The Business Case for Climate Action

Week on iTunes, SoundCloud, bl Bloomberg dot com. You can also listen to our radio show at two pm Eastern on Bloomberg Radio every weekday, or watch us on YouTube by searching Bloomberg Global News. Delighted to introduce Yes for Broden. He's the presidency of INCA Group. They are home to three businesses of course, all of those I Kea stores that are around the world. We're also talking about their shopping centers and then their investments arms. So a lot

to talk about, and as I said, they are operating globally. Um, yes, for so nice to have you here with us. Um. I gotta ask you, first of all, you said as we were getting ready to set it up that before we get into what you guys have done in terms of sustainability at the store and the DNA. That is UM sustainability really within your company culture. You said to us, as is the first time you've traveled in six months that you've left Sweden and you're in the Netherlands. Just

talk to us about how that feels. Talked to us about the last six months. You guys operate globally. UM. The virus has just impacted us, UM also, So just just tell us kind of how things are going well. You know that this year for us, like for everybody on this planet, we have been through a very special journey this year, and I must admit us I share

with you too. To be traveling about again, I felt a bit like the old movie Castaway when coming back to the office seeing people UM and enjoying that also, I must say at the same time, obviously, UM, we just like everybody else, have figured out new ways of leading. We have figured out that we we didn't have a map for this situation, but we had a very strong compass. I think with the way we like to lead and our values that helped us. Actually, I think take many

good decisions. But it's been a ride. It's been a ride, no doubt about it. It's interesting that you say that, and we're going to get into kind of your sustainability strategy that is so much the IKEA and corporate culture here. But I do wonder having so many of those measures in place, are there any specific anecdotes that you can tell us that help you guys get through this crisis

because of those green initiatives or sustainable initiatives. Well, you can say, I think the it's all enter tangled, right, people plan at and business and you can't take out any of these from the equation. So what happened obviously to us was that we had periods of dramatic closures in our stores and we had to find ways to both protect ourselves or people are customers, uh. And then on the other hand, we had to make sure that

we could save the jobs for the future. And the way what actually happened in the end of the day was that we were speeding up everything around multi channel and online and we went from a good year to a record loss forecast to actually coming back on half of our estimate the profit in the end of the day, and that was thanks to I think the entrepreneurship of getting things right quickly. Do you think we're through it?

Do you are you guys getting ready for another wave? Well, you know, I think at a certain moment we were. We worked quite early on forecasting different scenarios, and the period that we have just entered we called the new normal, And I think it's a bit of a deceptive term in a way, because the way we see it is that for at least a year to come, we need to be very agile, very prepared for outbreaks. I think

the term second wave could be misunderstood. So we like to plan for outbreaks and how to deal with that in the best possible way, both for jobs, for business, uh and for everything we do in society and contribute to. And obviously it's clear for all of us that you know, one year later again it's still going to be learning.

There will be things that we will be, um, you know, doing differently, and that would be a lot of I think amazing things that we carry with us from this period as well, hopefully including the way we realize the importance of investment in sustainability and the opportunity of doing that right. Well, let's get to that, because despite this being a crazy year, a tumultuous year. You guys are on track, and forgive me, I'm gonna read from my

notes because I want to get it right. You're a track to achieve and exceed a goal to produce as much energy from renewable sources as you consume. By you have made massive investments about two and a half billion euro in wind and solar power. You've set a twenty thirty goal to be climate positive, meaning you're going to reduce more gas emissions than you admit you are in you know, when it comes to electric add electric a

hundred percent at the time, ahead of targets. When it comes to deliveries and Shanghai by e vs um you're doing that in Amsterdam, l A, New York, Paris. And here's something a goal for everyone who's listening. By you guys have said your ambition is to inspire and enable one billion people to live a better everyday life within the limits of the planet. It's really heavy stuff and it's impactful stuff. How tough has this been to do? And what has been the business case for climate change

for you all? Well? You know, I think, I think if you look at I K S history you can say we started out with the founder that was a very thrifty person, very smart around resources, and I think that's part of our story. So part of this you know that sustainability and being being smart about people and planet is part of our legacy. My own story started back in the company when I joined in hp ccific. At the time when we invested in I think what is still today an amazing code of conduct when it

