 We're going to talk retail because that holiday shopping season gave a huge boost to luxury retailers like coach parent company tapestry and Michael course but the big question is can those companies continue to climb when the days of going store to store for luxury items seem to be behind us during We're going to now discuss is Melissa Armo. She's the owner of stock swoosh and Melissa Gonzalez CEO and founder of lioness group Melissa Armo. Let's start with you. So last week tapestry reported better than expected earnings and they credit coaches strong holiday sales for the boost. What do you think is fueling the big resurgence of coach right now. Well I think that I wouldn't really call it a big resurgence. I would just say the stock is finally going where it really needed to go all along because it wasn't a downtrend for quite a few years there. And considering the bullishness in the market in 2017 it should have had a rally. It did but it really didn't turn into an uptrend until recently. I think part of the problem is that fashion the way people are buying clothes the fashion industry itself is changing and they have made a lot of acquisitions actually in the last few years. The Stuart Wiseman Kate Spade they've made a couple of good acquisitions. They need to start seeing the profits from those acquisitions because it's been a lot of money quite frankly. Well let's stay on Kate Spade for a second or two. Melissa Gonzalez would love to bring you into this. In terms of Kate Spade you know not doing too hot right now. I believe it's 7 percent sales decline last quarter. And so what do they need to do to turn that subsidy around as well. Sure. Yeah you've seen that same store sales decline but I think they still have work to do. I mean it's a transition to go from you know they kind of created the perception that they're a value brand and you wait for discounts. And so taking them out of department stores and away from wholesale and revitalizing that brand to stand alone and pay full price for it takes a little bit of time. I think the more they continue to do that it'll help. And yeah they haven't seen that strength yet but I think they're doing some innovative things like customization. Yeah. And it's really to work on setting that one apart within the group. And especially having that acquisition to go after a new type of consumer which is that millennial consumer that the brand had resounded with so well over time also. Yeah what do companies most of Gonzalez need to do to really reinvigorate that retail experience because I know at Lioness Group you work with the brick and mortar experience creating these experiential elements for these for these stores. But what can they do to actually get people to go back to shopping in person rather than brick and mortar rather than online. Yeah I think the more that they can do with customization and tapping to personalization and that high touch elements. I mean when they acquire higher end brands like a Stuart Weitzman or you know you kind of that's a little bit inherent to the customer that's there. And now you have this new creative director that launched something new in Beverly Hills and it's plush with beautiful carpets. So you kind of get that feel. The challenge is getting them in the door because you know you can buy any of these on Amazon. That's the problem. So if I can sit and buy now you may not get the you know right now you know fall 2018 like it's New York Fashion Week. It's great time to be doing this segment by the way. I don't know if you've heard that but you know tomorrow's last day of Fashion Week. But if I maybe can't get fall 2018 but I can get spring 2018 on Amazon. So how to get people in the door and that's the problem because Amazon is competing with it because it's more convenient. And that's why these retailers haven't been doing as well as maybe they would have done in a bullish market. But I think you know the more that they can do to build the brand right because there's a certain element of luxury that you don't go to Amazon for. So the more that they can continue to differentiate themselves in that way and again work on that mindset of they're not just a value brand. You're not just waiting for those discounts. You know there's some prestige in owning that brand and having that high touch experience and you can get people back in. Well there's another brand that's also trying to create that prestige awareness to it and messaging rather and driving it home because the awareness is already there. But Michael Kors how do you go up against the Michael Kors knowing that you've got Amazon in one corner you're trying to save them off. But you've also got Michael Kors that you have you've got to go up against most armor would love to. Well Michael Kors stock doesn't look that good to be honest with you. They just had earnings and they collapsed on the earnings stock gapped up on the earnings collapsed. It should have held. It should be over 70 right now. It was so close to that so close to that level on the earnings last week it didn't make it fell fell hard ever since. And that stock has been in the downtrend. I'd like it even less now that it gapped up on the earnings and fell last week. And that here's the problem with all of these Kate Spade store wise and all these stores. They've lost the exclusive exclusivity of it. The fashion is about oh I have a Kate Spade you know or whatever it's well that is being gone. And as far as high end high end fashion a three hundred dollar price point bag is expensive to some but it's not Chanel. So Chanel has that you know when you're paying a lot lot more but they have that whereas you don't go to Amazon and buy Chanel but you might go to Amazon to get course and you can get Michael Kors again on Amazon. So the big thing here too I guess recognizing the shift we know how many different e-commerce platforms are traditional in store platforms have shifted to an e-commerce strategy. Can they fill the gap with a substantiated e-commerce strategy given their historical brand you know come in store. We want to wow you with this this luxury appeal that we have. Can they fill that gap online. I mean there's a balance there of like what consumers go to online versus in store. I mean it's it's a it's a multi-channel experience in store again. That's why if they can focus more on that higher touch delivering what you can't do online making it personalized. You know maybe they work with integrating things like facial recognition. So when your VIP customers walk through the door you know them by name you know what they bought the last time you're really giving them you know something extra. So I think these brands need to invest in that. And then with Michael Kors getting Jimmy Chew I mean Jimmy Chew kind of opens up that opportunity to have that higher touch relationship as well because it's not as like commoditized as the Michael Kors brand has been. So you know they're talking about things with Jimmy Chew like maybe we have a replenishment program. And so I think it's still early. I think they're still like looking at what else they're going to be able to acquire to diversify. You know maybe they dive a little bit more into the men's market that seems some strength and they don't have a lot of exposure to that yet too. So I think the disappointing thing with Kors is that you have Michael Kors out there. He's the face of the brand. He's focused on that and he's still such an integral part of it. You would want to see more from the stock whereas some of these others like you don't you don't you don't think Kate Spade and picture in your head you think Michael Kors. Oh he comes right up. You know you can follow him on Instagram all of this. In fact I don't think they did a show. I don't think they did a show in the last week and I went to their show last fall in September. So you know fashion is changing and you know social media is great as it is and we love it is really switching the way people are spending money on clothes. Some things are good about it. Some things are not good about it. One quick question before we wrap. If there is an acquisition target on the table who do you think they might go after? Who would they pursue in this market right now? You know there's been talk as tapestry going to go back to considering Burberry. But I think it's you know looking at where they need exposure where they see growth. So I think it's brands that are going to give them more exposure to the Asian market especially in China. And I think with Michael Kors there's still some growth that they can have in the men's vertical. And so if they can find some acquisition targets in those areas it would help. Melissa any final thoughts before we leave here? I'd like to see more from Michael Kors this year in 2018. If the market is bullish and as far as TPR goes that's got to keep going. It's just right made the uptrend for the downtrend of the uptrend last week. It's got to keep rising, rising, rising. We've got to see more of the stock seen putting the money in. They put towards acquisitions to rising the stock price. It can't really drop much from here or it's going to be back in the downtrend again. Absolutely great to have you both here with us today. That's Melissa Armo owner of the Stock Swoosh and Melissa Gonzalez CEO and founder of Lioness Group. Great to have you both here with us on each other. Thanks guys. Coming up, Blue Apron shocked investors with better than expected sales. But is it enough to keep the struggling meal kit service afloat?