00:00I think we need a little retail therapy guys. So let's do it with Macy's. This stock is down about
00:055% here in the pre-market and this is despite the fact that it raised guidance for a second
00:11time
00:11this year after recording growth across its brand. So what was Wall Street looking for? Some
00:16analysts are saying that the profit guidance was not strong enough. Wall Street wanted even better
00:22but Macy's says that Bloomingdale's was a bright spot for the company once again. Sales volume
00:27there hitting its highest second quarter level in the brand's history. And does this have something
00:32to do with your buying habits Lisa? I'm telling you. I don't know. Well the Bloomingdale's I was
00:37telling you before. Bloomingdale's yes but Macy's I haven't stepped in. Is the Macy's store on 34th
00:41Street is that still the world's largest department store? I probably and it's still a big deal come
00:47Christmas time. It's awesome. It's true. They got the parade. Of course. All in still big part in
00:52New York City. And you know don't forget Macy's owns Blue Mercury. I feel like there's about one
00:56of those every four blocks in the city. I don't know what it is. They're like everywhere. That's
01:00like the perfume, the makeup, all the different things. Yeah. Right. Right. Okay. And so they
01:03did very well for them too last quarter. But Macy's is down more than two percent year to date
01:08up 26 percent in the past year. So kind of some weird reaction from Wall Street there that stock
01:14is down that much given that report. But let's stick with retail and move over to American Eagle.
01:19So that stock taken a hit this morning. It is down more than 12 percent and has been down 36
01:24percent
01:25year to date. So it's still trying to reignite its core brand. Merchandise margins shrank in the
01:31second quarter. 3.3 percentage points. They said that was due to promotional markdowns at American
01:36Eagle's namesake brand. That offset improvement at Aerie, which is actually right across the street
01:41here from our headquarters. Oh, I've been there. I've noticed. Well, I know because of my daughter.
01:45She's like, oh, mom, I need to go to Aerie. So executives said the brand is still trying to offload
01:49some of its older inventory at a discount. Why? Because fashion trends are changing.
01:54They need to keep up with it. Apparently high-waisted jeans, the mom jeans, they're not in.
02:00They need the low-waisted. What are we at? Oh. You need the baggy jeans, which don't really work for
02:04me.
02:05All right. Well, that's why you have to hold on to all the jeans because they keep circling back.
02:09Yeah, yeah, yeah. Pretty soon the skinny jeans will be back. So if you have room in the closet, hang
02:13on.
02:13Because at some point they're going to come back. But Aerie specializes in underwear and bras.
02:18They have become especially important for American Eagle because the company's core business has
02:22really been underperforming as of late. And now let's move over to JetBlue. That stock
02:28is down more than 1% right now, down 3.7% year-to-date, and down nearly 14%
02:34in the past year.
02:35So it hasn't been an easy go for JetBlue. They cut their third-quarter capacity growth outlook today
02:40nearly in half. They said this is because there were operational disruptions over the summer due to
02:47weather conditions, air traffic control constraints, severe airport weather delays across the national
02:54airspace system. They said rose more than 40%, geez, compared with the prior summer.
02:59The company said its cancellations related to air traffic control issues nearly doubled.
03:04Despite all these challenges, JetBlue says it was still able to raise its guidance for revenue
03:09per available seat mile. And that's an important metric for the airlines.
03:12Because demand, they say, has remained strong. They say pricing is constructive.
03:17And management has executed certain commercial actions. I don't know what that means to help with
03:22revenue. Well, weren't they trying the lounges? They were trying to get the lounge, didn't they?
03:26Like JFK or one of them, they were trying to get the JetBlue lounge and trying to attract a different
03:30customer. I don't know. This is a small company. I didn't know it was so small. It's only $1.6
03:34billion
03:34market cap. I mean, I'm shocked when the government didn't allow some of these smaller carriers to
03:40merge. To merge, yeah. I mean, if you're not the big three, I don't know how you make it trying
03:45to
03:45appeal to the lower cost flyer. Because we've seen that across multiple industries, whether it's
03:51retail, restaurants. A lot of these companies are just saying, hey, if we're going to make it in this
03:54economy, we have to appeal to the higher part of the K-shaped economy. It's funny, American Airlines just
04:00came out recently and said, business class is dead. But JetBlue's saying the opposite. So I don't know
04:04if it's very airline-specific.
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