comes to production. Those days we had some discussions about can we afford it, will drive costs to do the right thing with working hours, salaries, etcetera. And in the end of the day, it turned out to be brilliant for business. We have the most efficient partners, happy coworkers along etcetera. So I think we already then we we

saw some myths that were we needed to bust. And the same goes for for the climate the ghost that we have committed to where we we do not have all the answers yet, so we still have some gaps to be filled to coming years. But we are convinced that this is good business for three reasons, or you can say for two reasons. One is that I coworkers and our customers expect us to take the lead, so it would be I would say dangerous to not take

that lead from um from your revenue side. But secondly, the business model we are bildy as the new low cost so sustainability shows in case by case to be there the way we will provide low price furniture in the future. You say, you know a couple of things. You said it was brilliant for the company, So I'm wondering if you can put some numbers on that in terms of the business case for doing all of this.

But I also wonder you said myths to bus because I can only imagine some of the internal you know discussions. Yes for that, you folks had it said no, we can't do that. I know it's good for the environment, but you know it's going to cost too much or we can't recreate our supply chain. So give me a

little bit of that that feel. But absolutely, I think the best number I can give you is that last year we're very happy and proud that we were able to grow with some six percent plus, which is a good decent back a year, and at the same time we reduced our absolute carbon footprint across the whole scope one two and three with more than four percent, so it was possible to show healthy growth and at the

same time a decarbonize if you like. Obviously, we are very hum and respectful to the future to continue that journey with the plan. But that was I think the first year of proof for us. But then you can say to the myths. I think there are three myths that I see over and over again. One is that purpose and profit don't go hand in hand, which I

think and we think is the opposite. And there is a very strong if that sustainability should come at the premium, which I think is very dangerous because then this is a mass movement that needs to involve everybody on this planet, so therefore it should be rather seen as the new low cost And and finally, there are a lot of myths around that consumption is all bad, and there is bad consumption, but there is also sustainable consumption. So these are the type of topics that sometimes lie in the

way for taking the right type of action. Well, I do wonder too if things like supply chains, maybe when you guys set out, you know, in the beginning days of the company, or even five years ago, ten years ago, maybe there weren't as many suppliers or many folks that you could reach out to. But what I'm hearing today is a lot of them are out there already, so that if you want to have a greener business, a more sustainable business, you can find that in your supply chain.

You just have to make those choices. Is that true? Is that fair? I would say so it comes down to I think from if you look at any type of industry, I think the entry ticket to anybody and it's special I would say companies of size that holds responsibility. So I think you need to start by committing and there is a bit of a leap of faith in that commitment to to paris um and you need to commit to e SD reporting and transparency as well. So

I think these are the entry tickets for anyone. But then it all comes down to what is your category plan that you need to put in place. And I saw it as an introduction here. I saw ben at shell in in one of the most important industries I think to be part of the transformation, the fossil fuel industry, which we are we're part of, and I be um we we belong to the consumption industry home furnishing. So we have some different criterias maybe of things that we

need to address. But the important thing is, as much as it can be inspiring to do the symbolic changes, we need to address where it's really impacts. Thereby we need to be able to submester around our activities against c or two footprint and see that it really makes sense in the totality. And there are a lot of people.

I think we're still looking for the way how to do that, But there are many plans around and I think i Kes plan, which we are happy to share with the world, is just one of many good examples or not to do it. Government has to have a

bigger role in this. I mean, you know, here's so what's so interesting is that in order to get all this done right at a time when we're pushing back against globalization, when we're pushing back against cooperation, we've never needed it, you know, more than ever before, whether it's on the health pandemic or whether it's on you know, the climate impact. And yet what's holding that up or where have you seen progress? What's holding it up? In

your view? Mm hmm, yeah, I think now I must have it as I belong to the optimists of the world. So maybe I'm wrong, but I believe we are at the tipping point right now and you can sense it. Um that there is of course people who struggle with admitting the issues, and I do believe that we and most of us should spend less time on that. We need to look into the people who are ready to take a leap here and and contribute to the to

the movement. Because it's also you know, the clock is thinking and we've probably have vent at what is the most important decade in the history of human kind. So we need to get moving with with actions. And thereby it's not so much about discussing the problem that is needed, it's about discussing the actions that needs to be taken

to mitigate the situation. You know, what's interesting and people are I feel like if you're not necessarily someone who you know buys into or believes that we're having climate change, you know, you guys, get into the science and what the impact will be. In your sustainability report, you talk about you know, if we see um, you know, four degree census increase in terms of the heating of earth.

