Latest / Bloomberg Intelligence / Macy’s Falls on Guidance Despite Sales Beat, Better Outlook

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Macy’s Falls on Guidance Despite Sales Beat, Better Outlook · Bloomberg Intelligence

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  Speaker 3: Consumer-facing companies are feeling some pressure. Macy's is one of those,
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  Speaker 3: and it's because of its latest earnings report. Macy's shares
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  Speaker 3: are down about 3%. Emily Cohn is our Bloomberg Consumer
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  Speaker 3: Team Leader, and she's here with us to talk about Macy's. Emily, Macy's,
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  Speaker 3: which of course is the parent company of Bloomingdale's as well,
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  Speaker 3: did give a sales beat and also gave a better outlook,
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  Speaker 3: but the stock is still down. So just talk us
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  Speaker 3: through how and why investors seem to be disappointed.
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  Speaker 5: Yeah, so overall, this is a pretty strong report. It's
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  Speaker 5: a really strong beat on Q2. As you noted, it's
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  Speaker 5: an outlook raise. But investors have high expectations for this
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  Speaker 5: company now. And looking at, you know, they had a
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  Speaker 5: really strong... third quarter, last year. So I think the
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  Speaker 5: company is being conservative with its growth forecast, measuring year
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  Speaker 5: over year after last year's really strong quarter. They're giving
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  Speaker 5: themselves some room. And I think analysts and investors have
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  Speaker 5: high expectations.
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  Speaker 2: What's the strategy now for Macy's? How does Macy's want
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  Speaker 2: to position itself in the retail space these days?
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  Speaker 5: This is really interesting. So if you look at their results,
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  Speaker 5: what's working the best? I mean, Bloomingdale's had a blowout
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  Speaker 5: quarter in Q2. I think they had their strongest Q2
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  Speaker 5: revenue ever. The higher end is doing well, and Blue
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  Speaker 5: Mercury had posted strong results, too. That's their higher end. cosmetics, sorry,
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  Speaker 5: like hair and creams and cosmetics brand. And now we're
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  Speaker 5: seeing them talk a little bit about this like higher
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  Speaker 5: end Macy's that we're going to begin to see with
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  Speaker 5: real fur and real leather. They're definitely leaning in on
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  Speaker 5: the higher end consumer.
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  Speaker 3: That seems to be the play, Paul, for all these
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  Speaker 3: consumer-facing companies. You've got a K-shaped economy, and the higher-income
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  Speaker 3: customer is spending, and that's where the growth is, and
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  Speaker 3: everyone else is feeling the pressure and being much more selective.
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  Speaker 3: So why cater to people who are going to be
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  Speaker 3: a lot more selective about their spending? Go chase the
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  Speaker 3: higher-end consumer.
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  Speaker 2: Even like the airlines putting in more higher-priced seats versus
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  Speaker 2: the lower. I mean, I've seen it across the board.
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  Speaker 6: It's on. I don't know.
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  Speaker 2: It's a trend. Why not in retail, too? So what's
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  Speaker 2: the story here? I mean, what are they saying about
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  Speaker 2: the consumer in general? Are they kind of Because, I mean,
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  Speaker 2: they probably have a pretty good finger on the pulse.
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  Speaker 5: So we heard them call out the lower-end shopper coming
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  Speaker 5: in two or three times before buying something, being more deliberate.
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  Speaker 5: We also heard them say GLP-1s are helping the business.
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  Speaker 5: People have to go out and buy new wardrobes, which
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  Speaker 5: is really interesting. Where they're struggling, they're struggling in their
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  Speaker 5: plus-size department. This is a really interesting storyline here where consumers.
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  Speaker 2: I mean, as these drugstores get more and more available...
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  Speaker 2: They know the rose of the world and all that stuff.
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  Speaker 5: Wow. Yeah, totally.
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  Speaker 1: And it's a constant thing. It's not a one-time thing either, right?
