Latest / Omni Talk Retail / From Margins to Market Share: A 2025 Retail Deep Dive with BMO Managing Director Simeon Siegel

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From Margins to Market Share: A 2025 Retail Deep Dive with BMO Managing Director Simeon Siegel · Omni Talk Retail

• 0:00
  Foreign.
• 0:08
  This
• 0:08
  podcast
• 0:09
  on
• 0:09
  investor
• 0:09
  perspectives
• 0:10
  on
• 0:10
  retail
• 0:10
  and
• 0:11
  the
• 0:11
  consumer
• 0:11
  is
• 0:11
  brought
• 0:12
  to
• 0:12
  you
• 0:12
  by
• 0:12
  the
• 0:12
  Omnitalk
• 0:13
  Retail
• 0:13
  Podcast
• 0:14
  Network.
• 0:14
  Ranked
• 0:15
  in
• 0:15
  the
• 0:15
  top
• 0:15
  10%
• 0:16
  of
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  all
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  podcasts
• 0:16
  globally
• 0:17
  and
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  currently
• 0:17
  ranked
• 0:18
  in
• 0:18
  the
• 0:18
  top
• 0:18
  100
• 0:19
  of
• 0:19
  all
• 0:19
  business
• 0:19
  podcasts
• 0:20
  on
• 0:20
  Apple
• 0:20
  Podcasts.
• 0:21
  The
• 0:21
  Omnitalk
• 0:22
  Retail
• 0:22
  Podcast
• 0:23
  Network
• 0:23
  is
• 0:23
  the
• 0:23
  network
• 0:23
  that
• 0:23
  we
• 0:24
  hope
• 0:24
  makes
• 0:24
  you
• 0:24
  feel
• 0:24
  a
• 0:24
  little
• 0:25
  smarter,
• 0:25
  but
• 0:25
  most
• 0:26
  importantly
• 0:26
  and
• 0:26
  a
• 0:27
  little
• 0:27
  happier
• 0:27
  each
• 0:27
  week,
• 0:27
  too.
• 0:28
  And
• 0:28
  this
• 0:28
  podcast
• 0:29
  is
• 0:29
  just
• 0:29
  one
• 0:29
  of
• 0:29
  the
• 0:30
  many
• 0:30
  great
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  podcasts
• 0:30
  you
• 0:31
  can
• 0:31
  find
• 0:31
  from
• 0:31
  us
• 0:31
  here
• 0:31
  at
• 0:31
  Omnitalk
• 0:32
  Retail
• 0:32
  alongside
• 0:33
  our
• 0:33
  Retail
• 0:33
  Daily
• 0:34
  minute,
• 0:34
  which
• 0:34
  brings
• 0:35
  you
• 0:35
  a
• 0:35
  curated
• 0:35
  selection
• 0:35
  of
• 0:36
  the
• 0:36
  most
• 0:36
  important
• 0:36
  retail
• 0:37
  headlines
• 0:37
  every
• 0:37
  morning,
• 0:38
  and
• 0:38
  our
• 0:38
  signature
• 0:39
  podcast,
• 0:39
  the
• 0:39
  Retail
• 0:40
  Fast
• 0:40
  Five,
• 0:40
  that
• 0:40
  breaks
• 0:41
  down
• 0:41
  each
• 0:41
  week.
• 0:41
  The
• 0:42
  top
• 0:42
  five
• 0:42
  headlines
• 0:43
  making
• 0:43
  waves
• 0:43
  in
• 0:44
  the
• 0:44
  world
• 0:44
  of
• 0:44
  omnichannel
• 0:45
  retail.
• 0:45
  And
• 0:45
  that,
• 0:45
  of
• 0:45
  course,
• 0:46
  comes
• 0:46
  your
• 0:46
  way
• 0:47
  every
• 0:47
  Wednesday
• 0:48
  afternoon.
• 0:48
  Hello,
• 0:49
  everyone.
• 0:49
  I
• 0:49
  am
• 0:50
  one
• 0:50
  of
• 0:50
  your
• 0:50
  co
• 0:50
  hosts
• 0:50
  for
• 0:51
  today's
• 0:51
  interview,
• 0:51
  Chris
• 0:52
  Walton.
• 0:52
  And
• 0:53
  I'm
• 0:53
  Anne
• 0:53
  Mazinga.
• 0:54
  And
• 0:55
  we
• 0:55
  are
• 0:55
  pleased
• 0:55
  to
• 0:55
  introduce
• 0:56
  Simeon
• 0:57
  Siegel,
• 0:58
  the
• 0:58
  managing
• 0:58
  director
• 0:59
  and
• 0:59
  Senior
• 0:59
  Analyst
• 1:00
  for
• 1:00
  Retail
• 1:00
  and
• 1:01
  E
• 1:01
  Commerce
• 1:01
  at
• 1:02
  BMO
• 1:02
  Capital
• 1:03
  Markets.
• 1:03
  Simeon,
• 1:04
  thank
• 1:04
  you
• 1:04
  for
• 1:04
  joining
• 1:04
  us
• 1:05
  and
• 1:05
  welcome
• 1:05
  to
• 1:05
  omnitalk.
• 1:06
  What's
• 1:07
  up,
• 1:07
  guys?
• 1:07
  By
• 1:07
  the
• 1:07
  way,
• 1:08
  you
• 1:08
  listen
• 1:08
  to
• 1:08
  it
• 1:08
  all
• 1:09
  the
• 1:09
  time.
• 1:09
  Actually,
• 1:09
  seeing
• 1:10
  that
• 1:10
  that's
• 1:10
  not
• 1:10
  pre
• 1:11
  recorded
• 1:11
  and
• 1:11
  watching
• 1:12
  you
• 1:12
  do
• 1:12
  that
• 1:12
  intro,
• 1:13
  wow,
• 1:14
  I
• 1:14
  am
• 1:15
  impressed.
• 1:15
  Well
• 1:15
  done.
• 1:16
  Thank
• 1:17
  you,
• 1:17
  man.
• 1:17
  Thank
• 1:17
  you.
• 1:17
  Yes,
• 1:18
  we've
• 1:18
  been,
• 1:18
  we've
• 1:19
  been
• 1:19
  circling
• 1:19
  you
• 1:19
  for
• 1:20
  a
• 1:20
  while
• 1:20
  now.
• 1:20
  I
• 1:20
  think
• 1:21
  we
• 1:21
  finally
• 1:21
  were
• 1:21
  able
• 1:22
  to
• 1:22
  make
• 1:22
  the
• 1:22
  calendars
• 1:23
  and
• 1:23
  the
• 1:23
  stars
• 1:23
  align
• 1:24
  to
• 1:24
  get
• 1:25
  you
• 1:25
  on
• 1:25
  the
• 1:25
  show.
• 1:26
  And,
• 1:26
  and
• 1:26
  this
• 1:26
  new
• 1:26
  series
• 1:27
  that
• 1:27
  we're
• 1:27
  debuting
• 1:28
  also
• 1:28
  has
• 1:28
  helped
• 1:28
  to
• 1:28
  make
• 1:28
  that
• 1:29
  happen.
• 1:29
  So,
• 1:29
  yes,
• 1:29
  thank
• 1:30
  you
• 1:30
  very
• 1:30
  much
• 1:30
  for
• 1:30
  being
• 1:31
  here.
• 1:31
  I
• 1:31
  am
• 1:31
  pumped.
• 1:32
  Here
• 1:32
  we
• 1:32
  go.
• 1:33
  Well,
• 1:34
  Simeon,
• 1:34
  you
• 1:34
  are
• 1:35
  everywhere.
• 1:36
  You
• 1:36
  were
• 1:36
  just
• 1:36
  on
• 1:36
  one
• 1:37
  of
• 1:37
  my
• 1:37
  favorite
• 1:37
  podcasts
• 1:38
  with
• 1:38
  Lauren
• 1:38
  Sherman,
• 1:39
  talking
• 1:39
  about
• 1:39
  the
• 1:39
  state
• 1:40
  of
• 1:40
  the
• 1:40
  industry.
• 1:41
  But
• 1:41
  for
• 1:41
  those
• 1:42
  who
• 1:42
  might
• 1:42
  be
• 1:42
  meeting
• 1:43
  you
• 1:43
  for
• 1:43
  the
• 1:43
  first
• 1:44
  time,
• 1:44
  will
• 1:44
  you
• 1:44
  tell
• 1:44
  us
• 1:45
  a
• 1:45
  little
• 1:45
  bit
• 1:45
  about
• 1:46
  your
• 1:46
  background
• 1:47
  and
• 1:47
  your
• 1:47
  role
• 1:48
  and
• 1:48
  what
• 1:49
  a
• 1:49
  managing
• 1:49
  director
• 1:50
  at
• 1:50
  BMO
• 1:51
  Capital
• 1:51
  actually
• 1:52
  does?
• 1:53
  When
• 1:54
  I
• 1:54
  figure
• 1:54
  it
• 1:54
  out
• 1:55
  or
• 1:55
  when
• 1:55
  someone
• 1:55
  else
• 1:55
  figures
• 1:56
  that,
• 1:56
  maybe
• 1:56
  you
• 1:56
  can
• 1:56
  let
• 1:56
  me
• 1:57
  know.
• 1:57
  And
• 1:58
  totally.
• 1:59
  Lauren's
• 1:59
  the
• 1:59
  best.
• 2:00
  Well,
• 2:00
  third
• 2:01
  best.
• 2:01
  Third
• 2:01
  best.
• 2:01
  You
• 2:01
  two
• 2:02
  are
• 2:02
  the
• 2:02
  best.
• 2:02
  Lawrence,
• 2:03
  thank
• 2:03
  you.
• 2:04
  I
• 2:05
  have
• 2:05
  the
• 2:06
  distinct
• 2:06
  pleasure
• 2:07
  and
• 2:07
  privilege.
• 2:07
  And
• 2:07
  I
• 2:07
  mean,
• 2:08
  that
• 2:08
  sounds
• 2:08
  sarcastic,
• 2:08
  but
• 2:09
  I
• 2:09
  mean
• 2:09
  that
• 2:09
  to
• 2:09
  be
• 2:09
  able
• 2:10
  to
• 2:10
  watch
• 2:10
  the
• 2:11
  beauty
• 2:11
  that
• 2:12
  is
• 2:12
  retail.
• 2:13
  And
• 2:13
  I'm
• 2:13
  supposed
• 2:14
  to
• 2:14
  be
• 2:14
  somewhere
• 2:14
  in
• 2:15
  between.
• 2:15
  I'm
• 2:15
  supposed
• 2:15
  to
• 2:15
  be
• 2:16
  either
• 2:16
  an
• 2:16
  advisor
• 2:17
  or
• 2:17
  a
• 2:17
  liaison
• 2:18
  or
• 2:18
  a
• 2:19
  publisher
• 2:19
  or
• 2:19
  just
• 2:20
  someone
• 2:20
  who
• 2:20
  gets
• 2:20
  to
• 2:20
  have
• 2:21
  fun
• 2:21
  with
• 2:21
  friends
• 2:21
  like
• 2:21
  this.
• 2:22
  In
• 2:22
  between
• 2:22
  the
• 2:23
  smartest
• 2:23
  retail
• 2:24
  operators
• 2:24
  and
• 2:25
  the
• 2:25
  smartest
• 2:25
  retail
• 2:25
  investors.
• 2:26
  And
• 2:27
  so
• 2:27
  my
• 2:27
  job
• 2:27
  is
• 2:27
  to
• 2:27
  Fuse
• 2:28
  those
• 2:28
  worlds
• 2:28
  and
• 2:29
  to
• 2:29
  help
• 2:29
  bring
• 2:29
  capital
• 2:30
  to
• 2:30
  those
• 2:30
  that
• 2:30
  need
• 2:30
  it
• 2:31
  and
• 2:31
  maybe
• 2:31
  keep
• 2:31
  some
• 2:31
  away
• 2:31
  from
• 2:32
  those
• 2:32
  that
• 2:32
  shouldn't
• 2:32
  get
• 2:32
  it.
• 2:33
  In
• 2:33
  the
• 2:33
  meantime,
• 2:34
  we
• 2:34
  get
• 2:34
  to
• 2:34
  have
• 2:35
  fun
• 2:35
  in
• 2:35
  a
• 2:35
  sector
• 2:35
  where
• 2:36
  it's
• 2:36
  always
• 2:36
  changing,
• 2:37
  which
• 2:37
  we
• 2:37
  know.
• 2:37
  And
• 2:38
  figuring
• 2:39
  out
• 2:39
  that
• 2:39
  pulse,
• 2:40
  figuring
• 2:40
  out
• 2:40
  when
• 2:41
  we
• 2:41
  can
• 2:41
  be
• 2:41
  rational
• 2:42
  people
• 2:42
  and
• 2:43
  irrational
• 2:43
  consumers,
• 2:44
  that's,
• 2:44
  I
• 2:45
  think,
• 2:45
  the
• 2:45
  magic.
• 2:45
  And
• 2:46
  somehow
• 2:46
  that
• 2:47
  sandwiched
• 2:47
  into
• 2:47
  the
• 2:47
  title
• 2:48
  managing
• 2:48
  director.
• 2:49
  Well,
• 2:49
  and
• 2:49
  Simeon,
• 2:50
  tell
• 2:50
  us
• 2:50
  a
• 2:50
  little
• 2:50
  bit
• 2:51
  about
• 2:51
  your
• 2:51
  background
• 2:51
  too.
• 2:52
  Like
• 2:52
  how
• 2:52
  did
• 2:52
  you
• 2:52
  become
• 2:53
  this
• 2:53
  person
• 2:54
  that's
• 2:54
  really
• 2:54
  the
• 2:55
  face
• 2:55
  of.
• 2:55
  Or
• 2:56
  the
• 2:56
  liaison,
• 2:56
  I'll
• 2:57
  say.
• 2:57
  I'll
• 2:57
  use
• 2:58
  that
• 2:58
  word
• 2:58
  instead.
• 2:58
  But
• 2:59
  the
• 2:59
  liaison
• 3:00
  between
• 3:01
  what's
• 3:01
  going
• 3:01
  on
• 3:01
  with
• 3:02
  the
• 3:02
  retail
• 3:02
  industry
• 3:03
  and
• 3:03
  then
• 3:04
  the
• 3:04
  investors
• 3:04
  who
• 3:05
  are
• 3:05
  looking
• 3:05
  very
• 3:05
  carefully
• 3:06
  at
• 3:06
  that.
• 3:07
  So
• 3:08
  there's
• 3:09
  the
• 3:10
  real
• 3:10
  version
• 3:11
  of
• 3:11
  the
• 3:11
  origin
• 3:12
  story,
• 3:12
  and
• 3:12
  then
• 3:12
  there's
• 3:13
  the
• 3:13
  version
• 3:14
  I've
• 3:14
  fine
• 3:14
  tuned
• 3:15
  for
• 3:15
  the
• 3:15
  podcast
• 3:16
  origin.
• 3:16
  Story,
• 3:16
  the
• 3:17
  one
• 3:17
  that
• 3:17
  sounds
• 3:17
  better.
• 3:18
  Okay,
• 3:18
  yeah,
• 3:18
  go
• 3:18
  with
• 3:18
  that
• 3:18
  one.
• 3:19
  Much
• 3:19
  better.
• 3:19
  Like
• 3:19
  that
• 3:20
  one's
• 3:20
  like,
• 3:20
  you
• 3:20
  bring
• 3:20
  out
• 3:20
  the
• 3:20
  tissues
• 3:21
  and
• 3:21
  you
• 3:22
  just
• 3:22
  get
• 3:22
  ready
• 3:22
  for
• 3:22
  the
• 3:22
  Hallmark
• 3:23
  channel.
• 3:23
  So
• 3:24
  the
• 3:24
  first
• 3:24
  one
• 3:24
  is
• 3:25
  the
• 3:25
  real
• 3:25
  one
• 3:25
  is
• 3:25
  totally
• 3:26
  luck.
• 3:26
  So
• 3:27
  I
• 3:27
  was
• 3:28
  in
• 3:28
  school,
• 3:28
  someone
• 3:29
  said,
• 3:29
  hey,
• 3:29
  why
• 3:29
  don't
• 3:29
  you
• 3:29
  do
• 3:30
  this?
• 3:30
  I
• 3:30
  tried
• 3:30
  it.
• 3:30
  I
• 3:30
  loved
• 3:31
  it.
• 3:31
  It
• 3:31
  was
• 3:31
  a
• 3:31
  beautiful
• 3:32
  fusion,
• 3:33
  beautiful
• 3:33
  fusion
• 3:34
  of
• 3:34
  quantitative
• 3:34
  and
• 3:34
  qualitative,
• 3:35
  which
• 3:35
  is
• 3:35
  what
• 3:35
  I
• 3:36
  love.
• 3:36
  So
• 3:36
  you
• 3:36
  take
• 3:37
  the
• 3:37
  quantitative,
• 3:38
  the
• 3:38
  numbers
• 3:38
  behind
• 3:38
  what
• 3:39
  actually
• 3:39
  make
• 3:39
  these
• 3:39
  businesses
• 3:39
  run.
• 3:40
  You
• 3:40
  apply
• 3:40
  that
• 3:40
  to
• 3:41
  businesses
• 3:41
  that
• 3:41
  appeal
• 3:41
  to
• 3:42
  humanities,
• 3:43
  all
• 3:43
  the
• 3:44
  different
• 3:44
  human
• 3:44
  psychology,
• 3:45
  things
• 3:45
  that
• 3:45
  make
• 3:45
  us
• 3:46
  decide
• 3:46
  what
• 3:46
  we're
• 3:47
  going
• 3:47
  to
• 3:47
  spend
• 3:47
  our
• 3:47
  hard
• 3:47
  on,
• 3:47
  cash
• 3:48
  on.
• 3:48
  And
• 3:48
  that's
• 3:48
  a
• 3:48
  great
• 3:49
  blend.
• 3:49
  I
• 3:49
  happen
• 3:50
  to
• 3:50
  look
• 3:50
  into
• 3:50
  it.
• 3:50
  I
• 3:50
  happen
• 3:51
  to
• 3:51
  love
• 3:51
  it.
• 3:51
  I
• 3:51
  stuck
• 3:51
  with
• 3:52
  it.
• 3:52
  And
• 3:53
  here
• 3:53
  we
• 3:53
  are.
• 3:54
  The
• 3:55
  more
• 3:55
  polished
• 3:55
  version
• 3:56
  is
• 3:57
  my
• 3:58
  grandfather,
• 3:58
  after
• 3:59
  coming
• 3:59
  back
• 3:59
  from
• 3:59
  landing
• 4:00
  at
• 4:00
  Normandy,
• 4:01
  came
• 4:01
  back
• 4:01
  to
• 4:02
  a
• 4:02
  tiny
• 4:02
  town
• 4:02
  in
• 4:02
  Pennsylvania,
• 4:03
  opened
• 4:04
  up
• 4:04
  his
• 4:04
  own
• 4:04
  shoe
• 4:05
  store
• 4:05
  called
• 4:05
  Morris
• 4:05
  Levine
• 4:06
  Family
• 4:06
  Shoes.
• 4:07
  The
• 4:07
  nicest
• 4:08
  man
• 4:08
  in
• 4:08
  the
• 4:08
  world,
• 4:09
  but
• 4:09
  the
• 4:09
  most
• 4:10
  perfect
• 4:10
  retailer
• 4:11
  extraordinaire.
• 4:11
  I
• 4:11
  mean,
• 4:12
  understood
• 4:12
  that
• 4:12
  retail
• 4:13
  is
• 4:13
  about
• 4:13
  people,
• 4:13
  not
• 4:13
  about
• 4:14
  products.
• 4:14
  And
• 4:15
  the
• 4:15
  lore,
• 4:16
  I
• 4:16
  have
• 4:16
  no
• 4:16
  idea
• 4:16
  if
• 4:16
  it's
• 4:16
  true,
• 4:17
  but
• 4:17
  it's
• 4:17
  one
• 4:17
  of
• 4:17
  those
• 4:17
  where
• 4:17
  you
• 4:17
  don't
• 4:18
  want
• 4:18
  to
• 4:18
  find
• 4:18
  out.
• 4:18
  The
• 4:18
  law
• 4:19
  was
• 4:19
  he
• 4:19
  knew
• 4:19
  everyone's
• 4:20
  shoe
• 4:20
  size
• 4:20
  in
• 4:20
  his
• 4:20
  town.
• 4:21
  And
• 4:21
  people
• 4:21
  would
• 4:21
  come
• 4:21
  in
• 4:22
  and
• 4:22
  sit
• 4:22
  in
• 4:22
  his
• 4:22
  bunny
• 4:23
  chair,
• 4:23
  get
• 4:23
  sized,
• 4:24
  get
• 4:24
  a
• 4:24
  pretzel
• 4:24
  from
• 4:25
  the
• 4:25
  giant
• 4:25
  Costco
• 4:25
  sized
• 4:26
  tub,
• 4:26
  and
• 4:27
  you
• 4:27
  just
• 4:27
  walked
• 4:27
  out
• 4:27
  from
• 4:28
  that
• 4:28
  shoe
• 4:28
  store
• 4:28
  feeling
• 4:28
  happier.
• 4:29
  And.
• 4:29
  And
• 4:29
  so
• 4:29
  I
• 4:30
  grew
• 4:30
  up
• 4:30
  amongst
• 4:31
  retail,
• 4:31
  didn't
• 4:32
  realize
• 4:32
  I
• 4:33
  was
• 4:33
  going
• 4:33
  to
• 4:33
  be
• 4:33
  going
• 4:33
  full
• 4:34
  circle.
• 4:34
  And
• 4:34
  my
• 4:35
  one
• 4:35
  regret
• 4:35
  in
• 4:35
  life
• 4:36
  is
• 4:36
  not
• 4:37
  being
• 4:37
  able
• 4:37
  to
• 4:37
  share
• 4:37
  that
• 4:37
  with
• 4:38
  him
• 4:38
  now
• 4:38
  and
• 4:38
  being
• 4:38
  able
• 4:38
  to
• 4:38
  have
• 4:39
  this
• 4:39
  conversation
• 4:39
  with
• 4:39
  him
• 4:39
  now
• 4:39
  because
• 4:40
  the
• 4:40
  Amazing
• 4:40
  conversations
• 4:41
  on
• 4:41
  that.
• 4:41
  I
• 4:41
  was
• 4:41
  fortunate
• 4:42
  to
• 4:42
  have
• 4:42
  plenty
• 4:42
  of
• 4:42
  time
• 4:42
  with
• 4:43
  him.
• 4:43
  But
• 4:43
  the
• 4:43
  amazing
• 4:44
  conversations
• 4:44
  I'd
• 4:44
  be
• 4:45
  able
• 4:45
  to
• 4:45
  have
• 4:45
  him
• 4:45
  from
• 4:45
  an
• 4:46
  industry
• 4:46
  perspective,
• 4:47
  those
• 4:47
  are
• 4:47
  one
• 4:48
  of
• 4:48
  the.
• 4:48
  Those
• 4:48
  are
• 4:48
  the
• 4:48
  conversations
• 4:49
  I
• 4:49
  play
• 4:49
  around
• 4:49
  in
• 4:49
  my
• 4:49
  head
• 4:50
  and
• 4:50
  those
• 4:50
  are
• 4:50
  the
• 4:50
  ones
• 4:50
  that
• 4:50
  I
• 4:51
  miss.
• 4:51
  My
• 4:51
  oldest
• 4:52
  son
• 4:52
  is
• 4:52
  named
• 4:52
  after
• 4:53
  him.
• 4:53
  And
• 4:53
  the
• 4:54
  best
• 4:54
  part
• 4:54
  of
• 4:54
  this
• 4:54
  story
• 4:55
  is
• 4:55
  the
• 4:55
  person
• 4:56
  that
• 4:56
  he
• 4:57
  effectively
• 4:57
  sold
• 4:58
  his
• 4:58
  store
• 4:58
  to
• 4:58
  to
• 4:58
  his
• 4:58
  protege,
• 4:59
  to
• 4:59
  his
• 4:59
  apprentice,
• 5:00
  ended
• 5:01
  up
• 5:01
  taking
• 5:01
  the
• 5:01
  store,
• 5:02
  built
• 5:02
  it
• 5:02
  into
• 5:02
  a
• 5:02
  20
• 5:03
  store
• 5:03
  chain,
• 5:04
  was
• 5:05
  inducted
• 5:05
  into
• 5:06
  their
• 5:06
  county's
• 5:07
  hall
• 5:07
  of
• 5:07
  fame
• 5:07
  last
• 5:08
  year,
• 5:08
  and
• 5:08
  he
• 5:08
  invited
• 5:09
  us
• 5:09
  to
• 5:09
  go
• 5:09
  see
• 5:09
  him.
• 5:09
  So
• 5:10
  I
• 5:10
  brought
• 5:10
  my
• 5:10
  son
• 5:10
  to
• 5:11
  that
• 5:11
  announcement
• 5:12
  and
• 5:12
  up
• 5:13
  there,
• 5:13
  Todd
• 5:14
  Lewis,
• 5:14
  the
• 5:14
  most
• 5:14
  amazing
• 5:15
  person
• 5:15
  out
• 5:15
  there,
• 5:16
  thanked
• 5:17
  my
• 5:17
  grandfather
• 5:18
  and
• 5:18
  then
• 5:18
  brought
• 5:18
  it
• 5:18
  grandfather
• 5:19
  to
• 5:19
  his
• 5:19
  great
• 5:19
  grandson
• 5:20
  who
• 5:20
  was
• 5:20
  sitting
• 5:20
  front
• 5:20
  row.
• 5:21
  So
• 5:21
  that's,
• 5:22
  that's
• 5:22
  the
• 5:22
  more
• 5:22
  special
• 5:23
  I
• 5:23
  wish
• 5:23
  it
• 5:23
  was.
• 5:24
  Yeah,
• 5:24
  everything
• 5:25
  I
• 5:25
  just
• 5:25
  said
• 5:25
  was
• 5:25
  true,
• 5:26
  except
• 5:26
  realizing
• 5:26
  that's
• 5:27
  how
• 5:27
  I
• 5:27
  got
• 5:27
  here.
• 5:27
  But
• 5:28
  you
• 5:28
  know
• 5:28
  what?
• 5:28
  Sometimes
• 5:29
  the
• 5:29
  universe
• 5:29
  makes
• 5:29
  it
• 5:29
  work.
• 5:30
  Yeah.
• 5:30
  Well,
• 5:31
  way
• 5:31
  to
• 5:31
  tear
• 5:31
  at
• 5:31
  the
• 5:31
  heartstrings
• 5:32
  right
• 5:32
  at
• 5:32
  the
• 5:32
  beginning
• 5:32
  of
• 5:33
  the
• 5:33
  podcast.
• 5:33
  I
• 5:33
  know.
• 5:34
  Nicely
• 5:34
  done.
• 5:36
  I
• 5:36
  know
• 5:36
  you
• 5:37
  did.
• 5:37
  I
• 5:37
  do.
• 5:37
  I
• 5:37
  do
• 5:37
  want
• 5:37
  to
• 5:38
  ask
• 5:38
  you
• 5:38
  though
• 5:38
  too,
• 5:38
  for
• 5:39
  the
• 5:39
  audience
• 5:39
  too,
• 5:40
  because,
• 5:40
  you
• 5:40
  know,
• 5:40
  I'm
• 5:41
  curious,
• 5:41
  what
• 5:41
  do
• 5:41
  you
• 5:42
  spend
• 5:42
  your
• 5:42
  day
• 5:42
  doing
• 5:43
  too?
• 5:43
  Because
• 5:43
  we
• 5:43
  see
• 5:43
  you
• 5:44
  on
• 5:44
  TV
• 5:44
  a
• 5:44
  lot,
• 5:44
  we
• 5:45
  see
• 5:45
  you
• 5:45
  on
• 5:45
  podcasts
• 5:45
  a
• 5:46
  lot.
• 5:46
  What
• 5:46
  is,
• 5:46
  what
• 5:47
  is
• 5:47
  the
• 5:47
  actual
• 5:47
  day
• 5:47
  to
• 5:47
  day
• 5:48
  of
• 5:48
  your
• 5:48
  job
• 5:48
  look
• 5:49
  like
• 5:49
  for
• 5:49
  those
• 5:49
  that
• 5:49
  maybe
• 5:50
  aren't
• 5:50
  as
• 5:50
  familiar
• 5:50
  with
• 5:51
  what
• 5:51
  someone
• 5:51
  in
• 5:52
  your
• 5:52
  role
• 5:52
  does?
• 5:53
  So
• 5:53
  I
• 5:53
  love
• 5:53
  clipboards
• 5:54
  and
• 5:56
  I've
• 5:56
  got,
• 5:57
  I've
• 5:57
  got
• 5:57
  them
• 5:57
  all
• 5:57
  over.