You right, in this report, our ability to mitigate the risk is very limited and the cost for the business are far higher and worth damaging. I mean, we're talking about the bigger impact we have on our environment. You know, your access to resources, the cost of resources, um, the impact of flooding or fires like, all of this starts to add up right on the cost of doing business. And also it's it's not as healthy environment for people

to live in to work with it. Well, you can say that to your point, we we have we have seence money as past the point where climate threat is a theory, it's a it's a it's it's in our p mls already and thereby I think it gives us more motivation you can say on them. On the challenging side of this from a human perspective is, of course, if we do everything right from now now on we stay, we will have to pay for the depth that we

have the last a hundred years or or so. Um. So we are inherited to turn the trend, obviously, and we will need to brace ourselves a little bit for the issues that we have ahead of us. In spite

of that. But I think it's uh, it's a time for the world to come together and it's time for leadership, and I actually do see that if I compare six months, twelve months, twenty four months back, there is a different story right now, Industry after industry, and I think in particular in the corporate circus, there is uh industry leaders

in every category stepping forward. I have the pleasure to be part of the Economic Forums Climate Alliance, and that's a group of very important companies in different categories that have moved from agreeing on the issue to actually committing

and taking actions. So we see this in in area after area, and I think to your point, as of course, this is a collaboration where we need to be very close to the political leaders of the world because it's an important collaboration where I think politicians can help to incentivize and actually catalyze change much much faster if we work together. So it is an opportunity in particularly now after COVID has a lot of wise people have mentioned

to build back better, So that's what we need to do. Well, you know, talk to me about geography. I'm sure that there are parts of the world where it's tougher for you guys, where you operate to kind of make the business case for climate action. Um. There's also parts of the world that maybe don't embrace you know, um, some of what's in your DNA, your corporate DNA. UM, whether it's China on one hand, or Russia, you know, so what do you do? What's your thoughts about operating there?

Even if you don't agree with all of their initiatives, maybe they're not as sustainable as a company or country. Excuse me, Yeah, now, I think to start, I think we the the business idea and division of i K is to be where the many people are, to serve people within the wallets with great term furnishing. And thereby you can say we are slow and long term in a way, so we don't enter a market and step

out over night. But we progress with investments, with our physical investments, with our digital investments, and our long term goal is obviously to try to be where there are people. So therefore we're happy to be in Russia and China and us in India we have just recently started as well. Then obviously politically changed tends to come with a shorter cycles sometimes um. And there you know, we have little opportunity to to do others than to adapt to realities.

We have had decades of open trade and now we have had recently a period where this has been more difficult. With all the respect for the situation in the world, I think so far in our way of viewing it, collaboration of the borders tend to both be good long term for both jobs and for for consumers. So sometimes this this can be a struggle. But at the same time, I think we are at the place where we try to reach out and try to see how we can influence in a positive way in the society where we

where we act. I do wonder too if you think, um, it's easier for you guys to be sustainable because it's a foundation that owns the company, right, and there's it's a different court. It's not a corporate structure, a publicly health company where every quarterly or every half year you guys are reporting your financial Does that give you a leg up in doing all of this? I think so.