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  Speaker 3: Because you have new groups of people who are going
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  Speaker 3: to be using GLP-1 drugs. So this market just kind
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  Speaker 3: of expands or is constant at least.
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  Speaker 1: Yeah, and it's a global story.
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  Speaker 5: And I think we're not even there yet in terms
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  Speaker 5: of like these drugs are still pretty expensive. But as
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  Speaker 5: the competition heats up, as when generics eventually hit the market,
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  Speaker 5: they're already hitting the market in countries like Brazil. This
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  Speaker 5: is going to be a huge potential tailwind for the retailers.
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  Speaker 3: At one point, I remember Macy's was shutting down some
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  Speaker 3: less non-performing stores or stores that weren't performing as well.
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  Speaker 3: Where are they with that? Are they at the right number?
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  Speaker 3: Do they think that they have the right kind of
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  Speaker 3: presence across different communities?
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  Speaker 7: Yeah.
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  Speaker 5: Yeah, we're still seeing the store count go down, which
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  Speaker 5: I think is a smart move. There was an era
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  Speaker 5: when every Macy's earnings report was doom and gloom.
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  Speaker 1: They had too many stores.
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  Speaker 5: We're definitely seeing that store count come down, and that's
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  Speaker 5: sort of the hallmark of Tony Spring's strategy for this company.
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  Speaker 5: Figure out where the best performing stores are, invest in them,
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  Speaker 5: and close down the underperforming ones.
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  Speaker 1: Stay with us. More from Bloomberg Intelligence coming up after this.
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  Speaker 2: Big news out of Cupertino yesterday. New Apple iPhone. I
• 4:57
  Speaker 2: think this has kind of been one of the more
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  Speaker 2: anticipated iPhones we've had in a really long time. The
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  Speaker 2: iPhone Duo. It's a foldable thing. I don't know. I
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  Speaker 2: think it looks pretty cool. I saw the ad that
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  Speaker 2: they have for it. It's a very cool ad. I
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  Speaker 2: saw it online yesterday, and it kind of reminds you
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  Speaker 2: of some of those really cool ads from back in
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  Speaker 2: the day. when Apple was kind of introducing the world
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  Speaker 2: to smartphones. Anurag Rana joins us here. He covers the stock.
• 5:19
  Speaker 2: He's a senior tech analyst with Bloomberg Intelligence. Anurag, what
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  Speaker 2: did you make of the product announcements yesterday from Cupertino?
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  Speaker 6: I think, Paul, not just you. I think everybody felt
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  Speaker 6: this was going back to the roots of Apple, of
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  Speaker 6: design and the uniqueness. I think that is what everybody took.
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  Speaker 6: I've never seen the stock up after them announcing any
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  Speaker 6: of the new products because it's always the same thing
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  Speaker 6: with another digit at the end. But this is creativity.
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  Speaker 6: I mean, this is really, really cool stuff that came
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  Speaker 6: out yesterday.
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  Speaker 2: Talk to us about just the importance of phones for
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  Speaker 2: Apple because it's evolved. They have so many products. Services
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  Speaker 2: is such a big part of their business. Talk to
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  Speaker 2: us about how phones impact the P & L.
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  Speaker 6: Yeah, so phones are critical to the entire ecosystem. They're
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  Speaker 6: over 50% of revenue and truly the only thing that's
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  Speaker 6: holding up the entire, you could say, Apple ecosystem. Because
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  Speaker 6: services are important, but they will not exist if the
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  Speaker 6: phones weren't there. So phones are very important. And one
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  Speaker 6: of the things, the biggest criticism we have heard over
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  Speaker 6: the last five, six years is they really don't have
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  Speaker 6: anything new to sell to the public. And yesterday's product,
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  Speaker 6: I get that it was still started up under Tim Cook,
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  Speaker 6: but it's The new CEO came out, he introduced it,
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  Speaker 6: and he talked a lot about the importance of design
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  Speaker 6: and the ecosystem, the combination of software and services and hardware.
