WEBVTT - Petco Shares Drop; Five Below Shares Slide; Calvin Klein Owner PVH Sinks

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news, The Stock Movers Report,

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<v Speaker 1>your roundup of companies making moves in the stock market,

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<v Speaker 1>harnessing the power of Bloomberg Data. Let's take a.

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<v Speaker 2>Look at some stocks on the move today.

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<v Speaker 1>I'm Tim Keene with Bol Sweeny and Bloomberg's Alexis Christopher's.

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<v Speaker 3>I'm going to start with the ticker symbol WOOLF. Wol

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<v Speaker 3>What am I nice? You know?

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<v Speaker 2>You know your stocks, You're not stock symbols.

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<v Speaker 3>So Petco still in the middle of a turnaround here,

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<v Speaker 3>and it's latest earnings report sort of underscores that. So

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<v Speaker 3>shares a Petco down about fourteen percent of the in

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<v Speaker 3>the pre market. Company second quarter forecast fell below consensus estimates.

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<v Speaker 3>This is outweighing a better than expected first quarter, which

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<v Speaker 3>actually included a return to positive revenue growth for the

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<v Speaker 3>first time in about two years. So this is a

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<v Speaker 3>pet health and wellness company. They don't just sell, you know,

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<v Speaker 3>pet supplies. They said that there was a partial Tarer

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<v Speaker 3>free fund they got last month. They said that's going

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<v Speaker 3>to be offset in the second quarter by incremental tariffs

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<v Speaker 3>and higher gas prices. Now the company does have this strategy,

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<v Speaker 3>right now where they're trying to move away from cost

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<v Speaker 3>cutting and towards growth initiatives. So they're restocking in store

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<v Speaker 3>merchandise to feature more private labels, also premium fresh pet food,

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<v Speaker 3>and they're expanding to build out in store veterinary services

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<v Speaker 3>like grooming and training. And that really did help, you know,

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<v Speaker 3>the situation in the last quarter. But again that forecast

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<v Speaker 3>not living up to expectations, and Petco is down thirteen

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<v Speaker 3>and a half percent. It was up eight and a

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<v Speaker 3>half percent the year to date.

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<v Speaker 2>They compete with Chewy, right, yes, they do. No one

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<v Speaker 2>takes my money easier and checker than the Chewy.

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<v Speaker 1>Yeah.

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<v Speaker 2>I see the Chewy boxes in my building all the time.

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<v Speaker 2>The way you click through, it's the fastest way to

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<v Speaker 2>lose money. Oh geez, all right, well you got it.

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<v Speaker 2>We pay for our pets. What can I still goes

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<v Speaker 2>woof all.

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<v Speaker 3>Cute five below This is the discount retailer where most

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<v Speaker 3>items in the store are below five bucks.

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<v Speaker 1>I get it.

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<v Speaker 2>Well, the stock is down more than that.

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<v Speaker 3>It is down ten percent right now, but it was

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<v Speaker 3>up eighteen percent year to date, so stock is coming

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<v Speaker 3>under some pressure here. It beat first quarter earnings expectations

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<v Speaker 3>raised its full year profit guidance, but the CEO on

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<v Speaker 3>the earnings call signaled caution about the consumer in the

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<v Speaker 3>months ahead. Same store sales rose twenty three percent in

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<v Speaker 3>the first quarter. That was better than expected comparable sales

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<v Speaker 3>forecast growth of six to eight percent. Okay, all good,

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<v Speaker 3>so far, right, But it left its comparable sales guidance

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<v Speaker 3>for the second half of the year unchanged. Okay, that's

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<v Speaker 3>what's worrying investors. The CEO's calling out higher gas prices,

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<v Speaker 3>sticky inflation for consumer strength going forward. He worries about

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<v Speaker 3>consumer sentiment, you know. He said, Look, this last quarter

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<v Speaker 3>we had the higher tax refunds, people went out and

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<v Speaker 3>spent them. That's not going to be happening here in

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<v Speaker 3>the current quarter, So there's some concern. Look, Dollar Tree,

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<v Speaker 3>Dollar General all posted strong quarterly results recently, you know,

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<v Speaker 3>because even more affluent customers are looking for bargains in

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<v Speaker 3>these stores.

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<v Speaker 2>But they're all cautious about the consumer going forward.

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<v Speaker 1>All right. P v H.

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<v Speaker 2>We don't talk about this stock often.

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<v Speaker 3>They own Tommy hillfigure and Calvin Klein stock is getting

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<v Speaker 3>pummeled here down about twenty five percent cut its full

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<v Speaker 3>year revenue outlook. Warning about the war in Iran denting

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<v Speaker 3>sales in Europe, the Middle East and Africa. It's one

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<v Speaker 3>of the few US listed companies to slash its guidance

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<v Speaker 3>due to the Iran war. So Go figure the region

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<v Speaker 3>made up forty seven percent of sales over the first

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<v Speaker 3>quarter that you know EMEA region, and much more than

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<v Speaker 3>it did for Ralph Lauren and Abercrombie and Fitch. So

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<v Speaker 3>the guidance cut overshadowing a first quarter earnings beat at

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<v Speaker 3>PVH now expects flat revenue growth for fiscal twenty twenty six,

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<v Speaker 3>compared with a slight increase that it had forecast previously.

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<v Speaker 1>The Stockmover's Report from Bloomberg Radio. Check back with us

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