lemonis: tell them to know their numbers. robbie: he scares you, too? lemonis: ...a husband-and-wife team supplies the louisiana families with kids' merchandise and maternity clothes. robbie: the colors are baby shower. ellie: it's hideous. sorry. lemonis: but 10 years in, they've hit a wall. like, when you post something, don't you know the style and the sku? robbie: no. "pos" stands for two things in this store -- point of sales system and piece of [bleep] lemonis: owners robbie and julie allen have managed to open two stores -- one in new orleans and one in baton rouge. but they still haven't mastered the basics. well, does this store break even? robbie: good question. lemonis: merchandise they carry lacks universal appeal. the clothes are nice, but they're not...

cool. and now, a recent crisis has sent this couple reeling. robbie: i get a phone call from my doctor. the doctor's like, "come in immediately." lemonis: like that day? robbie: that day. lemonis: putting even more stress on the business... julie: that looks terrible. i never knew how much debt we were in. lemonis: ...and their marriage. robbie: i get frustrated with you. julie: what do i do? robbie: the micromanagement. do you not think i know what i'm doing? lemonis: if i can't get them to rethink their partnership and their business practices... julie, i don't know that you're a good buyer. ...the future will be very bumpy. you don't trust him? my name is marcus lemonis, and i risk my own money to save struggling businesses. we're not going to wake up every morning wondering if we have a job. we're going to wake up every morning wondering how many jobs we have to do. it's not always pretty. everything is going to change -- everything. but i do it to save jobs, and i do it to make money. this... let's go to work. ...is "the profit." ♪

the idea of investing in the kids-apparel business is enticing because it's recession-proof, but not only that, robbie, i think, e-mailed me over 300 times, and perseverance by the business owner is one of those important factors because it shows me that no matter what, they're not gonna give up. robbie: hello. lemonis: i'm marcus. robbie: hey. robbie allen. lemonis: robbie, nice to meet you. robbie: so nice to meet you. lemonis: you have reached out to me 1,000 times? robbie: 1,001. lemonis: 1,001? robbie: yeah. julie: hi, how are you? lemonis: i'm marcus. how are you? i'm a hugger, too. robbie: oh, i would've hugged you, but it's -- lemonis: you want a hug? robbie: no, yeah, let's hug. let's do it. lemonis: so, when i saw "baby bump," i thought you're a maternity business, but all i see is baby clothes. julie: it's stuck there. robbie: we initially opened for maternity. 2008, we opened our doors, and we were maternity,

and children's might've been as big as this wall. julie: we figured to put kids in the front because everybody can buy for kids. not everybody can buy for maternity. excuse me one second. lemonis: yes. robbie: we have a lot of different sectors in this business. lemonis: revenue streams? robbie: yes. lemonis: okay. robbie: so, we have social media... lemonis: so, instagram... robbie: instagram all day here now. julie: a large? okay. i have one left. lemonis: so, what's happening here? robbie: this is either they saw something on instagram and they're calling for sizing to see if we have it still. lemonis: people call? robbie: all day. lemonis: if you like the product, you have to pick up the phone and call the store and hope they have it and go through that process as opposed to just pressing a button and going to the website, picking the item, checking out, and getting it delivered. i don't understand. you have an inventory system? robbie: yes, we have an inventory system. lemonis: and is it tied to your website? robbie: no. lemonis: do you have a website? robbie: like, a landing page just showing who we are. got burned on three website developers. we don't have deep pockets. lemonis: when you post something, don't you know the style and the sku?

robbie: no. "pos" stands for two things in this store -- points of sales system and piece of [bleep] lemonis: oh, okay. all right. i think the second challenge is that the way they're marketing online today doesn't necessarily tie to their pos system. they don't have an accurate inventory. they don't know what they have where, and if they wanted to actually find it, the solution is to... rummage through the shelves? that doesn't seem very user-friendly. so, if you come into your store, immediately it's a baby store. who does all the buying? robbie: julie does the children's. lemonis: some of the stuff you're buying -- i mean, that's just a white t-shirt. what's your style -- white? where's the personality? what would you call this area here? julie: the local section. lemonis: alligators. that's really cute actually. this is a new orleans thing. julie: yeah, that's our symbol. they buy a lot of the stuff because they're like, "i want to bring something back from louisiana." lemonis: i feel like the baby bump store is nice enough.

it's got some great local flair to it, but it seems like everything is meant for something very formal. like, people like to buy things for the kids where they can just roll around in the dirt. julie: this is the maternity section. lemonis: who buys all of this? robbie: me and julie do maternity. lemonis: who merchandised this? robbie: julie does the merchandising, but i used to do more. lemonis: did you ever get any training in merchandising? julie: no. lemonis: when i went up these stairs, i literally felt like i went back to 1984. robbie: okay. lemonis: when you're merchandising your product or apparel, the most important thing is to do it in a way that engages the customer. it requires them to actually want to participate in the process, and unfortunately, this place doesn't accomplish that. oh, the monogram? that is cool. julie: we monogram everything. lemonis: and what do you charge for it? julie: $12 for that. lemonis: what does it cost you to do it? julie: 50 cents maybe. lemonis: the margin's are huge. julie: they're great. robbie: the machine's at our house.

