1 00:00:00,000 --> 00:00:05,600 Speaker 1: Burg to Washington, d C. Bloomber to Boston, Bloomberg twelve 2 00:00:05,640 --> 00:00:09,879 Speaker 1: hundred to San Francisco, Bloomberg nine to the country, Julius 3 00:00:10,400 --> 00:00:14,120 Speaker 1: General one and around the globe the Bloomberg Radio plus 4 00:00:14,200 --> 00:00:18,520 Speaker 1: NAPP and Bloomberg Dot Gone. This is taking Stock, coming 5 00:00:18,600 --> 00:00:20,840 Speaker 1: up on taking Stock. We're gonna find out how a 6 00:00:20,920 --> 00:00:24,680 Speaker 1: pair of lost glasses led to the creation of a 7 00:00:24,760 --> 00:00:28,640 Speaker 1: new global business. That's all coming up on taking Stock. 8 00:00:28,680 --> 00:00:33,200 Speaker 1: You're at Pershing Inside conference at the Highatt Regency in Orlando, Florida. 9 00:00:33,360 --> 00:00:36,040 Speaker 1: I'm not gonna say anything more about our next guest, 10 00:00:36,040 --> 00:00:38,199 Speaker 1: this mry guest Pim, except that he's gonna got a 11 00:00:38,240 --> 00:00:42,159 Speaker 1: panel that you're moderating this afternoon. Lucky you. Let's get 12 00:00:42,200 --> 00:00:44,440 Speaker 1: back to Bloomberg World headquarters in New York City. Charlie 13 00:00:44,479 --> 00:00:46,879 Speaker 1: Pellets back with the Bloomberg Business Flash, and I thank 14 00:00:46,920 --> 00:00:49,120 Speaker 1: you very much. Kathleen, thank you, Pim Fox, the DAL, 15 00:00:49,240 --> 00:00:53,159 Speaker 1: the SMP, NEZ stack all advancing twenty nine minutes to 16 00:00:53,159 --> 00:00:55,560 Speaker 1: go ahead of the clothes. On this Wednesday, June eight, 17 00:00:55,600 --> 00:00:59,200 Speaker 1: test and P five hundred index edging toward a record 18 00:00:59,240 --> 00:01:02,880 Speaker 1: advances in government bonds, pushing some yields to record lows. 19 00:01:03,000 --> 00:01:05,480 Speaker 1: Right now, we have got the tenure one point seven percent, 20 00:01:05,600 --> 00:01:08,520 Speaker 1: the tenure up five thirty seconds s and P five 21 00:01:08,600 --> 00:01:12,720 Speaker 1: hundred index advancing six points to eighteen again today of 22 00:01:12,840 --> 00:01:16,800 Speaker 1: three tenths of one percent down, Industrials up sixty again 23 00:01:16,920 --> 00:01:19,320 Speaker 1: also of three tenths of one percent, and as a 24 00:01:19,360 --> 00:01:22,720 Speaker 1: stack up thirteen again, also of three tents of one percent. 25 00:01:23,160 --> 00:01:26,440 Speaker 1: Gold up sixteen sixty the ounce to twelve sixty three. 26 00:01:26,480 --> 00:01:29,399 Speaker 1: That's an advance of one point three percent. Crude oil 27 00:01:29,560 --> 00:01:32,240 Speaker 1: holding above fifty one dollars of our all fifty one 28 00:01:32,319 --> 00:01:36,080 Speaker 1: fifteen on West Texas INTERVIEWEDI A crude up seventy nine 29 00:01:36,120 --> 00:01:40,160 Speaker 1: cents again there of one point six percent. Brexit very 30 00:01:40,240 --> 00:01:42,920 Speaker 1: much on the minds of investors on both sides of 31 00:01:42,959 --> 00:01:46,360 Speaker 1: the Atlantic. Former UK Prime Minister Tony Blair is warning 32 00:01:46,640 --> 00:01:49,800 Speaker 1: of a serious economic shock if the UK votes to 33 00:01:49,920 --> 00:01:53,080 Speaker 1: lead the European Union. He spoke this morning with Bloomberg 34 00:01:53,160 --> 00:01:56,560 Speaker 1: Television and Radio. I do believe