To be honest, I think some of my fellow colleagues CEOs who are on the stock market, for example, where can we quarterly UH targets have a different situations that maybe that we have an eye have being long term, foundation based and also a foundation that works with in the end of the day's charity for people and planet. So I think definitely so. And at the same time, we can still serve as an example because the investments we make are not about charity. They are they are

fundamental transformations into a better business. So in a way, I think it's okay that we can serve as an example for that. And then then I think it takes a lot of carriage today to be a leader because at the end of the day you have stakeholder capitalism to care for. But at the end of the day, I think you need to also face your own family, your your your friends, yourself and at the at this time there is an opportunity for each one of us to do what we believe is right. And in some

cases that can be easier said than done. But if we are a critical massive companies that move in this direction, we will basically reshift competitive landscape. And that's what actually is happening as we speak, including what how cons respond to brands. Well, that's I think a really significant part of it. You know, I think about my co host

on our radio shop, Bloomberg Business Week. We both have kids, you know, and kids who are turning around looking about you know, what are the ingredients and something, or looking at we are company manufacturers, what's the climate and you know how much water is wasted in manufacturing? How significant is that in terms of again supporting the business case for being sustainable, for being green and what you do? I mean we talk about it so much, yes, for um and I know it's important to me, But I

do wonder is that becoming much more significant? Do you guys talk about it in like a boardroom? Do board you know, our boards having these discussions because they understand it's important. I think so. To be honest, a few years ago, I think it was more difficult to bring in those personal abuse but also the the many parts of the equation here. So again back to the myth that profit, profit and purpose were two different words, and I think we belong to the lack of ones in

that case. We have the very good discussions and we are challenged by our board to do a better job when it comes to sustainability, including communicating it. So but again I think we are at the tipping point where this is becoming the new reality. And you know how it works when when you create a momentum saddly, it

becomes very lonely on the other side. UM. And from a customer perspective, what we see is dramatic and there is no difference in the world if we go from market the market, if you go from China to U as the sweder and the concerns are up in the eighties nineties. Of all the people we interview, and we interview a lot of people on this topic, they are concerned typically and they also typically struggle with understanding how they can impact. And of course consumers can impact to

start with by shooting what brands to I from? And this is getting more and more clear. And in particular, I think when you go down to the younger generations of the consumers, they are more picky, they are better in researching, and they're very demanding. And so I think in a way the consumer trends are helping us to to take some decisions. Hey, one thing I want to

ask you, because you just got about five minutes left. Um. In addition to being climate positive by twenty you are committed to being circular by then as well, which is fascinating to me. It's changing waste into resources across your operations, enable people at home to do so as well. This is basically how you get rid of waste. It's massive, um, how do you do that? Well? It's like like many things in sustainability, there's not like one silver bullets, I

would say. So I think every company is to look at their their footprint. It also materials, should say. But then again, when you start to pick them in the right order, you find a lot of opportunities. So in our case to recycled paper and recyite a plastic for example, it's a business benefit, it's not a problem m And then then you can go all the way to some of the material equations that we have not yet found a good solution for. So it's like case by case,

you work your way. But if you if you look at it placed the investments we did in the Netherlands for a model that is being scaled out to more markets, is how do you bring back matrices and how do you actually make you matrices are of the same. It's it's not only a good business case, it's a good investment and down the line there will be taxes and malus systems put on the wrong way of doing this. So in a way here I think again governments and companies are and should more go hand in hand, and

how to stimulate it. Circularity is not it's not the end goal. It's one way to achieve sustainability, and it's it's a very attractive one of most of them, you know. Kind of in line with this, we have an audience member asking about product or ability and life cycle the trade off between affordability and durability. What are your thoughts on that. Yeah, it's it's I think it's a very good question because also that I would say it's a

bit in the landscape of the myths. But a few years ago we took a big address within the company to actually review everything equality and everything that wasn't durable. We challenged and moved our targets on them. So I think it's one of the steps to achieve sustainabilities. Obviously to make sure that you have longivity on on everything you do. Um and uh. And then you can say one of the dangerous myths there was it is also that you have to pay for quality or that you

have to pay for sustainability. UM. That's not the way we see it. We think by scaling things, we can building quality and sustainability into our industries, and there's a lot of an abundance of amazing examples on how that works. So I think also there you can say mass production is actually a friend of just say inability, because that's

how you scale change. If you had one piece of advice to I think our audience here and for leaders that they could take that would significantly impact their company and make them more sustainable, what would it be. I think what has helped us was to fundamentally agree on

what the reason to why this is important. Second, I think that there needs to be some sort of leap of faith and commitment, meaning that giving yourself maybe hopefully not to and fifty, but you should also I think I have some confidence that some of the answers lie

by exploring the journey ahead of us. And then I think the third would be to study some of the leaders, study some of the plans that exist, because I think there's a lot of things that we can replicate in different industries, and by working together, I think we can move this againa faster and we will. If we don't, we will make it happen. We have to make it happen, and we will. I'm sure. Well that's what I gonna say, I mean, if we don't get this right, what's your fear? Now?