lemonis: you monogram at your house? robbie: yes. julie: i start in the morning. i'm monogramming pieces, get the kids off to school. lemonis: and how old are your kids? julie: 6 and 2. lemonis: okay, that's awesome. julie: so, we rush here because we have to open the store. lemonis: you're here all day working, hustling. robbie: one of us is in baton rouge. one of us is here. lemonis: store closes. what happens next? julie: go home, cook dinner, monogramming, e-mails, instagramming. lemonis: and what time is that at? julie: oh, 11:00, 12:00. lemonis: you're monogramming at 11:00, 12:00 at night? robbie: oh, yeah. she's doing too much. i'm trying to... lemonis: help. robbie: we've tried several times to say, "this is all you're gonna do, and this is what i will do." because i don't want her doing all this. julie: i feel like i'm running around with a chicken -- like, my head cut off. one of us has to pick up the boys, so it's always an argument. "okay, who's staying da-da-da-da," and then, like, i always feel like i have to stay here because i feel like i can do it a little better. robbie: what does that mean? julie: yeah. robbie: i don't know if you're referring to sales or merchandising. sales, i mean, i -- that's what i do. lemonis: the idea of running a family business is tough to begin with,

and when you add the layer of complexity that it's a husband and wife, it makes it even more difficult. it's become obvious to me that they're troubled. what is the percentage of business here between baby versus maternity? robbie: maybe 6% of sales are childrens. lemonis: so, maternity went away? julie: it's just evolving a lot. robbie: it's evolving to where, like, women can go anywhere and just find something looser, maybe go up an extra size. lemonis: and what will you do on a typical day here? robbie: $1,000. julie: $1,000 is about normal. robbie: $1,000 a day. lemonis: so, does this store break even? robbie: good question. lemonis: well, i don't need you to tell me that it's a good question. robbie: oh, well, okay, yes. we're -- we are breaking even, yes. we're out of the negatives for now. yes. julie: right now, we're, like, at $6,000 each month for profit. lemonis: okay. how come she knows that clearly and you are a little fuzzy about it? robbie: i used to do the finances. she took that over. lemonis: what are you nervous about? robbie: she just knows what we've been through, and 2017 was a really hard year. um...

so in 2017, i get a phone call from my doctor. he goes, "we need to immediately get you in here. looks like you have testicular cancer." lemonis: i'm really sorry about that. unexpected. robbie: very unexpected. i'm sorry. it's hard seeing her hurt. lemonis: you okay? julie: i'm fine. lemonis: okay. robbie: the doctor's like, "come in immediately." lemonis: like that day? robbie: that day. julie: that hour. robbie: so, i'm, like, there, and, you know, she's trying to comfort me, and i'm like, "no, i got to comfort you," and it was a mess. lemonis: yeah, a perfect storm. robbie: man... julie: it's a whirlwind. robbie: yeah. lemonis: how long ago was that? julie: a year exactly. lemonis: are you clear now? robbie: so, i'm clear. i went through radiation. the results came in, and i'm good. yeah. so, it's gone, but -- julie: but the bills are still there. lemonis: the medical bills? julie: yeah. robbie: yeah, and then, you know, the store, it took a hit because of all of that going on. julie: we put in probably -- robbie: our whole savings. since 2008 to 2017, i did everything. i really did. i kept as much away from julie as possible.

before 2017, i was really good at all that stuff. julie saw what it was doing to me. she came in and saved us. lemonis: thank goodness that julie was able to rise to the occasion to take care of her family, her husband, their kids, their business, but with robbie coming back in to her system, to her process, to her way of thinking, i worry that that's gonna be a big hurdle. you okay? julie: 2017 sucked, so every time we think about it, it just... robbie: she's tough. lemonis: you went through a lot. robbie: yeah. lemonis: and you are here on the other side. you seem like you're kicking ass. julie: trying. lemonis: you don't feel like you're getting there? julie: mornings -- i'm working. at nighttime, i'm working. i just feel like i'm a hamster in a wheel, like, just spinning, but i want to, like, get out of that wheel. lemonis: how to reacclimate yourself to a working relationship that's built on equality with everybody contributing isn't gonna be as easy as everybody thinks, and i have to figure out how to rebuild his confidence

