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Sure our typic story. The geopolitical story of the day is tarris President like Trump looking at post tariffs on a lot of our leading partnershare. Brendamurray joins his Bloomberg Global Trade editor. Hey Brendan, you're the expert on trade. What do you make of this story here about TIFFs?
Well, for those of us who covered Trump's first term, this was a bit of a flashback to a time when you might get a message from your boss at eight o'clock a night saying he's done it again. And sure enough, the incoming president tweeted some tariff threats last night to the three biggest US trading partners, China, Canada,
and Mexico. The ones that stood out were the cand for the twenty five percent tariffs on mechs, everything from Mexico and everything from Canada, which would essentially throw the US economy into a tailspin blow up NAFTA and its successor, USMCA.
So that's what I didn't understand is Trump negotiated the USMCA in twenty twenty when signed it with Mexico and Canada, So why would he blow up his own agreement.
Yeah, you know, that's a good question, because these threats aren't intended necessarily to be promises that eventually get fulfilled. They are threats, they are bluffs, and you know they're meant to drive the other party to the negotiating table. So he will have plenty of advice. If this goes to you know, January twentieth, then he's still threatening this, He'll have a lot of advisors around him saying, you know, you're going to destroy the US audio industry if you
do this. So you know, there's there's a lot of time between now and the inauguration day. You know, maybe there's some negotiation that can come out of it. That you know that he's already gotten a call from Justin Trudeau in Canada. The Mexican leader said said just a few minutes ago that Mexico will respond with his own threats, and she said, you know, the main exporters from Mexico to the US are General Motors Stillantis and Ford Motor Company. So you know there's the big you know, the big
auto companies there. So so we'll see what happens. But you know, markets had a reaction, but it's nothing too too drastic. Yep twelve eighteen hours afterwards.
Hi, Brendan, thank you so much. We appreciate it. Brenda Murray. He's Global trade editor for Bloomberg News, joining us from London via zoom So. I think some of the reporting I've seen today alex is potentially using tariffs as a bargaining chip for other issues down the line.
Literally, it's a dajav of twenty sixteen exactly right.
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Headed back to the market here.
It is earning's craziness, particularly when it comes to retail. We got tons of news out here. Mary Ross, Gilbert Bloomberg Intelligence and your equity analyst is joining us in some of those retail earnings.
Can we talk about Ross stores.
For excuse me? Coles?
Coles, right, Coles? What happened here? With Coles?
I get the weather situation, but I mean, is it a real thing or is this the excuse of the weather?
No?
So with Coles, it wasn't a weather thing at all. It was an execution issue. So the company reported COMP sales down nine point three percent. What that means is that their core business, the core apparel categories, they were in the double digits because so four beauty sales on a comp basis were up nine percent. So what happened in the quarter? What was the miss? It was on the private label side. So as the company was bringing in some new categories, including two hundred toys r US
shops in the quarter that they opened. Plus they have some home decors impulse items that they've brought in, and in so doing, they drew back on their private label and then also petites and that really cost them dearly in the quarter. Since then they haven't made improvements and they saw toward the end of the quarter a five hundred basis points improvement in the comp sales decline. But this basically led to them naming a new CEO. They
have brought in Ashley Buchanan as CEO. He's with Michael Stores and he's known for improving the profitability and turning that business around. He also has had stints at Walmart as the chief merchant of US e commerce and also the CEO of that e comm business in Walmart, So he really brings a lot to the party.
Wow, there's a lot of moving parts there at Cohl's And as you mentioned, you know what the big issue is execution. What did the company say, If anything, it's about their core underlying demand out there. I mean, what do they did? You give it any read on the consumer?
Yeah, I mean the reason why they missed on the private label is because those are more open price point items and that their core consumer is sort of that lower to low middle income consumer. So they're earning under fifty thousand, under seventy five thousand, and well they will draw on some higher end consumers. The core consumer is really they have less discretionary income in this environment, and then there's so many other choices out there with off
price mass merchants. We had great numbers that came out of Walmart, and they're apparel category doing well, so I think that's where they've had the miss. But they've really stepped up engagement with their core consumer and they're seeing that that's really, you know, helping the sales.
There is this just a matter of say Walmart. I mean TJX is a little bit different. But let's just say Walmart doing really well with over one hundred thousand and under one hundred thousand.
They're a one stop shop. Is it really a Walmart story.
