 You Melissa and focus it on gap right so in April this company announced that it was Shuttering some of its locations along with banana Republic spots as well to open now more old navies Which have been doing well for the company So what is it about the gap brand that is doing it so well at the old Navy brand within gap compared to just gap Because this stock is one of those stocks right on the cusp in other words if this drops any further Then it's going to be in a full-on downtrend, but it could save itself It's trying and this is great They're trying to reinvent themselves are trying to do more things that all these companies have to compete against the online sales And so in order to get more sales you really got to bring people in the door and how are they going to do that? That's the challenge. I I don't know what the difference is really between capital on the old Navy as far as he's interested in What but I would say that years and years ago everybody knew gap everybody loved gap everybody had gap genes nowadays It's just not the same way Yeah, Rebecca. I want to toss it over to you and and really pose the same question to you What is it about old Navy that is such a bright spot for gap compared to gap itself and for banana Republic? Well, I think it's a bigger train that we're seeing we're seeing a lot of expansion and stores that are at the Discount chain type level like the largest expansion last year and all stores were Dollar General and Dollar Tree Together they opened 2,000 stores in one year. So basically what we're seeing is you know gaps 2020 strategy of closing More some older stores the CEO says that these are the older locations that people aren't really excited about and malls and those do fall More to the the gap and banana Republic names and really opening the old Navy discount chain that has more of a broad in-store appeal To consumers whereas maybe the online upper-value versions like gap and banana Republic will do better on an eat platform As long as the platform can be really consumer-friendly It's hard to talk about any retailer without also thinking big picture of Amazon here in this given day According to Morgan Stanley Amazon is actually positioned here to be the number one clothing retailer in the US by the end of this year So gaps move to open more of these old Navy stores and double down on what's been working for the company Do you think that's going to allow it to bring in or recapture any more market share? To me I think that Amazon is a huge problem for all these retailers or whether it's electronics whether it's clothing stores I mean some of these numbers are even surprising. You see well How can people order a clothing through Amazon? The problem is that people are because you can't try things on you have to return if it doesn't fit and yet people are doing it People don't care it seems about anything but price and if they can get something at a cheaper price from Amazon They're gonna do it even if they have to buy it try it on it Doesn't fit return it and buy something else in a different size Amazon is blowing everyone out of the water They they had their earnings a couple of weeks ago. They made brand new all-time highs the stock is an over 1600 today But it's gonna go back over there again soon. I'm sure it's really hard to compete with Amazon Rebecca, but old Navy gap and banana Republic they have something in traditional retailers They have something that Amazon doesn't have yet at least now. Yeah, we should say yes Amazon does have Whole Foods and some of course brick-and-mortar presence with its bookstores But it doesn't have retail locations where you can actually go in and buy the clothes So Rebecca what do these companies have to do for their in-store experience to have that competitive edge over an online only retailer? What experience may offer? Exactly so what what gap CEO has said they're doing is trying to make a more consumer friendly e-commerce site And they're actually taking a book out a playbook a play out of Walmart's playbook Which is maybe some online ordering with local same-day local store pickup So you can go in and order something online see instant customer reviews and then go pick it up at your local store So you can have that instant gratification of all this is it does work or it doesn't work So they are trying to make a more consumer friendly e-commerce experience It's interesting CEO peck said that basically although Amazon is a great Efficiency buying platform. I agree with you know with her that it's not a discovery platform So you can't discover fashion on an online platform and and that's a store in store shopping experience Is not something that can be replicated online in that sense Rebecca let's stick with you here another company. We know reporting earnings this week is Ralph Lauren Which has outperformed the industry in the past year shares up more than a 50% That's pretty darn good in this retail environment So do you expect that this positive earnings trend can actually continue for this company? Yeah, Ralph Lauren is in the middle of a you know going through this whole sort of revamping Obviously the