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  Speaker 6: It really sounded like Apple's really focused a lot more
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  Speaker 6: on creating new hardware products or making the existing one
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  Speaker 6: far more appealing to the audience than they have been
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  Speaker 6: in the past. I think this is partially we are
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  Speaker 6: getting a positive reaction from the street. The other thing
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  Speaker 6: that I would also say is, I know it's a
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  Speaker 6: $ 2, 000 tag, but frankly speaking, they waited nine years to
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  Speaker 6: get the actual physical look of this product right. When
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  Speaker 6: you open the phone, I mean, the software follows with you.
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  Speaker 6: It is truly a new, I would say, user interface
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  Speaker 6: or an experience that people don't use to get it.
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  Speaker 6: If you're used to a phone, this will be a
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  Speaker 6: different experience for a new user.
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  Speaker 2: So, What's the latest, Anurag, in terms of how the
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  Speaker 2: market's viewing Apple as it relates to AI? What's the
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  Speaker 2: investment call these days?
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  Speaker 6: Yeah, the biggest thing is that Apple talked a lot
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  Speaker 6: about their ability to infuse more AI on the device. Now,
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  Speaker 6: this is something that is probably not talked about as
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  Speaker 6: much because people only talk about the ability to get
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  Speaker 6: through a cloud-based chatbot and all the things. I mean,
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  Speaker 6: that's available as well. But yesterday, they talked a lot
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  Speaker 6: about getting the AI done on the device. Now, good
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  Speaker 6: thing for Apple is, at least for the time being,
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  Speaker 6: they are licensing technology from Google to run a lot
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  Speaker 6: of their foundation models. I think that is an important thing.
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  Speaker 6: The earlier efforts were not as promising, but from what
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  Speaker 6: comments I've heard from Mark Gurman, that he's been beta
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  Speaker 6: testing the new Siri, and it's done pretty nicely. It
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  Speaker 6: is likely then when that new software comes in along
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  Speaker 6: with all these devices, Apple's perception may change of being
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  Speaker 6: a laggard in AI. We think that would be another
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  Speaker 6: potential catalyst for people to change their perception on the company.
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  Speaker 6: What that also means is they may have to spend
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  Speaker 6: more into capital expenditures next year, but our number is
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  Speaker 6: nowhere close to what some of the other hyperscale cloud
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  Speaker 6: providers are doing. You know, they're spending about 3% of
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  Speaker 6: their revenue right now. Maybe that goes up to about 5%.
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  Speaker 6: So it's not like, you know, it's not going to
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  Speaker 6: dent their, you know, cash flow and balance sheet.
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  Speaker 1: Stay with us. More from Bloomberg Intelligence coming up after this.
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  Speaker 4: You're listening to the Bloomberg Intelligence Podcast. Catch us live
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  Speaker 4: weekdays at 10 a.m. Eastern on Apple CarPlay and Android
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  Speaker 2: Scarlett Phil and Paul Sweeney, we're live here in our
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  Speaker 2: Bloomberg Interactive Broker Studio in New York City, streaming live
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  Speaker 7: All right.
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  Speaker 2: When I came up in Wall Street in the mid 80s,
• 9:28
  Speaker 2: Greed is good was the line. That was the line.
• 9:32
  Speaker 2: It was right in the movie, straight out of the movie. Capitalism,
• 9:34
  Speaker 2: that's where it's at. Maximizing shareholder value, that's it. We
• 9:37
  Speaker 2: never even heard the word stakeholder. Things have changed here.
• 9:41
  Speaker 2: And we want to talk about how maybe purpose. is
• 9:44
  Speaker 2: changing capitalism. Payam Zamani joins us here. He's the founder
• 9:48
  Speaker 2: and CEO of One Planet Group and author of the
• 9:51
  Speaker 2: new book, Crossing the Desert. He joins us live here
• 9:54
  Speaker 2: in our Bloomberg Interactive Broker Studio. Payam, thanks so much
• 9:56
  Speaker 2: for joining us. Love to start with just, you know,
• 9:59
  Speaker 2: if you can put your life in 30 or 60 seconds,
• 10:01
  Speaker 2: kind of what got you to right here? We'd love
• 10:03
  Speaker 2: to hear that part of the story.