• 5:58
  I
• 5:58
  love
• 5:58
  papers
• 5:59
  that
• 5:59
  are
• 5:59
  marked
• 6:00
  and.
• 6:00
  Right.
• 6:01
  I.
• 6:02
  So
• 6:02
  I
• 6:02
  try
• 6:03
  to.
• 6:03
  That
• 6:03
  Fusion.
• 6:04
  I
• 6:04
  really
• 6:04
  do
• 6:04
  believe
• 6:05
  that's
• 6:05
  the
• 6:05
  right
• 6:05
  way
• 6:05
  to
• 6:05
  do
• 6:05
  this.
• 6:05
  I
• 6:06
  think
• 6:06
  that
• 6:06
  there's,
• 6:06
  there
• 6:07
  are
• 6:07
  people
• 6:07
  that
• 6:07
  do
• 6:07
  what
• 6:07
  I
• 6:08
  do,
• 6:08
  that
• 6:08
  analyze.
• 6:09
  So,
• 6:09
  so
• 6:09
  I,
• 6:09
  I
• 6:10
  kind
• 6:10
  of
• 6:10
  joked
• 6:10
  around
• 6:11
  a
• 6:11
  little
• 6:11
  bit,
• 6:11
  but
• 6:11
  my
• 6:11
  job
• 6:11
  is
• 6:11
  to
• 6:11
  analyze
• 6:12
  the
• 6:12
  stocks,
• 6:13
  the
• 6:13
  publicly
• 6:13
  traded
• 6:14
  companies,
• 6:14
  and
• 6:15
  then
• 6:15
  decide
• 6:16
  issue,
• 6:16
  buy,
• 6:16
  hold,
• 6:16
  sell
• 6:17
  ratings
• 6:17
  and
• 6:18
  effectively
• 6:18
  advise
• 6:19
  investors
• 6:19
  whether
• 6:19
  they
• 6:20
  should
• 6:20
  invest
• 6:20
  in
• 6:20
  individual
• 6:21
  publicly
• 6:21
  traded
• 6:22
  companies.
• 6:22
  The
• 6:22
  sector
• 6:23
  I
• 6:23
  happen
• 6:23
  to
• 6:23
  choose
• 6:23
  is
• 6:24
  retail.
• 6:24
  You
• 6:25
  can
• 6:25
  do
• 6:25
  what
• 6:25
  I
• 6:25
  do
• 6:25
  for
• 6:25
  anything.
• 6:26
  You
• 6:26
  can
• 6:26
  do
• 6:26
  it
• 6:26
  for
• 6:26
  biotechnology.
• 6:27
  You
• 6:27
  can
• 6:27
  do
• 6:27
  it
• 6:27
  for
• 6:27
  financials.
• 6:28
  You
• 6:28
  can
• 6:28
  do
• 6:28
  it
• 6:28
  for
• 6:28
  tech
• 6:29
  companies.
• 6:29
  You
• 6:29
  can
• 6:29
  do
• 6:29
  it
• 6:29
  for
• 6:30
  media.
• 6:30
  Every,
• 6:31
  every
• 6:31
  sector
• 6:32
  is
• 6:32
  blessed
• 6:33
  and
• 6:33
  cursed
• 6:33
  with
• 6:33
  having
• 6:34
  some
• 6:34
  version
• 6:34
  of
• 6:34
  Simeon
• 6:36
  effectively
• 6:37
  throwing
• 6:37
  darts
• 6:37
  and
• 6:37
  analyzing
• 6:38
  and
• 6:38
  critiquing
• 6:39
  their
• 6:39
  job
• 6:39
  from
• 6:39
  the
• 6:39
  sidelines.
• 6:40
  Multiple
• 6:41
  versions
• 6:41
  of
• 6:41
  Simeon
• 6:42
  too,
• 6:42
  right?
• 6:43
  Much
• 6:43
  better
• 6:43
  version.
• 6:46
  But
• 6:47
  what
• 6:47
  I
• 6:48
  joke
• 6:48
  around
• 6:48
  with,
• 6:48
  what
• 6:49
  I
• 6:49
  think
• 6:49
  is
• 6:49
  that.
• 6:49
  I
• 6:50
  think
• 6:50
  that
• 6:50
  the
• 6:50
  nature
• 6:50
  of
• 6:51
  our
• 6:51
  sector,
• 6:51
  the
• 6:51
  sector
• 6:52
  that
• 6:52
  we've
• 6:52
  all
• 6:52
  picked
• 6:53
  is.
• 6:54
  It's
• 6:54
  such
• 6:54
  a
• 6:55
  difficult
• 6:55
  sector
• 6:56
  to
• 6:56
  either
• 6:57
  analyze
• 6:57
  or
• 6:57
  operate
• 6:58
  or
• 6:58
  invest
• 6:58
  in
• 6:59
  because
• 6:59
  it's
• 6:59
  such
• 6:59
  an
• 6:59
  easy
• 7:00
  sector.
• 7:00
  Whereas
• 7:01
  something
• 7:01
  like
• 7:01
  biotechnology
• 7:02
  is
• 7:03
  probably
• 7:03
  a
• 7:03
  really
• 7:04
  easy
• 7:04
  business
• 7:05
  to
• 7:05
  run
• 7:06
  because
• 7:06
  it's
• 7:06
  such
• 7:07
  a
• 7:07
  hard
• 7:07
  sector.
• 7:07
  And
• 7:08
  that
• 7:08
  sounds
• 7:08
  counterintuitive
• 7:09
  or
• 7:09
  dumb,
• 7:10
  but
• 7:10
  what
• 7:10
  I
• 7:10
  mean
• 7:10
  by
• 7:11
  it
• 7:11
  is
• 7:11
  we
• 7:11
  are
• 7:12
  in
• 7:12
  a
• 7:12
  sector
• 7:12
  riddled
• 7:13
  with
• 7:13
  the
• 7:13
  fallacy
• 7:14
  of
• 7:14
  accessibility.
• 7:14
  We
• 7:15
  are
• 7:15
  in
• 7:15
  a
• 7:15
  sector
• 7:15
  where
• 7:16
  we
• 7:16
  are
• 7:16
  consumers.
• 7:18
  And
• 7:18
  I'm
• 7:18
  pretty
• 7:18
  sure
• 7:19
  no
• 7:19
  one
• 7:19
  ever
• 7:20
  woke
• 7:20
  up
• 7:21
  on
• 7:21
  a
• 7:21
  Monday
• 7:22
  and
• 7:22
  said,
• 7:22
  God
• 7:23
  damn,
• 7:23
  I
• 7:23
  tried
• 7:23
  this
• 7:24
  great
• 7:24
  drug
• 7:24
  over
• 7:24
  the
• 7:24
  weekend,
• 7:25
  let
• 7:25
  me
• 7:25
  invest
• 7:25
  in
• 7:25
  it.
• 7:26
  But
• 7:26
  we
• 7:26
  do
• 7:27
  it
• 7:27
  all
• 7:27
  the
• 7:27
  time.
• 7:28
  When
• 7:28
  it
• 7:28
  comes
• 7:28
  to
• 7:29
  consumer
• 7:29
  products
• 7:29
  or
• 7:30
  food
• 7:30
  and
• 7:30
  restaurants
• 7:31
  or
• 7:31
  trips
• 7:32
  and
• 7:32
  cruises,
• 7:33
  we
• 7:33
  bring
• 7:33
  our
• 7:33
  anecdotal
• 7:34
  baggage.
• 7:34
  And
• 7:34
  so
• 7:35
  my
• 7:35
  job,
• 7:35
  the
• 7:36
  way
• 7:36
  I
• 7:36
  view
• 7:36
  it,
• 7:37
  is
• 7:37
  to
• 7:37
  assess
• 7:37
  that
• 7:38
  anecdotal
• 7:38
  baggage
• 7:38
  is
• 7:39
  to
• 7:39
  understand
• 7:39
  what
• 7:40
  the
• 7:40
  consumer
• 7:40
  is
• 7:40
  going
• 7:41
  to
• 7:41
  want
• 7:41
  to
• 7:41
  buy,
• 7:41
  because
• 7:42
  we
• 7:42
  are
• 7:42
  all
• 7:42
  consumers
• 7:43
  and
• 7:43
  therefore
• 7:44
  when
• 7:44
  it
• 7:44
  comes
• 7:44
  to
• 7:44
  want
• 7:45
  based
• 7:45
  shopping,
• 7:45
  we
• 7:46
  are
• 7:46
  irrational.
• 7:47
  But
• 7:47
  then
• 7:47
  the
• 7:47
  second
• 7:48
  half
• 7:48
  of
• 7:48
  my
• 7:48
  job
• 7:48
  is
• 7:48
  to
• 7:49
  say,
• 7:49
  okay,
• 7:50
  companies
• 7:50
  like
• 7:51
  Under
• 7:51
  Armour,
• 7:51
  Victoria's
• 7:52
  Secret
• 7:52
  get
• 7:52
  knocked
• 7:53
  for
• 7:53
  being
• 7:54
  dead
• 7:54
  companies.
• 7:54
  That,
• 7:55
  that
• 7:55
  is
• 7:55
  the
• 7:55
  view.
• 7:55
  They
• 7:55
  are
• 7:56
  dead
• 7:56
  businesses.
• 7:57
  The
• 7:58
  best
• 7:58
  part
• 7:58
  of
• 7:58
  my
• 7:58
  job
• 7:58
  is
• 7:59
  I
• 7:59
  stare
• 7:59
  at
• 7:59
  numbers.
• 8:00
  Numbers
• 8:00
  tell
• 8:00
  me
• 8:00
  the
• 8:00
  truth.
• 8:00
  Numbers
• 8:01
  can't
• 8:01
  lie
• 8:01
  unless
• 8:01
  they're
• 8:02
  fraudulent.
• 8:02
  And
• 8:02
  so
• 8:02
  when
• 8:03
  someone
• 8:03
  tells
• 8:03
  me
• 8:03
  Under
• 8:03
  Armour's
• 8:04
  dead
• 8:04
  and
• 8:04
  I
• 8:04
  see
• 8:04
  that
• 8:04
  it's
• 8:05
  $6
• 8:05
  billion
• 8:05
  of
• 8:06
  revenue,
• 8:06
  I
• 8:06
  know
• 8:07
  it's
• 8:07
  just
• 8:07
  not
• 8:07
  true.
• 8:07
  Now,
• 8:07
  it
• 8:08
  might
• 8:08
  be
• 8:08
  sick.
• 8:09
  And
• 8:09
  revenues
• 8:09
  tell
• 8:10
  me
• 8:10
  how
• 8:10
  big
• 8:10
  a
• 8:10
  brand
• 8:10
  is,
• 8:10
  but
• 8:11
  margin
• 8:11
  will
• 8:11
  tell
• 8:11
  me
• 8:11
  how
• 8:11
  healthy
• 8:12
  it
• 8:12
  is.
• 8:12
  And
• 8:12
  so
• 8:12
  it
• 8:12
  might
• 8:12
  not
• 8:12
  be
• 8:13
  healthy,
• 8:13
  but
• 8:13
  it's
• 8:14
  not
• 8:14
  dead.
• 8:14
  And
• 8:15
  so
• 8:15
  I
• 8:15
  splinter
• 8:15
  my
• 8:16
  day
• 8:16
  into
• 8:17
  both
• 8:17
  figuring
• 8:18
  out
• 8:18
  that
• 8:18
  qualitative
• 8:19
  understanding
• 8:19
  what
• 8:19
  the
• 8:20
  latest
• 8:20
  trend
• 8:20
  is
• 8:20
  going
• 8:20
  to
• 8:20
  be,
• 8:21
  or
• 8:21
  at
• 8:21
  least
• 8:21
  trying
• 8:21
  to.
• 8:22
  But
• 8:22
  then
• 8:23
  the
• 8:23
  other
• 8:23
  75.
• 8:24
  So
• 8:25
  if
• 8:25
  half
• 8:25
  of
• 8:25
  my
• 8:25
  day
• 8:25
  is
• 8:25
  there,
• 8:25
  then
• 8:26
  70.
• 8:26
  The
• 8:26
  other
• 8:26
  75%
• 8:27
  of
• 8:27
  my
• 8:27
  day,
• 8:28
  for
• 8:28
  the
• 8:28
  math,
• 8:29
  75%
• 8:30
  is
• 8:31
  rooted
• 8:31
  in
• 8:32
  playing
• 8:32
  with
• 8:32
  the
• 8:32
  numbers
• 8:33
  and
• 8:33
  understanding.
• 8:33
  Got
• 8:33
  it.
• 8:34
  And
• 8:34
  then.
• 8:34
  So
• 8:34
  fuse
• 8:34
  that
• 8:35
  and
• 8:35
  then
• 8:35
  doing
• 8:36
  fun
• 8:37
  hangouts
• 8:37
  with
• 8:37
  friends.
• 8:38
  Yeah,
• 8:38
  right.
• 8:39
  Awesome.
• 8:39
  Awesome.
• 8:40
  All
• 8:40
  right,
• 8:40
  so.
• 8:41
  So
• 8:41
  the
• 8:41
  first
• 8:41
  question
• 8:41
  we
• 8:42
  want
• 8:42
  to
• 8:42
  ask
• 8:42
  you
• 8:42
  then,
• 8:43
  now
• 8:43
  that
• 8:43
  we
• 8:43
  got
• 8:43
  that
• 8:43
  out
• 8:44
  of
• 8:44
  the
• 8:44
  way,
• 8:44
  is
• 8:44
  how
• 8:45
  would
• 8:45
  you
• 8:45
  sum
• 8:46
  up
• 8:46
  2024
• 8:48
  and
• 8:48
  what's
• 8:49
  your
• 8:49
  take
• 8:49
  on
• 8:49
  2025
• 8:50
  as
• 8:50
  we
• 8:50
  start
• 8:51
  the
• 8:51
  year?
• 8:52
  So
• 8:52
  summing
• 8:52
  up
• 8:52
  2024
• 8:53
  in
• 8:53
  one
• 8:53
  word
• 8:54
  is
• 8:54
  over.
• 8:54
  It
• 8:55
  is
• 8:55
  over.
• 8:55
  Over.
• 8:56
  Here
• 8:56
  we
• 8:56
  go.
• 8:57
  No.
• 8:58
  So
• 8:58
  thank
• 8:58
  God.
• 8:59
  So
• 9:00
  I
• 9:00
  think
• 9:00
  that.
• 9:01
  And,
• 9:01
  and
• 9:02
  20.
• 9:03
  This
• 9:03
  will
• 9:03
  be
• 9:03
  a
• 9:03
  good.
• 9:04
  It's,
• 9:04
  it's
• 9:04
  a
• 9:04
  fun
• 9:04
  question,
• 9:05
  actually.
• 9:05
  I
• 9:05
  didn't,
• 9:05
  I
• 9:05
  didn't.
• 9:06
  I
• 9:06
  haven't
• 9:06
  thought
• 9:06
  about
• 9:07
  it.
• 9:07
  But
• 9:08
  2020-2021-2022-2023
• 9:13
  were
• 9:14
  all
• 9:14
  cluster
• 9:14
  years.
• 9:16
  We
• 9:16
  were
• 9:16
  talking
• 9:16
  about
• 9:17
  macro.
• 9:17
  It
• 9:18
  was
• 9:18
  their
• 9:18
  stimulus.
• 9:19
  There's
• 9:20
  supply
• 9:20
  chain
• 9:20
  issues,
• 9:21
  there's
• 9:21
  overabundance
• 9:22
  of
• 9:22
  product,
• 9:22
  there's
• 9:22
  a
• 9:22
  lack
• 9:23
  of
• 9:23
  product.
• 9:23
  It
• 9:24
  didn't
• 9:24
  matter.
• 9:25
  As
• 9:25
  an
• 9:25
  entity,
• 9:26
  the
• 9:26
  industry
• 9:26
  was
• 9:26
  all
• 9:27
  playing
• 9:27
  the
• 9:27
  same
• 9:27
  game.
• 9:28
  There
• 9:28
  were
• 9:28
  no
• 9:28
  winners
• 9:28
  and
• 9:28
  losers
• 9:29
  in
• 9:29
  2024.
• 9:30
  That
• 9:30
  wasn't
• 9:31
  true
• 9:31
  anymore
• 9:32
  because
• 9:32
  in
• 9:32
  2024
• 9:33
  we
• 9:33
  returned
• 9:33
  to
• 9:33
  a
• 9:33
  more
• 9:34
  normalized
• 9:34
  environment.
• 9:34
  And
• 9:35
  what
• 9:35
  does
• 9:35
  that
• 9:35
  mean?
• 9:35
  It
• 9:36
  means,
• 9:36
  I
• 9:36
  mean
• 9:36
  2
• 9:36
  of
• 9:37
  retailers
• 9:38
  and
• 9:38
  brands
• 9:38
  favorite
• 9:39
  words
• 9:39
  or
• 9:39
  release
• 9:40
  favorite
• 9:40
  words
• 9:40
  are
• 9:40
  market
• 9:41
  share.
• 9:41
  Because
• 9:42
  in
• 9:42
  a
• 9:42
  normal
• 9:42
  business,
• 9:43
  there
• 9:43
  are
• 9:43
  winners
• 9:43
  and
• 9:43
  there
• 9:43
  are
• 9:44
  losers.
• 9:44
  And
• 9:44
  that's
• 9:45
  what
• 9:45
  2024
• 9:46
  was.
• 9:46
  2024
• 9:47
  was
• 9:47
  a
• 9:47
  return
• 9:47
  to
• 9:48
  a
• 9:48
  sense
• 9:48
  of
• 9:48
  if
• 9:48
  you're
• 9:48
  really
• 9:49
  good,
• 9:49
  you're
• 9:49
  going
• 9:49
  to
• 9:49
  be
• 9:49
  able
• 9:50
  to
• 9:50
  sell
• 9:50
  a
• 9:50
  lot
• 9:50
  of
• 9:50
  product.
• 9:51
  If
• 9:51
  you're
• 9:51
  not,
• 9:52
  you're
• 9:52
  going
• 9:52
  to
• 9:52
  see
• 9:52
  that
• 9:53
  go
• 9:53
  the
• 9:53
  wrong
• 9:53
  way.
• 9:54
  If
• 9:54
  you
• 9:54
  overstretched
• 9:55
  in
• 9:55
  your
• 9:55
  Nike,
• 9:56
  you're
• 9:56
  going
• 9:56
  to
• 9:56
  have
• 9:56
  to
• 9:56
  recreate
• 9:57
  your
• 9:57
  brand.
• 9:57
  But
• 9:58
  on
• 9:58
  the
• 9:58
  other
• 9:58
  hand,
• 9:58
  Hoka
• 9:58
  and
• 9:59
  On
• 9:59
  are
• 9:59
  doing
• 9:59
  a
• 9:59
  beautiful
• 10:00
  job.
• 10:00
  If
• 10:00
  you're
• 10:01
  finally
• 10:01
  reaching
• 10:01
  a
• 10:02
  threshold
• 10:02
  of
• 10:02
  price
• 10:03
  capping
• 10:03
  on
• 10:03
  the
• 10:03
  luxury
• 10:04
  side,
• 10:04
  like
• 10:04
  LV
• 10:05
  or
• 10:05
  watching
• 10:05
  Gucci
• 10:06
  and
• 10:06
  you
• 10:06
  all
• 10:06
  of
• 10:06
  a
• 10:07
  sudden
• 10:07
  we
• 10:07
  think,
• 10:07
  okay,
• 10:07
  luxury
• 10:08
  is
• 10:08
  tapped
• 10:08
  out.
• 10:08
  Well,
• 10:08
  Hermes
• 10:09
  and
• 10:09
  Prada
• 10:09
  are
• 10:09
  telling
• 10:10
  us
• 10:10
  not
• 10:10
  so
• 10:10
  much.
• 10:11
  And
• 10:11
  so
• 10:11
  you
• 10:11
  see
• 10:12
  it
• 10:12
  across
• 10:12
  the
• 10:12
  board
• 10:12
  and
• 10:13
  there's
• 10:13
  winners
• 10:13
  and
• 10:13
  losers
• 10:13
  in
• 10:13
  every
• 10:14
  sector.
• 10:14
  And
• 10:14
  that's
• 10:14
  how
• 10:14
  I
• 10:14
  would
• 10:14
  characterize
• 10:15
  2024
• 10:16
  leading
• 10:16
  into
• 10:17
  2025.
• 10:18
  Hopefully
• 10:19
  that's
• 10:20
  the
• 10:20
  resumption.
• 10:20
  Hopefully
• 10:21
  that's
• 10:21
  what
• 10:21
  we
• 10:21
  walk
• 10:21
  into.
• 10:22
  Because
• 10:22
  I
• 10:22
  just
• 10:23
  told
• 10:23
  you
• 10:23
  the
• 10:23
  past
• 10:23
  three
• 10:24
  years
• 10:24
  were
• 10:24
  all
• 10:24
  about
• 10:24
  macro.
• 10:25
  And
• 10:25
  you
• 10:26
  should
• 10:26
  reply
• 10:26
  to
• 10:26
  me
• 10:26
  immediately.
• 10:27
  Well,
• 10:27
  isn't
• 10:27
  everyone
• 10:27
  talking
• 10:27
  about
• 10:28
  interest
• 10:28
  rates?
• 10:28
  And
• 10:28
  isn't
• 10:28
  everyone
• 10:28
  talking
• 10:29
  about
• 10:29
  macro?
• 10:29
  And
• 10:29
  isn't
• 10:29
  that
• 10:29
  always
• 10:30
  like,
• 10:30
  yeah,
• 10:30
  we
• 10:30
  always
• 10:30
  talk
• 10:31
  about
• 10:31
  macro.
• 10:31
  The
• 10:31
  question
• 10:31
  is,
• 10:32
  is
• 10:32
  that
• 10:32
  really
• 10:32
  what's
• 10:32
  driving?
• 10:33
  And
• 10:33
  so
• 10:34
  with
• 10:34
  a
• 10:34
  new
• 10:34
  presence,
• 10:35
  obviously
• 10:35
  tariffs
• 10:36
  are
• 10:36
  going
• 10:36
  to
• 10:36
  come
• 10:36
  up
• 10:36
  a
• 10:36
  lot.
• 10:36
  There's
• 10:36
  going
• 10:37
  to
• 10:37
  be
• 10:37
  a
• 10:37
  lot
• 10:37
  of
• 10:37
  different
• 10:37
  pieces.
• 10:37
  I'm
• 10:38
  sure
• 10:38
  we'll
• 10:38
  get
• 10:38
  to
• 10:38
  all
• 10:38
  of
• 10:38
  these
• 10:39
  things.
• 10:39
  But
• 10:40
  I
• 10:41
  think
• 10:42
  economists
• 10:43
  work
• 10:43
  really
• 10:44
  apologize
• 10:45
  to
• 10:45
  any
• 10:45
  economists
• 10:45
  who
• 10:46
  are
• 10:46
  watching
• 10:46
  and
• 10:46
  listening.
• 10:46
  I
• 10:47
  think
• 10:47
  economists
• 10:48
  work
• 10:48
  really,
• 10:48
  really
• 10:48
  hard
• 10:49
  to
• 10:49
  predict
• 10:49
  the
• 10:49
  past.
• 10:50
  And
• 10:50
  I
• 10:50
  think
• 10:51
  that
• 10:51
  right
• 10:51
  now
• 10:52
  we
• 10:53
  know
• 10:53
  that
• 10:53
  this
• 10:54
  beautiful
• 10:54
  thing
• 10:54
  called
• 10:55
  inflation
• 10:55
  and
• 10:55
  deflation,
• 10:56
  these
• 10:56
  big
• 10:56
  words,
• 10:56
  they
• 10:57
  just
• 10:57
  mean
• 10:57
  higher
• 10:57
  and
• 10:57
  lower
• 10:58
  prices.
• 10:58
  And
• 10:59
  you
• 10:59
  know,
• 10:59
  the
• 11:00
  two
• 11:00
  of
• 11:00
  you
• 11:00
  know
• 11:00
  it
• 11:00
  more
• 11:00
  than
• 11:00
  ever,
• 11:01
  like
• 11:01
  retail,
• 11:02
  we're
• 11:02
  going
• 11:02
  to
• 11:02
  find
• 11:02
  out
• 11:02
  if
• 11:02
  prices
• 11:03
  are
• 11:03
  higher
• 11:03
  or
• 11:03
  lower
• 11:03
  well
• 11:04
  before
• 11:04
  the
• 11:04
  economists
• 11:04
  tell
• 11:04
  us
• 11:04
  we're
• 11:05
  in
• 11:05
  an
• 11:05
  inflationary
• 11:05
  or
• 11:05
  deflationary
• 11:06
  period.
• 11:07
  So
• 11:07
  the
• 11:07
  micro,
• 11:08
  I
• 11:08
  think,
• 11:08
  is
• 11:08
  what
• 11:08
  we
• 11:08
  Want
• 11:08
  to
• 11:08
  focus
• 11:09
  on.
• 11:10
  Well,
• 11:10
  and
• 11:11
  Simeon,
• 11:12
  you
• 11:12
  know,
• 11:12
  I've,
• 11:12
  I've
• 11:13
  been
• 11:13
  on
• 11:13
  earnings
• 11:14
  calls.
• 11:14
  You
• 11:14
  ask
• 11:15
  brilliant
• 11:15
  questions.
• 11:16
  I'm
• 11:17
  curious
• 11:17
  based
• 11:18
  on
• 11:18
  kind
• 11:18
  of
• 11:18
  the,
• 11:19
  the
• 11:19
  table
• 11:19
  that
• 11:19
  you
• 11:20
  just
• 11:20
  set
• 11:21
  as
• 11:21
  you're
• 11:21
  listening
• 11:22
  to
• 11:22
  upcoming
• 11:23
  earnings
• 11:23
  calls
• 11:23
  or
• 11:23
  you're
• 11:24
  reading
• 11:24
  through
• 11:24
  companies
• 11:25
  filings,
• 11:25
  like,
• 11:25
  are
• 11:26
  there
• 11:27
  specific
• 11:27
  things
• 11:28
  that
• 11:28
  you're
• 11:28
  looking
• 11:28
  at
• 11:29
  to
• 11:29
  really
• 11:29
  kind
• 11:30
  of
• 11:30
  separate
• 11:31
  fact
• 11:31
  from
• 11:32
  fiction
• 11:32
  based
• 11:32
  on
• 11:33
  what
• 11:33
  you're
• 11:33
  hearing
• 11:33
  people
• 11:34
  talk
• 11:34
  about
• 11:34
  in
• 11:34
  the
• 11:34
  media?
• 11:35
  And
• 11:35
  then
• 11:35
  when
• 11:35
  you
• 11:35
  said,
• 11:36
  you
• 11:36
  really
• 11:36
  look
• 11:36
  at
• 11:36
  the
• 11:36
  numbers
• 11:37
  and
• 11:37
  that's
• 11:37
  what
• 11:37
  tells
• 11:38
  you,
• 11:38
  you
• 11:38
  know,
• 11:38
  the
• 11:39
  health
• 11:39
  of
• 11:39
  the
• 11:39
  company.
• 11:40
  Is
• 11:40
  there
• 11:40
  things
• 11:41
  that
• 11:41
  you
• 11:41
  would
• 11:41
  call
• 11:41
  out
• 11:42
  for
• 11:42
  the
• 11:42
  audience
• 11:42
  to
• 11:43
  really,
• 11:43
  you
• 11:44
  know,
• 11:44
  be
• 11:44
  listening
• 11:44
  to
• 11:45
  as
• 11:45
  we
• 11:45
  start
• 11:45
  to
• 11:45
  hear
• 11:46
  earnings
• 11:46
  reports
• 11:47
  from,
• 11:48
  you
• 11:48
  know,
• 11:48
  Q4
• 11:49
  last
• 11:49
  year.
• 11:50
  So
• 11:51
  I
• 11:51
  love
• 11:51
  that
• 11:51
  question,
• 11:51
  but
• 11:52
  beforehand
• 11:52
  we
• 11:52
  need
• 11:52
  to
• 11:53
  throw
• 11:53
  out
• 11:53
  the
• 11:53
  rules
• 11:54
  here.
• 11:54
  You
• 11:54
  guys
• 11:54
  are
• 11:54
  being
• 11:54
  way
• 11:55
  too
• 11:55
  nice
• 11:55
  to
• 11:55
  me.
• 11:55
  I
• 11:55
  asked
• 11:56
  some,
• 11:56
  plenty
• 11:56
  of
• 11:57
  dumb
• 11:57
  questions.
• 11:58
  So
• 11:58
  I,
• 11:58
  I
• 11:58
  appreciate
• 11:59
  it,
• 11:59
  very
• 12:00
  kind.