CEO is gone from last year. They're closing stores They're closing Polo on Fifth Avenue and and they're really kind of reverse coursing from what gap is doing Which is more focused on the discounted outlet brand of old Navy They're going back to their roots and saying we are a high-end luxury brand a US American brand And we have sort of gotten away from that with our massive discounting at department stores And we've relied on this massive expansion at the cost really of the luxury brand name that they have really have and So what you're seeing now is a pullback from you know all of the you know expansion Expansive inventory and in department stores Discounting has been come you know pulled back and all of this has had a huge result I mean obviously the stock over 50% last year is amazing and We do expect that Ralph Lauren's going to have it may be a possibly even an earnings surprise and a beat on earnings this this quarter Melissa, what do you think? These other companies these other retailers can learn from what Ralph Lauren has been successful with in terms of actually reducing a discounting And actually not driving away customers To be honest with you I don't I don't like this stock as a buy now I might change my mind after the earnings But it's got a gap up like 20 points from here around 135 or even above that close to 140 to be a buy I know it rallied in 2017, but so did everything else almost in the market the market was very bullish I wouldn't necessarily credit this rally based on anything that the stock itself has done I don't think that they've been doing as good of a job It's a company like tip tip is a luxury brand jewelry luxury there that stock looks great compared to Ralph Lauren I think it's great not to do the discounts But the problem is with these brands when you have a name when you have a name associated with it a face and that name that That name moves away from the brand it becomes increasingly challenging then to market the brand in new and innovative ways And that's the problem Ralph Lauren has is is is not really the face of the brand anymore But that's the name of the brand so I think we've lost some of that and tip has done a great job of retaining Luxury customers coming in and wanting to spend the money and not having to do discounts And they don't even have that many brick-and-mortar stores Ralph Lauren has got to do a better job And I think something's gonna happen on the earnings I don't know what but it's got to make a massive move up for me to like this as a buy It doesn't have to do much to fall to continue in and to be a short right now This stocks in a downtrend at rally last year only because of the market Wow Okay, Melissa we're gonna stick with you here quickly and move on to Best Buy because we expect earnings from that company this week as well I'm looking at a chart on my trade station platform right now Which shows this stock to up significantly in just the past year look at that nice Healthy gains from 52 bucks a piece a year ago now to trading at 7 8 78 dollars a share What are your expectations when it comes to Best Buy? Is this a company that can continue to compete going forward now this stuff? I love this stock looks amazing This stock has been such a strong uptrend I would be shocked if it gaps down in the earnings But even if it does it's not gonna go in a downtrend this stock looks great If this stock pops over $80, which it's not that far away from today on the earnings It's a buy it's an immediate buy in the earnings if it pops over 80 I love it this stuff could fly all the way up to 100 in the next 12 months I love this stuff for doing a great job people still like to go in and they like to see TVs And I like to check out the electronics and best buy is doing a great job getting people into the store And that's probably one of the reason why the stock looks so great But Rebecca, how do you get someone into a Best Buy? Try out that product and then avoid and prevent them from then going and buying it on their phone from Amazon and having a partnership to their home Well, this is why Best Buy and Amazon have sort of come up with a partnership on smart TVs Right, so Best Buy and Amazon now are going to be selling TVs smart TVs in Online and actually at this brick-and-mortar store at Best Buy Which has the fire operating system and has all of the you know smart TV streamings of Amazon Prime and Obviously fire Netflix all those other things So there they are Realizing that if you can't beat them sort of join them and I agree that's part of the reason the stock is up And it's looking like a buy this year and doing very well and we expect that earnings people do what Amazon has actually Acknowledged is that people do like to go into a physical store to see their television picture in action They do acknowledge that that is something that Amazon was actually looking to Best Buy to actually help deliver And that's why the partnership strategically makes so much sense. All right, ladies This was a lot of fun. Thank you both for joining us Melissa Armo owner of the Stock Swoosh and Rebecca Walser CEO of Walser wealth. Thanks again. Thanks guys