No, it's not really a Walmart story. It's really it's a Cohle's execution story. That's really what happened. What about Abercrommie, Ah, here's a different story. Abercrombie and Fitch hits it out of the ballpark it again with comp sales up sixteen percent. Hollister, which is their gen Z brand, was up twenty one percent. Analysts were expecting eleven percent. This company did not say
weather was an issue for them. They said that they always believe that they need have balanced categories so that weather isn't a factor.
And of course it is a global.
Business and they were doing well across all markets, including China, so they were also up in China as well. So Abercrombie has a very different story, just superb execution. They have all the categories that their customers want. They introduced Your Personal Best YPB, which is kind of like a Lululemon alternative for their customer at more amenable price points, and it's second full year of that business and it's continuing to grow. So they're giving their consumers what they
want and it's showing up in the results. So quite a different story with Abercrombie.
So the stock's off five percent, but I see that the stock was up sixty six percent year to date. So is just a little profit taking today for Abercrombie.
Investors, Yeah, probably a little breather. I think they're going to continue to execute going forward. And then when you think of the big headlines right now with tariffs with abercrombiere teriff exposure for imports coming from China into the US is only like five to six percent of sales, and they could also dial that back further if necessary.
Well when it comes to an overall macro takeaway. So that's the unquestioned right, we don't know what the tariff situation is going to be. What is our Macro read on the retail names that you cover, because as you made it clear, like the cols is execution, So can we really take something away.
What's your broader take here?
Well, based on most of the companies that have reported so far, weather has definitely had an impact. So for example, we also had Burlington Stores, which is in the off price space and it's one of the fastest growing because it's so small and they're opening up about one hundred stores every year, and their comp sales rose just one percent.
Analysts were expecting two point two percent, but they said, look, winter weather categories make up about fifteen percent of our sales in the third quarter, so if you strip it out, our comp sales were really up four percent. So they are saying, hey, we were prepared for the weather, and we didn't get it until really until we moved into November.
So I think most of the companies that have reported, including TJX, which had great numbers, but they also missed a little on the comp sales and it was due to weather. So that's been the underlying, I think factor, and I think we'll probably hear it coming out of Nordstrom when they report after the clothes today too, but we do think that Nordstrom could beat estimates, but we'll see when they report later.
Mary, when all is said and done here this holiday season, how do you think it's going to turn out from a top line number.
I'm very optimistic. I think the consumer has proven to be very resilient and if you have highly desirable apparel, you're going to get the sales. And clothing is a big category for the holidays, so it's the second largest, you know, second to let's say, electronics, So I think it's going to perform well. If you look at a lot of the holiday dressing that's out there, it's pretty exciting. We now have cool weather that is set in in most parts of the country. That's good news. That's going
to draw sales. And that's actually based on our consumer survey that we conducted recently. The number one driver second to discounts is weather. The change in weather. The change in weather does cause consumers to go out and spend money on new clothes.
So, like, we make fun of it, but it's real, I guess. I mean, I never see the weather thing on earnings release. I'm like, uh huh, so sure, all right, thanks a lot. We really appreciate Mary Ross Gilbert joining us from a Boomberg Intelligence.
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Peter Chair Joints, US head of Macro Strategy Academy Securities. Hey, Peter, you and your team you woke up Wednesday, November sixth, the morning after the election and when it became a parent that president like Trump was going to be the next president and that we would have a Republican control of Congress. To what extent if any, did that alter the way you guys think about investments going forward?
You know, I think for us there's two things about it right One, what's it going to do on the geopolitical landscape? What's it going to do on the domestic landscape? And what will that do then for our investments? And I think really it takes us to really being all in on commodities. We think commodities, whether it's rare, earth's, critical minerals, oil, are going to be supported by this government. I think you're going to see some activity in the chips.
I think you're going to see kind of a national security type level thing where one we impose some tariffs, maybe strategically, but also we actually provide some supplements and some boost to the companies that we need to do things domestically. And I think one of the big things
that's going to change is not in my backyard. We're going to review a lot of the rules that have been in place over the last ten to fifteen years that were done when there was a luxury that the US was the sole superpower that are going to be rethought a little bit in terms of, hey, China's and economic superpower. They're fighting with us. What are we going to do about it?
Well, Peter was interesting though when you mentioned commodities, is that the result of all this can also be a stronger dollar, which could be negative for commodities.
How do you square those two things?