• 12:00
  But
• 12:00
  you
• 12:00
  got
• 12:01
  me
• 12:01
  on
• 12:01
  you
• 12:01
  already.
• 12:01
  You'll
• 12:02
  get
• 12:02
  me
• 12:02
  the
• 12:02
  next
• 12:02
  time
• 12:02
  too.
• 12:03
  You
• 12:03
  do
• 12:03
  not
• 12:03
  need
• 12:03
  to
• 12:03
  be
• 12:04
  this
• 12:04
  nice
• 12:04
  to
• 12:04
  me.
• 12:04
  But,
• 12:05
  but
• 12:05
  I
• 12:05
  appreciate
• 12:06
  the
• 12:06
  friendship.
• 12:08
  That
• 12:08
  said,
• 12:10
  I,
• 12:10
  I
• 12:10
  love
• 12:10
  the
• 12:11
  question
• 12:11
  because
• 12:11
  it
• 12:11
  is
• 12:11
  tr.
• 12:12
  It
• 12:12
  is
• 12:12
  basically,
• 12:13
  I
• 12:13
  like
• 12:14
  to
• 12:14
  think
• 12:14
  I'm
• 12:14
  a
• 12:14
  moderately
• 12:14
  nice
• 12:15
  person,
• 12:15
  but
• 12:15
  when
• 12:15
  it
• 12:16
  comes
• 12:16
  to
• 12:16
  these,
• 12:17
  when
• 12:17
  it
• 12:17
  comes
• 12:17
  to
• 12:17
  the
• 12:17
  analytical
• 12:18
  part,
• 12:18
  I
• 12:18
  get
• 12:19
  skeptical.
• 12:19
  And
• 12:20
  so
• 12:20
  I
• 12:20
  do
• 12:20
  believe
• 12:21
  my
• 12:21
  job
• 12:21
  is
• 12:21
  to
• 12:21
  figure
• 12:22
  out
• 12:22
  or,
• 12:22
  or
• 12:22
  just
• 12:22
  I'm
• 12:23
  pulling
• 12:23
  effectively
• 12:24
  polarized
• 12:25
  to
• 12:25
  try
• 12:25
  and
• 12:25
  figure
• 12:25
  out
• 12:26
  how
• 12:26
  much
• 12:26
  of
• 12:26
  what
• 12:26
  you're
• 12:26
  saying
• 12:26
  is
• 12:26
  true
• 12:27
  versus
• 12:27
  how
• 12:27
  much
• 12:27
  is
• 12:27
  propaganda,
• 12:28
  how
• 12:28
  much
• 12:28
  is
• 12:28
  marketing?
• 12:29
  Because
• 12:30
  let's
• 12:30
  be
• 12:30
  honest,
• 12:30
  we
• 12:30
  are
• 12:31
  in
• 12:31
  a
• 12:31
  sector
• 12:31
  of
• 12:31
  marketing.
• 12:32
  We're
• 12:32
  supposed
• 12:32
  to
• 12:32
  market
• 12:33
  to
• 12:33
  the
• 12:33
  consumer.
• 12:34
  By
• 12:35
  the
• 12:35
  same
• 12:35
  token,
• 12:35
  these
• 12:36
  companies
• 12:36
  are
• 12:36
  supposed
• 12:36
  to
• 12:36
  market
• 12:36
  to
• 12:37
  us.
• 12:37
  Yeah.
• 12:38
  So
• 12:38
  they
• 12:38
  tell
• 12:38
  stories
• 12:38
  to
• 12:39
  us
• 12:39
  as
• 12:39
  well.
• 12:39
  My.
• 12:40
  Without
• 12:41
  giving
• 12:41
  away
• 12:41
  what
• 12:42
  I
• 12:42
  believe
• 12:42
  to
• 12:42
  be
• 12:43
  secret
• 12:43
  sauce,
• 12:43
  but
• 12:43
  it's
• 12:43
  not
• 12:43
  all
• 12:44
  that
• 12:44
  special,
• 12:44
  so
• 12:44
  I
• 12:44
  don't
• 12:44
  mind
• 12:44
  giving
• 12:45
  it
• 12:45
  away.
• 12:46
  I
• 12:46
  generally
• 12:46
  try
• 12:46
  to
• 12:47
  ask
• 12:47
  three
• 12:47
  questions,
• 12:48
  like
• 12:48
  go
• 12:48
  three
• 12:48
  questions
• 12:49
  deep
• 12:49
  because
• 12:50
  most
• 12:50
  people
• 12:50
  prep
• 12:51
  for
• 12:51
  one,
• 12:51
  maybe
• 12:52
  two.
• 12:52
  They
• 12:52
  don't
• 12:53
  prep
• 12:53
  for
• 12:53
  three.
• 12:53
  And
• 12:54
  so
• 12:54
  if
• 12:54
  your
• 12:54
  logic
• 12:55
  falls
• 12:55
  after
• 12:55
  the
• 12:55
  third
• 12:55
  question,
• 12:56
  I
• 12:56
  just
• 12:56
  know
• 12:56
  it's
• 12:56
  not
• 12:56
  true.
• 12:57
  And
• 12:57
  if
• 12:57
  it's
• 12:57
  not
• 12:57
  true,
• 12:57
  it's
• 12:58
  either
• 12:58
  a
• 12:58
  problem
• 12:58
  or
• 12:59
  you're
• 12:59
  being
• 12:59
  conservative.
• 13:00
  Because
• 13:02
  one
• 13:03
  of
• 13:03
  the
• 13:03
  knocks,
• 13:03
  there's
• 13:04
  many
• 13:04
  knocks.
• 13:04
  One
• 13:05
  of
• 13:05
  the
• 13:05
  knocks
• 13:05
  on
• 13:05
  what
• 13:05
  I
• 13:06
  do
• 13:06
  is
• 13:06
  that
• 13:06
  we
• 13:06
  are
• 13:07
  lazy.
• 13:07
  And
• 13:08
  so
• 13:08
  what
• 13:08
  you
• 13:08
  want
• 13:08
  to
• 13:09
  do
• 13:09
  is
• 13:09
  you
• 13:09
  want
• 13:09
  to
• 13:09
  convince.
• 13:10
  You
• 13:10
  want
• 13:10
  to
• 13:10
  sell
• 13:10
  us.
• 13:11
  Right.
• 13:11
  You
• 13:11
  want
• 13:11
  us
• 13:11
  to
• 13:11
  go
• 13:12
  along
• 13:12
  with
• 13:12
  whatever
• 13:12
  the
• 13:13
  trend
• 13:13
  is
• 13:13
  going
• 13:13
  to
• 13:13
  be.
• 13:13
  And
• 13:13
  ultimately
• 13:14
  you
• 13:14
  want
• 13:14
  to
• 13:14
  under
• 13:14
  promise
• 13:15
  and
• 13:15
  over
• 13:15
  deliver.
• 13:15
  You
• 13:16
  want
• 13:16
  to
• 13:16
  tell
• 13:16
  us
• 13:16
  that
• 13:16
  you're
• 13:16
  Going
• 13:17
  to
• 13:17
  do
• 13:17
  five
• 13:18
  cents
• 13:18
  and
• 13:18
  do
• 13:18
  seven
• 13:18
  and
• 13:19
  oh,
• 13:19
  my
• 13:19
  God,
• 13:19
  those
• 13:19
  two
• 13:19
  cents,
• 13:20
  it's
• 13:20
  going
• 13:20
  to
• 13:20
  take
• 13:20
  your
• 13:20
  stock
• 13:21
  so
• 13:21
  much
• 13:21
  higher
• 13:21
  because
• 13:22
  how
• 13:22
  could
• 13:22
  you
• 13:22
  possibly
• 13:23
  do
• 13:23
  two
• 13:23
  more
• 13:23
  cents?
• 13:23
  It's
• 13:24
  amazing.
• 13:24
  Anyway,
• 13:25
  rinse
• 13:25
  and
• 13:25
  repeat.
• 13:26
  So
• 13:27
  I
• 13:28
  would
• 13:28
  like
• 13:28
  to
• 13:28
  figure
• 13:29
  out,
• 13:29
  are
• 13:29
  you
• 13:29
  really
• 13:29
  going
• 13:29
  to
• 13:29
  do
• 13:30
  7
• 13:30
  cents?
• 13:30
  Right.
• 13:31
  So
• 13:31
  if
• 13:31
  you're
• 13:31
  telling
• 13:31
  me
• 13:31
  a
• 13:32
  story
• 13:32
  that
• 13:32
  is
• 13:33
  okay,
• 13:33
  we
• 13:33
  can
• 13:33
  take
• 13:33
  it
• 13:33
  for
• 13:34
  granted
• 13:34
  or
• 13:34
  we
• 13:34
  can
• 13:34
  ask
• 13:34
  another
• 13:35
  question.
• 13:36
  Tariffs,
• 13:37
  since
• 13:37
  I
• 13:37
  brought
• 13:37
  it
• 13:37
  up
• 13:37
  before,
• 13:38
  we
• 13:39
  know,
• 13:39
  based
• 13:40
  on
• 13:40
  the
• 13:40
  classroom,
• 13:40
  that
• 13:41
  if
• 13:41
  a
• 13:41
  company
• 13:41
  has
• 13:42
  higher
• 13:42
  costs,
• 13:42
  they're
• 13:42
  going
• 13:43
  to
• 13:43
  pass
• 13:43
  them
• 13:43
  on.
• 13:43
  Great.
• 13:44
  So
• 13:44
  costs
• 13:44
  are
• 13:44
  going
• 13:44
  to
• 13:44
  go
• 13:45
  higher
• 13:45
  for
• 13:45
  every
• 13:45
  consumer.
• 13:46
  Okay.
• 13:47
  But
• 13:47
  we
• 13:47
  also
• 13:47
  know
• 13:47
  that
• 13:47
  consumers
• 13:48
  are
• 13:48
  pushing
• 13:48
  back
• 13:48
  on,
• 13:49
  on
• 13:49
  in
• 13:49
  general
• 13:50
  pricing
• 13:50
  because
• 13:50
  they
• 13:50
  don't
• 13:51
  think
• 13:51
  they
• 13:51
  need
• 13:51
  to
• 13:51
  pay
• 13:51
  that
• 13:51
  much.
• 13:52
  And
• 13:52
  so
• 13:52
  promotions
• 13:52
  are
• 13:52
  coming
• 13:53
  down.
• 13:53
  Wait,
• 13:53
  how
• 13:54
  do
• 13:54
  we
• 13:54
  make
• 13:54
  those
• 13:54
  two
• 13:54
  things
• 13:55
  work?
• 13:55
  And
• 13:55
  so
• 13:55
  it's
• 13:56
  just
• 13:56
  taking
• 13:56
  that
• 13:56
  step
• 13:56
  back
• 13:56
  and
• 13:57
  saying,
• 13:57
  okay,
• 13:57
  there
• 13:57
  are
• 13:57
  certain
• 13:58
  products
• 13:58
  that,
• 13:58
  that
• 13:58
  companies
• 13:59
  will
• 13:59
  certainly
• 13:59
  be
• 13:59
  able
• 13:59
  to
• 14:00
  pass
• 14:00
  along
• 14:00
  costs
• 14:00
  for
• 14:01
  because
• 14:01
  they're
• 14:01
  already
• 14:02
  charging
• 14:02
  full
• 14:03
  price.
• 14:03
  Right.
• 14:04
  But
• 14:04
  if
• 14:04
  you
• 14:04
  didn't
• 14:05
  want
• 14:05
  to
• 14:05
  pay
• 14:05
  full
• 14:05
  price
• 14:05
  for
• 14:05
  that
• 14:05
  pair
• 14:06
  of
• 14:06
  denim
• 14:06
  yesterday,
• 14:07
  as
• 14:08
  soon
• 14:08
  as
• 14:08
  the
• 14:08
  tariff
• 14:08
  comes,
• 14:09
  when
• 14:09
  it's
• 14:09
  raised
• 14:09
  another
• 14:10
  30.
• 14:10
  But
• 14:10
  like,
• 14:10
  I'm
• 14:11
  sorry,
• 14:11
  I
• 14:11
  don't
• 14:11
  think
• 14:11
  you're
• 14:11
  getting
• 14:12
  that
• 14:12
  price
• 14:12
  simply
• 14:13
  because.
• 14:13
  And
• 14:14
  so
• 14:14
  that's
• 14:14
  the
• 14:14
  question
• 14:14
  where
• 14:14
  I'll
• 14:15
  push
• 14:15
  back
• 14:15
  and
• 14:15
  ask.
• 14:15
  And
• 14:15
  ultimately
• 14:16
  where
• 14:16
  I'll
• 14:16
  probably
• 14:17
  get
• 14:17
  to
• 14:17
  is
• 14:17
  either
• 14:17
  the
• 14:18
  question,
• 14:18
  the
• 14:18
  conversation
• 14:19
  will
• 14:19
  stop
• 14:20
  because
• 14:20
  it
• 14:20
  just
• 14:21
  we
• 14:21
  weren't
• 14:21
  prepped,
• 14:21
  or
• 14:22
  they
• 14:22
  weren't
• 14:22
  prepped
• 14:22
  to
• 14:22
  have
• 14:22
  that
• 14:23
  question
• 14:23
  asked,
• 14:24
  or
• 14:25
  we'll
• 14:25
  realize
• 14:25
  that,
• 14:26
  okay,
• 14:26
  what
• 14:26
  you're
• 14:26
  really
• 14:26
  going
• 14:26
  to
• 14:26
  do
• 14:27
  is
• 14:27
  absorb
• 14:27
  the
• 14:28
  margin.
• 14:28
  You're
• 14:28
  going
• 14:28
  to
• 14:29
  try
• 14:29
  and
• 14:29
  share
• 14:29
  it,
• 14:29
  but
• 14:30
  feel
• 14:30
  the
• 14:30
  pressure
• 14:30
  yourself,
• 14:31
  or
• 14:32
  you're
• 14:32
  going
• 14:32
  to
• 14:32
  figure
• 14:32
  out
• 14:33
  a
• 14:33
  way
• 14:33
  to
• 14:33
  cut
• 14:33
  corners.
• 14:33
  Right.
• 14:34
  And
• 14:34
  so
• 14:34
  that's
• 14:34
  where
• 14:34
  the
• 14:34
  really
• 14:35
  interesting
• 14:35
  conversations
• 14:36
  happen.
• 14:36
  And
• 14:36
  so
• 14:36
  what
• 14:37
  I
• 14:37
  really
• 14:37
  try
• 14:37
  to
• 14:37
  do
• 14:37
  is
• 14:37
  I
• 14:38
  try
• 14:38
  to
• 14:39
  not
• 14:39
  buy
• 14:40
  into
• 14:40
  again,
• 14:40
  try
• 14:40
  and
• 14:41
  leave
• 14:41
  my
• 14:41
  own
• 14:41
  anecdotal
• 14:41
  baggage
• 14:42
  at
• 14:42
  the
• 14:42
  door.
• 14:42
  I
• 14:42
  have
• 14:42
  plenty
• 14:42
  of
• 14:43
  it.
• 14:43
  But
• 14:43
  basically
• 14:44
  to
• 14:44
  say,
• 14:44
  does
• 14:44
  this
• 14:44
  logic
• 14:45
  hold
• 14:45
  and
• 14:46
  does
• 14:46
  it
• 14:46
  work
• 14:46
  with
• 14:46
  the
• 14:46
  numbers?
• 14:47
  I
• 14:48
  really
• 14:48
  believe
• 14:48
  that
• 14:48
  if
• 14:48
  everyone
• 14:49
  knew
• 14:49
  the
• 14:49
  incremental
• 14:50
  sweater
• 14:50
  that
• 14:51
  was
• 14:51
  going
• 14:51
  to
• 14:51
  force
• 14:51
  you,
• 14:51
  that
• 14:51
  if
• 14:52
  you
• 14:52
  sold
• 14:52
  that
• 14:52
  one
• 14:53
  extra
• 14:53
  sweater,
• 14:54
  it
• 14:54
  was
• 14:54
  going
• 14:54
  to
• 14:54
  force
• 14:54
  you
• 14:54
  to
• 14:55
  mark
• 14:55
  everything
• 14:55
  down
• 14:56
  before
• 14:56
  at
• 14:56
  25%,
• 14:57
  who
• 14:57
  would
• 14:57
  sell
• 14:58
  that
• 14:58
  sweater?
• 14:59
  No
• 14:59
  one
• 14:59
  would
• 14:59
  sell
• 15:00
  that
• 15:00
  sweater
• 15:00
  if
• 15:00
  they
• 15:00
  realized
• 15:01
  that
• 15:01
  everything
• 15:02
  before
• 15:02
  it.
• 15:02
  Because
• 15:02
  you
• 15:02
  can't
• 15:03
  price
• 15:03
  on
• 15:03
  the
• 15:03
  marginal
• 15:04
  unit.
• 15:04
  You
• 15:04
  don't
• 15:04
  get
• 15:04
  to
• 15:05
  say,
• 15:05
  no,
• 15:05
  the
• 15:05
  112th
• 15:06
  sweater
• 15:06
  will
• 15:07
  be
• 15:07
  75,
• 15:08
  but
• 15:08
  everything
• 15:08
  else
• 15:08
  100,
• 15:08
  you're
• 15:09
  going
• 15:09
  to
• 15:09
  lose
• 15:09
  it.
• 15:09
  All.
• 15:10
  And
• 15:10
  if
• 15:10
  you
• 15:10
  knew
• 15:11
  exactly
• 15:11
  which
• 15:12
  pair
• 15:12
  of
• 15:12
  shoes
• 15:12
  that
• 15:13
  was
• 15:13
  or
• 15:13
  exactly
• 15:13
  what
• 15:13
  sweater,
• 15:14
  I
• 15:14
  don't
• 15:14
  think
• 15:14
  most
• 15:14
  people
• 15:15
  would
• 15:15
  sell
• 15:15
  it.
• 15:15
  But
• 15:15
  we
• 15:15
  don't
• 15:16
  have
• 15:16
  that.
• 15:16
  That's
• 15:16
  not
• 15:16
  a
• 15:16
  real.
• 15:17
  That's
• 15:17
  like,
• 15:18
  that's
• 15:18
  an
• 15:18
  imaginary
• 15:18
  view.
• 15:19
  But
• 15:20
  I
• 15:20
  think
• 15:20
  that
• 15:20
  most
• 15:21
  people,
• 15:21
  once
• 15:22
  they
• 15:22
  go
• 15:22
  too
• 15:22
  far,
• 15:23
  then
• 15:23
  instead
• 15:23
  of
• 15:23
  rather
• 15:24
  not
• 15:24
  juicing,
• 15:24
  but
• 15:24
  instead
• 15:25
  they
• 15:25
  just
• 15:25
  feel
• 15:25
  like
• 15:25
  they
• 15:25
  need
• 15:26
  to
• 15:26
  hit
• 15:26
  expectations
• 15:27
  and
• 15:27
  they
• 15:27
  need
• 15:27
  to
• 15:28
  constantly
• 15:28
  grow.
• 15:29
  That's
• 15:29
  where
• 15:29
  we
• 15:29
  get
• 15:30
  to
• 15:30
  these
• 15:30
  scenarios
• 15:30
  where
• 15:30
  these
• 15:30
  brands
• 15:31
  just
• 15:31
  get
• 15:31
  too
• 15:31
  large,
• 15:31
  but
• 15:32
  they're
• 15:32
  just
• 15:32
  not
• 15:32
  healthy.
• 15:32
  One
• 15:32
  of
• 15:33
  the
• 15:33
  things
• 15:33
  I
• 15:33
  love
• 15:33
  doing,
• 15:34
  because
• 15:34
  I'm
• 15:34
  a
• 15:35
  weirdo
• 15:35
  but.
• 15:35
  But
• 15:35
  one
• 15:35
  of
• 15:36
  the
• 15:36
  things
• 15:36
  I
• 15:36
  love
• 15:36
  doing
• 15:37
  is
• 15:37
  charting
• 15:38
  large
• 15:38
  brands
• 15:39
  against
• 15:39
  their
• 15:39
  margin
• 15:40
  rates.
• 15:40
  And
• 15:40
  so
• 15:41
  basically
• 15:41
  just
• 15:41
  finding
• 15:42
  what
• 15:42
  are
• 15:42
  my
• 15:42
  really
• 15:42
  big
• 15:42
  businesses
• 15:43
  that
• 15:44
  just
• 15:44
  don't
• 15:44
  make
• 15:44
  a
• 15:44
  lot
• 15:44
  of
• 15:44
  money.
• 15:45
  Because
• 15:46
  those,
• 15:46
  if
• 15:46
  they
• 15:47
  want
• 15:47
  to
• 15:47
  change,
• 15:48
  are
• 15:48
  actually
• 15:49
  the
• 15:49
  easiest
• 15:49
  path
• 15:50
  up.
• 15:50
  I
• 15:50
  think
• 15:50
  Under
• 15:50
  Armour
• 15:51
  is
• 15:51
  going
• 15:51
  through.
• 15:51
  I
• 15:51
  alluded
• 15:51
  to
• 15:51
  Under
• 15:52
  Armour.
• 15:52
  I
• 15:52
  think
• 15:52
  they're
• 15:52
  going
• 15:52
  through
• 15:52
  it
• 15:53
  right
• 15:53
  now.
• 15:53
  But
• 15:54
  if
• 15:54
  you
• 15:54
  have,
• 15:55
  we're
• 15:55
  talking
• 15:56
  about
• 15:56
  shirts
• 15:56
  and
• 15:56
  shoes
• 15:56
  here.
• 15:57
  We're
• 15:57
  not
• 15:57
  talking
• 15:57
  about
• 15:58
  some
• 15:58
  huge
• 15:58
  capital
• 15:58
  intensive
• 15:59
  business,
• 15:59
  some
• 15:59
  big
• 16:00
  technology,
• 16:00
  some
• 16:00
  big,
• 16:01
  like
• 16:02
  you
• 16:02
  sell
• 16:03
  billions
• 16:03
  of
• 16:03
  dollars
• 16:04
  of
• 16:04
  stuff,
• 16:04
  you
• 16:04
  should
• 16:04
  make
• 16:05
  a
• 16:05
  lot
• 16:05
  of
• 16:05
  money
• 16:05
  on
• 16:05
  it.
• 16:05
  And
• 16:06
  if
• 16:06
  you're
• 16:06
  not,
• 16:07
  sell
• 16:07
  less,
• 16:07
  charge
• 16:07
  more,
• 16:08
  you'll
• 16:08
  make
• 16:08
  more
• 16:08
  money.
• 16:08
  It's
• 16:09
  Econ
• 16:09
  101
• 16:11
  got
• 16:11
  inch.
• 16:12
  Okay,
• 16:12
  so
• 16:12
  interesting.
• 16:13
  So
• 16:14
  tell
• 16:14
  us
• 16:14
  more.
• 16:15
  I
• 16:15
  want
• 16:15
  to
• 16:15
  understand
• 16:15
  that
• 16:15
  more
• 16:16
  actually.
• 16:16
  So
• 16:16
  tell
• 16:16
  us
• 16:16
  more
• 16:16
  about
• 16:17
  why
• 16:17
  you
• 16:17
  just
• 16:17
  said
• 16:17
  that.
• 16:18
  Like,
• 16:18
  explain
• 16:18
  that
• 16:18
  to
• 16:18
  the
• 16:18
  audience
• 16:19
  more
• 16:19
  because
• 16:19
  there
• 16:19
  was
• 16:19
  a
• 16:19
  lot
• 16:19
  there
• 16:20
  in
• 16:20
  what
• 16:20
  you
• 16:20
  said
• 16:20
  and
• 16:20
  it
• 16:21
  was
• 16:21
  very
• 16:21
  quickly
• 16:22
  said
• 16:22
  too.
• 16:22
  So
• 16:22
  explain
• 16:22
  it
• 16:22
  a
• 16:23
  little
• 16:23
  bit
• 16:23
  more
• 16:23
  detail.
• 16:24
  Yeah,
• 16:24
  absolutely.
• 16:25
  So
• 16:25
  I
• 16:25
  think
• 16:26
  every
• 16:26
  second
• 16:26
  grader
• 16:27
  in
• 16:27
  there
• 16:28
  is
• 16:28
  just
• 16:28
  born
• 16:28
  knowing
• 16:29
  if
• 16:29
  you
• 16:30
  sell,
• 16:30
  if
• 16:30
  there's
• 16:30
  too
• 16:30
  much
• 16:31
  of
• 16:31
  something,
• 16:31
  it's
• 16:32
  just
• 16:32
  not
• 16:32
  cool.
• 16:33
  Right?
• 16:33
  That's
• 16:33
  just
• 16:33
  reality.
• 16:34
  Right.
• 16:35
  It's
• 16:36
  the
• 16:36
  most
• 16:36
  simplistic
• 16:37
  idea
• 16:37
  out
• 16:37
  there.
• 16:37
  And
• 16:38
  yet
• 16:38
  we
• 16:39
  then
• 16:39
  spend
• 16:39
  decades
• 16:40
  trying
• 16:40
  so
• 16:40
  hard
• 16:40
  to
• 16:41
  unlearn
• 16:41
  that
• 16:41
  we
• 16:42
  introduce
• 16:42
  terms
• 16:43
  like
• 16:43
  D2C
• 16:43
  versus
• 16:44
  wholesale,
• 16:44
  global
• 16:45
  versus
• 16:45
  not
• 16:46
  adjacencies,
• 16:46
  diffusion,
• 16:47
  product.
• 16:47
  Like
• 16:48
  no,
• 16:48
  if
• 16:48
  your
• 16:48
  brand
• 16:49
  is
• 16:49
  too
• 16:49
  overstretched
• 16:50
  and
• 16:50
  it
• 16:50
  doesn't
• 16:50
  have
• 16:50
  any
• 16:51
  segmentation,
• 16:52
  at
• 16:52
  some
• 16:52
  point
• 16:53
  you're
• 16:54
  going
• 16:54
  to
• 16:54
  sell
• 16:54
  things
• 16:54
  that's
• 16:55
  going
• 16:55
  to
• 16:55
  ruin
• 16:55
  and
• 16:55
  deteriorate
• 16:56
  the
• 16:56
  quality
• 16:56
  of
• 16:57
  your
• 16:57
  brand.
• 16:57
  And
• 16:58
  there's
• 16:59
  different
• 16:59
  ways
• 16:59
  to
• 16:59
  do
• 16:59
  it.
• 17:00
  If
• 17:00
  you're,
• 17:00
  if
• 17:00
  you
• 17:01
  have
• 17:01
  a
• 17:01
  wholesale
• 17:01
  partnership,
• 17:02
  you
• 17:02
  can
• 17:02
  stretch
• 17:02
  your
• 17:02
  payment
• 17:03
  terms
• 17:03
  and
• 17:04
  so
• 17:04
  you're
• 17:04
  selling
• 17:04
  the
• 17:04
  same
• 17:05
  product
• 17:05
  but
• 17:05
  you're
• 17:05
  getting
• 17:06
  revenues
• 17:06
  a
• 17:06
  little
• 17:06
  bit
• 17:07
  later
• 17:07
  or
• 17:07
  the,
• 17:07
  sorry,
• 17:08
  revenues
• 17:08
  are
• 17:08
  happening,
• 17:09
  you're
• 17:09
  getting
• 17:09
  cash
• 17:09
  a
• 17:09
  little
• 17:09
  bit
• 17:09
  later.
• 17:10
  So
• 17:10
  that's
• 17:10
  one
• 17:10
  way
• 17:10
  and
• 17:10
  try
• 17:11
  and
• 17:11
  stretch
• 17:11
  and
• 17:11
  to
• 17:11
  convince
• 17:12
  yourself
• 17:12
  you're
• 17:12
  selling
• 17:12
  things
• 17:13
  when
• 17:13
  you're
• 17:13
  not.
• 17:13
  If
• 17:14
  you
• 17:14
  don't
• 17:14
  and
• 17:14
  you
• 17:14
  just
• 17:15
  have
• 17:15
  your
• 17:15
  own
• 17:15
  product,
• 17:16
  you
• 17:16
  can
• 17:16
  mark
• 17:16
  it
• 17:16
  down.
• 17:17
  So
• 17:17
  we'll
• 17:17
  use
• 17:17
  your
• 17:17
  juicing
• 17:18
  sales.
• 17:18
  I
• 17:18
  can
• 17:18
  just
• 17:19
  say
• 17:19
  I
• 17:19
  want
• 17:19
  to
• 17:19
  sell
• 17:20
  whatever
• 17:21
  pair
• 17:21
  of
• 17:21
  pants
• 17:21
  I'm
• 17:21
  going
• 17:21
  to
• 17:22
  mark
• 17:22
  them
• 17:22
  down
• 17:22
  25%.
• 17:23
  I've
• 17:23
  never
• 17:24
  done
• 17:24
  that
• 17:24
  before.
