00:00 Speaker A
starting here with Bob’s discount furniture. Those shares are up today. The recent tariff announcement comes only a few day few weeks remember after the company went public on the New York Stock Exchange. So obviously we we were watching furniture companies closely today Brooks. It was Bob’s, but also I know folks were watching uh Wayfair, William Sonoma, RH was on the radar. Market Watch had a good piece just talking about the sector how the furniture industry would, they say kind of struggle, you know, relatively more than others, um with tariffs just because the manufacturing capacity in the US is is limited. So so obviously those companies are going to face a tougher time just moving production here.
00:41 Speaker B
Yeah, and when we interviewed uh Bill Barden, he’s the CEO of Bob’s Discount Furniture, just a few weeks ago, he sort of addressed this. He called 2025 a very challenging year with tariffs, but like many other retailers that you just had mentioned, Bob’s discount furniture looked to get ahead of this, and he mentioned a few different ways that they sort of been mitigating the impact. Take a listen to our interview just a few weeks ago.
01:08 Speaker C
There’s three
01:09 Speaker B
actually three ways we went off after tariff mitigation. Number one was asking for cost concessions. We got a lot of them. Number two, because everything’s made for us, we can move venues. Right? So we can move between countries or factories to reduce costs. And third, if we have to, and it’s always the last thing for us is take price.
01:31 Speaker B
And this is what so many other furniture companies have been doing. They’ve sort of been moving around their vendors, working with different ones. Another company that we just spoke about yesterday includes Wayfair. I as you want to bring in Jared B because he is sales standing by the Y interactive
01:50 Speaker B
Wayfair still moving higher as we make our way towards the close?
01:54 Speaker D
Yes, and let’s take a look at the sector overall and Home Depot and Lowes are taking up a lot of real estate. So if we do this on an equal weighted basis, we can see where Wayfair here up about two and three quarters or 3% and here’s that big spike we got after 10:00 a.m. and you can see it’s been trending down quite a bit since then. So it’s given back a lot of gains, even though it’s holding on to a decent uh return into the end of the day. Here’s Bob’s, by the way, it’s up 5.6%
02:26 Speaker B
Wow.
02:26 Speaker D
and this is actually at the highs of the day right now. And you can take a stock like RH. Well, that got a nice pop here, but it’s given back almost all the gains, uh holding on to about 1 and a half percent. So broadly positive, we got a few negative prints here, but check out Legan and Plat that makes a lot of the parts for your bed. Got a nice reaction, but a little bit of green, that was a sell signal and so that stock is in the red for 2%, but overall pretty green in furniture.
02:59 Speaker B
Yeah, and even more of these priceer retailers like our house, which was was sitting right next to the Wayfare on the Y of interactive also moved higher up about 3.7%. Restoration hardware as Jared you mentioned. So a lot of these furniture, sort of a si maybe a sigh of relief here for these companies moving into the year.
03:19 Speaker A
All right, that’s furniture. Let’s talk retail too. Uh Nike as it has been a facing a bit of cost pressure due to tariffs. I did see some analyst weighing in here saying Nike’s gross margins should expand this year after the court’s decision, though then they did emphasize you got a lot of important caveats. I think maybe the stock is reflecting there because you got to think through, okay, refunds, that could take years to play out. Levees could still be applied through other means. I mean, certainly Trump is talking real tough at that press conference. So I I mean I question not just for for Nike, but really broadly for retailers. If you’re a retailer CEO, I think you still have a lot of questions.
04:09 Speaker B
Yeah, a lot of questions. And and we were just listening in December to the Nike earnings call and they had said that they’re navigating new structural headwinds from the $1.5 billion of annualized incremental product costs because of these higher higher US tariffs. They went on to say that North America gross margins quote unquote only declined 330 basis points versus the prior year despite a 520 basis point impact from the newly implemented tariffs. But you look across the board, Jared, we’re mostly seeing green now. There it seems like this is going to be a sigh of relief as these retailers do get these refunds.