there'll be a big 35 00:01:56,560 --> 00:01:58,040 Speaker 1: turn out for this. I mean, I think people do 36 00:01:58,120 --> 00:02:03,400 Speaker 1: understand it's ation with seismic consequences, particularly economic consequences, and 37 00:02:03,480 --> 00:02:07,280 Speaker 1: I I can't believe that people will We'll shuffle this 38 00:02:07,320 --> 00:02:09,760 Speaker 1: one off, and I think I think we will get 39 00:02:09,800 --> 00:02:12,200 Speaker 1: a substantially higher turn out than in a general lation. 40 00:02:12,760 --> 00:02:16,120 Speaker 1: Lulu Lemon Athletic up hosting first quarter sales that topped 41 00:02:16,120 --> 00:02:19,680 Speaker 1: analysts estimates, help by new products like an expanded selection 42 00:02:19,720 --> 00:02:23,280 Speaker 1: of women's tops. Lulu Lemon shares. They're up now by 43 00:02:23,400 --> 00:02:27,280 Speaker 1: five percent, up three forty one, seventy one fifty five 44 00:02:27,440 --> 00:02:31,720 Speaker 1: on Lulu down Industrials advancing sixty one points, up three 45 00:02:31,760 --> 00:02:34,600 Speaker 1: tenths of one per said SMP. Also hire now by 46 00:02:34,840 --> 00:02:38,720 Speaker 1: three tenths of one percent, three thirty two on Wall Street. Now, 47 00:02:38,800 --> 00:02:41,000 Speaker 1: let's take a look at other news from around the 48 00:02:41,000 --> 00:02:46,919 Speaker 1: world on Bloomberg Radio. Charlie, thank you from the Bloomberg 49 00:02:47,000 --> 00:02:49,760 Speaker 1: news Room. I'm Mark Crimpton. This news update is brought 50 00:02:49,760 --> 00:02:52,519 Speaker 1: to you by the Jeep Grand Cherokee, the most awarded 51 00:02:52,720 --> 00:02:56,400 Speaker 1: suv ever. The Grand Cherokee continues to raise the bar 52 00:02:56,680 --> 00:03:01,400 Speaker 1: with its luxurious interior and legendary four by for capability. 53 00:03:01,600 --> 00:03:05,160 Speaker 1: Drive one at your local Jeep dealer today. Although Bernie 54 00:03:05,240 --> 00:03:09,000 Speaker 1: Sanders promises to continue his campaign to the last primary 55 00:03:09,120 --> 00:03:11,880 Speaker 1: in the district of Columbia next week, he'll be doing 56 00:03:11,919 --> 00:03:15,079 Speaker 1: so with less manpower to people familiar with the plans 57 00:03:15,120 --> 00:03:18,440 Speaker 1: tell the Associated Press that about half of Sanders campaign 58 00:03:18,480 --> 00:03:22,799 Speaker 1: staff is being laid off. Libertarian Party presidential candidate Gary 59 00:03:22,880 --> 00:03:26,959 Speaker 1: Johnson is inviting those voters disappointed with either Donald Trump 60 00:03:27,080 --> 00:03:30,160 Speaker 1: or Hillary Clinton to take a look at his party's ticket. 61 00:03:30,320 --> 00:03:33,880 Speaker 1: I offer, along with Bill Well, the real alternative to 62 00:03:33,960 --> 00:03:39,400 Speaker 1: the two being fiscally conservative look Smaller government is better. 63 00:03:39,880 --> 00:03:42,840 Speaker 1: India and the United States are reaffirming their commitment to 64 00:03:42,880 --> 00:03:46,480 Speaker 1: one another. Indian Prime Minister Norendre Mothi addressed a joint 65 00:03:46,520 --> 00:03:50,840 Speaker 1: meeting of Congress today. In this exciting journey, the US 66 00:03:50,960 --> 00:03:57,600 Speaker 1: Congress and acted and if compos you have help us 67 00:03:58,200 --> 00:04:05,040 Speaker 1: done Bertier into vivid part mercy. In Israel, nine people 68 00:04:05,080 --> 00:04:07,080 Speaker 1: who have been wounded in a shooting at a Tel 69 00:04:07,120 --> 00:04:10,800 Speaker 1: Aviv market. The Associated Press reports as suspects been arrested. 