• 10:04
  Speaker 7: All right, I'll put 345 pages in 30 seconds. I
• 10:08
  Speaker 7: was born in Iran and in a Baha'i family. And
• 10:13
  Speaker 7: when the revolution happened and the Islamic Republic came about
• 10:16
  Speaker 7: in 1979, they made life very difficult for minorities, Christians, Jews,
• 10:20
  Speaker 7: but particularly Baha'is. And I'm a Baha'i. And they killed
• 10:24
  Speaker 7: hundreds of Baha'is in the 1980s. They expelled Baha'is from schools.
• 10:28
  Speaker 7: I was expelled in the most horrific way from school
• 10:31
  Speaker 7: when I was in sixth grade with an attempt to
• 10:34
  Speaker 7: kill me. 47 years later, Baha'is are still not allowed
• 10:37
  Speaker 7: to attend universities in Iran. And so I ended up
• 10:40
  Speaker 7: getting smuggled out of the country when I was 16
• 10:42
  Speaker 7: in 1987. And I became a refugee. I came to
• 10:44
  Speaker 7: the US in 1988 with $ 75 in my pocket with
• 10:46
  Speaker 7: my brother and I. And I ended up going to college.
• 10:53
  Speaker 7: And as luck would have it, in 1994, I co-founded
• 10:56
  Speaker 7: a company on the internet that became AutoWeb.com. Took that
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  Speaker 7: public in 1999.
• 11:01
  Speaker 2: Only in America.
• 11:02
  Speaker 7: 11 years after arriving in the U.S., I was in
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  Speaker 7: lower Manhattan taking my company public.
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  Speaker 2: Yep, that's the story.
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  Speaker 1: That's a pretty incredible story.
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  Speaker 3: Do you think if that were to happen today, if
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  Speaker 3: you left Iran today and arrived in America today, you
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  Speaker 3: could do that again? That the conditions are there for
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  Speaker 3: someone like you to achieve all of that?
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  Speaker 7: I think so. I think that America represents a foundation
• 11:23
  Speaker 7: that was built over 250 years. And this foundation is
• 11:26
  Speaker 7: very strong, very robust. And the American dream is an invitation,
• 11:31
  Speaker 7: not a guarantee. So you have to put in the work.
• 11:34
  Speaker 7: But at the same time, you know, there are always
• 11:37
  Speaker 7: speed bumps along the way, but the road is never blocked.
• 11:39
  Speaker 7: So I feel like, you know, still this is a
• 11:42
  Speaker 7: very special country that provides hope to the world. And
• 11:45
  Speaker 7: I don't think that has changed.
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  Speaker 2: How do you define capitalism now? And has it changed
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  Speaker 2: over time? your lifetime?
• 11:52
  Speaker 7: So I feel like extremes have become more extreme. If
• 11:54
  Speaker 7: you look at extreme left in this country, extreme right
• 11:57
  Speaker 7: in this country, they're both after greed. And I think
• 12:01
  Speaker 7: that the left is also kidding themselves thinking that they're
• 12:04
  Speaker 7: not after greed. They both are after greed. But one
• 12:08
  Speaker 7: wants someone else's money and the other one wants to
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  Speaker 7: have it all. So I think that that is what
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  Speaker 7: I see, that extremes of capitalism that we are practicing
• 12:18
  Speaker 7: have gone us to a point that I think is untenable. Now,
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  Speaker 7: I'm a capitalist. I believe in free markets, and I'm
• 12:24
  Speaker 7: an entrepreneur. I've taken a company public. But at the
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  Speaker 7: same time, I think that extremes of capitalism can actually
• 12:31
  Speaker 7: affect the businesses that we run and the environment we
• 12:33
  Speaker 7: rely on.
