00:00Let's just start with Target. What signals did you get from executives and the results this
00:04morning as this company tries to continue its turnaround effort? Yeah, I think we got a strong
00:09signal that the turnaround is working, that their efforts to improve value, to improve the
00:16design element of the merchandising and to have newness in the stores and better in-stock
00:22positions all seem to be helping. We definitely saw a very good second quarter on top of a very
00:28good first quarter. They raised their guidance for the full year. I know there was a big tariff
00:32refund in those numbers. Remove that tariff refund. They still beat on EPS. They still beat on sales
00:38and had a very good, really good quarter. So the transformation is working.
00:43Well, with all of these companies, though, Target reporting a $1 billion in tariff refunds,
00:48how much of that is being put aside or do you put aside, Joe, as kind of a one-term
00:53effect that doesn't necessarily factor in or as part of the rally, we're seeing the benefit
00:57of tariff refunds. Yeah, no, I think people are kind of looking at the underlying health of the
01:03business, excluding the tariff refunds. These retailers deserve to get them. I mean, clearly,
01:09they were impacted last year by having to pay those refunds. Now they're getting it back.
01:13So it's not like I know it's one time, but it's different than a traditional one-time expense or
01:18benefit. This really is something that they did have to deal with last year, and they've gotten
01:23better at dealing with it. I think this strength in the market today reflects the fact that their
01:28sales were up 3.8% in terms of same-store sales, driven by traffic that was up 3.6%.
01:34So it was all
01:35traffic-driven. People like what they're seeing at Target, and there's definitely been a comeback to
01:40the brand in the store.
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