70 00:04:11,120 --> 00:04:13,560 Speaker 1: New York State officials have no plans to fix an 71 00:04:13,640 --> 00:04:16,479 Speaker 1: error in the name of the Verrizonto Narrows Bridge. It's 72 00:04:16,520 --> 00:04:19,560 Speaker 1: been spelled for more than five decades with one Z 73 00:04:20,240 --> 00:04:23,360 Speaker 1: Global News twenty four hours a day, powered by our 74 00:04:22,920 --> 00:04:25,840 Speaker 1: two hundred journalists and more than one hundred fifty news 75 00:04:25,880 --> 00:04:28,599 Speaker 1: bureaus around the world. From the Bloomberg News Room by 76 00:04:28,680 --> 00:04:32,920 Speaker 1: Mark Crumpton. Charlie, and we thank you and again recapping 77 00:04:33,040 --> 00:04:35,720 Speaker 1: stocks higher SMP up five a gain of three tenths 78 00:04:35,760 --> 00:04:37,800 Speaker 1: of one percent. We are brought to you by Sector 79 00:04:37,839 --> 00:04:40,680 Speaker 1: Spider et F S. Why by a single stock when 80 00:04:40,760 --> 00:04:43,480 Speaker 1: you can invest in the entire sector of visits sector 81 00:04:44,080 --> 00:04:47,560 Speaker 1: sp d r S dot com or call on Sector 82 00:04:48,040 --> 00:04:50,719 Speaker 1: E t F. I'm Charlie Pellett, and that's a bloom 83 00:04:50,760 --> 00:04:56,159 Speaker 1: Bird business flash this. He's taking stock with Kathleen Hayes 84 00:04:56,200 --> 00:05:00,960 Speaker 1: and Pimpox on Bloomberg Radio, E Comm, Earth and brick 85 00:05:01,000 --> 00:05:05,720 Speaker 1: and mortar stores. One report from Mary Meeker the venture Capitalist, 86 00:05:05,960 --> 00:05:10,200 Speaker 1: explains that Warby Parker made more money per square foot 87 00:05:10,600 --> 00:05:14,080 Speaker 1: in its retail stores than Tiffany last year's. That's actually 88 00:05:14,160 --> 00:05:18,120 Speaker 1: better also than Michael Core's stores, according to Meaker. Let's 89 00:05:18,160 --> 00:05:20,800 Speaker 1: meet the co founder and the co chief executive of 90 00:05:20,839 --> 00:05:23,800 Speaker 1: Warby Parker, Neil Blumenthal. Neil, thanks very much for being 91 00:05:23,800 --> 00:05:26,640 Speaker 1: with us. Thanks for having me tell people about how 92 00:05:26,680 --> 00:05:30,760 Speaker 1: a lost pair of eyeglasses led to what is estimated 93 00:05:30,800 --> 00:05:34,080 Speaker 1: to be a company worth one point to billion, making 94 00:05:34,120 --> 00:05:37,960 Speaker 1: it the second most valuable private venture backed e commerce 95 00:05:37,960 --> 00:05:41,080 Speaker 1: company in the world. Um, well, you know, I think 96 00:05:41,760 --> 00:05:44,960 Speaker 1: the best businesses solve real problems. And my co founder, 97 00:05:45,080 --> 00:05:47,640 Speaker 1: Dave bal Boa was traveling and lost a pair of 98 00:05:47,720 --> 00:05:51,280 Speaker 1: seven hundred dollar glasses in the seat pocket of an airplane. Uh, 99 00:05:51,279 --> 00:05:53,200 Speaker 1: and we're talking about it along with our two other 100 00:05:53,240 --> 00:05:56,320 Speaker 1: co founders, Jeff and Andy, and we thought that there 101 00:05:56,320 --> 00:05:58,760 Speaker 1: was no reason why glasses should be so expensive. And 102 00:05:58,839 --> 00:06:01,320 Speaker 1: we thought, what if we were to design the glasses 103 00:06:01,360 --> 00:06:04,760 Speaker 1: we love, used best materials, uh, and build a business 104 00:06:04,760 --> 00:06:08,320 Speaker 1: that could sell them for nine instead of five hundred UM. 105 00:06:08,440 --> 00:06:10,760 Speaker 1: And that's sort of is how Warry Parker got started. 