Macy's and American Eagle Drop; JetBlue Dips

0:00Hi, I'm Barry Rittultz inviting you to join me for the Masters in Business podcast. Every week we bring you conversations with the people who shake markets, investing, and business. I speak with CEOs, Nobel laureates, market innovators, and legendary investors. Whether you own stockspons, real estate commodities, even crypto, these are discussions you absolutely need to hear. Subscribe to the Masters in Business podcast on Apple Spotify or anywhere you listen. Bloomberg Audio Studios. Podcasts, radio, news. The Stock Movers Report. Your roundup of companies making moves in the stock market, harnessing the power of Bloomberg data. Stick a look at some of the stocks on the move today. We can do that with Alexis. I think we need a little retail therapy, guys. So let's do it with Macy's. This stock is down about 5% here in the pre-market. This is despite the fact that it raised guidance for a second time this year after recording

1:04growth across its brand. What was Wall Street looking for? Some analysts are saying that the profit guidance was not strong enough. Wall Street wanted even better. But Macy's says that Bloomingdale's was a bright spot for the company once again. Wall Street is the largest department store. I think it's still a big deal. Come Christmas time. It's a big deal. They got the parade. Of course. Only still. Big part in York City. And you know, don't forget Macy's own Blue Mercury. I feel like there's about one of those every four years. I think that's about the same. I think it's about the same size. I think it's about the same size. I think it's about the same size. I think it's about the same size. I think it's about the same size. I feel like there's about one of those every four blocks in the city. I don't know what it is. They're like perfume, the makeup, the all the different things. Right? Okay. And so they did very well for them too last quarter. But Macy's is down more than 2% year to date, up 26% in the past year. So kind of some weird reaction from Wall Street there.

2:05The stock is down that much given that report. But let's stick with retail and move over to American Eagle. So that's not taken a hit this morning. It is down more than 12% and has been down 36% a year to date. So it's still trying to reignite its core brand merchandise margins, shrank in the second quarter, 3.3% at each point. They said that was due to promotional markdowns at American Eagle's namesake brand. That offset improvement at Ari, which is actually right across the street here from our I know because of my daughter. Okay. So I need to know to Ari. So executive said the brand is still trying to offload some of its older inventory at a discount. Why? Because fashion trends are changing. They need to keep up with it. Apparently high waste of jeans, the mom jeans, the other thing. They need the low waste. What are we at? They need the baggy jeans, which don't have to work for me. So that's why you have to hold on to all the jeans because they keep circling back. Yeah. Pretty soon. Skinny jeans. I really so if you have room in the closet hang on, because at some point they're going

3:06to come back. But Ari specializes in underwear and bras. They have become especially important for American Eagle because the company's core business has really been underperforming as of late. So okay. And now let's move over to jet blue. That stock is down more than 1% right now, down 3.7% year to date, and down nearly 14% in the past year. So it hasn't been an easy go for jet blue. They cut their third quarter capacity growth outlook today, nearly in half. They said this is because they there were operational disruptions over the summer due to whether conditions, air traffic control constraints, severe airport weather delays across the national airspace system. They said rose more than 40% of the price. The company said its cancellations related to air traffic control issues nearly doubled. Despite all these challenges, jet blue says it was still able to raise its guidance for revenue per available seat mile. That's an important metric for the airlines because demand they say has remained strong.

4:07They say pricing is constructive and management has executed certain commercial actions. I don't know what that means to help with revenue. Well, were they trying to lounges? They were trying to get the lounges, like JFK or one of them, they were trying to get the jet blue lounges and trying to attract a different customer. I don't know. This is a small company. I didn't know it was so small. It's only $1.6 billion in market cap. I mean, I am shocked when the government didn't allow some of these smaller carriers to merge. It's emerging. I mean, if you're not the big three, I don't know how you make it. It's going to appeal to the lower cost flyer because we've seen that across multiple industries. Well, it's retail restaurants. A lot of these companies are just saying, hey, if we're going to make it in this economy, we have to appeal to the higher part of the K-shaped economy. It's funny. American airlines just came out recently and said business class is dead. But jet blue saying the opposite. So I don't know if it's very airline specific, but we know their bread and butter is the business traveler. This stock movers report from Bloomberg Radio. Check back with us throughout the day for the latest roundup of companies making news

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