So, in fact, I think you're right. I don't think commodities themselves are going to do particularly well, but the commodity related companies will do very well. Right, They're going to be allowed to produce more, They're going to be allowed to make profits. So I think you want to continue to play in those stocks. I look at XL, for example, on the energy space that has continued to do well, even while oil itself hasn't done well. So this is much more a play in the companies themselves
because they're going to be able to produce more. And I think anyone who does services should do very well. So I think that's the play. It's not in the commodities itself, It's in the commodity related stocks.
Peter Reed overnight we had a bunch of tariff discussion coming from the President and elect. How do you think about tariffs and does that impact maybe sectors you look at around the world.
So right now, I'm not overly concerned about tariffs. I think Wall Street coming into the election just took every worse thing you know than you know. Trump on the campaign trails set about tariffs and came up with these kind of ridiculous assumptions. How I see it as he is trying to negotiate this, and I think one change we have to remember is Trump is going to say
this right up until the last minute. Right he can't say, hey, don't worry about this, I'm just faking to get them to the table, because that would lose all the power. He does have the benefit that he actually did put tariffs on in twenty eighteen, which at the time a lot of econdoms said were awful. We said, we're just we weren't starting a trade war. We were only fighting back for the first time. None of those economists complained in twenty twenty two, when there's twenty twenty when Biden
left those tariffs on. So I think this is more negotiating employee. We'll bring China to the table, We'll bring Canada, mex to the table. I think with China it's pretty easy negotiations right now. I think think there will be we can't give in on anything on high tech. We can give in on things like food, and we will try and work with them, and China is probably going to have to absorb some of the costs of whatever get implemented. Is there economies not so well, I would
say discussions around the world. It's Mexico that just seems we should be thinking more about tariffs and more about how do we really work with Mexico to create a robust environment or an industrial manufacturing base that we can utilize.
Right Yes, exactly ex staring that that base won't be really going away. How does this all then translate to the bond market, right, Because in terms of narrative storytelling, the story was, ooh, Scot percent, we like him, that's going to be good for treasury, that we want to buy treasuries a lot, and yields go down. Then today, oops, we have tariffs. Maybe that is distressing. We're going to sell a little bit in the belly. That's the narrative. What's the correct narrative?
So I think at four fifty it was pretty obvious even four to forty five you should be buying treasuries. I think we get down to ten four, ten, four fifteen, partly because I think people got ahead of themselves on deficits, they got ahead of themselves on terrorists, and some of that's getting walked back. But I also look very closely at positioning. You have spec short interest is very high in treasuries. You have a lot of the CTAs are
allegedly pretty short treasuries. You'd even seen kind of retail coming out of some of the long and duration. So I think people kind of got whipsawd are badly positioned. So I think you get to four to ten, maybe four fifteen, that range on tens, and then you want to start shorting again because the story won't be rosy next year. But people price them way too much, way too early.
Credit risk.
How much credit risk, if any, do you want to take? Because I note that the best performance in fixed income has been US high yield and US leverage A loans.
Yeah, I think you continue to take credit risk. And I've looked at it from two standpoints. One is, at the high quality end, I think more and more people are overweight, you know, short dated corporates versus t bows. Right, you still don't know what's going to happen with debt ceiling things like that. And then at the long end, you have this really neat competition, right, you have all this private credit pushing in. And then I think you saw a lot of banks pull back on their lending
after Silicon Valley Bank. So what they've had to do is now catch up, so they're lending. So you have a lot of support for this, and you know, I'd be more worried about the leverage loan than the high yield bond market. I think you know one thing I really get frustrated. I see a lot of charts ten, fifteen, twenty year charts on high yield. It's so not the right thing to look at. The high yield market used to be very small, issuers companies that you didn't know.
Almost every issue in the highield market now is big. They have public equity. It's hard to get surprised, so I think that makes sense. Leverage loans, I think are a little bit you know, where you have more one off trades. So I would be probably moving out of leverage loans focused on, you know, the high yield. I think, you know, some of the business development corporations could be interesting, but I'm very comfortable credit here right now.
Still, Peter's so great to catch up with you.
I mean, it's like any question you ask if you have an opinion and answer, and they're usually right. All right, Peter Cheer ahead of Macro Strategy at Academy Security.
Thank you so much. Really appreciate that.
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Let's pust some biotech here. So you have amgine sinking after its weight loss drug. Maybe wasn't as good as expected, I mean, though it's still delivered some solid results. You also have a Novo Nordisk and Eli Lilly rising potentially the Biden administration proposing that Medicare and Medicaid covered the obesity drugs.