106 00:06:10,839 --> 00:06:13,800 Speaker 1: The rest is history, not just offline. You've got what 107 00:06:13,960 --> 00:06:17,360 Speaker 1: thirty seven stores across the country. You've been vied at 108 00:06:17,400 --> 00:06:19,960 Speaker 1: one point two billion dollars. You were just telling me 109 00:06:20,000 --> 00:06:23,880 Speaker 1: you've got eight hundred employees. Uh, you do to me? 110 00:06:24,000 --> 00:06:27,520 Speaker 1: Have that? Also that element of social entrepreneurship, which means 111 00:06:27,560 --> 00:06:30,400 Speaker 1: you can make money doing good stuff for people, that's 112 00:06:30,440 --> 00:06:33,680 Speaker 1: not how how did that come in? And what does 113 00:06:34,320 --> 00:06:39,480 Speaker 1: that role? And helping developing nation citizens get good eye 114 00:06:39,520 --> 00:06:42,240 Speaker 1: care and good glasses, well something that was startling to 115 00:06:43,040 --> 00:06:45,000 Speaker 1: my co founders, and I has that over seven hundred 116 00:06:45,040 --> 00:06:47,600 Speaker 1: million people around the world don't have access to glasses, 117 00:06:47,640 --> 00:06:50,479 Speaker 1: and we think that that's crazy. Right, classes were invented 118 00:06:50,520 --> 00:06:53,480 Speaker 1: eight hundred years ago, So we're failing as a species 119 00:06:53,520 --> 00:06:56,000 Speaker 1: if we can't get technology that's eight hundred years old 120 00:06:56,120 --> 00:06:58,280 Speaker 1: in the hands of everybody that needs it. Uh. And 121 00:06:58,279 --> 00:07:01,200 Speaker 1: we thought, what's the best way to serve of others? Um, 122 00:07:01,279 --> 00:07:03,159 Speaker 1: what if we committed for every pair that we sell, 123 00:07:03,240 --> 00:07:06,000 Speaker 1: distributing one to someone in need. Um And to date 124 00:07:06,040 --> 00:07:09,080 Speaker 1: we distributed uh several million pairs of glasses to people 125 00:07:09,120 --> 00:07:12,520 Speaker 1: in need around the world. Actually, prior to starting Warby Parker, 126 00:07:12,920 --> 00:07:15,720 Speaker 1: I ran a nonprofit that would distribute eyeglasses in the 127 00:07:15,760 --> 00:07:18,320 Speaker 1: developing world and that was my exposure actually to the 128 00:07:18,360 --> 00:07:21,320 Speaker 1: optical industry and seeing the power of a pair of 129 00:07:21,360 --> 00:07:24,960 Speaker 1: glasses to transform somebody's life. It's amazing, Right, there's a 130 00:07:25,000 --> 00:07:27,480 Speaker 1: few things that have immediate impact that you put on 131 00:07:27,480 --> 00:07:29,880 Speaker 1: a pair of glasses. People's faces light up and they 132 00:07:29,880 --> 00:07:33,560 Speaker 1: can immediately work and be productive. You talk about power, 133 00:07:33,600 --> 00:07:35,920 Speaker 1: and I want you to maybe talk about the power 134 00:07:36,080 --> 00:07:39,880 Speaker 1: of marketing because I understand that there was an article 135 00:07:39,920 --> 00:07:44,560 Speaker 1: that appeared