those brands have absorbed passing through six seven percent 388 00:20:06,400 --> 00:20:10,000 Speaker 7: pricing to the US consumer. And we think into twenty 389 00:20:10,080 --> 00:20:13,480 Speaker 7: twenty six that moves nearer to two to three percent overall, 390 00:20:13,600 --> 00:20:17,320 Speaker 7: so it should be less intimidating for the consumer overall 391 00:20:17,640 --> 00:20:20,560 Speaker 7: twenty twenty six. So it's one of our drivers for 392 00:20:20,640 --> 00:20:21,600 Speaker 7: the year ahead. 393 00:20:22,119 --> 00:20:25,040 Speaker 2: DEV talk to us about the Chinese consumer. We don't 394 00:20:25,080 --> 00:20:27,399 Speaker 2: see the Chinese consumer here. I'm going to walk the 395 00:20:27,440 --> 00:20:30,800 Speaker 2: Penn station today, walk down Fifth Avenue, Madison Avenue. I'll 396 00:20:30,800 --> 00:20:32,600 Speaker 2: see a lot of Europeans. I see a lot of 397 00:20:32,640 --> 00:20:36,320 Speaker 2: American tours. I won't see many from Asia. Are they 398 00:20:36,560 --> 00:20:39,240 Speaker 2: not traveling? So is that an impact for New York 399 00:20:39,359 --> 00:20:41,160 Speaker 2: and London and Paris and things like that. 400 00:20:42,760 --> 00:20:45,720 Speaker 7: We actually have a survey out of our Asia office 401 00:20:45,760 --> 00:20:50,680 Speaker 7: that we've just incorporated into a travel document which will 402 00:20:50,680 --> 00:20:53,320 Speaker 7: be producing. But this piece of work has already produced 403 00:20:53,760 --> 00:20:59,560 Speaker 7: and actually on October versus May. The China consumer is 404 00:20:59,600 --> 00:21:03,080 Speaker 7: looking to travel more into Europe to start with. So 405 00:21:03,119 --> 00:21:06,720 Speaker 7: that's the first big positive. I think part of that 406 00:21:07,119 --> 00:21:10,639 Speaker 7: is just on the way the tariff situation has gone maybe, 407 00:21:10,960 --> 00:21:12,760 Speaker 7: so that would be the first time that we're looking 408 00:21:12,800 --> 00:21:15,320 Speaker 7: for them to come back so versus three months ago. 409 00:21:15,320 --> 00:21:18,480 Speaker 7: They're looking to traveling outside of Asia. But overall, what 410 00:21:18,520 --> 00:21:24,399 Speaker 7: we call the China cohort that's actually really operate in 411 00:21:24,560 --> 00:21:28,119 Speaker 7: more avidly across the Asia region. We're not seeing so 412 00:21:28,200 --> 00:21:31,359 Speaker 7: much travel from Chinese into Japan, and of course we 413 00:21:31,400 --> 00:21:35,880 Speaker 7: know that there are there's some political commentary there as well, 414 00:21:35,920 --> 00:21:37,960 Speaker 7: so we wouldn't expect that to pick up next year. 415 00:21:38,040 --> 00:21:43,120 Speaker 7: But we are seeing Korea, Singapore, Australia and others being 416 00:21:43,200 --> 00:21:46,520 Speaker 7: positive and the first move to Europe should hopefully indicate 417 00:21:46,560 --> 00:21:48,840 Speaker 7: that towards the end of the year, and as tariffs 418 00:21:48,840 --> 00:21:51,760 Speaker 7: settle more in twenty twenty six, that we see some 419 00:21:51,840 --> 00:21:54,400 Speaker 7: of that return to the US as well. 420 00:21:54,560 --> 00:21:56,760 Speaker 4: And sticking with China, how are we thinking about supply 421 00:21:56,880 --> 00:21:58,960 Speaker 4: chain operations as it leads to a lot of these 422 00:21:59,160 --> 00:22:01,960 Speaker 4: luxury for especially stemming from China. 