So who do we go to?
We go to Sam sam Fazelli, Bloomberg Intelligence director of Research for Global Industries and a senior pharmaceutical analyst. Hey, Sam, how real is this Biden proposal?
Do you think?
Well, Alex, the thirty five billion dollar number was floated a little while ago. As to the cost of this to the system over nine years, it's not exactly a large number, right. If you could genuinely get a significant number of people at the sort of ages that they are in the Medicare program, reduced their risk of invascular disease, reduce the risk of sleep happena, the kidney disease, which is what these drugs do, I think that's a win. So I think this is a really good possibility for
it to happen. Obviously, President Biden wants it to happen. The question really is whether the next administration is going to try and reverse it or would there be appetite to continue with it.
All right, we're speaking weight loss drugs. What happened to am jen? It's rare that I see these guys swinging miss here.
Well, so, Paul, I think there was. We've seen this movie place over and over again. Companies say we've got a great obesity drug, and let's be honest. You know, twenty percent weight loss isn't bad and side effect profile okay, maybe a little bit worse, but this was a dose escalation trial, et cetera, et cetera. The problem is everybody
gets that sort of level of efficacy. How are you going to compete against the might of No One nor Disk and Lily when they come to market where they've got all those indications just talked about sleep apnea, cardivascular risk reduction, kidney osteoarthritis, and they've been on the market for X number of years and over noticed with the diabetes indication included over and well over a decade. So how do you compete? You need better data than that and somebody might say, okay, well it's a once a
month drug. Well really once a month versus once every week with the pen that you don't even notice you using. I think that's what a lot of people would say. So that's where the issue is. They needed to really hit a home run and they ran a there and also run instead.
So do you think they're gonna so what's going to take for them to not do an also round.
I'm pretty sure they're going to continue to do the trials. Maybe they'll find that they can extend to every quarter instead of every month. Then that becomes a little bit more interesting potentially. But at the end of the day, a lot of these drugs we still we saw it with rash, we saw it to a degree with AstraZeneca. They come up with the excitement, how we've got a new drug. Although at least Rushi and Asentica have some oral versions. I think these guys maybe are also looking
at a rural versions. Uh and the news comes there go oh okay, so what does it take. It needs to be significantly.
Different, So about the oral version taking via pill just asking for a friend, by by the way, what are you guys gonna come up with that because I just consider you're a big pharma.
Yeah I am, I am, I am big farmer.
Look at me.
No, no, look Oral, I think it will come. There are drugs in development and they're going to go through it and they'll come again. What are they useful for? Because nobody seems to bat annihilid to take an injection once a week. Again, as I said, these needles are very fine. So most people say they don't even feel it going in. Not everybody. Some people don't like a needle injection.
I'm the one that applies the injection and it's fun.
I enjoy it.
It's yeah.
We do it every Saturday. I got to get an adult beverage, a cocktail. We gather and we do the injection.
It's kind of this is a group activities, Yes it is.
It is all right, Sam beg group.
But yeah, thank you so much. Sam Fazzelli, he's a director of research for Global Industries. I'm not sure what that is, but I know he's a senior pharmaceuticals analyst for Bloomberg Intelligence. He's one of the best in the city of London. Widely highly regarded in London and in the US.
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Thirty Alex Steel alongside Polsmoeni Bloomberg Intelligence Radio. We're broadcasting to live from Interactive Brooker Studio right here in Midtown Manhattan. So we hit a record high yesterday on the SMP, didn't close it a record high. We had another record high today on the SMP. And Deutsche Bank comes out with its SMB forecast for next year at the high end seven thousand. It is one of the most bullish
forecasts over on Wall Street. Let's talk to Anna Rapper, now a CIO at Sibiz Investment Advisory Services, and are you also going to be like, hey, sixty six hundred next year seven thousand, How bullish are you?
Well? I don't know if I would do that at twenty two x forward pe multiples. You know, I think a lot of what's happening in the markets right now is just euphoria for one reason or another. There's promise of tax cuts. There's this idea that tax you know, the tax cuts from twenty seventeen are going to be extended, especially because if we have a red wave, there's promise of deregulation. There are no details right now, so it's
sort of running on fumes. But one we have the details in twenty twenty five, we're expecting there to be a lot of volatility as the markets start to price in those details. So sitting here at twenty two x PE multiple, I'm not necessarily thinking that it's going to be a road straight up.
So the day after the election, on a did you and your team make any material changes to your outlook, your asset allocation? How did you guys try to process that?