04:52 Speaker D
Yes, and I’ll tell you what, at 10:05 a.m. we were seeing a lot more green. Here’s Nike. It’s down 6/10ths on the day, but here was that spike. It was up as much as 4%. and this is a longer-term turnaround story and you take a look at the three year, you’ll kind of see what I mean. It’s down almost 50%, cut in half over that time period. So Nike crawling out of a hole, but we saw uh some other stocks really add to their gains. Here’s Lululim. Let me break this down for you. Yeah, let me first, here’s the intraday on Lululemon, um probably keeping about half of its gains here. We do have some foreign tickers like Adidas. And full disclosure, this closed several hours ago. So this is on a different time scale. Uh but there’s that spike there and you can see it closed the day up in Germany about 2%. Here’s Victoria’s Secret, up 4%, pretty close to the highs of the day. Here’s Under Armor up 5% at the highs of the day. So some of these stocks really kind of building on the momentum that we got earlier in the day.
05:31 Speaker B
The Canadian company.
06:06 Speaker B
Yeah, and we’re we’re hearing from the National Retail Federation, they came out with a statement this afternoon, sort of alluding to this saying that this provided much needed certaty for retailers saying that this will sort of allow the companies to reinvest in their operations, their employees and their customers with these potential refunds. Also worth noting here that we’re going to hear from Best Buy next week. We’re going to hear from Target. I’m sure that analysts are going to have a lot of questions that maybe don’t have the right answers or don’t have any answers at all just yet. Also, we have to take into consideration, what happens now with this de minimus exemption that certainly hit PDD holdings, that’s the parent company of Temu. Where exactly do we move forward with there? That was for products I believe under $800 threshold coming into the US. That was now turned away with this ruling. Now, where does that all stand?
07:12 Speaker A
Yeah, I mean listen, the refunds also Brook. I mean, that sounds and we have every smart person coming up here to walk us through. That sounds very complicated. That sounds like
07:18 Speaker B
Complicated.
07:23 Speaker A
a mess, which I believe is what Justice Cavana, I think that’s the exact word he used in his descent. So we’ll see how that shakes out. Um last we take a look at tech as some on Wall Street see the SCOTUS ruling as a positive for the sector. You’ve been digging through the notes. What are you saying?
07:34 Speaker B
Absolutely.
07:41 Speaker B
Yeah, so Webush is Dan Ives, he’s the same exact analyst. He’s optimistic. Of course he is. But also too keep in mind, he was the one that warned of that,000 iPhone back in April. He was like, iPhone prices are going to soar. Now he’s out with this note today saying that we believe this would act as a net positive for tech with financial relief for many companies while creating quoteunquote greater supply chain visibility, especially coming from the Asia market. What are we seeing in tech, Jared? Is it still moving higher?
07:44 Speaker A
Is he sounding optimistic?
08:18 Speaker D
A few names are and I’m sticking to the mega caps right here. We can see Nvidia up 1%. I had my eye on Alphabet pre-market. It was up 2% and uh so it opened the day with a nice little gap there and then it was able to build on the games after the announcement, but it didn’t really have an immediate effect on on Alphabet in particular. You can see Nvidia here, that’s up 1% today. It swung into the positive and it’s really this has been a day of kind of uh sorting out a lot of different issues with tech, I think because we’ve had so many factors within the last few weeks affecting things. Nevertheless, here’s Apple up 1 and a half percent. got a little bit of a jolt there, you can see at 10:00 a.m. but for the most part been building uh kind of steadily stair stepping up throughout the day, up 1 and a half percent. But let me just show you the year to date on these names. These are the biggest stocks in the S&P 500. Only Nvidia and Alphabet are positive and at that, less than 2%. So you can see a lot of red on the board. There’s a lot to recover here and uh if tech’s going to rally big off of this, we were just checking out the semiconductors and soft software charts. It’s really the se semiconductors that have done the best today and that’s because they’ve done the best all year. So I think it’s kind of if you’ve been doing well, you’re doing a little bit better today.
09:59 Speaker A
All right. Jared, Brook, thank you. Appreciate it.