423 00:22:04,000 --> 00:22:09,440 Speaker 7: Yeah, so if we think about maybe if we look 424 00:22:09,440 --> 00:22:12,960 Speaker 7: at it from some of the aspirational or entry level 425 00:22:13,000 --> 00:22:19,520 Speaker 7: luxury companies, then they will have some production moving around 426 00:22:20,080 --> 00:22:23,480 Speaker 7: the Asia region. But if we think about the heritage 427 00:22:23,560 --> 00:22:27,240 Speaker 7: traditional higher end luxury companies, then most of their production 428 00:22:27,600 --> 00:22:31,560 Speaker 7: is France, Italy, some Portugal, some parts of southern Spain. 429 00:22:32,160 --> 00:22:34,600 Speaker 7: Not so much going on in the Asia region, and 430 00:22:34,680 --> 00:22:39,159 Speaker 7: so they've been able to manage on the twenty percent 431 00:22:39,280 --> 00:22:42,800 Speaker 7: tariff from made in Europe over to the US more 432 00:22:42,920 --> 00:22:46,240 Speaker 7: so than some of the peer group. For example, one 433 00:22:46,280 --> 00:22:49,520 Speaker 7: of our entry level that we call branded affordable jewelry 434 00:22:49,560 --> 00:22:53,800 Speaker 7: Pandora producers out of Thailand. It's really suffered in terms 435 00:22:53,800 --> 00:22:56,600 Speaker 7: of share price this year versus some of the Asian 436 00:22:56,840 --> 00:22:59,639 Speaker 7: retail jewelers who've done very very well on the price 437 00:22:59,640 --> 00:22:59,920 Speaker 7: of goal. 438 00:23:02,400 --> 00:23:05,000 Speaker 2: So you got to explain this whole handbag thing to me. 439 00:23:05,119 --> 00:23:09,520 Speaker 2: Deb I was in Italy in September towards some place factories, 440 00:23:09,560 --> 00:23:11,800 Speaker 2: f artists and shops where they make these handbags and 441 00:23:11,800 --> 00:23:14,719 Speaker 2: they sell them for tens of thousands of dollars in euros. 442 00:23:14,840 --> 00:23:16,520 Speaker 2: What is going on there? Who buys that? 443 00:23:18,040 --> 00:23:22,520 Speaker 7: Yeah? It has I always say, if you bought a Ermez, 444 00:23:22,880 --> 00:23:26,399 Speaker 7: you have a just as good or a better correlation 445 00:23:26,560 --> 00:23:29,959 Speaker 7: than if you'd have held gold. So I think that 446 00:23:30,880 --> 00:23:36,639 Speaker 7: you know, these bags, particularly for sought after material, the 447 00:23:36,640 --> 00:23:40,320 Speaker 7: craftsmanship and the fact that they have continued value, are 448 00:23:40,359 --> 00:23:44,720 Speaker 7: seen as investment pieces, and so we have the middle ground. 449 00:23:44,720 --> 00:23:46,879 Speaker 7: You know, if we look over the last year and 450 00:23:47,000 --> 00:23:48,840 Speaker 7: one of the things that we think for twenty twenty 451 00:23:48,880 --> 00:23:53,520 Speaker 7: six bags from Tapestry, from Coach, Ralph Lauren others as 452 00:23:53,520 --> 00:23:56,320 Speaker 7: well as ready to wear have done very very well, 453 00:23:56,400 --> 00:23:58,920 Speaker 7: resonated with a consumer who's been a little bit more 454 00:23:58,960 --> 00:24:02,800 Speaker 7: skeptical on the consumer sentiment side and may be shopped 455 00:24:02,840 --> 00:24:06,360 Speaker 7: around one thousand dollars or so, but at the very 456 00:24:06,400 --> 00:24:09,840 Speaker 7: high end there hasn't been much of a move, so 457 00:24:09,880 --> 00:24:13,640 Speaker 7: we've seen ms Brunello, Kuchnelli and others doing very very 458 00:24:13,680 --> 00:24:14,720 Speaker 7: well at that high end. 459 00:24:15,440 --> 00:24:20,119 Speaker 1: This is the Bloomberg Intelligence podcast, available on Apple, Spotify, 460 00:24:20,320 --> 00:24:23,800 Speaker 1: and anywhere else you get your podcasts. 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