If if we don't get this right, we will get it right because the consequences will be tremendous for us. So I think I think we we tend to spend less time again on doubting the change and less about the fear. We had much more of that a few years ago. Right now we'll be seeing the actions we're working in Scope one to three. We're addressing some low hanging fruits and some very difficult challenges. So I think

it's just to get is how to do it? Well? Yes, for Broaden, Like I as I read through all that you guys are doing, you really are the poster child and really had the playbook in terms of how to be a sustainable company and so many different methods. So I suggest everybody really check out your website because you really are doing it in so many different areas. Yes, but thank you so much. I really appreciate it. I think I think next time we do that, we do

this on a sale. You're a sailor, I'm a sailor, so I think we should be doing it this way. All right. Well, I wish I wish you well. Thank you so much. Of course. That's yes for Brown Presidency, INCA group joining us here for the Bloomberg Live Bloomberg Green Festival. You're listening to Bloomberg Business Week with Carol Mazer and Jason Kelly on Bloomberg Radio. All right, let's

do a little Bloomberg Business Week economics. Now, we have covered a lot of ground in the first hour, so let's stick into the economy if we can, Carol, because it is hard to get your arms around. We've been talking about this sort of all these cross currents in many ways, be at a climate crisis, be at UH a broader economic crisis. We turned to Adam osamackis chief economists for Upwork. He joins us on the phone from Lovely Lancaster, p A. So amid all of this, Adam,

the workforce has continued to change pretty radically. Even going into the pandemic. We saw a gig economy that was still a little bit uncertain and uneven and exacerbating some issues out there. You guys have done a recent study about the independent workforce. Talk to us about what you found. Sure, so um, you know, talking about what's going on in the gig economy is is often um, you know, difficult

because it's such a huge amount of variety. So when we talked about what was happening before the pandemic, that really is, you know, a huge range of activities that count as freelancing. This range is from selling things online to um you know, working in the transportation street and short term gig worrian stuff, but it also includes uh, really skilled work. There's a lot of programmers and writers and marketers you know, working full time professional skilled jobs here.

So it's really important to understand that contact before we dig in that you know, freelancing is extremely varied and it's not just um short term low skilled gigs. I know, I was a freelance reporter on air at a major network and I was freelance for a couple of years. Like it's just amazing, like that what what you know what falls into the freelance category, Adam, Yeah, no, free, it's it's everywhere. I mean, freelancing is across age groups

and it's across UM skill levels. And you know, what we really found this year is that the flexibility of freelancing and the value that that provides UM has really been on display I mean, the pandemic has been incredibly challenging both two businesses and individuals obviously, and there's been a real serious need for quick adaptation and we see

that in our reports. So what we found is that a lot of people have actually started freelancing this year for the first time, So twelve percent of the workforce started freelancing after COVID. And at the same time, we've had a large percent of the work first who was

freelancing and they've paused. So you have a lot of people who have started and a lot of people have paused, and it really just shows the flexibility and that you know, there are parts of the economy that you know, are really put on hold during the pandemic, and that's where

the pause freelancers come in. And then there are parts of the economy that really faced fast business adaptation challenges and companies needed to respond quickly to the um you know, uh, needing to adapt to the pandemic, needing to go remote very quickly, you know, things like spinning up e commerce operations and logistical challenges and changing marketing plans, and freelancers have been really important part of that for those companies.

