WEBVTT - Ralph Lauren Rises, Steve Madden Trades Higher, Ulta Beauty Pops

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

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

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

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<v Speaker 3>I'm Carol Masser along with Tim Steneveek with us as

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<v Speaker 3>Dana Telsey, Founder, CEO and Chief Research Officer of Telsey

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<v Speaker 3>Advisory Group. We are talking about retail since it is

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<v Speaker 3>Cyber Monday, and we want to get into some specific

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<v Speaker 3>names that you seem to be kind of on your radar,

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<v Speaker 3>and Ralph Lauren is one of them. Data it's up

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<v Speaker 3>sixty percent year to date, and I think it might

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<v Speaker 3>even be trading at an all time high today. What

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<v Speaker 3>is it about Ralph Lauren that you find so interesting?

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<v Speaker 4>They're capturing new and younger customers. They have opportunity to

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<v Speaker 4>expand globally and they're on everyone's watch list. They have

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<v Speaker 4>stores and they have online and they've also enhanced their

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<v Speaker 4>wholesale channel. So the strength of how that brand is

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<v Speaker 4>able to appeal to multi generations as compelling.

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<v Speaker 3>That blows me away because it has been around for

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<v Speaker 3>a long time, so iconic with its founder, but here

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<v Speaker 3>it is like still going.

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<v Speaker 4>And still relevant to younger and their core customers.

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<v Speaker 1>The branding is certainly an important side of that, but

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<v Speaker 1>also figuring out the supply chain and figuring out tariffs.

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<v Speaker 1>They've done a good job.

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<v Speaker 4>They've done it. And take a look at the new

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<v Speaker 4>things they're doing. If you look at some of their

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<v Speaker 4>stores lately where they have restaurants, there's lines out there

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<v Speaker 4>for the Ralph Lauren coffee. Is it profitable for them?

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<v Speaker 4>Like what drand do, huge traffic driver. Brand awareness brings

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<v Speaker 4>a younger consumer and makes their brand top of mind,

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<v Speaker 4>and you're seeing more companies begin to do things like that.

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<v Speaker 4>Coach is going to do the Coach Coffee shop. Aritzia

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<v Speaker 4>has the Aok cafe with some of the balth Bazar

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<v Speaker 4>pastries there. So the experience and experiences create memories. The

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<v Speaker 4>experience of shopping, eating, being able to meet friends and

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<v Speaker 4>socializing keeps the brand top of mind.

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<v Speaker 1>Okay, that's Ralph Lauren RL is the ticker. What about

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<v Speaker 1>the ticker Shoo Shoes Steve Madden? Little change so far

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<v Speaker 1>this year About ten percent or more of the float

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<v Speaker 1>is shorted right now.

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<v Speaker 4>What's interesting about that? That is what's interesting for next year.

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<v Speaker 4>They acquired a company called Kurt Geiger which basically has

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<v Speaker 4>higher prices than they have more of a handbag business.

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<v Speaker 4>They're beginning to open stores in the US, benefiting from

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<v Speaker 4>Steve Madden's supply chain. At the same time, don't forget

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<v Speaker 4>the course Steve Madden business, where they've had a real

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<v Speaker 4>uptick because now consumers are wearing more than just sneakers.

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<v Speaker 4>They're wearing the brown Swede tall chaft boots, They're wearing

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<v Speaker 4>shoes to go out with dresses and for casual wear.

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<v Speaker 4>Given the change in wardrobing and their ability to basically

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<v Speaker 4>being able to have the test and react model, they're

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<v Speaker 4>fast at capturing trends. And Steve Madden, given some of

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<v Speaker 4>the interviews he's done lately, has made him relevant to

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<v Speaker 4>all different generations.

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<v Speaker 3>Yeah, that's another one that he's not been around for

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<v Speaker 3>a while, it's still relevant very much. So all right,

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<v Speaker 3>let's talk Macy's. They actually report their earnings on Wednesday.

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<v Speaker 3>The stock is up about thirty four percent year to date.

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<v Speaker 3>Tell us about Macy's which has gone through over the

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<v Speaker 3>last few years some really rough times.

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<v Speaker 4>But also they have the bold new chapter strategy with

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<v Speaker 4>the CEO, Tony Spring, who's been at the company forever,

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<v Speaker 4>but CEO of Macy's for a short period of time,

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<v Speaker 4>and he's putting initiatives in place that are basically bringing newness.

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<v Speaker 4>When you think about Macy's for Holiday twenty twenty five,

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<v Speaker 4>around forty percent newness to the assortment. And let's watch

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<v Speaker 4>for twenty twenty six for some expansion of Bloomingdale's new

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<v Speaker 4>brands capturing more of their customers dollars. And you know what,

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<v Speaker 4>it's the newness of what the concept is. It's not

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<v Speaker 4>the oldness of department stores that Tony is attracting existing

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<v Speaker 4>customers and new customers.

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<v Speaker 1>And what's the way they're getting customers to the door.

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<v Speaker 4>A couple different ways. I think they're doing it through

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<v Speaker 4>some of their loyalty programs. I think they're doing it

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<v Speaker 4>both online and in store. And I think they're investing

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<v Speaker 4>in the stores. They've shrunk the store base to focus

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<v Speaker 4>on what matters and putting more service in some of

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<v Speaker 4>their stores that are some of their best at stores.

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<v Speaker 3>All Right, got to say, one of the things that

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<v Speaker 3>always kind of blows us away is just cosmetics. Just

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<v Speaker 3>the explosion we've seen. We've seen it with sefour, but

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<v Speaker 3>Alta reports this week this doock up almost thirty percent

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<v Speaker 3>year to date. I think they report on Thursday. It

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<v Speaker 3>is the cover story of Bloomberg business Week just talking

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<v Speaker 3>about you know, you don't maybe think it it's the

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<v Speaker 3>largest I think beauty retailer in the country because it's

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<v Speaker 3>kind of in malls and it's in hidden places. But

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<v Speaker 3>it's just been a standout.

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<v Speaker 4>It's been on a tear lately. And with Keisha Steelman,

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<v Speaker 4>who's been at the company I believe for fourteen years. Yeah,

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<v Speaker 4>took over CEO last year. Her Beauty on Leash plan

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<v Speaker 4>is doing a couple different things. They brought in more

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<v Speaker 4>new brands this year so far, about forty nine new

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<v Speaker 4>brands in the first half of the year compared to

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<v Speaker 4>under twenty five last year. She has stepped up international

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<v Speaker 4>expansion with the acquisition of space k and now opening

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<v Speaker 4>stores in Mexico and the Middle East through partners. She

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<v Speaker 4>has also uptick frankly, some of the initiatives that they have,

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<v Speaker 4>whether it's the service initiatives in store, whether it's bringing

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<v Speaker 4>new products, and I think that service, whether it's the

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<v Speaker 4>hair salons or others, it drives traffic there. Yeah, and

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<v Speaker 4>so with their loyalty program, they're a must go to

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<v Speaker 4>because the blend of mass and prestige and she gets

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<v Speaker 4>out of what she feels isn't as impactful, So the

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<v Speaker 4>target ALTA partnership won't be going forward after it ends

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<v Speaker 4>later this year.

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