in Vogue magazine that really lit the fire 136 00:07:45,160 --> 00:07:48,200 Speaker 1: for Warby Parker. And what if you could describe. It 137 00:07:48,240 --> 00:07:51,360 Speaker 1: was nine thousand orders in one day that had you 138 00:07:51,400 --> 00:07:55,400 Speaker 1: all scrambling. Yeah, when we launched exactly six years ago, 139 00:07:55,960 --> 00:07:58,720 Speaker 1: we were featured in Vogue and g Q, and the 140 00:07:58,800 --> 00:08:00,840 Speaker 1: company took off like a that yip. We thought that 141 00:08:00,880 --> 00:08:03,360 Speaker 1: we were going to have to beg our parents and 142 00:08:03,440 --> 00:08:05,600 Speaker 1: our friends to buy, you know, maybe a couple of 143 00:08:05,640 --> 00:08:09,280 Speaker 1: pairs a week. But what happened is that we hit 144 00:08:09,320 --> 00:08:11,880 Speaker 1: our first year sales targets in three weeks. We sold 145 00:08:11,920 --> 00:08:14,200 Speaker 1: out our top fifteen thousand four weeks. We had a 146 00:08:14,240 --> 00:08:17,520 Speaker 1: waiting list of our twenty thousand people um And to 147 00:08:18,000 --> 00:08:20,560 Speaker 1: to us, what this showed was that people were sick 148 00:08:20,600 --> 00:08:22,960 Speaker 1: and tired of paying five dollars for a pair of 149 00:08:22,960 --> 00:08:25,640 Speaker 1: glasses that you know we could offer for But how 150 00:08:25,640 --> 00:08:27,840 Speaker 1: did you respond to that demand because you said you 151 00:08:27,880 --> 00:08:30,160 Speaker 1: had a waiting list for twenty thousand and I just 152 00:08:30,200 --> 00:08:32,439 Speaker 1: want to pinpoint it because sometimes you have a great idea, 153 00:08:32,440 --> 00:08:34,559 Speaker 1: you've got a great business, it starts off, but then 154 00:08:34,559 --> 00:08:36,800 Speaker 1: you don't know how to deal with success. Yea. We 155 00:08:37,040 --> 00:08:39,520 Speaker 1: so at the time we were full time business students 156 00:08:39,720 --> 00:08:41,880 Speaker 1: at Wharton. The first thing we started to do is 157 00:08:41,920 --> 00:08:44,960 Speaker 1: cut class so that way we could respond to all 158 00:08:45,000 --> 00:08:48,720 Speaker 1: these customer emails to help process the orders. Uh, and 159 00:08:48,920 --> 00:08:52,720 Speaker 1: we ended up just apologizing a lot and explaining to people, hey, 160 00:08:52,760 --> 00:08:55,200 Speaker 1: we just started. Uh, you know, there was a lot 161 00:08:55,200 --> 00:08:58,320 Speaker 1: more demand than we were anticipated. And we found that 162 00:08:58,360 --> 00:09:01,040 Speaker 1: the more that we explained to customer, the more connected 163 00:09:01,080 --> 00:09:02,920 Speaker 1: they felt with the brand. It's almost the way that 164 00:09:03,000 --> 00:09:06,080 Speaker 1: human beings build relationships with other human beings, which is 165 00:09:06,240 --> 00:09:09,400 Speaker 1: really through vulnerability. So we've always tried to explain not 166 00:09:09,480 --> 00:09:11,719 Speaker 1: just what we do, but the how and the why. Well, 167 00:09:11,760 --> 00:09:13,920 Speaker 1: did you feel vulnerable to the recent New York Times 168 00:09:13,960 --> 00:09:17,120 Speaker 1: piece that kind of said, you guys are just that 169 00:09:17,280 --> 00:09:21,160 Speaker 1: the you know, you're the poster boys. You are you 170 00:09:21,200 --> 00:09:24,080 Speaker 1: in