• 17:24
  If
• 17:25
  Lululemon,
• 17:25
  I
• 17:26
  believe
• 17:26
  Lululemon
• 17:26
  could
• 17:27
  triple
• 17:27
  their
• 17:27
  business
• 17:27
  next
• 17:28
  year
• 17:28
  if
• 17:28
  they
• 17:28
  took
• 17:28
  their
• 17:28
  line
• 17:29
  leggings
• 17:29
  and
• 17:29
  their
• 17:29
  ABC
• 17:30
  pants
• 17:30
  down
• 17:30
  to
• 17:30
  $40
• 17:31
  and
• 17:31
  then
• 17:31
  they
• 17:31
  would
• 17:32
  die
• 17:32
  the
• 17:32
  year
• 17:32
  after
• 17:32
  that.
• 17:33
  But
• 17:33
  in
• 17:33
  that
• 17:33
  one
• 17:33
  year
• 17:34
  they
• 17:34
  would
• 17:34
  grow
• 17:34
  tremendously.
• 17:35
  So
• 17:35
  that's
• 17:35
  the
• 17:36
  second
• 17:36
  way.
• 17:36
  A
• 17:37
  third
• 17:37
  way
• 17:37
  is
• 17:38
  you
• 17:38
  go
• 17:38
  lower
• 17:39
  income
• 17:40
  or
• 17:40
  entry
• 17:40
  level,
• 17:41
  lower
• 17:41
  price
• 17:41
  product.
• 17:42
  So
• 17:43
  think
• 17:43
  Burberry
• 17:44
  in
• 17:44
  their
• 17:44
  scarf.
• 17:45
  Long
• 17:45
  time
• 17:45
  ago.
• 17:46
  Right.
• 17:46
  There's
• 17:46
  a
• 17:46
  lot
• 17:46
  of
• 17:46
  things
• 17:46
  where
• 17:47
  we
• 17:47
  see
• 17:47
  question
• 17:48
  whether
• 17:48
  Lulu's
• 17:48
  doing
• 17:49
  it
• 17:49
  with
• 17:49
  their
• 17:49
  belt
• 17:49
  bag.
• 17:50
  So
• 17:50
  you're
• 17:50
  not
• 17:51
  actually
• 17:51
  reducing
• 17:52
  the
• 17:52
  price
• 17:52
  of
• 17:52
  your
• 17:53
  product,
• 17:53
  but
• 17:54
  you're
• 17:54
  introducing
• 17:54
  a
• 17:55
  lower
• 17:55
  price
• 17:55
  product
• 17:56
  that
• 17:56
  can
• 17:56
  over
• 17:57
  distribute
• 17:57
  CK1.
• 17:58
  Right.
• 17:59
  So
• 17:59
  Calvin
• 17:59
  said
• 18:00
  you
• 18:00
  watch
• 18:00
  that
• 18:00
  CK
• 18:01
  logo
• 18:02
  go
• 18:02
  much
• 18:03
  further
• 18:03
  than
• 18:04
  it
• 18:04
  would
• 18:04
  go
• 18:04
  with
• 18:05
  what
• 18:05
  they
• 18:05
  traditionally
• 18:06
  sell.
• 18:07
  But
• 18:07
  you're
• 18:07
  not
• 18:07
  discounting
• 18:08
  it.
• 18:08
  But
• 18:09
  you
• 18:09
  are
• 18:09
  right?
• 18:09
  You're
• 18:10
  stretching
• 18:10
  the
• 18:10
  brand.
• 18:11
  And
• 18:12
  very
• 18:12
  politely
• 18:13
  at
• 18:13
  the
• 18:13
  beginning
• 18:14
  said
• 18:14
  to
• 18:14
  me,
• 18:15
  you're
• 18:15
  everywhere.
• 18:16
  Deep
• 18:17
  like
• 18:17
  in
• 18:18
  my
• 18:18
  heart.
• 18:18
  I
• 18:18
  cried
• 18:19
  when
• 18:19
  I
• 18:19
  heard
• 18:20
  that.
• 18:20
  Right.
• 18:20
  Because
• 18:21
  that
• 18:21
  means
• 18:21
  I'm
• 18:21
  not
• 18:22
  scarce.
• 18:22
  And
• 18:23
  so
• 18:23
  there's
• 18:23
  a
• 18:23
  part
• 18:23
  of
• 18:23
  it
• 18:23
  like
• 18:24
  you
• 18:24
  want
• 18:24
  to
• 18:24
  maintain,
• 18:24
  you
• 18:25
  want
• 18:25
  to
• 18:25
  not
• 18:25
  stress.
• 18:25
  You
• 18:25
  are
• 18:26
  like
• 18:26
  I'm
• 18:27
  falling
• 18:27
  prey
• 18:27
  to
• 18:27
  the
• 18:28
  same
• 18:28
  thing,
• 18:28
  I
• 18:28
  guess
• 18:28
  and
• 18:28
  chasing
• 18:29
  my
• 18:29
  own
• 18:29
  incremental
• 18:29
  sweater.
• 18:30
  That's
• 18:30
  what
• 18:30
  we
• 18:30
  do
• 18:31
  as
• 18:31
  humans.
• 18:31
  We're
• 18:31
  not
• 18:32
  hardwired
• 18:32
  to
• 18:33
  stop.
• 18:33
  But
• 18:34
  sometimes
• 18:36
  take
• 18:36
  the
• 18:36
  reverse
• 18:37
  of
• 18:37
  that
• 18:37
  sweater
• 18:37
  conversation.
• 18:38
  You
• 18:38
  work
• 18:38
  on
• 18:38
  elevating
• 18:39
  your
• 18:39
  brand,
• 18:40
  you
• 18:40
  rewind
• 18:40
  and
• 18:40
  you
• 18:41
  sell
• 18:41
  fewer
• 18:41
  sweaters
• 18:42
  and
• 18:43
  all
• 18:43
  of
• 18:43
  a
• 18:43
  sudden
• 18:43
  you
• 18:44
  can
• 18:44
  charge
• 18:44
  more
• 18:44
  for
• 18:44
  them.
• 18:45
  So
• 18:45
  you
• 18:45
  walk
• 18:46
  into
• 18:46
  econ.
• 18:47
  I
• 18:47
  don't
• 18:47
  know
• 18:47
  if
• 18:47
  it's
• 18:47
  101
• 18:48
  or
• 18:48
  112.
• 18:49
  Who,
• 18:49
  who
• 18:49
  knows?
• 18:49
  Again,
• 18:49
  we'll
• 18:50
  stick
• 18:50
  with
• 18:50
  the
• 18:50
  125%
• 18:51
  of
• 18:51
  my
• 18:52
  time
• 18:52
  that
• 18:52
  I
• 18:52
  gave
• 18:52
  you
• 18:52
  before.
• 18:53
  Price
• 18:54
  elasticity
• 18:54
  is
• 18:54
  the
• 18:54
  term.
• 18:55
  And
• 18:56
  so
• 18:56
  if
• 18:56
  you
• 18:56
  have
• 18:56
  the
• 18:56
  wherewithal,
• 18:57
  which
• 18:57
  is
• 18:57
  hard,
• 18:58
  it's
• 18:58
  so.
• 18:59
  I
• 18:59
  understand
• 18:59
  this.
• 18:59
  It's
• 19:00
  so
• 19:00
  easy
• 19:00
  for
• 19:00
  me
• 19:00
  to
• 19:00
  say
• 19:01
  because
• 19:01
  all
• 19:01
  I'm
• 19:01
  doing
• 19:01
  is
• 19:01
  typing
• 19:02
  or
• 19:02
  writing
• 19:02
  on
• 19:03
  my
• 19:03
  clipboard.
• 19:04
  But
• 19:04
  it's
• 19:04
  much
• 19:04
  harder
• 19:05
  to
• 19:05
  do.
• 19:05
  But
• 19:06
  there
• 19:06
  we've
• 19:06
  seen
• 19:07
  it.
• 19:07
  We've
• 19:07
  seen
• 19:07
  it
• 19:07
  happen
• 19:08
  a
• 19:08
  lot.
• 19:08
  And
• 19:09
  you
• 19:09
  know
• 19:09
  what?
• 19:09
  During
• 19:09
  COVID
• 19:10
  l
• 19:10
  brands
• 19:11
  when
• 19:11
  they
• 19:11
  owned
• 19:11
  Victoria's
• 19:12
  Secret
• 19:12
  Bath
• 19:12
  and
• 19:12
  Body
• 19:13
  Works
• 19:13
  was.
• 19:13
  I
• 19:13
  think
• 19:14
  I'm
• 19:14
  going
• 19:14
  to
• 19:14
  throw
• 19:14
  out
• 19:14
  numbers.
• 19:15
  I
• 19:15
  don't
• 19:15
  know
• 19:15
  if
• 19:15
  they're
• 19:15
  right,
• 19:15
  but
• 19:16
  I
• 19:16
  think
• 19:16
  the
• 19:16
  seventh
• 19:17
  and
• 19:17
  fourth
• 19:17
  best
• 19:17
  stock
• 19:17
  in
• 19:17
  the
• 19:17
  S
• 19:18
  and
• 19:18
  P.
• 19:18
  So
• 19:18
  someone
• 19:19
  fact
• 19:19
  check
• 19:19
  me,
• 19:19
  please,
• 19:19
  and
• 19:20
  write
• 19:21
  to
• 19:21
  me
• 19:21
  and
• 19:21
  tell
• 19:21
  me
• 19:21
  that
• 19:21
  I'm
• 19:21
  wrong.
• 19:22
  The
• 19:23
  revenues
• 19:23
  were
• 19:23
  down.
• 19:24
  Their
• 19:25
  operating
• 19:25
  profit
• 19:25
  dollars
• 19:26
  were
• 19:26
  up.
• 19:27
  And
• 19:27
  so
• 19:27
  it's
• 19:27
  this
• 19:28
  idea
• 19:28
  that
• 19:29
  there
• 19:29
  are
• 19:29
  times
• 19:29
  where
• 19:29
  it's
• 19:30
  hard
• 19:30
  to
• 19:30
  believe
• 19:30
  that
• 19:31
  revenues
• 19:32
  are
• 19:32
  everything.
• 19:32
  Right?
• 19:32
  We
• 19:33
  talk
• 19:33
  about
• 19:33
  you
• 19:33
  want
• 19:33
  to
• 19:34
  grow
• 19:34
  or
• 19:34
  die.
• 19:34
  I
• 19:34
  mean,
• 19:35
  like,
• 19:35
  everyone
• 19:36
  talks
• 19:36
  about
• 19:36
  revenues,
• 19:37
  but
• 19:37
  I
• 19:37
  think
• 19:37
  revenues
• 19:37
  are
• 19:37
  a
• 19:38
  lagging
• 19:38
  indicator,
• 19:38
  not
• 19:38
  a
• 19:38
  leading
• 19:39
  indicator.
• 19:39
  I
• 19:39
  think
• 19:39
  the
• 19:39
  quality
• 19:40
  of
• 19:40
  sale
• 19:40
  will
• 19:41
  always,
• 19:41
  always,
• 19:42
  always
• 19:42
  inflect
• 19:42
  before
• 19:43
  the
• 19:43
  actual
• 19:43
  sale,
• 19:43
  good
• 19:44
  and
• 19:44
  bad.
• 19:44
  I
• 19:45
  think
• 19:45
  you'll
• 19:45
  watch
• 19:45
  the
• 19:45
  margins
• 19:46
  tip
• 19:46
  before
• 19:47
  the
• 19:47
  revenues
• 19:47
  tip
• 19:47
  because
• 19:48
  you're
• 19:48
  forcing
• 19:48
  something.
• 19:49
  And
• 19:49
  I
• 19:49
  think
• 19:49
  when
• 19:49
  a
• 19:50
  business
• 19:50
  on
• 19:50
  the
• 19:50
  upturn,
• 19:50
  I
• 19:50
  think
• 19:51
  Bath
• 19:51
  and
• 19:51
  Body
• 19:51
  Works
• 19:52
  will
• 19:52
  see
• 19:52
  its
• 19:52
  margins
• 19:52
  improve
• 19:53
  and
• 19:53
  stabilize
• 19:53
  before
• 19:53
  its
• 19:54
  revenues
• 19:54
  follow.
• 19:55
  And
• 19:55
  so
• 19:55
  that's
• 19:55
  what
• 19:55
  I
• 19:55
  try
• 19:56
  to
• 19:56
  watch.
• 19:56
  I
• 19:56
  try
• 19:56
  to
• 19:56
  watch
• 19:57
  for
• 19:57
  quality
• 19:57
  of
• 19:57
  sale
• 19:58
  changes
• 19:58
  because
• 19:58
  I
• 19:59
  think
• 19:59
  they
• 19:59
  will
• 19:59
  always
• 19:59
  herald
• 20:00
  the
• 20:00
  revenue
• 20:00
  change.
• 20:02
  Wow,
• 20:02
  this
• 20:02
  is
• 20:02
  really
• 20:03
  great
• 20:03
  stuff.
• 20:03
  All
• 20:03
  right,
• 20:04
  so
• 20:04
  with
• 20:04
  that
• 20:05
  said,
• 20:05
  with
• 20:05
  that
• 20:05
  as
• 20:06
  the
• 20:06
  backdrop,
• 20:06
  this
• 20:06
  is
• 20:06
  a
• 20:06
  great
• 20:07
  backdrop,
• 20:07
  too.
• 20:08
  What
• 20:09
  do
• 20:09
  you
• 20:09
  think
• 20:10
  is
• 20:11
  the
• 20:11
  biggest
• 20:11
  issue
• 20:12
  or
• 20:12
  issues
• 20:13
  even
• 20:14
  facing
• 20:14
  any
• 20:15
  retail
• 20:15
  C
• 20:16
  C
• 20:16
  suite
• 20:17
  as
• 20:17
  we
• 20:17
  start
• 20:18
  this
• 20:18
  year?
• 20:18
  What,
• 20:18
  what,
• 20:19
  what,
• 20:19
  what,
• 20:19
  what
• 20:19
  does
• 20:20
  the
• 20:20
  average
• 20:20
  C
• 20:21
  suite.
• 20:21
  I'm
• 20:21
  asking
• 20:22
  you
• 20:22
  to
• 20:22
  conglomerate
• 20:22
  a
• 20:22
  lot,
• 20:23
  but
• 20:23
  what
• 20:23
  is
• 20:23
  the
• 20:23
  average
• 20:23
  C
• 20:24
  suite
• 20:24
  need
• 20:25
  to
• 20:25
  be
• 20:25
  thinking
• 20:25
  about
• 20:26
  to
• 20:26
  be
• 20:26
  successful
• 20:27
  as
• 20:27
  they
• 20:27
  head
• 20:27
  into
• 20:27
  2025?
• 20:28
  All
• 20:29
  right,
• 20:29
  you're
• 20:29
  hitting
• 20:29
  a
• 20:29
  favorite
• 20:30
  topic
• 20:30
  of
• 20:30
  mine.
• 20:30
  So
• 20:31
  good.
• 20:31
  In
• 20:31
  the
• 20:32
  spirit
• 20:32
  of
• 20:32
  how
• 20:32
  I.
• 20:32
  In
• 20:33
  the
• 20:33
  spirit
• 20:33
  of
• 20:33
  how
• 20:33
  I
• 20:33
  framed
• 20:33
  it
• 20:33
  before,
• 20:34
  I'll
• 20:34
  give
• 20:34
  you
• 20:34
  two
• 20:34
  answers.
• 20:34
  I'll
• 20:35
  give
• 20:35
  you
• 20:35
  the
• 20:35
  easy
• 20:35
  answer,
• 20:36
  which
• 20:36
  is
• 20:36
  tariffs.
• 20:37
  Right?
• 20:37
  That's
• 20:38
  like
• 20:38
  the
• 20:38
  easy
• 20:38
  class.
• 20:38
  What
• 20:39
  is
• 20:39
  the
• 20:39
  one.
• 20:39
  That's
• 20:40
  right.
• 20:40
  What
• 20:41
  I
• 20:41
  think
• 20:41
  the
• 20:41
  real
• 20:41
  answer
• 20:42
  is,
• 20:42
  and
• 20:42
  it
• 20:42
  deletes
• 20:42
  2025.
• 20:43
  It's
• 20:43
  irrespective
• 20:44
  of
• 20:44
  the
• 20:44
  time.
• 20:45
  Like,
• 20:45
  I
• 20:45
  don't
• 20:45
  care
• 20:46
  about
• 20:46
  what
• 20:46
  year.
• 20:46
  This,
• 20:46
  I
• 20:47
  think,
• 20:47
  is
• 20:47
  what
• 20:48
  every
• 20:48
  core
• 20:49
  C
• 20:49
  suite
• 20:50
  grapples
• 20:51
  with
• 20:51
  and
• 20:51
  they
• 20:51
  don't
• 20:51
  realize.
• 20:52
  And
• 20:53
  it's,
• 20:53
  it
• 20:53
  goes
• 20:53
  to
• 20:53
  the
• 20:53
  heart
• 20:53
  of
• 20:54
  everything
• 20:54
  I
• 20:54
  believe
• 20:54
  in.
• 20:54
  I
• 20:55
  think
• 20:55
  the
• 20:55
  answer
• 20:55
  is
• 20:55
  subjectivity.
• 20:57
  I
• 20:57
  think
• 20:57
  that.
• 20:58
  I
• 20:59
  believe
• 20:59
  as,
• 21:00
  as
• 21:00
  we
• 21:00
  talked
• 21:00
  about
• 21:00
  before,
• 21:01
  this
• 21:02
  sector
• 21:03
  is
• 21:03
  beautiful
• 21:04
  and
• 21:04
  glorious
• 21:05
  and
• 21:05
  fun
• 21:05
  because
• 21:06
  we
• 21:06
  all
• 21:06
  know
• 21:07
  it,
• 21:07
  because
• 21:07
  it's
• 21:07
  accessible.
• 21:08
  Accessible,
• 21:09
  sorry,
• 21:10
  but
• 21:11
  that's
• 21:11
  also
• 21:11
  its
• 21:11
  danger.
• 21:12
  And
• 21:13
  so
• 21:13
  if
• 21:13
  the
• 21:14
  whole
• 21:14
  point
• 21:14
  of
• 21:14
  this
• 21:14
  sector
• 21:15
  is
• 21:15
  to
• 21:16
  convince
• 21:16
  people
• 21:17
  that
• 21:17
  spend
• 21:18
  every
• 21:18
  waking
• 21:19
  minute
• 21:19
  of
• 21:19
  their
• 21:19
  life,
• 21:19
  hopefully
• 21:20
  not,
• 21:20
  but
• 21:20
  a
• 21:20
  lot
• 21:20
  of
• 21:20
  their
• 21:21
  time
• 21:21
  working
• 21:22
  to
• 21:22
  generate
• 21:22
  income,
• 21:23
  to
• 21:24
  have
• 21:24
  dollars
• 21:24
  for
• 21:24
  their
• 21:24
  Family,
• 21:25
  like,
• 21:25
  they
• 21:25
  work
• 21:25
  really
• 21:25
  hard
• 21:26
  to
• 21:26
  earn
• 21:26
  these
• 21:26
  dollars.
• 21:27
  And
• 21:27
  90%
• 21:28
  of
• 21:29
  the
• 21:29
  job
• 21:29
  that
• 21:30
  our
• 21:30
  companies
• 21:31
  are
• 21:31
  supposed
• 21:31
  to
• 21:31
  do
• 21:32
  is
• 21:32
  convince
• 21:32
  people
• 21:32
  to
• 21:32
  part
• 21:33
  with
• 21:33
  those
• 21:33
  dollars.
• 21:35
  You
• 21:35
  need
• 21:36
  to
• 21:36
  embrace
• 21:37
  and
• 21:37
  internalize
• 21:38
  and,
• 21:38
  dare
• 21:39
  I
• 21:39
  say,
• 21:39
  weaponize
• 21:40
  marketing.
• 21:41
  You
• 21:41
  need
• 21:41
  to
• 21:41
  tell
• 21:42
  a
• 21:42
  story.
• 21:42
  You
• 21:42
  need
• 21:42
  to
• 21:43
  appeal
• 21:43
  to
• 21:43
  human
• 21:44
  rationality.
• 21:45
  That's
• 21:45
  great.
• 21:46
  The
• 21:46
  problem
• 21:46
  is
• 21:46
  you
• 21:46
  also
• 21:47
  have
• 21:47
  to
• 21:47
  remember
• 21:47
  that
• 21:47
  you
• 21:47
  yourself
• 21:48
  are
• 21:48
  a
• 21:48
  consumer
• 21:48
  with
• 21:49
  the
• 21:49
  same
• 21:49
  level
• 21:49
  of
• 21:49
  irrationality.
• 21:50
  And
• 21:51
  so
• 21:51
  when
• 21:51
  you
• 21:51
  buy
• 21:51
  into
• 21:51
  that
• 21:52
  story,
• 21:52
  when
• 21:52
  Peloton
• 21:53
  drinks
• 21:53
  their
• 21:53
  own
• 21:54
  Kool
• 21:54
  Aid
• 21:54
  and
• 21:54
  believes,
• 21:55
  hey,
• 21:55
  you
• 21:55
  know
• 21:55
  what?
• 21:55
  I'm
• 21:55
  having
• 21:56
  a
• 21:56
  great
• 21:56
  two
• 21:56
  years
• 21:56
  because
• 21:57
  everyone's
• 21:57
  trapped
• 21:57
  at
• 21:57
  home
• 21:58
  and
• 21:58
  it
• 21:58
  is
• 21:58
  a
• 21:58
  great
• 21:59
  business
• 21:59
  and
• 21:59
  I
• 21:59
  love
• 21:59
  the
• 21:59
  product
• 22:00
  and
• 22:00
  I
• 22:00
  have
• 22:00
  it,
• 22:01
  but
• 22:02
  does
• 22:02
  that
• 22:02
  mean
• 22:02
  that
• 22:03
  we
• 22:03
  should
• 22:04
  invest
• 22:04
  behind
• 22:04
  it
• 22:05
  as
• 22:05
  if
• 22:05
  it's
• 22:05
  going
• 22:05
  to
• 22:06
  grow
• 22:06
  forever?
• 22:07
  That's
• 22:07
  the
• 22:07
  piece
• 22:08
  where
• 22:08
  subjectivity
• 22:08
  gets
• 22:09
  in
• 22:09
  the
• 22:09
  way.
• 22:09
  The
• 22:10
  greatest
• 22:10
  problems
• 22:11
  I've
• 22:11
  personally
• 22:12
  seen
• 22:12
  from
• 22:12
  a
• 22:12
  lot
• 22:12
  of
• 22:12
  my
• 22:13
  C
• 22:13
  Suite
• 22:13
  friends
• 22:14
  is
• 22:14
  when
• 22:15
  they
• 22:15
  start
• 22:15
  viewing
• 22:15
  themselves
• 22:16
  as
• 22:16
  the
• 22:16
  customer,
• 22:17
  which
• 22:17
  is
• 22:17
  what
• 22:17
  everyone
• 22:17
  tells
• 22:18
  them
• 22:18
  they're
• 22:18
  supposed
• 22:18
  to
• 22:18
  do.
• 22:19
  And
• 22:19
  so
• 22:19
  I'm
• 22:19
  not
• 22:19
  saying
• 22:19
  discount
• 22:20
  that,
• 22:20
  like,
• 22:20
  obviously
• 22:20
  understand
• 22:21
  your
• 22:21
  customer,
• 22:22
  but
• 22:22
  when
• 22:23
  you're
• 22:23
  in
• 22:23
  that
• 22:23
  corner
• 22:23
  office,
• 22:24
  you're
• 22:24
  not
• 22:24
  the
• 22:24
  customer.
• 22:25
  You
• 22:25
  might
• 22:25
  be
• 22:25
  the
• 22:25
  corn,
• 22:26
  you
• 22:26
  might
• 22:26
  be
• 22:26
  the
• 22:26
  customer.
• 22:26
  And
• 22:27
  great
• 22:27
  if
• 22:27
  you're
• 22:27
  the
• 22:27
  customer
• 22:28
  when
• 22:28
  you
• 22:28
  walk
• 22:28
  out
• 22:28
  that
• 22:28
  door,
• 22:29
  but
• 22:29
  when
• 22:29
  you're
• 22:29
  actually
• 22:30
  making
• 22:30
  those
• 22:30
  decisions,
• 22:31
  you
• 22:31
  need
• 22:31
  to
• 22:31
  know
• 22:32
  the
• 22:32
  customer
• 22:32
  and
• 22:33
  you
• 22:33
  need
• 22:33
  to
• 22:33
  know
• 22:33
  them
• 22:33
  better
• 22:33
  than
• 22:34
  they
• 22:34
  do,
• 22:34
  but
• 22:35
  don't
• 22:35
  be
• 22:35
  them.
• 22:36
  And
• 22:36
  I
• 22:37
  know
• 22:37
  that
• 22:37
  sounds
• 22:37
  trite,
• 22:38
  but
• 22:38
  I
• 22:38
  just
• 22:38
  think
• 22:38
  subjectivity
• 22:39
  is
• 22:40
  where
• 22:40
  most
• 22:40
  things
• 22:40
  go
• 22:40
  wrong.
• 22:41
  And
• 22:41
  so
• 22:42
  use
• 22:42
  your
• 22:42
  insider
• 22:42
  experience.
• 22:43
  Understand
• 22:44
  all
• 22:44
  that
• 22:44
  beautiful
• 22:45
  insight
• 22:45
  that
• 22:45
  you
• 22:45
  have
• 22:46
  that
• 22:46
  I
• 22:46
  don't
• 22:46
  as
• 22:46
  an
• 22:46
  outsider,
• 22:47
  but
• 22:48
  know
• 22:48
  how
• 22:48
  to
• 22:48
  embrace
• 22:48
  and
• 22:49
  take
• 22:49
  that
• 22:49
  step
• 22:49
  back
• 22:50
  and
• 22:50
  say,
• 22:50
  okay,
• 22:51
  now
• 22:51
  that
• 22:51
  I
• 22:51
  have
• 22:51
  all
• 22:51
  the
• 22:52
  data,
• 22:52
  what
• 22:52
  do
• 22:53
  I
• 22:53
  want
• 22:53
  to
• 22:53
  do
• 22:53
  with
• 22:53
  it?
• 22:54
  Sabine,
• 22:55
  are
• 22:55
  there
• 22:55
  any
• 22:55
  examples
• 22:56
  of
• 22:57
  C
• 22:58
  Suites
• 22:58
  where
• 22:58
  you've
• 22:58
  seen
• 22:59
  them
• 22:59
  deploy
• 23:00
  tools
• 23:01
  or
• 23:01
  deploy
• 23:01
  thought
• 23:02
  processes
• 23:02
  in
• 23:02
  a
• 23:03
  way
• 23:03
  that
• 23:03
  helps
• 23:04
  them
• 23:04
  avoid
• 23:04
  that
• 23:05
  subjectivity
• 23:05
  trap
• 23:06
  or
• 23:06
  helps
• 23:06
  them
• 23:06
  avoid
• 23:07
  drinking
• 23:07
  their
• 23:07
  own
• 23:07
  Kool
• 23:07
  Aid?
• 23:08
  If
• 23:08
  I
• 23:08
  put
• 23:08
  my
• 23:08
  own
• 23:09
  words
• 23:09
  into
• 23:09
  that.
• 23:10
  So,
• 23:11
  listen,
• 23:11
  what's
• 23:12
  interesting
• 23:12
  is
• 23:13
  because
• 23:13
  we're
• 23:13
  talking
• 23:13
  about
• 23:13
  it
• 23:14
  right
• 23:14
  now,
• 23:14
  I
• 23:14
  think
• 23:14
  Under
• 23:14
  Armour
• 23:14
  is
• 23:15
  in
• 23:15
  process
• 23:15
  of
• 23:15
  doing
• 23:15
  it.
• 23:16
  I
• 23:16
  think
• 23:16
  that
• 23:17
  Plank
• 23:18
  ran
• 23:19
  this
• 23:19
  business
• 23:19
  twice.
• 23:20
  I
• 23:20
  think
• 23:21
  was
• 23:21
  the
• 23:22
  beacon
• 23:23
  and
• 23:23
  the
• 23:24
  per.
• 23:24
  Like,
• 23:24
  he
• 23:24
  was
• 23:25
  paradigmatic.
• 23:26
  Grow
• 23:26
  or
• 23:26
  die,
• 23:26
  right?
• 23:27
  Kevin
• 23:27
  Plank
• 23:27
  was,
• 23:27
  I
• 23:27
  will
• 23:27
  grow,
• 23:28
  I
• 23:28
  will
• 23:28
  put
• 23:28
  my
• 23:28
  logo
• 23:28
  and
• 23:28
  everything.