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  Speaker 3: So in that spirit, you have kind of, I guess,
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  Speaker 3: not tweaked but evolved your thinking of what capitalism entails
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  Speaker 3: and how it should be. You have now coined this
• 12:46
  Speaker 3: term spiritual capitalism. What does that mean and how do
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  Speaker 3: you actually put it into practice?
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  Speaker 7: So, you know, when you think about the problems in
• 12:52
  Speaker 7: the world, especially in the U.S., environmental issues, racism, extreme
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  Speaker 7: forms of partisan politics, all of these things, I feel like,
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  Speaker 7: point us in one direction. we need a spiritual transformation
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  Speaker 7: as a people. Because the only thing that will stop
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  Speaker 7: us from doing bad things is if our hearts change.
• 13:15
  Speaker 7: And our hearts are not gonna change until I look
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  Speaker 7: at you as a noble being. And to look at
• 13:20
  Speaker 7: you as a noble being, I need to really consider
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  Speaker 7: who you are truly. Not a token of economic value,
• 13:25
  Speaker 7: but something way beyond that. But the fact is, we
• 13:29
  Speaker 7: choose not to do it. And until that happens, I
• 13:32
  Speaker 7: think that we're gonna see that things are going to
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  Speaker 7: point us down a day of reckoning.
• 13:39
  Speaker 2: One Planet Group is a private equity firm. What's a
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  Speaker 2: typical company? What do you look for in a company
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  Speaker 2: to invest in, given your philosophy and what you've learned
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  Speaker 2: over the years?
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  Speaker 7: The number one thing I look for is the founder.
• 13:52
  Speaker 7: Business models change, they evolve, and that's fine. But is
• 13:55
  Speaker 7: that founder the kind of founder I want to invest in?
• 13:57
  Speaker 7: The ripple effect of my investment. We talk about AI.
• 14:01
  Speaker 7: These days, the gentleman who's out there talking about how
• 14:04
  Speaker 7: he's scared of the direction that AI is going. I've
• 14:07
  Speaker 7: always said that. I'm not afraid of AI. I'm afraid
• 14:09
  Speaker 7: of the innovator behind it. And so, yes, I am
• 14:13
  Speaker 7: worried about founders who may not have the right values
• 14:17
  Speaker 7: for us to invest in. But unfortunately, when you think
• 14:20
  Speaker 7: about the extremes of capitalism, we invest simply based on
• 14:25
  Speaker 7: the idea of ROI, return on investment. We don't care
• 14:28
  Speaker 7: about the ripple effect and potentially negative effects of of
• 14:32
  Speaker 7: investing in someone who does not have the right values.
• 14:34
  Speaker 3: So business models can change, the focus of the industry
• 14:37
  Speaker 3: can change, market conditions can change, but the DNA of
• 14:42
  Speaker 3: the founder is the constant that you're looking for.
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  Speaker 5: Absolutely.
• 14:46
  Speaker 7: If that founder does not have the right values, the
• 14:49
  Speaker 7: right DNA, and can do bad in the world, magnify
• 14:52
  Speaker 7: that when they're successful.
• 14:54
  Speaker 3: So give us an example of what a founder with
• 14:56
  Speaker 3: that right DNA looks like. How would they solve a
• 14:59
  Speaker 3: problem that perhaps their peers would shy away from?
• 15:03
  Speaker 7: Well, I mean, the number one thing, you just get
• 15:05
  Speaker 7: to know people based on what drives them. If what
• 15:08
  Speaker 7: drives them is just maximizing their wealth, I'm not talking
• 15:11
  Speaker 7: the right founder. I need people who care about the
• 15:15
  Speaker 7: betterment of the world. In fact, anyone we invest in,
• 15:17
  Speaker 7: we have them sign a document that the headline of
• 15:21
  Speaker 7: that document is for the betterment of the world. that
• 15:24
  Speaker 7: I will on purpose for the love I have for
• 15:26
  Speaker 7: humanity will do things that we have listed. It's not
• 15:30
  Speaker 7: a contractual obligation, but it allows us to sift through
• 15:33
  Speaker 7: founders and find the right ones. who really care about
• 15:36
  Speaker 7: something much deeper. And by the way, you know, the
• 15:39
  Speaker 7: companies we invest in, that they follow the kinds of
• 15:42
  Speaker 7: things that we suggest to them, they end up doing
• 15:44
  Speaker 7: better on average anyways, because those happen to be good
• 15:48
  Speaker 7: business ideals also. And the founders are by far more
• 15:51
  Speaker 7: fulfilled because they don't feel empty that they got a
• 15:54
  Speaker 7: lot of money, but an empty heart.