And so you know, one of the questions we ask in the midst of this pandemic, especially Adam and I wonder if you were able to get to this in your work, is sort of the what sticks and what's temporary as we sort of get to whatever this next normal is going to be, because a lot of the things you're describing, you know, have been underway. The pandemic has been in many cases and accelerant. So what does this look like as people return to the office, as

the economy starts to right itself. Is this something that continues, Does the move towards freelance accelerate? What what happens in your estimation? You know, it's a really fascinating question because when we do this survey, like if you would have asked me last year, what I would have told you is that there's always a lot of freelancing, and it's

not necessarily growing or shrinking part of the economy. It's just something that has always been with us and sort of this idea, there's this idea out there that you know, everyone's going to be a freelancer, and I don't really agree with that. I think that freelancing is extremely valuable to the people who work that way, and it's extremely valuable to the businesses who hire that way. Um, but

it's sort of always been with us. This year, I actually do think there is good reasons to think that we're going to see some you know, permanent increase in

the freelancing share of the workforce going forward. That's because a lot of the new francers who are doing it for the first time, they say they want to continue doing it, and a lot of the freelancers who have paused they say they want to do it in the future too, and so on the on the sort of labor supply side, I think that makes for a good case that there are going to be lots of skilled

people who want to keep working like this. They enjoy the flexibility, um, they enjoy the lifestyle, and you know, a lot of them needed you know, they're freelancers, are disproportionately both caregivers, and they live in households with a disabled person or are disabled themselves. So I think because they value that flexibility, that's going to make people want to freelance a little bit more than they used to

do in the past. But does it make it a more you know, the vulnerable part of our population does that help make it UM increase because I sometimes think so many freelancers don't have many of the benefits that we all you know, in full time great ups like those of us where I work at Bloomberg, you know you've got great health care, great programs. Does that create you know, making UM a larger part of our population more vulnerable. Well, there's a couple of ways to look

at that. So one thing is that obviously, uh, lack of health insurance is a problem for significant share of this country, and that's true for a lot of workers, both in and out of freelancing. So that's not necessarily a freelancing specific thing, and that's a policy issue that we need to do something for for everybody, is to make health care more affordable. The other thing is that, you know, a lot of freelancers, this is not just the way they prefer to work, but the way that

they have to work. So you know, in past surveys, we've asked about people who are either for reasons of disability or because their caretakers, you know, whether they could take a traditional job, and what we find is that a lot of freelancers couldn't do a traditional job. So if you you know, went to the people who hire freelancers and said, no, you need to you absolutely must hire only you know, nine to five traditional employment. We think that a lot of these people they wouldn't be

able to do those jobs. They need the flexibility, They value the flexibility, and that's, you know, from the freelancers side. Obviously from the employer's side, there's a lot of benefits too. So I really think that it's important that we don't view these jobs as just taking the place of traditional employment, but truly being additive to the economy. This is work that was not otherwise have been done. All right, We're gonna leave it on that note. Hey, Adam, good to

check in with you. Adam as A. Mc key's a chief economist at the online talent recruitment website Upward, joining us on the phone from Lancaster, Pennsylvania. Brother the journal. Yeah, but you let me drive. Oh no, no, no no, no, all right, please, I'll do the right revel I want to drive. Just drive by question. This is the drive to the Globe Community. Thanks, we'll drying us to dawn on Bloomberg Radio. All right, everybody, it is time for

the drive to the close. Jeff Crumpleman is with us the chief investments dragist, head of equities at Mariner Wealth Advisors, Jeff joining us once again on the phone from Cincinnati, which is where they are based. Hey, Jeff, it's so nice to have you here with us. How are you doing great? Doing great? You know, summer is coming to an end, start going in the favorite part of the season. Maybe not for the market, uh, you know, otherwise we're

doing good here in Cincinnati. Well, what are you anticipating for the market When you say that, I know, seasonally, um, September October, we all get a little pinky uh. And maybe this year is kind of even more interesting because it's coming right ahead of the elections. But how do you see it playing out? Well, I think you hit the operative word there. Seasonally, it does tend to be a period where thanks stall and then it picks back up at the end of the year going through the

first part of the new year. And the election certainly makes it even that much more. Um wiggy if you will, um. And I think the wall of war items that are out there are number one. The market has gone so hard, so fast, the fastest recovery off the decline that we've seen and normal profit taking would you know not be unusual? And then the angst of an election where you get

major change in control, perhaps a sweep. And I think that you see COVID, you know, while it is thankfully finally declining, still thirty five thousand or so new cases a day, well down from a couple of weeks ago, but still out there, um increasing in Europe. Um. You know, we don't have a vaccine yet. I think that there's enough in the psychological wall of war camp to keep us cautious near term. But I've got to tell you that we remain positive to on the next twelve months.