• 23:29
  I
• 23:29
  will
• 23:29
  keep
• 23:29
  stretching,
• 23:29
  I
• 23:29
  will
• 23:29
  win.
• 23:31
  Came
• 23:31
  back.
• 23:32
  And
• 23:32
  this
• 23:32
  latest
• 23:33
  go
• 23:33
  around,
• 23:33
  his
• 23:33
  new
• 23:33
  mantra
• 23:34
  is
• 23:34
  actually
• 23:35
  achieve
• 23:35
  more
• 23:36
  by
• 23:36
  doing
• 23:36
  less.
• 23:38
  That
• 23:38
  rhymes
• 23:39
  with
• 23:39
  the
• 23:39
  comment
• 23:40
  I
• 23:40
  made
• 23:40
  before
• 23:40
  of
• 23:40
  sell
• 23:40
  less,
• 23:41
  charge
• 23:41
  more,
• 23:41
  make
• 23:41
  More
• 23:42
  money.
• 23:42
  And
• 23:42
  so
• 23:43
  you
• 23:43
  wonder
• 23:43
  what
• 23:43
  changed?
• 23:44
  Well,
• 23:45
  could
• 23:45
  be
• 23:45
  any
• 23:45
  number
• 23:45
  of
• 23:46
  things.
• 23:46
  I
• 23:46
  mean,
• 23:46
  he
• 23:46
  called
• 23:46
  it
• 23:47
  wisdom
• 23:47
  of
• 23:47
  age,
• 23:48
  but
• 23:48
  he
• 23:48
  also
• 23:49
  was
• 23:49
  detached.
• 23:50
  And
• 23:50
  so
• 23:50
  I
• 23:50
  think
• 23:50
  this
• 23:50
  idea
• 23:51
  of
• 23:51
  taking
• 23:51
  a
• 23:51
  step
• 23:51
  back
• 23:52
  and
• 23:52
  taking
• 23:52
  a
• 23:52
  breath
• 23:53
  and
• 23:53
  actually
• 23:53
  reevaluating,
• 23:53
  I
• 23:54
  think
• 23:54
  it's
• 23:54
  okay
• 23:55
  to
• 23:55
  have
• 23:55
  a
• 23:55
  different
• 23:55
  view.
• 23:56
  And
• 23:56
  the
• 23:57
  stock
• 23:57
  is
• 23:57
  starting
• 23:57
  to
• 23:57
  move
• 23:58
  with
• 23:58
  it.
• 23:58
  We're
• 23:58
  now
• 23:59
  two
• 23:59
  quarters
• 23:59
  in,
• 24:00
  where
• 24:00
  revenues
• 24:00
  are
• 24:00
  down
• 24:00
  double
• 24:01
  digits,
• 24:01
  but
• 24:01
  gross
• 24:01
  margins
• 24:02
  actually
• 24:02
  up
• 24:02
  over
• 24:03
  100
• 24:03
  basis
• 24:03
  points,
• 24:03
  up
• 24:04
  a
• 24:04
  percentage
• 24:05
  point
• 24:05
  each
• 24:05
  quarter,
• 24:05
  which
• 24:05
  means
• 24:06
  they're
• 24:06
  moving
• 24:06
  in
• 24:06
  that
• 24:06
  right
• 24:07
  direction.
• 24:07
  And
• 24:08
  you're
• 24:08
  watching
• 24:08
  things
• 24:08
  like
• 24:08
  they
• 24:09
  closed
• 24:09
  one
• 24:09
  of
• 24:10
  their
• 24:10
  three
• 24:10
  DCs,
• 24:11
  not
• 24:11
  one
• 24:11
  of
• 24:11
  21
• 24:12
  of
• 24:12
  three.
• 24:13
  And
• 24:13
  that
• 24:14
  was
• 24:14
  opened
• 24:14
  in
• 24:15
  2013.
• 24:15
  We
• 24:16
  can
• 24:16
  all
• 24:16
  rewind
• 24:16
  back
• 24:17
  the
• 24:17
  years
• 24:17
  where
• 24:17
  people
• 24:18
  loved,
• 24:18
  where
• 24:18
  we
• 24:18
  all
• 24:18
  loved
• 24:18
  Under
• 24:19
  Armour.
• 24:19
  It
• 24:19
  was
• 24:19
  the
• 24:19
  growth
• 24:20
  story
• 24:20
  retail.
• 24:21
  Those
• 24:21
  were
• 24:21
  the
• 24:21
  years.
• 24:21
  Because
• 24:22
  he
• 24:22
  built
• 24:22
  a
• 24:22
  dc
• 24:23
  believing
• 24:23
  he
• 24:24
  was
• 24:24
  an
• 24:24
  infrastructure
• 24:25
  at
• 24:25
  large,
• 24:25
  believing
• 24:26
  they
• 24:26
  were
• 24:26
  going
• 24:26
  to
• 24:26
  be
• 24:26
  a
• 24:26
  $10
• 24:26
  billion
• 24:27
  business.
• 24:28
  Now
• 24:28
  that
• 24:28
  you're
• 24:28
  watching
• 24:28
  them
• 24:29
  close
• 24:29
  it,
• 24:29
  I
• 24:30
  think
• 24:30
  you're
• 24:30
  seeing
• 24:30
  the
• 24:30
  signal.
• 24:31
  I'm
• 24:31
  a
• 24:31
  huge
• 24:31
  proponent.
• 24:32
  Watch
• 24:32
  how
• 24:32
  I
• 24:32
  spend.
• 24:32
  Don't
• 24:32
  listen
• 24:33
  to
• 24:33
  what
• 24:33
  I
• 24:33
  say.
• 24:34
  Which.
• 24:34
  Which
• 24:34
  shouldn't
• 24:35
  sound
• 24:35
  surprising
• 24:35
  given
• 24:35
  everything
• 24:36
  we're
• 24:36
  talking
• 24:36
  about.
• 24:37
  And
• 24:37
  so
• 24:37
  I
• 24:37
  do
• 24:37
  think
• 24:38
  it
• 24:38
  happens.
• 24:38
  I
• 24:38
  think
• 24:38
  every
• 24:39
  time
• 24:39
  you
• 24:39
  and
• 24:39
  I,
• 24:39
  I
• 24:39
  think.
• 24:40
  I
• 24:40
  think
• 24:40
  every
• 24:40
  time
• 24:40
  we
• 24:41
  watch
• 24:41
  a
• 24:41
  collective
• 24:42
  turnaround,
• 24:42
  it's
• 24:43
  likely
• 24:43
  because
• 24:43
  someone
• 24:44
  took
• 24:44
  a
• 24:44
  break.
• 24:44
  It's
• 24:44
  either
• 24:44
  because
• 24:45
  they
• 24:45
  lost
• 24:45
  their
• 24:45
  job
• 24:45
  and
• 24:45
  it's
• 24:46
  a
• 24:46
  new
• 24:46
  CEO
• 24:46
  making
• 24:47
  that
• 24:47
  choice
• 24:47
  fresh,
• 24:48
  or
• 24:49
  it's
• 24:49
  because
• 24:50
  they
• 24:50
  took
• 24:50
  this
• 24:50
  fresh
• 24:50
  look.
• 24:51
  It's
• 24:51
  because
• 24:51
  they
• 24:51
  step
• 24:51
  back
• 24:52
  right
• 24:52
  by
• 24:52
  definition,
• 24:52
  and
• 24:53
  said,
• 24:53
  hey,
• 24:53
  what
• 24:53
  I
• 24:53
  was
• 24:53
  doing
• 24:53
  before
• 24:54
  wasn't
• 24:54
  really
• 24:54
  working.
• 24:55
  Nike
• 24:56
  and
• 24:56
  the
• 24:56
  two
• 24:56
  of
• 24:56
  us
• 24:56
  talked
• 24:57
  about
• 24:57
  this
• 24:57
  a
• 24:57
  bunch
• 24:57
  over
• 24:57
  the
• 24:57
  years.
• 24:58
  My
• 24:58
  team
• 24:58
  did
• 24:59
  really
• 24:59
  fun
• 24:59
  work
• 25:00
  around
• 25:00
  D2C
• 25:00
  versus
• 25:00
  wholesale.
• 25:01
  We
• 25:01
  wrote
• 25:01
  a
• 25:01
  report
• 25:01
  three
• 25:02
  and
• 25:02
  a
• 25:02
  half
• 25:02
  years
• 25:02
  ago
• 25:02
  called
• 25:03
  D2C
• 25:03
  is
• 25:03
  not
• 25:03
  all
• 25:03
  it's
• 25:03
  Cracked
• 25:04
  up
• 25:04
  to
• 25:04
  Be.
• 25:04
  I
• 25:04
  got
• 25:05
  into
• 25:05
  a
• 25:05
  lot
• 25:05
  of
• 25:05
  fight
• 25:05
  three
• 25:06
  and
• 25:06
  a
• 25:06
  half
• 25:06
  years
• 25:06
  ago
• 25:07
  when
• 25:07
  everyone
• 25:07
  wanted
• 25:07
  D2C,
• 25:08
  and
• 25:08
  now
• 25:08
  people
• 25:09
  are.
• 25:09
  Are
• 25:09
  on
• 25:09
  the
• 25:09
  other
• 25:09
  side.
• 25:10
  But
• 25:11
  you
• 25:11
  watching
• 25:11
  Nike
• 25:12
  come
• 25:12
  to
• 25:12
  the
• 25:12
  realization
• 25:12
  that,
• 25:13
  hey,
• 25:13
  you
• 25:13
  know
• 25:13
  what?
• 25:13
  We
• 25:13
  made
• 25:13
  that
• 25:13
  decision.
• 25:14
  We
• 25:14
  don't
• 25:14
  have
• 25:14
  to
• 25:14
  die
• 25:14
  by
• 25:15
  it.
• 25:16
  So
• 25:16
  I
• 25:16
  think
• 25:16
  that
• 25:16
  there's,
• 25:17
  again,
• 25:17
  there's.
• 25:18
  There's
• 25:18
  probably
• 25:18
  a
• 25:18
  lot
• 25:18
  of
• 25:18
  instances
• 25:19
  that
• 25:20
  you
• 25:20
  and
• 25:20
  I
• 25:20
  that
• 25:20
  we
• 25:21
  just
• 25:21
  don't
• 25:21
  even
• 25:21
  hear
• 25:21
  about.
• 25:22
  Right?
• 25:22
  I
• 25:23
  would
• 25:23
  look
• 25:23
  at
• 25:23
  any
• 25:23
  one
• 25:23
  of
• 25:23
  these
• 25:23
  terms
• 25:24
  and
• 25:24
  say,
• 25:24
  okay,
• 25:24
  what
• 25:24
  did
• 25:24
  someone
• 25:25
  just
• 25:25
  change?
• 25:26
  Why
• 25:26
  did
• 25:26
  they
• 25:26
  change
• 25:26
  their
• 25:27
  perspective?
• 25:28
  And
• 25:28
  I
• 25:28
  would
• 25:28
  guess
• 25:28
  more
• 25:28
  often
• 25:28
  than
• 25:29
  not,
• 25:29
  it's
• 25:29
  because
• 25:29
  they
• 25:29
  finally
• 25:30
  they
• 25:30
  took
• 25:30
  a
• 25:30
  breath
• 25:30
  and
• 25:31
  strategically
• 25:32
  detach
• 25:32
  themselves.
• 25:34
  Yeah,
• 25:34
  I
• 25:34
  Mean
• 25:34
  Simeon
• 25:35
  based
• 25:35
  on
• 25:35
  that
• 25:36
  rubric
• 25:36
  or
• 25:37
  that.
• 25:37
  That
• 25:38
  way
• 25:38
  that
• 25:38
  you're
• 25:38
  taking
• 25:39
  a
• 25:39
  look
• 25:39
  at
• 25:39
  these
• 25:39
  companies
• 25:40
  and
• 25:40
  analyzing
• 25:41
  kind
• 25:41
  of
• 25:41
  where
• 25:42
  they're
• 25:42
  headed
• 25:43
  based
• 25:43
  on
• 25:43
  where
• 25:43
  they're.
• 25:44
  They're
• 25:44
  spending
• 25:44
  their
• 25:45
  money,
• 25:45
  not
• 25:45
  what
• 25:45
  they're
• 25:45
  telling
• 25:46
  us
• 25:46
  in
• 25:46
  their
• 25:46
  earnings
• 25:46
  calls.
• 25:47
  Are
• 25:48
  there
• 25:48
  any
• 25:49
  retail
• 25:50
  stocks
• 25:50
  that
• 25:50
  you
• 25:51
  like
• 25:51
  or.
• 25:52
  Or
• 25:52
  don't
• 25:53
  like
• 25:53
  or
• 25:53
  maybe
• 25:54
  cautious
• 25:54
  about
• 25:55
  going
• 25:55
  into
• 25:56
  2025?
• 25:58
  So
• 25:58
  I
• 26:01
  normally
• 26:01
  wear
• 26:02
  my
• 26:02
  emotions
• 26:02
  and
• 26:03
  my
• 26:03
  stop
• 26:03
  calls
• 26:03
  on
• 26:03
  my
• 26:03
  sleeves,
• 26:04
  so
• 26:04
  this
• 26:04
  one
• 26:05
  shouldn't
• 26:05
  come
• 26:05
  as
• 26:05
  a
• 26:05
  surprise.
• 26:05
  But
• 26:05
  Under
• 26:06
  Armour
• 26:06
  right
• 26:06
  now
• 26:06
  is
• 26:07
  one
• 26:07
  of
• 26:07
  my
• 26:07
  favorites.
• 26:08
  Okay,
• 26:08
  figured
• 26:09
  as
• 26:09
  much.
• 26:09
  I
• 26:10
  think
• 26:10
  they're
• 26:10
  in
• 26:10
  the
• 26:10
  middle
• 26:11
  of
• 26:11
  doing
• 26:12
  this
• 26:12
  and
• 26:12
  so
• 26:14
  I'm
• 26:14
  not
• 26:14
  very
• 26:15
  free
• 26:15
  with
• 26:15
  compliments,
• 26:15
  but
• 26:16
  I
• 26:16
  think
• 26:16
  what
• 26:16
  they're
• 26:16
  doing
• 26:16
  is
• 26:17
  great.
• 26:17
  I
• 26:18
  really
• 26:18
  do.
• 26:18
  I
• 26:19
  actually
• 26:19
  to
• 26:19
  give
• 26:20
  because
• 26:20
  I
• 26:20
  just
• 26:21
  implicitly
• 26:21
  knocked
• 26:22
  them.
• 26:22
  I
• 26:23
  should
• 26:23
  also
• 26:23
  flag
• 26:24
  that
• 26:24
  in
• 26:24
  May
• 26:24
  we
• 26:25
  put
• 26:25
  out
• 26:25
  a
• 26:25
  report
• 26:25
  about
• 26:26
  Peloton.
• 26:27
  When
• 26:27
  the
• 26:27
  stock
• 26:27
  was
• 26:27
  around
• 26:28
  $3.
• 26:28
  The
• 26:29
  title
• 26:29
  was
• 26:29
  something
• 26:30
  to
• 26:30
  the
• 26:30
  effect
• 26:30
  of
• 26:30
  here's
• 26:31
  how
• 26:31
  we
• 26:31
  would
• 26:31
  generate
• 26:31
  500
• 26:32
  million
• 26:32
  of
• 26:33
  EBITDA
• 26:33
  of
• 26:33
  earnings
• 26:34
  basically
• 26:34
  of
• 26:35
  earnings
• 26:35
  and
• 26:37
  outlined
• 26:38
  what
• 26:38
  they
• 26:38
  could
• 26:39
  do
• 26:39
  to
• 26:39
  take
• 26:39
  a
• 26:39
  different
• 26:40
  look
• 26:41
  there
• 26:42
  you
• 26:42
  can
• 26:42
  see
• 26:42
  it
• 26:42
  now.
• 26:42
  They're
• 26:43
  actually
• 26:43
  doing
• 26:43
  it.
• 26:43
  And
• 26:43
  it
• 26:43
  was
• 26:43
  a
• 26:44
  very
• 26:44
  similar
• 26:44
  strategy.
• 26:45
  It
• 26:45
  was
• 26:45
  they
• 26:45
  have
• 26:45
  a
• 26:45
  great
• 26:46
  business.
• 26:46
  They
• 26:47
  have
• 26:47
  3
• 26:47
  million
• 26:47
  subscribers
• 26:48
  paying
• 26:49
  44amonth
• 26:50
  to
• 26:50
  get
• 26:50
  on
• 26:50
  a
• 26:50
  piece
• 26:50
  of
• 26:50
  equipment
• 26:51
  or
• 26:51
  not
• 26:51
  in
• 26:51
  their
• 26:51
  own
• 26:52
  home.
• 26:52
  And
• 26:52
  it
• 26:53
  flowed
• 26:53
  through
• 26:53
  at
• 26:53
  incredible
• 26:53
  margins.
• 26:54
  And
• 26:54
  so
• 26:54
  what
• 26:55
  I
• 26:55
  tried
• 26:55
  to
• 26:55
  help
• 26:55
  them,
• 26:56
  what
• 26:56
  I
• 26:56
  tried
• 26:56
  to
• 26:56
  put
• 26:57
  out
• 26:57
  there
• 26:57
  was
• 26:57
  focus
• 26:57
  on
• 26:58
  yourselves
• 26:58
  as
• 26:58
  a
• 26:58
  brand,
• 26:59
  not
• 26:59
  as
• 26:59
  a
• 26:59
  service
• 27:00
  and
• 27:01
  recognize
• 27:01
  what
• 27:02
  we
• 27:02
  all
• 27:02
  know.
• 27:02
  A
• 27:03
  brand
• 27:03
  is
• 27:03
  not
• 27:03
  supposed
• 27:04
  to
• 27:04
  democratize
• 27:04
  for
• 27:05
  everyone.
• 27:05
  A
• 27:05
  brand
• 27:05
  is
• 27:05
  supposed
• 27:06
  to
• 27:06
  make
• 27:06
  its
• 27:06
  group
• 27:06
  of
• 27:06
  people,
• 27:07
  it's
• 27:07
  tribe,
• 27:07
  feel
• 27:07
  great
• 27:08
  and
• 27:08
  honestly
• 27:09
  make
• 27:09
  the
• 27:09
  people
• 27:09
  outside
• 27:09
  feel
• 27:10
  a
• 27:10
  little
• 27:10
  jealous.
• 27:10
  You
• 27:10
  can't
• 27:11
  say
• 27:11
  that.
• 27:11
  That's
• 27:11
  not
• 27:11
  part
• 27:12
  of
• 27:12
  the
• 27:12
  marketing.
• 27:12
  That's
• 27:12
  what
• 27:12
  you're
• 27:13
  supposed
• 27:13
  to
• 27:13
  do.
• 27:13
  And
• 27:13
  so
• 27:14
  we're
• 27:14
  starting
• 27:14
  to
• 27:14
  see
• 27:14
  a
• 27:14
  little
• 27:14
  bit
• 27:14
  of
• 27:14
  that.
• 27:15
  And
• 27:15
  Peloton
• 27:15
  stock
• 27:15
  has
• 27:16
  responded
• 27:16
  in
• 27:16
  kind.
• 27:17
  So
• 27:17
  I
• 27:17
  think
• 27:17
  they
• 27:17
  are
• 27:18
  going
• 27:18
  through
• 27:18
  again,
• 27:19
  it
• 27:19
  was
• 27:19
  a
• 27:19
  management
• 27:19
  change,
• 27:19
  but
• 27:20
  I
• 27:20
  think
• 27:20
  they're
• 27:20
  going
• 27:20
  through
• 27:20
  one
• 27:20
  of
• 27:20
  these
• 27:20
  pivots
• 27:21
  as
• 27:21
  well
• 27:22
  now.
• 27:22
  But
• 27:22
  I
• 27:22
  will
• 27:23
  say
• 27:24
  I
• 27:24
  don't
• 27:25
  wake
• 27:25
  up
• 27:25
  trying
• 27:25
  to
• 27:26
  be
• 27:26
  controversial.
• 27:26
  I
• 27:27
  don't
• 27:27
  wake
• 27:27
  up
• 27:27
  trying
• 27:27
  to
• 27:28
  like
• 27:28
  stick
• 27:28
  my
• 27:28
  neck
• 27:28
  out
• 27:29
  on
• 27:29
  the
• 27:29
  riskiest
• 27:29
  calls.
• 27:30
  I
• 27:30
  also
• 27:30
  can
• 27:31
  like
• 27:31
  a
• 27:31
  company
• 27:31
  like
• 27:31
  tjx.
• 27:32
  I
• 27:32
  also
• 27:32
  can
• 27:32
  like
• 27:33
  a
• 27:33
  company,
• 27:33
  I
• 27:33
  was
• 27:33
  about
• 27:34
  to
• 27:34
  say
• 27:34
  like
• 27:34
  Nike,
• 27:34
  but
• 27:34
  I
• 27:34
  guess
• 27:34
  there's
• 27:35
  controversy
• 27:35
  there.
• 27:35
  But
• 27:35
  TJX
• 27:36
  is
• 27:36
  a
• 27:36
  business
• 27:36
  where
• 27:37
  the
• 27:37
  way
• 27:37
  that
• 27:37
  I've
• 27:38
  been
• 27:38
  thinking
• 27:38
  about
• 27:38
  it
• 27:38
  from
• 27:38
  a
• 27:38
  pure
• 27:39
  stock
• 27:39
  perspective,
• 27:39
  my,
• 27:40
  my
• 27:40
  risk
• 27:40
  framework
• 27:41
  is
• 27:41
  I
• 27:42
  either
• 27:42
  want
• 27:42
  to
• 27:42
  take
• 27:43
  risk
• 27:43
  on
• 27:43
  the
• 27:44
  business,
• 27:44
  right
• 27:44
  on
• 27:45
  Under
• 27:45
  Armour,
• 27:45
  I
• 27:45
  want
• 27:45
  to
• 27:45
  believe
• 27:46
  or
• 27:47
  make
• 27:47
  a
• 27:47
  bet
• 27:47
  that
• 27:47
  the
• 27:47
  company's
• 27:48
  going
• 27:48
  to
• 27:48
  do
• 27:48
  well
• 27:48
  or
• 27:48
  not,
• 27:49
  or
• 27:50
  I
• 27:50
  take
• 27:50
  a
• 27:50
  risk
• 27:50
  on
• 27:51
  the
• 27:51
  multiple
• 27:51
  on
• 27:52
  the
• 27:52
  valuation,
• 27:52
  on
• 27:52
  what
• 27:52
  people
• 27:53
  want
• 27:53
  to
• 27:53
  pay
• 27:53
  because
• 27:54
  stocks
• 27:54
  are
• 27:54
  driven
• 27:55
  by
• 27:55
  the
• 27:55
  numbers,
• 27:56
  by
• 27:56
  the
• 27:56
  earnings
• 27:57
  and
• 27:57
  then
• 27:57
  what,
• 27:57
  how
• 27:57
  much,
• 27:58
  how
• 27:58
  many
• 27:58
  years,
• 27:58
  effectively
• 27:59
  worth
• 27:59
  of
• 27:59
  those
• 27:59
  do
• 27:59
  you
• 28:00
  want
• 28:00
  to
• 28:00
  pay
• 28:00
  for
• 28:01
  right
• 28:02
  now?
• 28:02
  Companies,
• 28:03
  good
• 28:04
  companies
• 28:04
  cost
• 28:04
  a
• 28:04
  lot,
• 28:05
  a
• 28:05
  lot,
• 28:05
  a
• 28:06
  lot.
• 28:06
  And
• 28:06
  so
• 28:07
  when
• 28:07
  I
• 28:07
  look
• 28:07
  at
• 28:07
  tjx,
• 28:08
  I
• 28:08
  feel
• 28:08
  great
• 28:08
  about
• 28:08
  the
• 28:08
  business.
• 28:08
  I
• 28:09
  don't
• 28:09
  think
• 28:09
  it's
• 28:09
  a
• 28:09
  surprise.
• 28:09
  I
• 28:09
  don't
• 28:10
  think
• 28:10
  I'm
• 28:10
  telling
• 28:10
  it.
• 28:10
  There's
• 28:11
  no.
• 28:11
  People
• 28:12
  are
• 28:12
  going
• 28:12
  to
• 28:13
  be
• 28:13
  very
• 28:13
  polarized
• 28:13
  by
• 28:13
  my
• 28:14
  Under
• 28:14
  Armour
• 28:14
  comments.
• 28:14
  They're
• 28:14
  not
• 28:15
  going
• 28:15
  to
• 28:15
  be
• 28:15
  polarized
• 28:15
  by
• 28:15
  the
• 28:15
  fact
• 28:16
  that
• 28:16
  I
• 28:16
  like
• 28:16
  tjx,
• 28:17
  but
• 28:17
  it's
• 28:17
  expensive.
• 28:18
  And
• 28:18
  so
• 28:18
  by
• 28:19
  owning
• 28:19
  TJ
• 28:19
  what
• 28:20
  you
• 28:20
  like,
• 28:20
  you
• 28:21
  have
• 28:21
  to
• 28:21
  understand
• 28:22
  you're
• 28:22
  taking
• 28:23
  a
• 28:23
  risk
• 28:23
  that
• 28:23
  the
• 28:23
  market's
• 28:24
  going
• 28:24
  to
• 28:24
  say,
• 28:24
  hey,
• 28:24
  you
• 28:24
  know,
• 28:25
  what
• 28:25
  do
• 28:25
  I
• 28:25
  want
• 28:25
  to
• 28:26
  pay
• 28:26
  30
• 28:26
  times?
• 28:27
  Which
• 28:27
  basically
• 28:27
  means
• 28:28
  you
• 28:28
  don't
• 28:28
  get
• 28:28
  paid
• 28:28
  back
• 28:29
  for
• 28:29
  30
• 28:29
  years.
• 28:30
  It's
• 28:30
  not
• 28:30
  really
• 28:30
  what
• 28:30
  it
• 28:30
  is.
• 28:31
  There's
• 28:31
  a
• 28:31
  discount,
• 28:31
  there's
• 28:31
  a
• 28:31
  lot
• 28:31
  of
• 28:31
  different.
• 28:32
  But
• 28:32
  30
• 28:33
  times
• 28:33
  earnings
• 28:33
  means
• 28:34
  I'm
• 28:34
  saying
• 28:34
  I'm
• 28:35
  going
• 28:35
  to
• 28:35
  buy
• 28:35
  it
• 28:35
  now
• 28:35
  so
• 28:35
  that
• 28:35
  I
• 28:36
  can
• 28:36
  get
• 28:36
  on
• 28:36
  the
• 28:37
  31st
• 28:37
  year
• 28:37
  I'm
• 28:38
  making
• 28:38
  money.
• 28:39
  That's
• 28:39
  a
• 28:39
  lot
• 28:39
  of
• 28:40
  time.
• 28:40
  But,
• 28:40
  but
• 28:41
  I'm
• 28:41
  okay
• 28:41
  with
• 28:41
  that
• 28:41
  because
• 28:42
  things
• 28:42
  like
• 28:42
  Costco
• 28:42
  are
• 28:43
  60
• 28:43
  times
• 28:43
  and
• 28:43
  Nvidia
• 28:44
  is
• 28:44
  whatever
• 28:44
  it
• 28:44
  is.
• 28:45
  And
• 28:45
  so
• 28:45
  that's
• 28:45
  that
• 28:45
  dynamic.
• 28:46
  And
• 28:46
  so
• 28:46
  I
• 28:46
  have
• 28:46
  to
• 28:46
  like,
• 28:47
  bifurcate
• 28:47
  because
• 28:48
  the
• 28:48
  part.
• 28:49
  One
• 28:49
  of
• 28:49
  the
• 28:49
  fun
• 28:49
  parts
• 28:49
  of
• 28:49
  my
• 28:49
  job
• 28:50
  is
• 28:50
  I
• 28:50
  speak
• 28:50
  to
• 28:51
  all
• 28:51
  different
• 28:51
  types
• 28:51
  of
• 28:51
  investors.
• 28:52
  And
• 28:52
  there
• 28:52
  are
• 28:52
  certain
• 28:52
  investors
• 28:53
  that
• 28:53
  want
• 28:53
  the
• 28:54
  compounders,
• 28:54
  that
• 28:54
  want
• 28:54
  the
• 28:55
  TJX
• 28:55
  of
• 28:55
  the
• 28:55
  world,
• 28:55
  and
• 28:56
  they're
• 28:56
  willing
• 28:56
  to
• 28:56
  pay
• 28:56
  whatever
• 28:56
  it
• 28:57
  costs
• 28:57
  to
• 28:57
  get
• 28:57
  them.
• 28:58
  And
• 28:58
  then
• 28:58
  there's
• 28:58
  others
• 28:58
  that
• 28:59
  are
• 28:59
  willing
• 28:59
  to
• 28:59
  play
• 28:59
  in
• 28:59
  the
• 28:59
  dirt
• 29:00
  with
• 29:00
  me.