You know, in terms of asset allocation, we did have a little bit of an overweight and small cap because we believe that if mister Trump had won that the upside would be greater than the downside if he hadn't won. So that worked out for us. It's still working out for us. But in terms of outlook, you know, you have to sort of ask how much again, how much of this euphoric outlook is actually going to take place?
And we don't know if there's going to be an actual fundamental change to the US economy in the boots on the ground kind of fashion that it would actually make us think differently about the labor market or think differently about prices, because one person in the White House can't change that. So we're still a little bit skeptical about a lot of this enthusiasm. But I guess only time will tell.
So this was a total reducs from twenty sixteen. Right like you get a tweet, you get an instantaneous stock move or an individual stock move, and then you'd have the weight. Maybe this won't be the end goal, maybe something will change and then sort of a pairing back of the market reaction.
How do you avoid that this time.
In that are there places you can go where you don't have to worry about the tweets?
I'm not sure. I'm not sure if we can finde I mean, if twenty sixteen to twenty twenty taught us anything that these tweets or I guess it's truth, social or whatever platform it is, it's gonna come now. I think the people that mister Trump has surrounded himself with
will make a difference as we saw yesterday. There's a lot of confidence in Scott Besant, and I think some of the news that came out on the new tariff threats that will also probably involve not just the Treasury, but the Commerce Department as well, because the negotiating factor here isn't economic. The negotiating factor here is drugs and immigration,
and it will impact certain industries more than others. So I think there's going to be hopefully a group effort in looking at some of these you know, so called you know, tweet based policies, and it will continue to be measured, and that is that is definitely a hope.
Fixed income space, Anna, how do you think about this? Do you stick with the two year treasury at four and a quarter or do you go out there and try to take some credit risk here?
Yeah, you know, we've all we've had credit positions both on the investment grade side as well as high yeel side. Their sizing is different. We favor investment grade because I think that the credit spreads are narrow and that does worry us a little litle bit, and we have taken some chips off the table, but we do think that as long as the economic growth seems to be in place that it's going to be fine, And in terms
of clipping coupons, we can continue to clip them. In the high yield space, we are a little bit cautious because there tends to be an equity beta component to the price movement when things do go wrong. But in the meantime we can still continue to clip coupons. So right now for us in fixed income space, it is really a clipping of the coupon environment.
Yeah, and then just kind of watching and waiting and seeing when that trade will reverse. I want to get your tech on small caps. So record high yesterday, MidCap, same deal. Now the rustle is down one percent. Clearly is a terriff overhang here. What do you do with those really economically sensitive parts of the market. I mean, materials and industrials are one of the worst performers in the S and P.
Yeah, so small caps. I think the ride up, I mean we were enjoying it right now, but we're also internally talking about, Okay, what do we do with this overweight position because the headwind for small caps isn't gone because mister Trump got elected. I mean, maybe there may be some deregulation that would be helpful. But remember what's happening in the treasury market is that yields are heading up. I mean we're seeing that today with the whole trade
talk or tariff talk. That's not going to be helpful for small caps. And certainly tariffs as we see today aren't going to be helpful for small caps. So I think there needs to be we can have exposure to it, but there needs to be an intelligent discussion about what the right sizing is.
Thank you so much for joining us, Anna Rathbund. She's a chief investment officer for ceba's Investment Advisory Services based out there in Ohio in the Cincinnati area.
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Thirty Alex Steele and Paul Sweeney. We are live here in our Bloomberg Interactive Brokers studio in New York City. Were streaming live on YouTube, so head over to YouTube dot com search Bloomberg Podcast that's where you will find us. Well, the retail earnings, they are coming in fast and furious. Right now, We're going to take a look at a couple of them, best Buy and Dick's Sporting Goods. Best Buy a little bit weaker stock trading down about six percent.
Dick Sporting Goods, however, they strong back to school stocks, trading a little bit higher here today. Stucks a forty seven percent Dick Sporting Goods year today. That's a big move for a retailer. Lindsay Dutch joins US consumer hardline senior analysts for Bloomberg Intelligence. She is safely aisconsed in our Princeton University campus down there, down at Princeton. Lindsey, thanks so much for joining us here. Let's start with
Dick Sporting Goods. They called out strong back to school sales. That's that's a good sign.