body like hit cool? You're not cool. You gotta 171 00:09:24,080 --> 00:09:25,559 Speaker 1: be young, you got a slim You gotta be a 172 00:09:25,640 --> 00:09:28,800 Speaker 1: certain kind of person to to buy and wear a 173 00:09:28,800 --> 00:09:33,480 Speaker 1: Warvy Parkers. Did that? Did that hurt your feelings? It did? Um, 174 00:09:33,520 --> 00:09:36,480 Speaker 1: And what was amazing is that it seemed to rally 175 00:09:36,600 --> 00:09:41,319 Speaker 1: sort of our our audience. So this columnist right that said, um, hey, 176 00:09:41,360 --> 00:09:44,440 Speaker 1: you know, even though Warry Parker's glasses are affordable, there's 177 00:09:44,440 --> 00:09:47,200 Speaker 1: this air of exclusivity around the brand. And we couldn't 178 00:09:47,360 --> 00:09:51,840 Speaker 1: disagree more and this writer, who usually gets maybe seven 179 00:09:51,880 --> 00:09:54,560 Speaker 1: comments on a particular article, got a hundred and eighty 180 00:09:54,640 --> 00:09:58,040 Speaker 1: five from people saying that they love the Warby Parker experience, 181 00:09:58,080 --> 00:10:00,800 Speaker 1: that they like the influence that where we Parkers having 182 00:10:00,840 --> 00:10:04,120 Speaker 1: on the industry, which is forcing other optical change to 183 00:10:04,920 --> 00:10:08,400 Speaker 1: um renovate their stores, lower their prices, and provide better 184 00:10:08,400 --> 00:10:10,800 Speaker 1: customer service, which we think is a good thing. And 185 00:10:10,880 --> 00:10:14,199 Speaker 1: you've also opened recent stores, one in Brooklyn, as Kathleen mentioned, 186 00:10:14,240 --> 00:10:17,040 Speaker 1: and we're also looking at new locations. UM. Yeah. In fact, 187 00:10:17,080 --> 00:10:19,600 Speaker 1: actually on the way here, I ran to the mall 188 00:10:20,440 --> 00:10:22,440 Speaker 1: about twenty minutes ago and now I don't miss an 189 00:10:22,480 --> 00:10:24,520 Speaker 1: opportunity to walk through the mall. You know, we think 190 00:10:24,559 --> 00:10:27,720 Speaker 1: that the future of retail is the intersection of e 191 00:10:27,840 --> 00:10:30,120 Speaker 1: commerce and bricks and mortar, and we've been trying to 192 00:10:30,200 --> 00:10:32,400 Speaker 1: lead the way there. We just launched in the app 193 00:10:32,480 --> 00:10:35,840 Speaker 1: this past week, UM that uses Apple Pay. That makes 194 00:10:36,160 --> 00:10:41,240 Speaker 1: shopping more convenient. Uh, you'll begin to see just how 195 00:10:41,360 --> 00:10:44,680 Speaker 1: much we can integrate those two experiences. Well, I'm sure 196 00:10:44,679 --> 00:10:47,600 Speaker 1: Orange kind of Mere TREESA Jacob just on the show 197 00:10:47,600 --> 00:10:49,679 Speaker 1: with us, will be very happy there opening store here 198 00:10:49,720 --> 00:10:54,840 Speaker 1: in Orlando. And we're live at Pershing's Inside conference in Orlando, Florida. 199 00:10:54,840 --> 00:10:56,679 Speaker 1: And Katheine Hayes. This is Pim Fox and this is 200 00:10:56,679 --> 00:11:03,720 Speaker 1: Bloomberg Radio. Coming up on taking Stock, We're going to 201 00:11:03,760 --> 00:11:07,199 Speaker 1: be talking about Harry Reid. I'm gonna talk also about 202 00:11:07,240 --> 00:11:10,760 Speaker 1: Bernie Sanders meeting with Harry Reid and find out what 203 00:11:10,920 --> 00:11:13,280 Speaker 1: went on in that meeting with details the head