• 29:00
  And
• 29:01
  that's
• 29:01
  where
• 29:01
  the
• 29:01
  Under
• 29:01
  Armour.
• 29:02
  So
• 29:02
  that's
• 29:02
  my,
• 29:02
  my
• 29:02
  extremes.
• 29:03
  That's
• 29:03
  kind
• 29:03
  of
• 29:03
  how
• 29:03
  I
• 29:04
  try
• 29:04
  and
• 29:04
  fragment
• 29:04
  my
• 29:04
  own
• 29:05
  framework.
• 29:06
  Got
• 29:06
  it,
• 29:07
  Got
• 29:07
  it.
• 29:07
  Okay.
• 29:07
  And
• 29:07
  so,
• 29:08
  so
• 29:08
  now,
• 29:08
  so,
• 29:09
  so
• 29:09
  we
• 29:09
  tried
• 29:10
  to
• 29:10
  come
• 29:10
  up
• 29:10
  with
• 29:10
  something
• 29:10
  fun
• 29:11
  to
• 29:11
  close
• 29:11
  out
• 29:11
  this
• 29:11
  interview
• 29:12
  then
• 29:12
  and
• 29:12
  going
• 29:12
  to
• 29:12
  kind
• 29:13
  of
• 29:13
  play
• 29:13
  off
• 29:13
  that
• 29:13
  a
• 29:13
  little
• 29:14
  bit.
• 29:14
  And
• 29:15
  so
• 29:15
  I'm
• 29:15
  gonna,
• 29:15
  I'm
• 29:16
  gonna,
• 29:16
  I'm
• 29:16
  gonna
• 29:16
  give
• 29:16
  you
• 29:17
  a
• 29:17
  list
• 29:17
  of
• 29:17
  companies
• 29:18
  and
• 29:18
  I
• 29:19
  just
• 29:19
  want
• 29:19
  you
• 29:19
  to
• 29:19
  say
• 29:19
  the
• 29:20
  first
• 29:20
  thing
• 29:20
  that
• 29:20
  comes
• 29:20
  to
• 29:21
  your
• 29:21
  mind
• 29:21
  when
• 29:21
  I
• 29:21
  say
• 29:21
  the
• 29:21
  company's
• 29:22
  name.
• 29:22
  Okay.
• 29:22
  And
• 29:23
  it
• 29:23
  could
• 29:23
  be
• 29:23
  whatever
• 29:24
  you
• 29:24
  want.
• 29:25
  Yeah,
• 29:25
  it's
• 29:25
  dangerous,
• 29:25
  but
• 29:26
  it's
• 29:26
  gonna
• 29:27
  put
• 29:27
  you
• 29:27
  on
• 29:27
  the
• 29:27
  hot
• 29:27
  seat
• 29:27
  a
• 29:27
  little
• 29:27
  bit.
• 29:27
  You
• 29:28
  said
• 29:28
  we
• 29:28
  were
• 29:28
  nice
• 29:28
  in
• 29:28
  the
• 29:28
  beginning,
• 29:29
  so
• 29:29
  now
• 29:29
  we're,
• 29:29
  now
• 29:29
  we're
• 29:29
  turning
• 29:30
  up
• 29:30
  the
• 29:30
  heat
• 29:30
  a
• 29:30
  little
• 29:30
  bit,
• 29:30
  Putting
• 29:31
  the
• 29:31
  screws
• 29:31
  a
• 29:31
  little
• 29:31
  bit.
• 29:32
  I
• 29:32
  like
• 29:32
  it.
• 29:33
  So,
• 29:33
  all
• 29:33
  right,
• 29:34
  so
• 29:34
  let's
• 29:34
  start
• 29:34
  with
• 29:35
  what.
• 29:35
  Let's
• 29:35
  start
• 29:35
  with
• 29:35
  one
• 29:36
  we
• 29:36
  haven't
• 29:36
  talked
• 29:37
  about
• 29:37
  yet
• 29:37
  again.
• 29:38
  First
• 29:38
  thing
• 29:38
  that
• 29:38
  comes
• 29:39
  to
• 29:39
  your
• 29:39
  mind,
• 29:39
  let's
• 29:39
  start
• 29:40
  with
• 29:40
  Gap.
• 29:42
  Turnaround
• 29:43
  in
• 29:44
  potential.
• 29:45
  There's
• 29:45
  dashes.
• 29:46
  So
• 29:46
  that's
• 29:46
  one
• 29:47
  word.
• 29:47
  That's
• 29:47
  one
• 29:47
  word.
• 29:47
  Turnaround
• 29:48
  in
• 29:48
  potential
• 29:49
  with
• 29:49
  dashes.
• 29:49
  Because
• 29:49
  I.
• 29:50
  With
• 29:50
  dashes.
• 29:51
  Okay,
• 29:52
  awesome,
• 29:52
  awesome.
• 29:53
  And
• 29:54
  explain
• 29:55
  a
• 29:55
  little
• 29:55
  bit,
• 29:56
  just
• 29:56
  a
• 29:56
  little
• 29:56
  bit
• 29:56
  more.
• 29:56
  I
• 29:57
  should
• 29:57
  have
• 29:57
  just
• 29:57
  said,
• 29:57
  Mickey,
• 29:58
  what
• 29:58
  do
• 29:58
  you
• 29:58
  mean
• 29:58
  explain?
• 29:59
  You
• 29:59
  said
• 29:59
  one
• 30:00
  word.
• 30:00
  Hot
• 30:00
  seat,
• 30:01
  action
• 30:01
  packed.
• 30:02
  Well,
• 30:03
  I
• 30:03
  want
• 30:03
  you
• 30:03
  to
• 30:03
  start
• 30:04
  with
• 30:04
  one
• 30:04
  word,
• 30:04
  but
• 30:04
  then
• 30:04
  I
• 30:05
  could
• 30:05
  ask
• 30:05
  you
• 30:05
  whatever
• 30:05
  questions
• 30:06
  I
• 30:06
  want
• 30:06
  to
• 30:06
  follow
• 30:06
  up.
• 30:07
  This
• 30:07
  is
• 30:07
  our
• 30:08
  show,
• 30:08
  Simeon.
• 30:09
  We
• 30:09
  make
• 30:09
  the
• 30:09
  rules.
• 30:10
  We
• 30:10
  don't
• 30:10
  follow
• 30:10
  them
• 30:11
  either.
• 30:11
  And
• 30:11
  I
• 30:11
  make
• 30:11
  them
• 30:12
  up
• 30:12
  as
• 30:12
  I
• 30:12
  go
• 30:12
  along.
• 30:12
  I
• 30:13
  like
• 30:13
  it
• 30:13
  was.
• 30:13
  You
• 30:14
  were
• 30:14
  being
• 30:14
  nice
• 30:14
  at
• 30:14
  the
• 30:14
  beginning.
• 30:15
  I
• 30:15
  get
• 30:15
  it
• 30:15
  now.
• 30:15
  Okay,
• 30:16
  well,
• 30:16
  well
• 30:16
  played.
• 30:17
  So
• 30:18
  I
• 30:18
  think
• 30:18
  Richard
• 30:18
  Dixon
• 30:19
  is
• 30:19
  doing
• 30:19
  a
• 30:19
  very
• 30:19
  impressive
• 30:20
  job
• 30:20
  at
• 30:20
  telling
• 30:20
  us
• 30:20
  a
• 30:20
  nice
• 30:21
  story.
• 30:21
  And
• 30:21
  we
• 30:21
  have
• 30:21
  to
• 30:21
  figure
• 30:21
  out
• 30:22
  what
• 30:22
  the
• 30:22
  legs
• 30:23
  as
• 30:23
  do
• 30:23
  we
• 30:24
  going
• 30:24
  to
• 30:24
  be.
• 30:24
  And
• 30:25
  so
• 30:25
  I
• 30:25
  think
• 30:25
  Gap
• 30:26
  Inc.
• 30:27
  The
• 30:27
  entity,
• 30:28
  not
• 30:28
  the
• 30:28
  brand,
• 30:29
  owns
• 30:29
  a
• 30:29
  lot
• 30:30
  and
• 30:30
  it
• 30:30
  owns
• 30:31
  one
• 30:31
  of
• 30:31
  the
• 30:31
  largest.
• 30:33
  Nike
• 30:33
  is
• 30:33
  the
• 30:33
  largest
• 30:34
  footwear
• 30:35
  apparel
• 30:35
  brand
• 30:35
  in
• 30:35
  the
• 30:35
  history
• 30:36
  of
• 30:36
  time.
• 30:36
  Old
• 30:37
  Navy
• 30:37
  by
• 30:37
  certain
• 30:37
  measures
• 30:38
  is
• 30:38
  number
• 30:38
  two.
• 30:39
  And
• 30:39
  so
• 30:39
  you
• 30:39
  have
• 30:40
  a
• 30:40
  business
• 30:40
  that's
• 30:41
  effectively
• 30:41
  its
• 30:42
  own
• 30:42
  department
• 30:42
  store.
• 30:43
  And
• 30:43
  we
• 30:44
  talk
• 30:44
  about
• 30:44
  Gap,
• 30:46
  but
• 30:46
  the
• 30:46
  reality
• 30:47
  is
• 30:47
  the
• 30:47
  vast
• 30:47
  majority
• 30:48
  of
• 30:48
  that
• 30:48
  entity's
• 30:48
  business
• 30:49
  is
• 30:49
  Old
• 30:49
  Navy.
• 30:49
  And
• 30:50
  so
• 30:50
  understanding
• 30:50
  Old
• 30:50
  Navy,
• 30:51
  how
• 30:51
  to
• 30:51
  make
• 30:51
  more
• 30:51
  money.
• 30:51
  Old
• 30:51
  Navy,
• 30:52
  where
• 30:52
  does
• 30:52
  that
• 30:52
  low
• 30:53
  income
• 30:53
  consumer
• 30:53
  play?
• 30:54
  How
• 30:54
  important
• 30:54
  is
• 30:54
  brand?
• 30:55
  There's
• 30:55
  a
• 30:55
  lot
• 30:55
  of
• 30:55
  really
• 30:55
  interesting
• 30:56
  stuff
• 30:56
  in
• 30:56
  there.
• 30:56
  They
• 30:57
  need
• 30:57
  to
• 30:57
  keep
• 30:57
  that
• 30:57
  going.
• 30:57
  I
• 30:58
  think
• 30:58
  they
• 30:58
  want
• 30:58
  to.
• 30:58
  The
• 30:59
  goal
• 30:59
  for
• 30:59
  that
• 30:59
  part
• 31:00
  of
• 31:00
  the
• 31:00
  business,
• 31:00
  which
• 31:00
  is
• 31:00
  again,
• 31:01
  the
• 31:01
  vast
• 31:01
  majority
• 31:01
  of
• 31:01
  the
• 31:01
  business
• 31:02
  should
• 31:02
  be
• 31:02
  to
• 31:02
  make
• 31:02
  more
• 31:02
  money
• 31:03
  on
• 31:03
  Old
• 31:03
  Navy.
• 31:04
  The
• 31:04
  Gap
• 31:05
  business,
• 31:05
  which
• 31:05
  is
• 31:05
  much
• 31:05
  smaller
• 31:06
  but
• 31:06
  obviously
• 31:06
  much
• 31:07
  greater
• 31:07
  halo,
• 31:07
  and
• 31:07
  it's
• 31:07
  the
• 31:07
  one
• 31:08
  we
• 31:08
  all
• 31:08
  talk
• 31:08
  about
• 31:08
  and
• 31:09
  is
• 31:09
  actually
• 31:09
  what
• 31:09
  their
• 31:10
  ticker
• 31:10
  is.
• 31:10
  So
• 31:10
  the
• 31:10
  company
• 31:11
  is
• 31:11
  known
• 31:11
  now
• 31:11
  as
• 31:12
  Gap.
• 31:12
  It
• 31:12
  was
• 31:12
  gps.
• 31:13
  Now
• 31:13
  they
• 31:13
  flipped
• 31:13
  to
• 31:13
  Gap.
• 31:14
  That's
• 31:14
  a
• 31:14
  story.
• 31:15
  That's
• 31:16
  a
• 31:16
  business
• 31:16
  where
• 31:16
  we
• 31:16
  look
• 31:17
  at
• 31:17
  Abercrombie,
• 31:17
  we
• 31:17
  look
• 31:17
  at
• 31:18
  Eagle,
• 31:18
  we
• 31:18
  look
• 31:18
  at
• 31:18
  all
• 31:18
  these
• 31:18
  things
• 31:19
  that
• 31:19
  are
• 31:19
  having
• 31:19
  their,
• 31:19
  their
• 31:20
  moment
• 31:20
  in
• 31:20
  the
• 31:20
  sun.
• 31:21
  Can
• 31:21
  you
• 31:21
  recalibrate?
• 31:22
  Can
• 31:22
  you
• 31:22
  bring
• 31:22
  us
• 31:22
  back
• 31:22
  to
• 31:23
  mellow
• 31:23
  yellow
• 31:23
  days?
• 31:23
  Can
• 31:24
  we.
• 31:24
  Can
• 31:24
  Gap
• 31:25
  mean
• 31:25
  something
• 31:25
  again
• 31:26
  and
• 31:26
  command
• 31:26
  full
• 31:27
  price?
• 31:27
  Because
• 31:27
  again,
• 31:28
  going
• 31:28
  back
• 31:28
  to
• 31:28
  the
• 31:28
  point,
• 31:29
  Gap
• 31:29
  still
• 31:29
  does
• 31:29
  billions
• 31:30
  of
• 31:30
  revenue
• 31:30
  this
• 31:31
  is
• 31:31
  not
• 31:31
  a
• 31:31
  broken
• 31:32
  business,
• 31:32
  but
• 31:33
  its
• 31:33
  margin
• 31:33
  up
• 31:34
  until
• 31:34
  recently
• 31:35
  had
• 31:35
  been
• 31:35
  effectively
• 31:36
  lying
• 31:36
  in
• 31:36
  the
• 31:36
  gutter.
• 31:36
  And
• 31:37
  so
• 31:37
  that's
• 31:37
  the
• 31:37
  turnaround
• 31:38
  in
• 31:38
  progress
• 31:38
  where
• 31:39
  we
• 31:39
  need
• 31:39
  to
• 31:39
  find
• 31:39
  out
• 31:40
  does
• 31:40
  this
• 31:40
  continue?
• 31:41
  Can
• 31:42
  you
• 31:42
  rekindle
• 31:43
  the
• 31:43
  gaps
• 31:44
  People's
• 31:44
  love
• 31:44
  for
• 31:45
  Gap,
• 31:45
  can
• 31:45
  it
• 31:45
  have
• 31:46
  that
• 31:46
  brand
• 31:46
  resonance
• 31:46
  and
• 31:47
  get
• 31:47
  the
• 31:47
  profitability
• 31:48
  at
• 31:48
  the
• 31:48
  same
• 31:49
  time
• 31:49
  that
• 31:49
  what
• 31:49
  really
• 31:50
  needs
• 31:50
  to
• 31:50
  happen
• 31:50
  is
• 31:51
  Old
• 31:51
  Navy
• 31:51
  just
• 31:51
  needs
• 31:51
  to
• 31:52
  be
• 31:52
  making
• 31:52
  more
• 31:52
  money.
• 31:54
  I
• 31:54
  love
• 31:54
  the
• 31:54
  mellow
• 31:54
  yellow
• 31:55
  drop
• 31:55
  too.
• 31:55
  That
• 31:55
  was,
• 31:55
  that's
• 31:56
  always
• 31:56
  my
• 31:56
  favorite
• 31:56
  ad
• 31:57
  campaign
• 31:57
  to
• 31:57
  go
• 31:57
  back
• 31:57
  to
• 31:58
  for
• 31:58
  nostalgia.
• 31:58
  Very
• 31:59
  nicely
• 31:59
  done.
• 31:59
  Very
• 31:59
  nicely
• 32:00
  done.
• 32:00
  All
• 32:00
  right,
• 32:01
  next
• 32:01
  one.
• 32:01
  This
• 32:01
  is
• 32:02
  one
• 32:02
  you've
• 32:02
  mentioned
• 32:02
  but
• 32:02
  haven't
• 32:03
  said
• 32:03
  that
• 32:03
  much
• 32:03
  about
• 32:04
  yet.
• 32:05
  Victoria
• 32:05
  Secret
• 32:06
  first
• 32:06
  thing
• 32:06
  that
• 32:06
  comes
• 32:06
  to
• 32:06
  mind.
• 32:07
  By
• 32:07
  the
• 32:07
  way,
• 32:08
  growth
• 32:08
  mindset
• 32:09
  is
• 32:09
  the
• 32:09
  first
• 32:09
  thing
• 32:09
  that
• 32:09
  comes
• 32:09
  to
• 32:10
  mind
• 32:10
  because
• 32:10
  my
• 32:10
  kids
• 32:10
  are
• 32:11
  teaching
• 32:11
  me
• 32:11
  you
• 32:11
  say
• 32:11
  the
• 32:11
  word
• 32:12
  yet
• 32:12
  at
• 32:12
  the
• 32:12
  end
• 32:12
  of
• 32:12
  every
• 32:13
  sentence
• 32:13
  because
• 32:14
  we're
• 32:14
  not
• 32:14
  there
• 32:14
  yet.
• 32:15
  It's
• 32:15
  all
• 32:15
  about
• 32:15
  growth
• 32:15
  mindset.
• 32:16
  So
• 32:16
  I
• 32:16
  love
• 32:16
  that.
• 32:17
  And
• 32:17
  we
• 32:17
  can
• 32:18
  segue
• 32:18
  into
• 32:18
  Victoria's
• 32:19
  Secret,
• 32:19
  which
• 32:19
  is
• 32:20
  all
• 32:20
  about
• 32:20
  growth
• 32:20
  mindset
• 32:21
  right
• 32:21
  now.
• 32:21
  Right.
• 32:21
  It's
• 32:22
  taking
• 32:22
  a
• 32:22
  business
• 32:23
  that
• 32:24
  also
• 32:24
  phenomenal
• 32:25
  brand,
• 32:27
  let's
• 32:27
  say
• 32:28
  I'm
• 32:28
  trying
• 32:28
  to
• 32:28
  figure
• 32:28
  what
• 32:28
  the
• 32:28
  right
• 32:29
  word
• 32:29
  I
• 32:29
  want
• 32:29
  to
• 32:29
  say
• 32:29
  should
• 32:29
  be.
• 32:30
  Relevance
• 32:30
  but
• 32:31
  phenomenal
• 32:31
  brand
• 32:32
  reach.
• 32:32
  The
• 32:33
  question
• 32:33
  is
• 32:34
  brand
• 32:34
  equity.
• 32:35
  And
• 32:35
  so
• 32:36
  exactly
• 32:36
  the
• 32:37
  same
• 32:37
  situation
• 32:37
  in,
• 32:38
  in
• 32:38
  my
• 32:38
  parlance,
• 32:39
  Victoria's
• 32:40
  secret
• 32:40
  has
• 32:40
  a
• 32:40
  mid-30s,
• 32:41
  30ish
• 32:42
  percent
• 32:42
  gross
• 32:42
  margin.
• 32:43
  So
• 32:43
  it's
• 32:43
  in
• 32:43
  the
• 32:43
  30s.
• 32:44
  So
• 32:44
  like
• 32:44
  whether
• 32:44
  it's
• 32:45
  mid-30s
• 32:45
  or
• 32:45
  40,
• 32:46
  that's
• 32:46
  too
• 32:47
  low
• 32:47
  for
• 32:47
  a
• 32:47
  business
• 32:48
  that
• 32:48
  is
• 32:48
  selling
• 32:49
  intimates
• 32:49
  cloth.
• 32:50
  Again,
• 32:50
  any
• 32:50
  version
• 32:51
  of
• 32:51
  apparel,
• 32:51
  they
• 32:51
  should
• 32:51
  be
• 32:52
  making
• 32:52
  more
• 32:52
  money
• 32:52
  on
• 32:52
  that.
• 32:53
  But
• 32:53
  they
• 32:53
  are
• 32:53
  a
• 32:54
  huge
• 32:54
  business
• 32:55
  before
• 32:56
  you
• 32:56
  even
• 32:56
  think
• 32:56
  about
• 32:56
  pink.
• 32:57
  And
• 32:57
  so
• 32:57
  here's
• 32:58
  a
• 32:58
  business
• 32:58
  that
• 32:59
  like
• 32:59
  Under
• 32:59
  Armour,
• 32:59
  like
• 33:00
  if
• 33:00
  on
• 33:00
  my,
• 33:00
  my
• 33:01
  beautiful
• 33:01
  nerd
• 33:01
  out
• 33:02
  matrix,
• 33:03
  they're
• 33:03
  right
• 33:03
  on
• 33:03
  the
• 33:04
  bottom
• 33:04
  where
• 33:04
  they
• 33:05
  were
• 33:05
  a
• 33:05
  very
• 33:05
  big
• 33:05
  business
• 33:06
  with
• 33:06
  five
• 33:06
  plus
• 33:06
  billion
• 33:07
  dollars
• 33:07
  and
• 33:08
  not
• 33:08
  making
• 33:08
  very
• 33:09
  much
• 33:09
  margin.
• 33:10
  That's
• 33:10
  now
• 33:10
  changing.
• 33:11
  And
• 33:11
  so
• 33:11
  there's
• 33:11
  a
• 33:11
  new,
• 33:11
  so
• 33:12
  Hillary
• 33:12
  super.
• 33:12
  There's
• 33:13
  a
• 33:13
  new
• 33:13
  CEO
• 33:13
  in
• 33:13
  there.
• 33:14
  I
• 33:15
  think
• 33:15
  she's
• 33:15
  going
• 33:15
  to
• 33:15
  go
• 33:16
  after
• 33:16
  pink
• 33:16
  first.
• 33:16
  I
• 33:17
  think
• 33:17
  she's
• 33:17
  going
• 33:17
  to
• 33:17
  say,
• 33:17
  well
• 33:17
  pink
• 33:18
  has
• 33:18
  fallen
• 33:18
  the
• 33:18
  furthest
• 33:18
  and
• 33:19
  there's
• 33:19
  a
• 33:19
  greatest
• 33:19
  opportunity
• 33:20
  a
• 33:20
  la
• 33:20
  the
• 33:20
  conversation
• 33:20
  we
• 33:21
  just
• 33:21
  had
• 33:21
  on
• 33:21
  Gap.
• 33:21
  Like
• 33:22
  that's
• 33:22
  a
• 33:22
  business
• 33:23
  that
• 33:23
  probably
• 33:23
  gets
• 33:23
  a
• 33:23
  little
• 33:24
  bit
• 33:24
  more
• 33:24
  apparel
• 33:24
  centric,
• 33:25
  a
• 33:25
  little
• 33:25
  bit
• 33:25
  more
• 33:25
  into
• 33:26
  fashion
• 33:26
  and
• 33:27
  then
• 33:27
  rises
• 33:27
  price.
• 33:28
  I
• 33:29
  think
• 33:29
  that
• 33:29
  it's
• 33:30
  a
• 33:30
  business
• 33:30
  that
• 33:30
  should
• 33:30
  have
• 33:31
  a
• 33:31
  lot
• 33:31
  of
• 33:31
  potential
• 33:31
  to
• 33:32
  potentially
• 33:32
  sell
• 33:32
  less
• 33:33
  and
• 33:33
  charge
• 33:33
  more
• 33:33
  and
• 33:33
  make
• 33:33
  more
• 33:34
  money
• 33:34
  because
• 33:34
  that
• 33:35
  you
• 33:35
  should
• 33:35
  be
• 33:35
  able
• 33:35
  to
• 33:35
  drive
• 33:36
  it.
• 33:36
  I
• 33:36
  think
• 33:36
  they
• 33:37
  how
• 33:37
  Do
• 33:37
  I
• 33:37
  know?
• 33:37
  Because
• 33:38
  they
• 33:38
  did
• 33:38
  it
• 33:38
  during
• 33:38
  COVID
• 33:38
  Right.
• 33:39
  We
• 33:39
  alluded
• 33:39
  to
• 33:39
  the
• 33:39
  fact
• 33:39
  that
• 33:39
  they
• 33:40
  were
• 33:40
  the
• 33:40
  best
• 33:41
  stock
• 33:41
  in
• 33:41
  the
• 33:41
  S&P7
• 33:42
  fourth
• 33:43
  again,
• 33:43
  I
• 33:43
  think
• 33:43
  for
• 33:43
  two
• 33:43
  years
• 33:43
  running.
• 33:44
  But
• 33:44
  then
• 33:45
  they
• 33:45
  started
• 33:45
  chasing
• 33:46
  promotions
• 33:47
  again.
• 33:47
  And
• 33:47
  so
• 33:47
  what
• 33:47
  I'm
• 33:48
  hopeful.
• 33:48
  So
• 33:48
  the
• 33:48
  stock
• 33:49
  has
• 33:49
  been
• 33:49
  beautiful.
• 33:49
  We
• 33:49
  have
• 33:50
  again,
• 33:50
  a
• 33:50
  buy
• 33:50
  rating
• 33:50
  on
• 33:51
  the
• 33:51
  stock.
• 33:51
  So
• 33:51
  it's
• 33:51
  company
• 33:52
  I've
• 33:52
  liked
• 33:52
  a
• 33:52
  lot.
• 33:53
  I
• 33:53
  would
• 33:53
  love
• 33:54
  to
• 33:54
  believe
• 33:54
  that
• 33:54
  there's
• 33:55
  just
• 33:55
  a
• 33:55
  tremendous
• 33:55
  amount
• 33:56
  of
• 33:56
  opportunity
• 33:56
  in
• 33:56
  there,
• 33:57
  but
• 33:57
  it's
• 33:57
  more
• 33:58
  so
• 33:58
  I
• 33:58
  think
• 33:59
  revenue.
• 33:59
  Top
• 34:00
  line
• 34:00
  is
• 34:00
  on
• 34:00
  pink
• 34:01
  rather
• 34:01
  than
• 34:01
  Victoria's
• 34:02
  Secret.
• 34:02
  I
• 34:02
  think
• 34:02
  Victoria's
• 34:03
  Secret.
• 34:03
  I
• 34:03
  want
• 34:03
  to
• 34:03
  see
• 34:03
  margin.
• 34:04
  I
• 34:04
  want
• 34:04
  to
• 34:04
  see
• 34:04
  brand
• 34:04
  and
• 34:05
  elevation
• 34:05
  enhancement.
• 34:06
  Makes
• 34:07
  sense.
• 34:07
  Makes
• 34:07
  sense.
• 34:08
  All
• 34:08
  right.
• 34:08
  One
• 34:08
  that
• 34:09
  I'm
• 34:09
  surprised
• 34:09
  you
• 34:09
  haven't
• 34:10
  mentioned
• 34:10
  yet.
• 34:10
  Abercrombie.
• 34:12
  So,
• 34:13
  yeah,
• 34:13
  so
• 34:13
  there's.
• 34:15
  I
• 34:15
  don't
• 34:15
  actually
• 34:15
  cover
• 34:16
  Abercrombie,
• 34:16
  which
• 34:16
  is.
• 34:16
  Which
• 34:17
  is
• 34:17
  the
• 34:17
  reason.
• 34:17
  So.
• 34:18
  So
• 34:18
  I
• 34:19
  used
• 34:19
  to.
• 34:20
  I
• 34:20
  don't.
• 34:20
  But
• 34:20
  I
• 34:21
  look
• 34:21
  at
• 34:21
  it.
• 34:21
  So
• 34:22
  I
• 34:22
  will.
• 34:23
  I
• 34:23
  will
• 34:23
  dodge
• 34:23
  that
• 34:24
  because
• 34:24
  of
• 34:24
  regulatory
• 34:25
  concerns.
• 34:25
  And
• 34:25
  I'll
• 34:26
  flip
• 34:26
  to
• 34:26
  American
• 34:26
  Eagle.
• 34:27
  Just.
• 34:28
  Okay.
• 34:28
  That
• 34:28
  was
• 34:28
  gonna
• 34:28
  be
• 34:28
  my
• 34:28
  next
• 34:28
  one
• 34:29
  anyway,
• 34:29
  so
• 34:29
  that's
• 34:29
  good.
• 34:29
  Okay,
• 34:30
  so
• 34:30
  I'll
• 34:30
  flip
• 34:30
  to
• 34:31
  American
• 34:31
  Eagle,
• 34:31
  which
• 34:31
  obviously
• 34:31
  rhymes
• 34:32
  with
• 34:32
  Abercrombie.