• 15:56
  Speaker 1: Stay with us. More from Bloomberg Intelligence coming up after this.
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• 16:18
  Speaker 2: Scully, you may be surprised, but I'm a huge fan.
• 16:20
  Speaker 2: NASCAR fan.
• 16:22
  Speaker 1: This is the first I've heard of that.
• 16:23
  Speaker 2: It all started in 1994 when I was on an
• 16:26
  Speaker 2: investment banking team and we took Speedway Motorsports Public. They
• 16:29
  Speaker 2: were owners of the raceways around the country. Charlotte, Bristol, Atlanta.
• 16:33
  Speaker 2: We built a ton. One in Vegas, one in out west.
• 16:36
  Speaker 2: Made a ton of money off of those guys. Went
• 16:38
  Speaker 2: to 24 Winston Cup races in like a four-year period.
• 16:42
  Speaker 2: Tried to take the NASCAR public, but the France family
• 16:44
  Speaker 2: did not want anything to do with that.
• 16:46
  Speaker 1: They like being private.
• 16:46
  Speaker 2: Yeah, we pitched them hard, but no way. We're talking
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  Speaker 2: NASCAR today because we have, very fortunate, we have Tyler
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  Speaker 2: Reddick in our studio. He's a driver for 23XI Racing
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  Speaker 2: on the NASCAR circuit, joining us here in studio. He's
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  Speaker 2: part of a panel today at Bloomberg. We've got a
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  Speaker 2: conference here talking about leadership and the panel is nascar's
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  Speaker 2: next year so he's speaking for the great uh sport
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  Speaker 2: of stock car racing tyler thanks so much for joining
• 17:11
  Speaker 2: us here i gotta go start with 23 xi racing
• 17:15
  Speaker 2: i think that means your boss is michael.
• 17:17
  Speaker 8: Jordan yeah yeah what's it like.
• 17:19
  Speaker 2: Working for that guy who's a little bit intense i
• 17:22
  Speaker 2: understand it's it's really.
• 17:24
  Speaker 9: Awesome um Yeah, you know, you were mentioning the name there, 2311.
• 17:27
  Speaker 9: The 23 in the name comes from Michael, and the
• 17:31
  Speaker 9: 11 comes from co-owner.
• 17:33
  Speaker 8: Denny Hamlin as well.
• 17:34
  Speaker 9: So, yeah, as if, you know, having someone like Michael
• 17:38
  Speaker 9: Jordan being a part of the ownership makes that interesting enough, right? Also,
• 17:43
  Speaker 9: you know, Denny Hamlin, who I compete against, who still
• 17:46
  Speaker 9: races on Sundays, is also in the ownership role as well.
• 17:50
  Speaker 8: So, yeah, just a very unique, very, you know.
• 17:54
  Speaker 9: fortunate to have a dynamic like that where you have
• 17:57
  Speaker 9: someone like michael to lean on then a fellow competitor
• 17:59
  Speaker 9: who knows the sport.
• 18:00
  Speaker 2: He's into it as i understand yeah he is.
• 18:02
  Speaker 1: I think he's into everything that he gets his hands.
• 18:04
  Speaker 2: On i think he got exposed to when he went
• 18:06
  Speaker 2: went to university of north carolina he's a north carolina
• 18:08
  Speaker 2: dude so it's in.
• 18:09
  Speaker 1: Your blood yeah okay that's fair that's fair.