Yes, thanks for having me. I think Dix had a strong quarter, you know again, stronger than expected, sort of continuing the trend that we've seen earlier this year. You know, they have you know, the items that kids these days want in footwear, athletic apparel and their exclusive sort of vertical brands are also doing very very well, and that really supported that back to school and it gives a lot of optimism when we think about holiday and the fourth quarter coming out.
So I realized that best Buy and dis are different stores, but the way you describe Dick Sporting Goods, it feels like it should have been the same for best Buy right back to school. They do have some exclusive items, et cetera.
Why not.
Yeah, So I think that's a great question, Alex. I think, you know, when we think back three months ago, best Buy had a great quarter and it was on back to school for them, back to school is a little bit.
More college bias.
It does hit a little bit earlier in the year, then Dix might benefit from. And the demand for laptops was very strong in the second quarter, and you know best By raise their guidance, there was strong optimism that we were going to get.
Back to growth mode.
I still think, you know, there's a possibility for a strong holiday for best Buy laptops did They were up comp sales seven percent in the third quarter, but that was overridden by weakness and some of the other categories appliances,
home theater being key ones. It sounds like they're really leaning into promotions for the fourth quarter and really looking to get aggressive with promotion, especially for their premium product and things that are exclusive to best Buy, to really draw that shopper in.
How's it when you talk to your retailer companies that you covered, lindsay, what are they saying about just this whole holiday season when all is said and done, How is it gonna We're gonna have growth this year? So better than last year? How are they shaking out?
Really?
Yeah? So growth looks pretty weak.
I also think it's divergent and sort of like last year. So there's some categories that are just in a better position. You know, beauty would be one of those sports where you know, where Dix is playing. Is also one of those where just demand generally is a little bit stronger. And then we have other categories that are still on the weaker side, home appliances, and some of that still you know, obviously affects best Buy, It also affects companies like william Sonoma RH.
We also have a bifurcation.
I think in the consumer, you know, a higher in consumer still seems to be holding up pretty well. Dix is another benefactor there, you know, their customer base is on the higher income side, whereas best Buy is probably a little bit more like the average of the overall country. So I think, you know, the deal days that these companies are rolling out, you know, they each have their own strategies on how they want to manage that. But as I said, best Buy is going to get very
aggressive with those deals. Consumer high or low income is very value focused, and we may have seen a pause, you know, people holding back waiting for those deals in the third quarter results.
Yeah, it's like you're describing me exactly.
Hey, Lindsey, how about from an industry perspective, when I if I ever find myself going into store, which I hope that doesn't happen, Am I going to find the stuff I'm looking for?
Like?
Has everybody got the inventory they need?
Here?
I don't hear too many, you know, supply chain stories anymore.
Yeah, So supply chain, the supply chain woes of COVID have sort of gone away, you know. I think, you know, retailers maybe a little over a year ago were probably over inventoried. I think inventory is in a healthier position this year, you know, for the retailer themselves, but also for the shopper and I think that the retailers are working really hard to make that in store experience a
positive one for those that go in store. But there's also a lot of focus online, so that mine shopper, you know, best Buy is doing doorbusters.
Again this year, but it's it's for that in.
Store shopper, but also if you are a member and have the app, you could also take advantage of that. So they're really looking to you know, capitalize on that experience.
What about tariffs?
So if we do get tariffs on China and Mexico and Canada, like we heard on True Social yesterday, what was the impact?
How do they manage it?
Yes, so best Buy they have talked about, you know, as a big picture, as a percent of cogs, about sixty percent of their inventory, you know, is manufactured in China. That's about the same as where it was in eighteen
and nineteen. For the products that they they have direct control over, the exposure is low and they've sort of managed that down and they discussed on the call this morning that you know, the burden of that cost is really going to be shit between the manufacturer or supplier, the retailer, and the possibly the consumer if it comes to that.
Dick's exposure is pretty low. When I look across my coverage.
You know, elf Beauty stands out. They have eighty percent of their supply chain is manufactured in China.
Very highly exposed.
A company like that is looking to lean on price increases to sort of manage that type of cost.
So terifs are inflationary, is that all I'm hearing?
That's weird. I didn't know that. No one talked about that before. But again, like what we actually wind up seeing, et cetera, is that when it wint up being different. Lindsay, thanks a lot, Lindsa Dutch Bloomberg Intelligence Consumer Hardlines as senior analyst, joining us on best Buy in Dickporting Goods. All I heard was that best By sales are coming, But then I have to go there.
I don't want to do that.
Yeah, well, maybe a member or something along those lines.
Right.
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