• 34:32
  And
• 34:32
  Fran
• 34:33
  has
• 34:33
  done
• 34:33
  obviously,
• 34:33
  a
• 34:33
  beautiful
• 34:34
  job
• 34:34
  at
• 34:34
  Abercrombie,
• 34:35
  which
• 34:35
  I
• 34:35
  just
• 34:35
  can't
• 34:35
  really
• 34:35
  comment
• 34:36
  it
• 34:36
  on
• 34:36
  as
• 34:36
  a
• 34:36
  stock
• 34:36
  because
• 34:37
  I'm
• 34:37
  not
• 34:37
  allowed
• 34:37
  to.
• 34:38
  I
• 34:38
  think
• 34:38
  that
• 34:39
  what
• 34:39
  you
• 34:39
  have.
• 34:39
  Listen,
• 34:39
  I
• 34:39
  think
• 34:40
  a
• 34:40
  lot
• 34:40
  of
• 34:40
  this
• 34:40
  goes
• 34:40
  down
• 34:40
  to
• 34:40
  size.
• 34:41
  So
• 34:41
  I
• 34:41
  told.
• 34:41
  I
• 34:41
  mentioned
• 34:42
  my
• 34:42
  team.
• 34:42
  They
• 34:43
  are
• 34:43
  excellent.
• 34:44
  One
• 34:44
  of
• 34:44
  the
• 34:44
  things
• 34:44
  we've
• 34:44
  done
• 34:45
  is
• 34:45
  we
• 34:45
  found
• 34:46
  there's
• 34:46
  a
• 34:46
  level
• 34:46
  where
• 34:46
  brands
• 34:46
  ubiquitize.
• 34:47
  I
• 34:48
  used
• 34:48
  to
• 34:48
  say
• 34:48
  peak,
• 34:48
  but
• 34:48
  that's
• 34:49
  wrong.
• 34:49
  They.
• 34:49
  They
• 34:49
  go
• 34:49
  higher,
• 34:50
  but
• 34:50
  then
• 34:50
  they
• 34:50
  come
• 34:50
  back
• 34:50
  down.
• 34:51
  So
• 34:51
  they.
• 34:51
  That
• 34:51
  whole
• 34:51
  second
• 34:52
  grader
• 34:52
  comment
• 34:52
  of
• 34:52
  where
• 34:53
  to
• 34:53
  brand
• 34:53
  stretch,
• 34:53
  we
• 34:54
  found.
• 34:54
  And
• 34:54
  this
• 34:55
  is
• 34:55
  interesting,
• 34:56
  stumbled
• 34:56
  on
• 34:56
  it.
• 34:56
  This
• 34:57
  was
• 34:57
  not
• 34:57
  a
• 34:57
  hypothesis.
• 34:57
  We
• 34:57
  stumbled
• 34:58
  on
• 34:58
  it,
• 34:58
  but
• 34:59
  found
• 34:59
  that
• 34:59
  brands
• 35:00
  in
• 35:00
  the
• 35:00
  U.S.
• 35:01
  peak
• 35:02
  or
• 35:02
  ubiquitized,
• 35:03
  keep
• 35:03
  me
• 35:03
  need
• 35:03
  to
• 35:03
  retrain
• 35:04
  myself
• 35:05
  at
• 35:05
  three
• 35:05
  to
• 35:05
  four
• 35:05
  billion
• 35:06
  dollars.
• 35:07
  They
• 35:07
  go
• 35:07
  higher,
• 35:08
  but
• 35:08
  then
• 35:08
  they
• 35:08
  come
• 35:08
  back
• 35:09
  down.
• 35:09
  Ask
• 35:09
  Michael
• 35:10
  Kors,
• 35:10
  ask
• 35:10
  Gap,
• 35:11
  ask
• 35:11
  Coach,
• 35:12
  ask,
• 35:12
  like
• 35:12
  Ralph
• 35:13
  Lauren.
• 35:13
  All
• 35:13
  these
• 35:13
  businesses
• 35:14
  went
• 35:14
  too
• 35:14
  high
• 35:14
  and
• 35:14
  came
• 35:14
  back
• 35:14
  down.
• 35:15
  And
• 35:16
  what
• 35:17
  it
• 35:17
  means
• 35:17
  also
• 35:17
  though
• 35:17
  is
• 35:18
  if
• 35:18
  you're
• 35:18
  a
• 35:18
  small
• 35:18
  business,
• 35:19
  you
• 35:19
  have
• 35:19
  an
• 35:19
  opportunity.
• 35:19
  Doesn't
• 35:20
  mean
• 35:20
  you're
• 35:20
  guaranteed
• 35:20
  to
• 35:20
  get
• 35:21
  to
• 35:21
  three,
• 35:21
  but
• 35:21
  you
• 35:22
  have
• 35:22
  an
• 35:22
  opportunity
• 35:22
  to
• 35:22
  get
• 35:22
  there.
• 35:23
  Abercrombie
• 35:23
  in
• 35:24
  the
• 35:24
  US
• 35:24
  As
• 35:24
  a
• 35:24
  brand
• 35:25
  is
• 35:25
  much
• 35:25
  smaller.
• 35:26
  And
• 35:26
  so
• 35:26
  American
• 35:26
  Eagle
• 35:27
  keeps
• 35:27
  bumping
• 35:27
  up
• 35:27
  against
• 35:27
  that
• 35:28
  three.
• 35:28
  And
• 35:29
  I
• 35:29
  think
• 35:29
  the
• 35:29
  reason
• 35:30
  I
• 35:30
  say
• 35:30
  this
• 35:30
  is
• 35:30
  I
• 35:30
  think
• 35:30
  what
• 35:31
  we
• 35:31
  need
• 35:31
  to
• 35:31
  do
• 35:31
  is
• 35:31
  I
• 35:31
  think
• 35:31
  we
• 35:32
  need
• 35:32
  to
• 35:32
  remember,
• 35:32
  I
• 35:32
  think
• 35:32
  we
• 35:33
  conflate
• 35:33
  too
• 35:33
  easily
• 35:34
  revenue
• 35:34
  growth
• 35:35
  rates
• 35:35
  and
• 35:36
  revenue
• 35:36
  dollars.
• 35:37
  And
• 35:38
  I
• 35:38
  think
• 35:38
  you
• 35:38
  look
• 35:38
  at
• 35:38
  a
• 35:38
  business
• 35:39
  like
• 35:39
  Abercrombie
• 35:39
  that
• 35:39
  has
• 35:40
  a
• 35:40
  tremendous
• 35:40
  growth
• 35:40
  rate.
• 35:41
  Right.
• 35:41
  Birkenstock
• 35:42
  company
• 35:42
  I
• 35:42
  very
• 35:42
  much
• 35:43
  love.
• 35:43
  I
• 35:43
  think
• 35:43
  they're
• 35:43
  doing
• 35:43
  a
• 35:43
  beautiful
• 35:44
  job
• 35:44
  is
• 35:44
  putting
• 35:45
  up
• 35:45
  20%
• 35:46
  revenue
• 35:46
  growth.
• 35:47
  It's
• 35:47
  just
• 35:47
  a
• 35:47
  smaller
• 35:48
  business,
• 35:48
  so
• 35:48
  they
• 35:48
  have
• 35:48
  a
• 35:48
  lot
• 35:49
  of
• 35:49
  room.
• 35:49
  But
• 35:49
  you're
• 35:50
  able
• 35:50
  to
• 35:50
  grow
• 35:51
  revenues
• 35:51
  at
• 35:51
  a
• 35:51
  much
• 35:51
  greater
• 35:52
  percent
• 35:52
  because
• 35:52
  you're
• 35:52
  a
• 35:53
  much
• 35:53
  smaller
• 35:53
  business.
• 35:54
  American
• 35:55
  Eagle
• 35:55
  keeps
• 35:55
  hitting
• 35:55
  that
• 35:56
  three.
• 35:56
  And
• 35:56
  so
• 35:57
  I
• 35:57
  would
• 35:57
  look
• 35:57
  at
• 35:57
  that
• 35:57
  and
• 35:57
  I
• 35:57
  would
• 35:57
  say,
• 35:58
  listen,
• 35:58
  I
• 35:58
  think
• 35:58
  that
• 35:58
  there's
• 35:59
  an
• 35:59
  element
• 35:59
  where
• 36:00
  obviously
• 36:00
  new
• 36:00
  fashion
• 36:01
  silhouettes
• 36:01
  trend
• 36:01
  change.
• 36:02
  It
• 36:02
  trend
• 36:02
  changes
• 36:03
  create
• 36:04
  closet
• 36:04
  turning
• 36:04
  events.
• 36:05
  And
• 36:05
  that's
• 36:05
  great.
• 36:06
  But
• 36:06
  brand
• 36:07
  resonance,
• 36:07
  at
• 36:07
  the
• 36:07
  end
• 36:07
  of
• 36:08
  the
• 36:08
  day,
• 36:08
  that
• 36:09
  second
• 36:09
  grade
• 36:09
  rule,
• 36:10
  it's
• 36:10
  very
• 36:10
  hard
• 36:11
  rule
• 36:11
  to
• 36:11
  shake.
• 36:12
  It
• 36:12
  doesn't
• 36:12
  matter.
• 36:13
  It
• 36:13
  doesn't
• 36:14
  matter
• 36:14
  if
• 36:14
  all
• 36:14
  of
• 36:14
  a
• 36:14
  sudden
• 36:14
  we're
• 36:14
  back
• 36:15
  to
• 36:15
  a
• 36:15
  red
• 36:15
  denim
• 36:15
  phase
• 36:16
  with,
• 36:16
  with
• 36:16
  the
• 36:16
  Gap
• 36:17
  and
• 36:17
  you
• 36:17
  need
• 36:17
  to
• 36:17
  buy
• 36:17
  a
• 36:17
  new
• 36:17
  red
• 36:17
  denim.
• 36:18
  There's
• 36:18
  only
• 36:18
  so
• 36:19
  much
• 36:19
  red
• 36:19
  denim
• 36:19
  you're
• 36:19
  going
• 36:19
  to
• 36:20
  get
• 36:20
  before
• 36:20
  people
• 36:20
  start
• 36:20
  saying,
• 36:20
  hey,
• 36:21
  that's
• 36:21
  too
• 36:21
  much
• 36:21
  Gap
• 36:21
  product.
• 36:22
  And
• 36:22
  the
• 36:22
  same
• 36:22
  thing,
• 36:23
  I
• 36:23
  think,
• 36:23
  with
• 36:23
  American
• 36:23
  Eagle.
• 36:24
  I
• 36:24
  think
• 36:24
  keep
• 36:24
  that
• 36:24
  in
• 36:24
  mind
• 36:24
  for
• 36:24
  Abercrombie
• 36:25
  and
• 36:25
  Fish.
• 36:25
  Now,
• 36:25
  to
• 36:25
  be
• 36:25
  clear,
• 36:26
  this
• 36:26
  is
• 36:26
  North
• 36:26
  America
• 36:27
  and
• 36:27
  us.
• 36:27
  This
• 36:27
  is
• 36:28
  not
• 36:28
  international
• 36:29
  and
• 36:29
  it's
• 36:29
  not
• 36:29
  a
• 36:29
  different
• 36:30
  brand.
• 36:30
  So
• 36:30
  the
• 36:31
  way
• 36:31
  to
• 36:31
  do
• 36:31
  it
• 36:31
  is,
• 36:31
  well,
• 36:31
  you
• 36:31
  have
• 36:31
  Abercrombie
• 36:32
  and
• 36:32
  Hollister,
• 36:33
  you
• 36:33
  have
• 36:33
  American
• 36:33
  Eagle
• 36:33
  and
• 36:34
  Airy.
• 36:34
  And
• 36:35
  so
• 36:35
  now
• 36:35
  the
• 36:36
  logical
• 36:36
  pushback
• 36:36
  should
• 36:37
  be,
• 36:37
  because
• 36:37
  I
• 36:38
  told
• 36:38
  you,
• 36:38
  you
• 36:38
  have
• 36:38
  to
• 36:38
  ask
• 36:39
  three
• 36:39
  questions
• 36:39
  to
• 36:39
  find
• 36:39
  out
• 36:39
  if
• 36:40
  people
• 36:40
  are
• 36:40
  BSing.
• 36:41
  So
• 36:41
  one
• 36:41
  of
• 36:41
  these
• 36:42
  questions
• 36:42
  should
• 36:42
  be,
• 36:43
  you
• 36:43
  said
• 36:44
  companies
• 36:44
  peak
• 36:44
  there.
• 36:45
  Nike,
• 36:45
  like,
• 36:46
  hello.
• 36:46
  And
• 36:47
  it's
• 36:47
  true.
• 36:47
  Right.
• 36:48
  I've
• 36:48
  got
• 36:48
  my
• 36:48
  bar
• 36:48
  chart
• 36:48
  and
• 36:49
  Nike
• 36:49
  on
• 36:49
  the
• 36:49
  bar
• 36:50
  chart.
• 36:50
  It's
• 36:50
  not
• 36:50
  there.
• 36:51
  And
• 36:51
  in
• 36:51
  my
• 36:51
  footnotes,
• 36:52
  I
• 36:52
  say,
• 36:52
  I
• 36:52
  can't
• 36:52
  put
• 36:53
  Nike
• 36:53
  on
• 36:53
  the
• 36:53
  bar
• 36:53
  chart
• 36:53
  because
• 36:54
  you
• 36:54
  won't
• 36:54
  be
• 36:54
  able
• 36:54
  to
• 36:54
  see
• 36:54
  any
• 36:54
  of
• 36:54
  the
• 36:55
  other.
• 36:55
  Like,
• 36:55
  it'll
• 36:55
  just
• 36:55
  squash
• 36:56
  the
• 36:56
  whole
• 36:56
  thing.
• 36:57
  I
• 36:57
  have
• 36:57
  hypotheses,
• 36:58
  but
• 36:58
  I
• 36:58
  think
• 36:58
  it's
• 36:58
  all
• 36:59
  about
• 36:59
  segmentation.
• 36:59
  It's
• 36:59
  all
• 36:59
  about
• 37:00
  brand.
• 37:00
  I
• 37:00
  think
• 37:01
  part
• 37:01
  of
• 37:01
  your
• 37:01
  goal
• 37:01
  and
• 37:02
  your
• 37:02
  job
• 37:02
  as
• 37:02
  a
• 37:03
  retailer,
• 37:03
  a
• 37:03
  brand,
• 37:04
  is
• 37:04
  to
• 37:04
  make
• 37:04
  sure
• 37:04
  the
• 37:05
  consumer
• 37:05
  doesn't
• 37:05
  feel
• 37:05
  like
• 37:05
  you're
• 37:06
  ubiquitized.
• 37:08
  Yeah,
• 37:08
  well,
• 37:08
  and
• 37:09
  Nike
• 37:09
  and
• 37:09
  Abercrombie
• 37:10
  and
• 37:10
  American
• 37:10
  Eagle,
• 37:11
  they're
• 37:11
  not
• 37:11
  necessarily
• 37:11
  cut
• 37:11
  from
• 37:12
  the
• 37:12
  same
• 37:12
  cloth
• 37:12
  either
• 37:13
  in
• 37:13
  terms
• 37:13
  of
• 37:13
  their
• 37:13
  business
• 37:14
  models
• 37:14
  as
• 37:14
  well.
• 37:14
  So
• 37:15
  I'd
• 37:15
  say
• 37:15
  there's
• 37:15
  a
• 37:15
  little
• 37:15
  bit
• 37:15
  of
• 37:16
  a
• 37:16
  difference
• 37:16
  there
• 37:16
  too.
• 37:16
  And
• 37:16
  how
• 37:17
  I
• 37:17
  would
• 37:17
  view
• 37:17
  them
• 37:17
  in
• 37:17
  terms
• 37:18
  of
• 37:18
  whether
• 37:18
  or
• 37:18
  not
• 37:18
  that
• 37:18
  Rubik
• 37:19
  plays
• 37:19
  out.
• 37:19
  But.
• 37:19
  But
• 37:20
  that
• 37:20
  actually
• 37:20
  brings
• 37:20
  me
• 37:20
  up
• 37:20
  to
• 37:21
  the
• 37:21
  last
• 37:21
  one
• 37:21
  I
• 37:21
  was
• 37:21
  going
• 37:21
  to.
• 37:21
  Let
• 37:22
  me,
• 37:22
  Let
• 37:22
  me,
• 37:22
  Let
• 37:22
  me
• 37:22
  write.
• 37:22
  Let
• 37:23
  me
• 37:23
  write
• 37:23
  quickly,
• 37:24
  really
• 37:24
  quickly.
• 37:24
  You're
• 37:25
  totally.
• 37:25
  You're
• 37:26
  totally
• 37:26
  right.
• 37:26
  But
• 37:27
  that's
• 37:27
  the
• 37:27
  beauty
• 37:27
  of
• 37:27
  this
• 37:28
  bar
• 37:28
  chart.
• 37:28
  Everything.
• 37:29
  It
• 37:29
  applies
• 37:30
  like,
• 37:30
  oddly
• 37:30
  enough,
• 37:31
  it
• 37:31
  applies
• 37:31
  so
• 37:32
  far
• 37:32
  to
• 37:32
  almost
• 37:32
  everything
• 37:33
  from
• 37:33
  Tiffany
• 37:34
  to
• 37:34
  Gucci
• 37:34
  to
• 37:34
  Abercrombie
• 37:35
  to
• 37:35
  Birkenstock
• 37:36
  to
• 37:37
  Under
• 37:37
  Armour
• 37:37
  to
• 37:37
  Ralph.
• 37:38
  Like,
• 37:38
  if
• 37:39
  it's
• 37:39
  a
• 37:39
  discretionary
• 37:40
  brand,
• 37:40
  I
• 37:41
  have
• 37:41
  found
• 37:41
  this
• 37:41
  ubiquity
• 37:42
  level
• 37:42
  hits.
• 37:42
  And
• 37:42
  so
• 37:42
  it
• 37:43
  doesn't
• 37:43
  really
• 37:43
  matter
• 37:43
  on
• 37:43
  price
• 37:44
  because
• 37:44
  if
• 37:45
  there's.
• 37:45
  So
• 37:45
  Nike's
• 37:46
  the
• 37:46
  outlier.
• 37:46
  You're
• 37:46
  saying
• 37:47
  basically,
• 37:47
  Nike
• 37:47
  is
• 37:47
  far.
• 37:48
  Interesting.
• 37:49
  That's
• 37:49
  interesting.
• 37:50
  Nike
• 37:51
  and
• 37:51
  Vuitton
• 37:51
  are.
• 37:51
  Are
• 37:52
  the.
• 37:52
  Are
• 37:52
  the
• 37:52
  outliers.
• 37:53
  Got
• 37:54
  it.
• 37:54
  Which
• 37:54
  is
• 37:54
  a
• 37:54
  perfect
• 37:54
  setup
• 37:55
  for
• 37:55
  this
• 37:55
  last
• 37:56
  one.
• 37:56
  Then.
• 37:56
  First
• 37:57
  thing
• 37:57
  that
• 37:57
  comes
• 37:57
  in
• 37:57
  your
• 37:57
  mind
• 37:57
  and
• 37:57
  then.
• 37:58
  Yeah,
• 37:58
  let's
• 37:58
  have
• 37:58
  you
• 37:58
  explain
• 37:59
  it
• 38:00
  direct
• 38:00
  to
• 38:00
  consumer
• 38:01
  as
• 38:01
  an
• 38:02
  idea.
• 38:03
  What's
• 38:03
  all
• 38:04
  wrapped
• 38:04
  up
• 38:04
  in
• 38:04
  that
• 38:04
  term?
• 38:05
  Dead.
• 38:06
  Yes.
• 38:06
  No,
• 38:07
  no,
• 38:07
  but
• 38:08
  buzzword.
• 38:08
  Buzzword
• 38:09
  is
• 38:09
  the
• 38:09
  right
• 38:09
  answer.
• 38:09
  Yeah.
• 38:11
  Past
• 38:11
  its
• 38:11
  prime.
• 38:12
  Well.
• 38:13
  Well,
• 38:14
  I
• 38:15
  think
• 38:15
  it's
• 38:15
  funny.
• 38:15
  I
• 38:15
  have
• 38:15
  to
• 38:15
  give
• 38:16
  you
• 38:16
  a
• 38:16
  lot.
• 38:16
  I
• 38:16
  think
• 38:16
  buzzword
• 38:17
  is
• 38:17
  one.
• 38:17
  I
• 38:18
  think
• 38:18
  distribution
• 38:19
  mechanism
• 38:20
  is
• 38:20
  really
• 38:20
  the
• 38:20
  right
• 38:21
  answer.
• 38:21
  That's
• 38:21
  all
• 38:22
  it
• 38:22
  is,
• 38:22
  right.
• 38:22
  It's
• 38:23
  not.
• 38:23
  D2C
• 38:24
  is
• 38:24
  important.
• 38:25
  It
• 38:25
  always
• 38:25
  has
• 38:25
  been,
• 38:25
  it
• 38:26
  always
• 38:26
  will
• 38:26
  be.
• 38:27
  But
• 38:27
  it's
• 38:27
  not
• 38:27
  an
• 38:28
  identity.
• 38:28
  Like
• 38:29
  we
• 38:29
  start.
• 38:29
  It
• 38:30
  got
• 38:30
  to
• 38:30
  the
• 38:30
  point
• 38:30
  where
• 38:30
  we
• 38:30
  were
• 38:31
  talking
• 38:31
  about
• 38:31
  brands
• 38:32
  that
• 38:33
  they
• 38:33
  were
• 38:33
  D2C
• 38:33
  brands
• 38:34
  like
• 38:34
  here.
• 38:34
  You're
• 38:34
  telling
• 38:34
  me
• 38:35
  very
• 38:35
  rightly
• 38:35
  so,
• 38:35
  that
• 38:36
  Nike
• 38:36
  and
• 38:36
  Eagle
• 38:36
  are
• 38:36
  not
• 38:37
  cut
• 38:37
  from
• 38:37
  the
• 38:37
  same
• 38:37
  cloth.
• 38:37
  And
• 38:38
  yet
• 38:39
  companies
• 38:39
  like
• 38:40
  Casper
• 38:41
  and
• 38:41
  Third
• 38:41
  Love
• 38:42
  and
• 38:43
  I
• 38:44
  don't
• 38:44
  know,
• 38:44
  think
• 38:44
  of
• 38:44
  some
• 38:44
  crazy.
• 38:45
  That
• 38:45
  like
• 38:45
  probably
• 38:45
  Ember
• 38:46
  mug,
• 38:46
  right?
• 38:46
  Like
• 38:46
  companies
• 38:47
  that
• 38:47
  have
• 38:47
  nothing
• 38:47
  to
• 38:47
  do
• 38:47
  with
• 38:48
  each
• 38:48
  other,
• 38:48
  but
• 38:48
  because
• 38:48
  they
• 38:48
  sold
• 38:49
  direct,
• 38:49
  we're
• 38:50
  all
• 38:50
  of
• 38:50
  a
• 38:50
  sudden
• 38:50
  the
• 38:50
  same.
• 38:51
  Like,
• 38:51
  I'm
• 38:51
  sorry,
• 38:52
  Abercrombie
• 38:52
  and
• 38:52
  Eagle
• 38:53
  and
• 38:53
  Nike
• 38:53
  are
• 38:53
  dramatically
• 38:53
  closer
• 38:54
  to
• 38:54
  each
• 38:54
  other
• 38:55
  than
• 38:55
  companies
• 38:55
  that
• 38:56
  just
• 38:56
  happened
• 38:56
  to
• 38:56
  sell
• 38:57
  via
• 38:57
  a
• 38:57
  website.
• 38:58
  But
• 38:58
  that's
• 38:58
  not
• 38:58
  how
• 38:58
  they
• 38:58
  became
• 38:59
  looked.
• 38:59
  It
• 39:00
  was.
• 39:00
  Became
• 39:00
  your
• 39:00
  identity.
• 39:01
  And
• 39:01
  I
• 39:01
  think
• 39:01
  that
• 39:01
  was
• 39:02
  the
• 39:02
  problem.
• 39:02
  And
• 39:02
  so
• 39:03
  what
• 39:03
  I
• 39:03
  would
• 39:03
  say
• 39:04
  is
• 39:04
  D2C
• 39:04
  is
• 39:04
  necessary.
• 39:05
  Right?
• 39:05
  Necessary
• 39:05
  could
• 39:06
  be
• 39:06
  a
• 39:06
  word
• 39:06
  as
• 39:06
  well.
• 39:07
  It's
• 39:07
  not
• 39:07
  sufficient.
• 39:08
  Right.
• 39:08
  It's.
• 39:09
  It's
• 39:09
  not
• 39:09
  who
• 39:09
  you
• 39:10
  are.
• 39:10
  It's
• 39:10
  a
• 39:11
  way
• 39:11
  to
• 39:11
  get
• 39:11
  product
• 39:12
  to
• 39:12
  your
• 39:12
  consumer.
• 39:12
  But
• 39:12
  we
• 39:12
  need
• 39:13
  to
• 39:13
  remember
• 39:13
  is
• 39:14
  since
• 39:14
  the
• 39:14
  beginning
• 39:14
  of
• 39:15
  time,
• 39:15
  or
• 39:15
  at
• 39:15
  least
• 39:16
  since
• 39:16
  Disney's
• 39:16
  Aladdin
• 39:17
  and
• 39:17
  that
• 39:18
  Julianne
• 39:18
  Fries
• 39:18
  dish
• 39:19
  in
• 39:19
  the
• 39:19
  Bazaar,
• 39:20
  like
• 39:20
  people
• 39:21
  make,
• 39:21
  there's
• 39:22
  an
• 39:22
  entity
• 39:22
  that
• 39:22
  makes
• 39:23
  Content
• 39:24
  or
• 39:24
  product.
• 39:24
  There's
• 39:25
  an
• 39:25
  entity
• 39:25
  that
• 39:25
  absorbs
• 39:26
  and
• 39:26
  uses
• 39:27
  content
• 39:27
  or
• 39:27
  product,
• 39:28
  and
• 39:28
  then
• 39:28
  there's
• 39:28
  a
• 39:28
  distribution
• 39:29
  channel
• 39:29
  in
• 39:29
  between.
• 39:30
  And
• 39:30
  so
• 39:31
  there's
• 39:31
  a
• 39:31
  role
• 39:31
  for
• 39:31
  everything.
• 39:32
  But
• 39:32
  you
• 39:33
  got
• 39:33
  to
• 39:33
  figure
• 39:33
  out
• 39:33
  what
• 39:34
  your
• 39:34
  role
• 39:34
  is.
• 39:34
  Right.
• 39:35
  Are
• 39:35
  you
• 39:35
  the
• 39:35
  creator,
• 39:36
  are
• 39:36
  you
• 39:36
  the
• 39:37
  consumer,
• 39:38
  or
• 39:38
  are
• 39:38
  you
• 39:38
  the
• 39:38
  distributor?
• 39:39
  And
• 39:40
  that's
• 39:40
  fine.
• 39:40
  Right.
• 39:40
  But
• 39:41
  if
• 39:41
  you're
• 39:41
  the
• 39:41
  distributor,
• 39:41
  you're
• 39:42
  distributing
• 39:42
  product
• 39:42
  like
• 39:43
  it's
• 39:43
  just
• 39:43
  thinking
• 39:43
  about
• 39:44
  what
• 39:44
  it
• 39:44
  is.
• 39:44
  And
• 39:44
  I
• 39:44
  think
• 39:44
  the
• 39:45
  highest
• 39:45
  level,
• 39:46
  because
• 39:46
  I
• 39:46
  think
• 39:46
  this
• 39:46
  was
• 39:47
  like
• 39:47
  the
• 39:47
  easiest
• 39:48
  way
• 39:48
  I
• 39:48
  synthesized
• 39:49
  my,
• 39:49
  that
• 39:50
  report,
• 39:50
  I
• 39:50
  referenced
• 39:50
  the
• 39:50
  D2C's
• 39:51
  knowledge
• 39:51
  cracked
• 39:51
  up
• 39:51
  to
• 39:52
  be.
• 39:52
  I
• 39:52
  think
• 39:53
  we
• 39:53
  got
• 39:53
  enamored
• 39:54
  by
• 39:54
  the
• 39:54
  idea
• 39:55
  that
• 39:55
  if
• 39:55
  I
• 39:55
  eliminate
• 39:56
  the
• 39:56
  middle
• 39:56
  person,
• 39:56
  I
• 39:57
  make
• 39:57
  more
• 39:57
  money.
• 39:57
  Yeah.
• 39:58
  And
• 39:58
  I
• 39:58
  think.
• 39:58
  Which
• 39:59
  is
• 39:59
  this.
• 39:59
  Yeah,
• 40:00
  I
• 40:00
  think
• 40:00
  that
• 40:00
  was
• 40:00
  the
• 40:00
  same
• 40:01
  issue
• 40:01
  we
• 40:01
  saw
• 40:01
  going
• 40:01
  back
• 40:02
  in
• 40:02
  the
• 40:02
  early,
• 40:03
  late
• 40:03
  90s,
• 40:03
  early
• 40:04
  2000s.