• 18:11
  Speaker 2: Hey i'm looking at nascar.com and i do have the
• 18:14
  Speaker 2: app okay so that shows um it looks like a
• 18:17
  Speaker 2: heck of a good season year fourth and points five
• 18:20
  Speaker 2: wins a bunch of top fives top tens talk just
• 18:22
  Speaker 2: about your season here.
• 18:23
  Speaker 8: Yeah, it was a bit of a roller coaster for us.
• 18:26
  Speaker 8: We got the year started off.
• 18:28
  Speaker 9: With accomplishing the biggest thing that you can in a season,
• 18:31
  Speaker 9: winning the Daytona 500. And then we went on a pretty, well...
• 18:36
  Speaker 9: It may sound crazy to say historic run, but it was.
• 18:39
  Speaker 9: Winning the first three races in a season. Crazy enough,
• 18:42
  Speaker 9: that had never been done before. Even a number three card?
• 18:46
  Speaker 8: Yeah. Dale hadn't done it. Richard hadn't done it.
• 18:49
  Speaker 9: All of these Hall of Fame drivers, legends of our sport,
• 18:53
  Speaker 9: somehow never done it.
• 18:55
  Speaker 8: Crazy enough.
• 18:56
  Speaker 9: We were able to do it at three very difficult tracks.
• 18:58
  Speaker 9: The 500 is hard to win. You know, you were
• 19:01
  Speaker 9: talking about Atlanta, Echo Park Speedway now got reconfigured into
• 19:04
  Speaker 9: a Speedway-style race.
• 19:06
  Speaker 8: That race is really hard to execute and win.
• 19:08
  Speaker 9: And then we topped that streak off at Circuit of
• 19:11
  Speaker 9: the Americas.
• 19:14
  Speaker 8: To make it three in a row.
• 19:15
  Speaker 7: Right.
• 19:15
  Speaker 9: Yeah, we got off to an incredibly hot start, winning
• 19:19
  Speaker 9: five of, I think it was the first nine races,
• 19:21
  Speaker 9: and just all the things going right, fighting through adversity.
• 19:25
  Speaker 9: And the summer stretch, I mentioned roller coaster. We hit
• 19:28
  Speaker 9: a bit of the downhill side of it and got
• 19:30
  Speaker 9: in the dip, just with a lot of failures and
• 19:33
  Speaker 9: things of that nature.
• 19:34
  Speaker 1: But it's all part of the season. I mean, that's
• 19:36
  Speaker 1: what happens.
• 19:37
  Speaker 3: This is a really dumb question, but do you think
• 19:39
  Speaker 3: of yourself as more of an athlete or more as
• 19:41
  Speaker 3: a driver?
• 19:42
  Speaker 9: Ooh, um, I'd say I get to, I get to,
• 19:46
  Speaker 9: you know, suit up and compete, you know, on Saturdays
• 19:49
  Speaker 9: with practicing qualifying and then the, the longer obviously races
• 19:52
  Speaker 9: on Sunday.
• 19:53
  Speaker 1: But, uh, so it's the mindset of an athlete.
• 19:55
  Speaker 9: The bulk of my time is spent preparing debriefing, um,
• 20:00
  Speaker 9: going over data, SIM work, um, physical preparation, the mental
• 20:05
  Speaker 9: side of it. You know, most of it is, yeah,
• 20:09
  Speaker 9: you treat it like you would any other sport. You
• 20:12
  Speaker 9: have to be athletic. And so, yeah, I mean, the
• 20:15
  Speaker 9: driving part is some of it. But, you know, I
• 20:17
  Speaker 9: do all this prep work, if you will, for one
• 20:20
  Speaker 9: day out of the week. The rest of it is
• 20:21
  Speaker 9: spent getting ready.
• 20:22
  Speaker 2: And I noticed when you speak about your sport, your performance,
• 20:25
  Speaker 2: you use the royal we.
• 20:27
  Speaker 8: And what I learned when I first got close to
• 20:30
  Speaker 8: the sport.
