00:00 Speaker a
Retail trouble hits Deckers and Ross stores. Decker, with macroeconomic uncertainty, had weak prospects for the issuance quarter and refused to share the outlook for fiscal 2026. A similar story of Ross withdrawing his full-year prospects due to the expected impact of tariffs is unfolding. Join our Sutarita Kadali Forester Research Retail Analyst now. Sutarita, I'm happy to talk to you. I know you're seeing low-priced retailers able to stick with this environment. Why?
00:47 Sutarita Kadali
Well, there is always a flight of valuations when you have any kind of uncertainty or concern about the economy. Well, so of course, you're going to see people's field being warehouse clubs, you're going to see them going down prices like TJX and Ross, you're going to see them going to some value for mass businessmen. That's why we continue to see companies like Walmart and even Amazon thriving in this environment.
01:45 Speaker a
So for those consumers who are looking for any type of consumer, always looking for any type of easing spending, rather than free spending, we clearly see that we are clearly seeing some pressure there. How do you now navigate that discretionary dollar traffic and track that sutarita?
02:24 Sutarita Kadali
Well, it's a lot like what we've seen during the pandemic, and you do see success and growth in the basic categories. So we hope that, well, anyone who is valued businessmen in this category, whether it is mass businessmen, club channel, well, will do especially well and get shared because as people cut, how much money will they actually spend? Of course, they will spend on basic merchandise. So it's a grocery store, um, um, um, um, items. What they absolutely need. Even for discretion, you will still see the flight valuable. This is where there is ultimate benefit. The numbers for Rose and the deck today are not bad. I'm going to say that they are much stronger than UM than UH, not uh, I know, I think traditional wisdom may have been proposed. This question is indeed their prospect. and indicators of lagging returns. These are just the numbers to March. And we still haven't seen a full-scale landing on tariffs. And we don't know when it will. It may be this summer. Well, if there are negotiations and deal cuts, it may never be.