• 40:04
  The
• 40:04
  same
• 40:04
  issue.
• 40:05
  Right.
• 40:06
  And
• 40:06
  I
• 40:06
  think
• 40:06
  what
• 40:06
  people
• 40:07
  didn't
• 40:07
  realize,
• 40:08
  because
• 40:08
  again,
• 40:08
  it
• 40:09
  was
• 40:09
  easy
• 40:09
  not
• 40:09
  to,
• 40:10
  was
• 40:10
  you
• 40:10
  don't
• 40:10
  eliminate
• 40:11
  the
• 40:11
  middle
• 40:11
  person.
• 40:11
  You
• 40:12
  don't,
• 40:12
  you
• 40:12
  just
• 40:13
  become
• 40:13
  them.
• 40:14
  And
• 40:14
  by
• 40:14
  the
• 40:14
  way,
• 40:14
  you
• 40:14
  have
• 40:15
  to.
• 40:15
  Take
• 40:15
  on
• 40:15
  the
• 40:15
  costs.
• 40:16
  Exactly.
• 40:17
  And
• 40:17
  by
• 40:17
  the
• 40:17
  way,
• 40:17
  and
• 40:17
  you
• 40:18
  know
• 40:18
  this
• 40:18
  obviously
• 40:19
  dramatically
• 40:19
  better
• 40:19
  than
• 40:20
  I
• 40:20
  do,
• 40:21
  Target
• 40:22
  has
• 40:22
  a
• 40:22
  low
• 40:22
  gross
• 40:23
  margin.
• 40:23
  Macy's
• 40:23
  has
• 40:24
  a
• 40:24
  low
• 40:24
  gross
• 40:24
  margin,
• 40:24
  like
• 40:25
  Dick's
• 40:25
  Sporting
• 40:25
  Goods.
• 40:25
  Low
• 40:26
  gross
• 40:26
  margin.
• 40:26
  The
• 40:26
  distributor
• 40:27
  doesn't
• 40:27
  make
• 40:28
  much
• 40:28
  money.
• 40:28
  They
• 40:29
  play
• 40:29
  the
• 40:29
  volume
• 40:29
  game.
• 40:30
  And
• 40:30
  so
• 40:31
  if
• 40:31
  they
• 40:31
  have
• 40:31
  a
• 40:31
  low
• 40:31
  gross
• 40:32
  margin,
• 40:32
  the
• 40:33
  corollary
• 40:33
  to
• 40:34
  that
• 40:34
  is
• 40:34
  their
• 40:34
  cogs,
• 40:35
  their
• 40:35
  cost
• 40:35
  of
• 40:35
  goods
• 40:35
  are
• 40:36
  high.
• 40:36
  Well,
• 40:36
  their
• 40:37
  cost
• 40:37
  of
• 40:37
  goods,
• 40:37
  bear
• 40:38
  with
• 40:38
  me
• 40:38
  here.
• 40:38
  Their
• 40:38
  cost
• 40:38
  of
• 40:39
  goods
• 40:39
  are
• 40:39
  the
• 40:39
  vendor's
• 40:40
  profits.
• 40:40
  Right.
• 40:41
  And
• 40:41
  so
• 40:42
  not
• 40:42
  only
• 40:42
  do
• 40:42
  you
• 40:43
  become
• 40:43
  the
• 40:43
  distributor,
• 40:44
  you
• 40:44
  become
• 40:44
  the
• 40:44
  middle
• 40:44
  person.
• 40:45
  The
• 40:45
  middle
• 40:45
  person
• 40:45
  doesn't
• 40:46
  make
• 40:46
  much
• 40:46
  money
• 40:46
  against
• 40:46
  you.
• 40:47
  There
• 40:47
  are
• 40:47
  very
• 40:47
  economically
• 40:48
  efficient
• 40:48
  means
• 40:48
  of
• 40:48
  distribution.
• 40:49
  Let
• 40:49
  them
• 40:49
  do
• 40:50
  their
• 40:50
  job.
• 40:51
  And
• 40:52
  I
• 40:52
  think
• 40:52
  that's
• 40:52
  the
• 40:52
  part
• 40:52
  that
• 40:53
  I
• 40:53
  think
• 40:53
  people
• 40:53
  missed.
• 40:54
  And
• 40:54
  it
• 40:54
  just
• 40:54
  became
• 40:55
  so
• 40:55
  easy
• 40:55
  to
• 40:55
  go
• 40:55
  down
• 40:55
  that
• 40:56
  rabbit
• 40:56
  hole.
• 40:56
  And
• 40:56
  I
• 40:56
  think,
• 40:56
  thankfully
• 40:57
  I
• 40:58
  don't
• 40:58
  have
• 40:58
  to
• 40:58
  fight
• 40:58
  that
• 40:58
  fight
• 40:59
  anymore.
• 40:59
  So
• 41:00
  it's
• 41:00
  not
• 41:00
  to
• 41:00
  say
• 41:01
  like
• 41:01
  I,
• 41:01
  I
• 41:01
  became
• 41:02
  known
• 41:02
  as
• 41:02
  like
• 41:02
  this
• 41:02
  anti
• 41:03
  D2C
• 41:03
  guy.
• 41:03
  I'm
• 41:04
  not
• 41:04
  anti
• 41:04
  D
• 41:04
  to
• 41:04
  C.
• 41:05
  I'm
• 41:05
  anti,
• 41:05
  anti
• 41:05
  wholesale.
• 41:06
  And
• 41:06
  I
• 41:06
  think
• 41:07
  that's
• 41:07
  the
• 41:07
  point
• 41:07
  of
• 41:07
  internalize
• 41:08
  what
• 41:08
  the
• 41:09
  right
• 41:09
  level
• 41:09
  distribution.
• 41:10
  But
• 41:10
  that's
• 41:10
  not
• 41:10
  who
• 41:10
  you
• 41:11
  are.
• 41:11
  That's
• 41:11
  just
• 41:11
  how
• 41:11
  you
• 41:12
  play
• 41:12
  out
• 41:12
  what
• 41:13
  you
• 41:13
  want
• 41:13
  to
• 41:13
  be.
• 41:14
  Yeah.
• 41:14
  And
• 41:14
  what
• 41:14
  you.
• 41:15
  I
• 41:15
  100%
• 41:15
  agree
• 41:15
  with
• 41:16
  what
• 41:16
  you
• 41:16
  just
• 41:16
  said
• 41:16
  there.
• 41:16
  And
• 41:16
  that
• 41:16
  was
• 41:17
  partly
• 41:17
  why,
• 41:17
  you
• 41:17
  know,
• 41:17
  I
• 41:18
  railed
• 41:18
  on
• 41:18
  the
• 41:18
  brandless
• 41:19
  concept
• 41:19
  for
• 41:19
  so
• 41:20
  long,
• 41:20
  the
• 41:20
  whole
• 41:20
  brand
• 41:20
  tax,
• 41:21
  where
• 41:21
  they
• 41:22
  were
• 41:22
  forgetting
• 41:22
  that
• 41:22
  all
• 41:22
  those
• 41:23
  costs
• 41:23
  still
• 41:23
  have
• 41:23
  to
• 41:23
  be
• 41:24
  accrued
• 41:24
  by
• 41:24
  somebody
• 41:25
  and
• 41:25
  it's
• 41:25
  going
• 41:25
  to
• 41:25
  be
• 41:25
  you
• 41:26
  yourself
• 41:26
  as
• 41:26
  the
• 41:27
  brand
• 41:27
  or
• 41:27
  the
• 41:27
  retailer
• 41:28
  that
• 41:28
  you're
• 41:28
  trying
• 41:28
  to
• 41:28
  put
• 41:28
  this
• 41:29
  into
• 41:29
  play.
• 41:29
  The
• 41:29
  one
• 41:29
  question
• 41:30
  I
• 41:30
  would
• 41:30
  ask
• 41:30
  though,
• 41:30
  and
• 41:30
  I
• 41:31
  think
• 41:31
  Ann
• 41:31
  might
• 41:31
  have
• 41:32
  a
• 41:32
  question
• 41:32
  she
• 41:32
  wants
• 41:32
  to
• 41:32
  ask
• 41:32
  you
• 41:32
  too.
• 41:33
  Um,
• 41:34
  you
• 41:35
  said
• 41:35
  it's
• 41:35
  a
• 41:35
  nest.
• 41:35
  DTC
• 41:36
  is
• 41:36
  a
• 41:36
  necessary
• 41:37
  condition.
• 41:38
  Is
• 41:38
  it
• 41:38
  though?
• 41:38
  Because
• 41:39
  like
• 41:39
  you
• 41:39
  singled
• 41:39
  out
• 41:40
  TJX
• 41:40
  before
• 41:41
  and
• 41:41
  TGX
• 41:42
  almost
• 41:42
  has
• 41:42
  no
• 41:43
  traditional
• 41:44
  direct
• 41:45
  to
• 41:45
  consumer
• 41:45
  presence.
• 41:46
  Or.
• 41:46
  Or
• 41:47
  am
• 41:47
  I
• 41:47
  using
• 41:48
  that
• 41:48
  term
• 41:49
  incorrectly
• 41:50
  in
• 41:50
  assessing
• 41:50
  them?
• 41:51
  Okay,
• 41:52
  so
• 41:52
  that,
• 41:52
  that's
• 41:52
  a
• 41:52
  very
• 41:52
  fair
• 41:53
  point.
• 41:53
  It's
• 41:53
  a
• 41:53
  good
• 41:53
  clarification.
• 41:54
  So
• 41:54
  when
• 41:54
  I
• 41:54
  refer.
• 41:55
  Thank
• 41:55
  you.
• 41:55
  When
• 41:55
  I
• 41:56
  refer
• 41:56
  to
• 41:56
  D2C
• 41:56
  I
• 41:57
  refer
• 41:57
  to
• 41:57
  it
• 41:57
  as
• 41:57
  direct
• 41:57
  to
• 41:57
  consumer,
• 41:58
  not
• 41:58
  as
• 41:58
  digital.
• 41:59
  And
• 41:59
  so
• 42:00
  to
• 42:00
  me
• 42:01
  and,
• 42:01
  and
• 42:01
  I
• 42:01
  think
• 42:02
  you
• 42:02
  asked
• 42:02
  two
• 42:02
  different
• 42:02
  really
• 42:03
  good
• 42:03
  questions
• 42:03
  there.
• 42:04
  Great
• 42:04
  point.
• 42:04
  TJX.
• 42:05
  So
• 42:06
  yeah,
• 42:06
  so
• 42:06
  every
• 42:06
  time
• 42:06
  I
• 42:06
  use
• 42:07
  D2C
• 42:07
  it's.
• 42:07
  It's
• 42:08
  your
• 42:08
  own
• 42:09
  stores
• 42:09
  or
• 42:09
  your
• 42:09
  own
• 42:09
  E
• 42:10
  commerce
• 42:10
  as
• 42:10
  opposed
• 42:11
  to
• 42:11
  using
• 42:11
  a
• 42:11
  partner
• 42:12
  using
• 42:12
  a
• 42:12
  wholesale
• 42:13
  plan.
• 42:13
  TJX
• 42:14
  is
• 42:15
  entirely
• 42:15
  dtc.
• 42:16
  So
• 42:16
  TJX
• 42:17
  is
• 42:17
  selling
• 42:17
  their
• 42:18
  product.
• 42:18
  So
• 42:19
  they
• 42:19
  are
• 42:19
  selling
• 42:19
  or
• 42:20
  other
• 42:20
  people's
• 42:20
  product.
• 42:20
  But
• 42:20
  they
• 42:21
  are
• 42:21
  the
• 42:21
  D2C
• 42:21
  channel.
• 42:21
  Macy's
• 42:22
  is
• 42:22
  the
• 42:22
  direct
• 42:22
  to
• 42:23
  consumer
• 42:23
  channel.
• 42:23
  Target
• 42:24
  is
• 42:24
  the
• 42:24
  direct
• 42:24
  to
• 42:24
  consumer
• 42:24
  channel.
• 42:25
  Now
• 42:25
  it's
• 42:25
  a
• 42:25
  direct
• 42:26
  consumer
• 42:26
  channel
• 42:26
  of
• 42:27
  brands
• 42:27
  that
• 42:27
  are
• 42:27
  wholesaling
• 42:28
  through
• 42:28
  them.
• 42:29
  So
• 42:29
  the
• 42:29
  question
• 42:30
  there
• 42:30
  is
• 42:30
  like,
• 42:30
  is
• 42:30
  it
• 42:30
  your
• 42:30
  own
• 42:30
  brand?
• 42:31
  So,
• 42:31
  so
• 42:31
  I
• 42:31
  would
• 42:31
  say
• 42:32
  one,
• 42:32
  I
• 42:32
  actually
• 42:32
  think
• 42:32
  TJ
• 42:33
  is
• 42:33
  the
• 42:33
  MA
• 42:33
  perfect
• 42:33
  manifestation
• 42:34
  of
• 42:34
  D2C
• 42:35
  vis
• 42:35
  A
• 42:35
  vis
• 42:35
  your
• 42:35
  point
• 42:36
  about
• 42:36
  digital,
• 42:36
  which
• 42:36
  I
• 42:36
  think
• 42:37
  was
• 42:37
  a
• 42:37
  reference
• 42:37
  to.
• 42:37
  I
• 42:38
  actually,
• 42:38
  and
• 42:38
  this
• 42:38
  is
• 42:38
  totally
• 42:39
  separate.
• 42:39
  We
• 42:39
  could
• 42:39
  have
• 42:39
  a
• 42:39
  whole
• 42:40
  another
• 42:40
  show
• 42:40
  on
• 42:40
  TJ
• 42:40
  which
• 42:40
  is
• 42:41
  worth
• 42:41
  doing.
• 42:41
  I
• 42:41
  actually
• 42:42
  think
• 42:42
  TJ
• 42:43
  wins
• 42:43
  because
• 42:43
  they
• 42:44
  don't
• 42:44
  have
• 42:44
  ecom.
• 42:44
  They
• 42:44
  have
• 42:45
  a
• 42:45
  tiny
• 42:45
  bit,
• 42:45
  but
• 42:45
  I
• 42:45
  think
• 42:45
  they
• 42:45
  win.
• 42:46
  They
• 42:46
  win
• 42:46
  because
• 42:46
  they
• 42:46
  don't
• 42:46
  have
• 42:46
  ecom.
• 42:47
  Not
• 42:47
  in
• 42:47
  spite
• 42:47
  of
• 42:47
  it.
• 42:48
  Because
• 42:48
  I
• 42:48
  think
• 42:48
  the
• 42:48
  role
• 42:48
  that
• 42:49
  TJ
• 42:49
  plays
• 42:49
  very
• 42:50
  beautifully
• 42:50
  is
• 42:50
  they're
• 42:51
  the
• 42:51
  invisible
• 42:51
  way
• 42:51
  to
• 42:51
  drop
• 42:52
  to
• 42:52
  get
• 42:52
  rid
• 42:52
  of
• 42:52
  stuff.
• 42:52
  Like
• 42:53
  they're.
• 42:53
  Instead
• 42:54
  of
• 42:54
  Burberry
• 42:54
  burning.
• 42:55
  I
• 42:55
  don't
• 42:56
  know
• 42:56
  who
• 42:56
  you're
• 42:56
  on
• 42:56
  crap,
• 42:57
  whatever,
• 42:57
  garbage.
• 42:58
  Anyway,
• 42:58
  instead
• 42:58
  of
• 42:58
  Burberry
• 42:59
  burning
• 42:59
  and
• 42:59
  moving
• 42:59
  on,
• 43:00
  they
• 43:00
  just.
• 43:00
  You
• 43:01
  can
• 43:01
  offload
• 43:01
  it
• 43:02
  at
• 43:02
  tjx
• 43:02
  and
• 43:03
  the
• 43:03
  three
• 43:03
  of
• 43:03
  us
• 43:03
  don't
• 43:03
  even
• 43:03
  know
• 43:04
  they're
• 43:04
  doing
• 43:04
  it.
• 43:04
  I
• 43:04
  remember
• 43:04
  talking
• 43:05
  to
• 43:05
  a
• 43:05
  CEO
• 43:06
  brand
• 43:06
  a
• 43:06
  little
• 43:06
  bit
• 43:06
  earlier,
• 43:07
  a
• 43:07
  bunch
• 43:07
  of
• 43:07
  years
• 43:08
  ago
• 43:08
  actually.
• 43:08
  And
• 43:08
  I
• 43:08
  said
• 43:08
  to
• 43:09
  you,
• 43:09
  I
• 43:09
  won't
• 43:09
  say
• 43:09
  who,
• 43:09
  but
• 43:10
  I
• 43:10
  said,
• 43:10
  do
• 43:10
  you
• 43:10
  sell
• 43:10
  to
• 43:10
  tj?
• 43:11
  And
• 43:11
  it
• 43:11
  was
• 43:11
  like
• 43:11
  a
• 43:11
  luxury
• 43:12
  ish
• 43:12
  brand.
• 43:12
  And
• 43:12
  he
• 43:13
  looked
• 43:13
  at
• 43:13
  me
• 43:13
  and
• 43:14
  said
• 43:14
  no.
• 43:15
  And
• 43:15
  for
• 43:15
  anyone
• 43:16
  listening,
• 43:16
  nodding
• 43:17
  My
• 43:17
  head.
• 43:19
  He's
• 43:19
  like,
• 43:19
  listen,
• 43:19
  when
• 43:20
  we've
• 43:20
  got.
• 43:20
  And
• 43:20
  I
• 43:20
  won't
• 43:21
  say
• 43:21
  the
• 43:21
  product,
• 43:21
  but
• 43:21
  when
• 43:21
  we've
• 43:22
  got
• 43:22
  900
• 43:22
  of
• 43:23
  whatever
• 43:23
  my
• 43:23
  product
• 43:23
  is
• 43:24
  to
• 43:24
  move,
• 43:24
  we
• 43:24
  just
• 43:24
  put
• 43:25
  three
• 43:26
  in
• 43:26
  three
• 43:26
  different.
• 43:26
  In
• 43:26
  300
• 43:27
  different
• 43:27
  stores
• 43:27
  and
• 43:28
  it's
• 43:28
  gone.
• 43:28
  And
• 43:29
  you
• 43:29
  didn't
• 43:29
  know
• 43:29
  it.
• 43:30
  And
• 43:30
  so
• 43:30
  I
• 43:30
  feel
• 43:31
  somewhere.
• 43:31
  Yeah.
• 43:31
  And
• 43:32
  I
• 43:32
  don't
• 43:32
  think
• 43:32
  you.
• 43:33
  You
• 43:33
  don't
• 43:34
  want
• 43:34
  that
• 43:34
  to
• 43:34
  be
• 43:34
  searchable
• 43:35
  online.
• 43:35
  Like,
• 43:35
  the
• 43:36
  whole
• 43:36
  point
• 43:36
  is
• 43:36
  it's
• 43:36
  invisible.
• 43:37
  So
• 43:37
  I
• 43:37
  think
• 43:37
  that's
• 43:38
  there.
• 43:38
  But
• 43:38
  you
• 43:38
  did
• 43:39
  ask
• 43:39
  a
• 43:39
  different
• 43:39
  question
• 43:39
  and
• 43:39
  it's
• 43:40
  a
• 43:40
  good
• 43:40
  question
• 43:40
  to
• 43:40
  push
• 43:40
  on
• 43:40
  me
• 43:41
  because
• 43:41
  I
• 43:41
  was
• 43:41
  more
• 43:41
  probably
• 43:42
  saying
• 43:42
  it
• 43:42
  to
• 43:42
  market
• 43:42
  and
• 43:43
  sound
• 43:43
  nice
• 43:43
  about
• 43:43
  necessary
• 43:44
  versus
• 43:44
  sufficient,
• 43:44
  pretend
• 43:45
  to
• 43:45
  sound
• 43:45
  smart
• 43:45
  about
• 43:45
  logic.
• 43:46
  You
• 43:46
  are
• 43:46
  right.
• 43:46
  There
• 43:47
  are
• 43:47
  brands
• 43:47
  that
• 43:49
  probably
• 43:49
  can
• 43:50
  be
• 43:50
  fully
• 43:50
  wholesale
• 43:51
  now.
• 43:51
  It's
• 43:51
  probably
• 43:52
  very
• 43:52
  much
• 43:53
  the
• 43:53
  anomaly,
• 43:53
  like
• 43:54
  to
• 43:54
  have
• 43:54
  zero
• 43:55
  of
• 43:55
  your
• 43:55
  own
• 43:55
  DTC
• 43:56
  presence.
• 43:56
  But
• 43:57
  there
• 43:57
  are
• 43:57
  plenty
• 43:57
  of
• 43:57
  brands
• 43:57
  that
• 43:58
  you
• 43:58
  and
• 43:58
  I
• 43:58
  have
• 43:58
  never
• 43:58
  heard
• 43:58
  of
• 43:59
  and
• 43:59
  will
• 43:59
  never
• 43:59
  hear
• 44:00
  of
• 44:00
  that
• 44:00
  do
• 44:01
  keeping
• 44:01
  on
• 44:01
  tj,
• 44:02
  job
• 44:02
  their
• 44:02
  way
• 44:02
  through
• 44:02
  TJ
• 44:03
  and
• 44:03
  just
• 44:03
  have
• 44:03
  crazy
• 44:04
  amounts
• 44:04
  of
• 44:04
  units,
• 44:05
  make
• 44:05
  crazy
• 44:05
  amounts
• 44:05
  of
• 44:05
  money
• 44:06
  and
• 44:06
  that's
• 44:06
  fine.
• 44:07
  So
• 44:07
  you're
• 44:07
  probably
• 44:08
  right.
• 44:08
  It's
• 44:08
  probably
• 44:09
  not
• 44:09
  necessary.
• 44:10
  But
• 44:11
  by
• 44:11
  all
• 44:11
  accounts
• 44:12
  of
• 44:12
  most
• 44:12
  businesses,
• 44:12
  there's
• 44:13
  going
• 44:13
  to
• 44:13
  be
• 44:13
  some
• 44:14
  direct
• 44:15
  representation.
• 44:17
  I
• 44:17
  just.
• 44:18
  But.
• 44:18
  But
• 44:18
  yes,
• 44:18
  I
• 44:18
  think
• 44:19
  that
• 44:19
  is
• 44:19
  a
• 44:19
  fair
• 44:19
  pushback.
• 44:20
  I
• 44:20
  will
• 44:20
  gladly
• 44:21
  take
• 44:21
  that.
• 44:21
  Thank
• 44:21
  you
• 44:21
  for
• 44:21
  putting
• 44:22
  me
• 44:22
  in
• 44:22
  my
• 44:22
  place.
• 44:24
  Wasn't
• 44:24
  my
• 44:24
  intention.
• 44:25
  It
• 44:25
  wasn't
• 44:25
  my
• 44:25
  attention.
• 44:26
  My
• 44:26
  intention
• 44:26
  was
• 44:26
  just
• 44:26
  to
• 44:26
  make
• 44:26
  sure
• 44:27
  we
• 44:27
  understand
• 44:27
  everything
• 44:28
  at
• 44:28
  play
• 44:28
  here.
• 44:29
  Well,
• 44:30
  Simeon,
• 44:31
  I
• 44:31
  want
• 44:31
  to
• 44:31
  thank
• 44:32
  you.
• 44:32
  You've
• 44:32
  given
• 44:32
  us
• 44:33
  so
• 44:33
  much
• 44:33
  to
• 44:33
  think
• 44:33
  about.
• 44:34
  I
• 44:34
  feel
• 44:34
  like
• 44:34
  I
• 44:34
  just
• 44:35
  sat
• 44:35
  through
• 44:35
  the
• 44:36
  Econ
• 44:36
  101
• 44:37
  course
• 44:37
  that
• 44:37
  you
• 44:38
  were
• 44:38
  just
• 44:38
  talking
• 44:38
  about
• 44:39
  earlier.
• 44:40
  If
• 44:41
  people
• 44:41
  enjoyed
• 44:42
  this,
• 44:42
  which
• 44:42
  I'm
• 44:43
  sure
• 44:43
  they
• 44:43
  did,
• 44:44
  what's
• 44:44
  the
• 44:44
  best
• 44:45
  way
• 44:45
  for
• 44:45
  them
• 44:45
  to
• 44:46
  get
• 44:46
  in
• 44:46
  touch
• 44:46
  with
• 44:47
  you
• 44:47
  to
• 44:47
  find
• 44:47
  out
• 44:48
  more
• 44:48
  or
• 44:48
  even
• 44:48
  just
• 44:49
  to
• 44:49
  like,
• 44:49
  follow
• 44:50
  the
• 44:50
  work
• 44:50
  that
• 44:50
  you're
• 44:50
  putting
• 44:51
  out
• 44:51
  there
• 44:51
  and
• 44:52
  similar
• 44:52
  conversations
• 44:53
  to
• 44:53
  this.
• 44:54
  So
• 44:54
  it
• 44:54
  is
• 44:54
  great
• 44:55
  to
• 44:55
  be
• 44:55
  here.
• 44:55
  I've
• 44:55
  loved
• 44:55
  it.
• 44:55
  And
• 44:56
  finally.
• 44:56
  I'm
• 44:56
  glad
• 44:56
  we
• 44:56
  finally
• 44:57
  made
• 44:57
  it
• 44:57
  happen.
• 44:57
  I
• 44:57
  look
• 44:57
  forward
• 44:57
  to
• 44:58
  the
• 44:58
  next
• 44:58
  one.
• 44:59
  I'm
• 44:59
  probably
• 45:00
  easiest
• 45:00
  on
• 45:00
  LinkedIn.
• 45:01
  That's
• 45:01
  probably
• 45:01
  the
• 45:01
  easiest
• 45:02
  way
• 45:02
  to
• 45:02
  find
• 45:02
  me.
• 45:03
  And
• 45:04
  so
• 45:05
  my
• 45:05
  name
• 45:05
  is
• 45:05
  hard
• 45:06
  enough
• 45:06
  to
• 45:06
  spell
• 45:06
  as
• 45:06
  it
• 45:06
  is,
• 45:06
  but
• 45:07
  it'll
• 45:07
  be
• 45:07
  there
• 45:07
  somewhere.
• 45:08
  Yeah,
• 45:09
  it'll
• 45:09
  definitely
• 45:09
  be
• 45:09
  in
• 45:10
  the
• 45:10
  show
• 45:10
  notes
• 45:10
  and
• 45:10
  probably
• 45:11
  in
• 45:11
  the
• 45:11
  title,
• 45:11
  right?
• 45:12
  And
• 45:12
  yes,
• 45:13
  absolutely.
• 45:15
  All
• 45:15
  right,
• 45:15
  well,
• 45:15
  that
• 45:15
  wraps
• 45:16
  us
• 45:16
  up.
• 45:16
  Thank
• 45:16
  you,
• 45:16
  Simeon,
• 45:17
  for
• 45:17
  sitting
• 45:17
  down
• 45:17
  with
• 45:17
  us,
• 45:18
  Simeon
• 45:18
  Siegel
• 45:18
  of
• 45:18
  the
• 45:18
  BMO
• 45:19
  Capital
• 45:19
  Markets.
• 45:20
  And
• 45:20
  thanks
• 45:20
  everyone
• 45:21
  out
• 45:21
  there
• 45:21
  for
• 45:21
  listening
• 45:22
  to
• 45:22
  this
• 45:22
  episode
• 45:23
  of
• 45:23
  our
• 45:23
  ongoing
• 45:24
  series
• 45:24
  on
• 45:24
  VC
• 45:25
  Perspectives
• 45:25
  across
• 45:25
  the
• 45:26
  retail
• 45:26
  and
• 45:26
  consumer
• 45:26
  goods
• 45:27
  industries.
• 45:28
  Please
• 45:28
  let
• 45:28
  us
• 45:28
  know
• 45:28
  what
• 45:29
  you
• 45:29
  thought
• 45:29
  of
• 45:29
  our
• 45:29
  interview
• 45:29
  with
• 45:30
  Simeon
• 45:30
  on
• 45:30
  social
• 45:31
  media.
• 45:31
  Let
• 45:31
  us
• 45:31
  know
• 45:32
  how
• 45:32
  we
• 45:32
  can
• 45:32
  do
• 45:32
  better.
• 45:33
  And
• 45:33
  as
• 45:33
  always,
• 45:34
  on
• 45:34
  behalf
• 45:34
  of
• 45:35
  all
• 45:35
  of
• 45:35
  us
• 45:35
  here
• 45:35
  at
• 45:35
  omnitalk,
• 45:36
  be
• 45:36
  careful
• 45:37
  out
• 45:37
  there.