• 20:31
  Speaker 2: Is, It is a team effort. It's not just some
• 20:34
  Speaker 2: dude behind the wheel turning left.
• 20:35
  Speaker 3: For $ 500.
• 20:35
  Speaker 1: Yeah, well, there's a whole group of people.
• 20:36
  Speaker 2: Talk to us about your team. How many people are there?
• 20:39
  Speaker 2: What do they do?
• 20:39
  Speaker 8: Oh, gosh, we continue to grow. You know, when I.
• 20:43
  Speaker 9: When I jumped on board with 2311 years ago, we
• 20:45
  Speaker 9: were in a temporary facility. I think we may have
• 20:49
  Speaker 9: had 30 to 40 employees, but it's grown a lot.
• 20:53
  Speaker 9: We now have our home we call Airspeed right off
• 20:57
  Speaker 9: of Interstate 77 just in Charlotte, and it's grown to
• 21:00
  Speaker 9: I think we have over 200 employees now. Went from
• 21:03
  Speaker 9: two cars to three full-time teams with a fourth part-time
• 21:07
  Speaker 9: team with Corey Heim, who who's won multiple races in
• 21:11
  Speaker 9: his part-time season, which is crazy to do. So, yeah,
• 21:14
  Speaker 9: the people are incredibly important. You know, I talk about
• 21:17
  Speaker 9: all the preparation that we do, the debriefing. You know,
• 21:21
  Speaker 9: it's important to have the right people there to make
• 21:24
  Speaker 9: progress and go in a direction when you want to
• 21:26
  Speaker 9: improve something. And then it takes the entire team to
• 21:28
  Speaker 9: prepare for the races. And then, yeah, you know, the
• 21:31
  Speaker 9: crew itself during the races, the pit crew that has
• 21:34
  Speaker 9: to execute the pit stops, it's a total team effort.
• 21:37
  Speaker 5: Yeah.
• 21:37
  Speaker 3: I think about, and I watched F1, so I'm a
• 21:39
  Speaker 3: little bit of an expert on this sport, just the
• 21:43
  Speaker 3: number of people involved in making sure that a team
• 21:47
  Speaker 3: is a success.
• 21:49
  Speaker 1: So dumb question for you. How did you get involved
• 21:52
  Speaker 1: in the sport?
• 21:52
  Speaker 3: How did you know that this is what you wanted
• 21:54
  Speaker 3: to do as opposed to any other kind of sport, motorsport?
• 21:57
  Speaker 2: Yeah.
• 21:57
  Speaker 9: I think for me, growing up, I I was exposed
• 22:02
  Speaker 9: to it watching it on television.
• 22:05
  Speaker 8: The Daytona 500, the big races.
• 22:08
  Speaker 9: Fell in love with it with the characters and the personalities,
• 22:11
  Speaker 9: if you will, that were the drivers. And so for me,
• 22:16
  Speaker 9: I grew up in an environment. My family was in
• 22:19
  Speaker 9: the car dealership world. So I just grew up around
• 22:21
  Speaker 9: cars and just had a passion for cars to begin with.
• 22:25
  Speaker 9: And yeah, the only thing cooler than a car is
• 22:26
  Speaker 9: one that goes fast, that has numbers on it and
• 22:28
  Speaker 9: does all that. So that's what really grew from. For me,
• 22:33
  Speaker 9: I had a love and a passion for oval racing,
• 22:35
  Speaker 9: dirt racing, and the top level that you can do
• 22:38
  Speaker 9: that at is NASCAR. So that was the dream to obtain.
• 22:42
  Speaker 9: And Along the way, you never know if it's ever
• 22:46
  Speaker 9: going to work out. You're just going to enjoy the
• 22:47
  Speaker 9: ride and try to make the most of every opportunity.
• 22:51
  Speaker 4: This is the Bloomberg Intelligence Podcast, available on Apple, Spotify,
• 22:55
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• 22:59
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• 23:05
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• 23:08
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• 23:14
  Speaker 2: We'll be right back.