And do you think that you know, we're up from here and we've got a target of thirty five hundred that we're biased to want to increase if we can push through some of these short term issues, which I would anticipate. But we're still kind of hold your ground right now, um with our allocation, not not increasing exposure equity,

maintaining the healthy exposure that we have. And so Jeff talked to us about some of the names you like, uh in this era and in this period, you know, one that I believe we've talked to you about before that we love talking about on this show is Lulu Lemon Um. You know, we saw some results from them, and what do you make of sort of where they sit. They've made some acquisitions, are a big acquisition when it

comes to to Mirror, where do they fit into your portfolio? Now? Yeah, I don't think the thesis has changed there at all. And as the stock is sold off a little bit on the quarter, UM, I thought the quarters actually very good. You know, they beat UM. The guidance was a little bit soft, but you've got you know, main category in women's fans and continuing to you know, capture the men.

I think I told you that I spent something like seven on Lulu Woman at Lulu Woman UM not too long ago going into COVID, and I've loved every minute of wearing what I can wear as we work from our homes. It's just a wonderful product. So I think that you continue to have UM square footage growth penetration internationally, categories and ath leisure that are growing very handsomely and they are just UM, a wonderful product and very close

to the consumer. Uh. The Mirror acquisition I think is interesting and there there is some synergy with you know, brand development, UM, with ath Leisure associated with it. But you know that I didn't think that was a knock your socks off kind of transaction or transformational transaction any sense. I just think they are executing. It's an execution story, and UM I would on fullback, you know, UM be very happy and adding to positions we've had, we've undered.

We've entered into the stock originally somewhere around one nineties, so we've got you know, very nice gains in it, relatively more to order and and it's those types of COVID oriented stocks. To answer your original kind of question that we've been focusing on, you know, we've upgraded. It's not like we've just sat still. We've upgraded into stocks that we think are beneficiaries of or UM. You know, those that can be stable through COVID, including like a Starbucks. Well,

Starbucks would be an example. You know, we we divided the universe kind of into those that would take advantage of it, those that could manage through it and spit in the wind. Stocks Uh that you're just saying they are so cheap that they've been overly punished and we have not come into those. Those would be the airlines, the cruise lines, UM, hotels and gaming and those kinds

of we moved away from those. Those are we're spitting to win the nature Starbucks that we kind of put in, they can manage through it very well, and they are at a good point of curve. We've not owned that one. Lulu, we've owned for a while. Starbucks is more recent purchased, and we did that because of China recovery. China's two lets ahead of us. That's a thick story over there. So we think that that's a cyclical recovery of secular

gross box with some sick cyclical improvement. UM. Now that we're pushing through covid um a little further into curve, certainly internationally, we're gonna hear from FedEx after the closed, Jeff, how do you sort of see them? Where do they fit into the to this larger thesis? Well, that's that is one that we've owned a little bit longer. Um, And I think the thesis is simply e commerce. And you've actually seen transports that are non consumer airlines oriented

do quite well. So we own a night Swift, a trucking comp any, you know as you go to online, you gotta ship this stuff, and FedEx is right there. They spent boodles of money on upgrading their fleet, becoming

more efficient. They made a very troubled acquisition in Europe that they're finally kind of working through, and we see them as uber cheap um and just a beneficiary now going forward to some of the hard work they did early on, and they'll benefit from e commerce and certainly over the last couple of quarters, that's what you've seen with a sock. Finally, after just getting thrashed. Um, we're back up over two hundred and and it's down still down from you know the peak. So UM, I think

that this is a time to own it. All right, We're gonna leave it on that note. Jeff Crumpleman, thank you so much. Good to hear your voice, Chief investment Strategists, head of Equities at mare No Wealth Advisors on the phone from Cincinnati. Thanks so much for listening to Blueberg Business Week. Download the podcast on iTunes, south Cloud, Blueberg

dot com, or wherever you get your podcasts. And of course you can always listen to a radio show at two pm Eastern on Bloomberg Radio or watch us on YouTube by searching Bloomberg Global newsm