slowly so that he can stand on his own two feet. so, i'll meet you guys at baton rouge? robbie: baton rouge. yes, sir. lemonis: okay, i'll see you there. ♪ robbie: welcome to baton rouge. lemonis: yeah. robbie: this is maddie, our store manager. lemonis: nice to meet you. how are you? madison: doing well. thanks. lemonis: who do you report to? madison: there -- it really is both of them. julie: i would say me, yeah. robbie: yeah, julie. lemonis: okay. i'm marcus. allyson: i'm allyson. lemonis: nice to meet you guys. so, when people walk in here, do you have any repeat customers? madison: oh, 75% is regulars. lemonis: and do you know exactly what they're gonna buy or not buy? madison: yes. lemonis: okay. madison: i know their style. i know their kids. lemonis: that's clienteling. like, "oh, my gosh. this came in. i know suzy's gonna love this." and then you're putting it in a box. you're calling her up and be like, "i know you're a working mother. i'm sending you the most amazing box, and you're gonna love everything. you're gonna wish i sent you more." julie: i never thought of that. that's a good idea. lemonis: do you have a database that puts people's information in? julie: no. lemonis: how do you communicate with them once they leave? brenna: i tell them -- i say, "hey, guys,

follow us on instagram. here's our number." normally we have business cards that we -- i think we have to get some more made. lemonis: today with web-based technology, you can input customer information in a database and send them offers based on the size they wear, the kids they have, their birthday, their anniversary, the colors they like. it's the very specific targeted marketing known as modern day clienteling. the good news is this market is wide-open. doesn't matter about the economy. babies are born every day, in fact, one was born a second ago, and a community of people are gonna buy a gift for the person that had the baby and the baby themselves. i'm gonna head back to new orleans, i learned a lot, and then maybe we can catch up a little later. ♪ how are you? robbie: how are you? lemonis: this is a busy place. robbie: this is a busy place. lemonis: do you have the financials? robbie: yes. this is a 2016-2017 comparison. lemonis: 2016 -- $857,000 of revenue.

2017 -- $801,000 of revenue. 2016 -- $431,000 of gross profit and a 50% margin. 2017 -- $396,000 and a 49% margin. so, in my opinion, your margins are at a minimum of 12%. julie: 12%? lemonis: yes. i think you need to be at 62%, not 50% and 49.5%. in this particular business because the volume isn't as big as a traditional retail store, you're going to have to have perfect execution on the margin side because there's very little room for error. 5 or 10 points across a couple hundred thousand dollars is the difference between going out of business or being able to pay your light bill. let's look at the balance sheet. so, right now, $27,000 in cash, $31,000 of inventory in new orleans,

$42,000 in baton rouge. so, $100,000 of assets that are tangible -- inventory and cash. come down to liabilities. $170,000 in bank loans and $40,000 in credit cards. $210,000 in liabilities. what about personal credit cards that are not on the balance sheet? robbie: we have one personal card that we've used, and it's got a $5,000 cap, and it's capped. lemonis: how much money have you invested in the whole concept? robbie: i'd say it'd be close to almost $20,000. lemonis: that's $235,000 invested, and there's $100,000 of cash and inventory. you're upside down $135,000. robbie: that's a lot. julie: i never knew how much debt we were in. i don't like loans. i don't like owing people money. i don't -- i just -- i'm not raised that way. like, i don't like it. lemonis: how did this happen? robbie: you know, i tried to solve things, so i go out and get a loan, and it would make it go away,

and we'd have to slowly pay it, you know? but the problem was, it would snowball. we'd pay -- we'd get a loan, and then the credit cards would get tapped out again. this is my flaw. julie: it's hard -- trust. lemonis: you don't trust him? julie: i was just ready to sell the car, sell the wedding ring, like... lemonis: i asked you if you trusted him. ♪ julie: oh, my god. this is stressing me out. i feel like i could do this in, like, 5 seconds. robbie: julie. julie: you're, like, giving me anxiety.

the hottest country stars, perform their newest hits. carrie underwood, blake sheldon, keith urban, chris stapleton, jason aldean, luke bryan and one of a kind rocking duets thomas rhett and kelsea ballerini host... let's get this started! cma fest wednesday august 8th 8/7 central on abc. xfinity gives you more of the cma fest with an encore performance from old dominion

right after the show. only with xfinity on demand. and watch it live on abc wednesday august 8th. im? julie: i was just ready to sell the car, sell the wedding ring, like... lemonis: i asked you if you trusted him. julie: i never knew how much debt we were in. to me, i'm like, that looks terrible. lemonis: did he mislead you? julie: not mislead, but i don't think that it was -- robbie: i just never told her. when you have any type of cancer, it scares the crap out of you. i went into, like, survival mode with my family. like, i need to be the provider. you know, am i gonna die from this? and i felt like at times, i was failing. it was hitting us hard at night with bills and her not knowing how we're gonna, like, keep our house, and those things killed my soul. and then after i'm healed, there's this big relief,

but then now i got to get back to work and things are still not right, and i'm sorry. i feel like we -- me and her have lost, like, our dating, you know, and i miss us sometimes. lemonis: this is nothing more than a health report on your business. and the nice thing about a financial statement is it tells you where the problems are. i like the business that you're in because i really belive that the baby-infant-toddler business is somewhat recession-proof. i like the fact that you guys are doing the million dollars with no inventory system, with no website, with no real buying plan, with no real merchandising, but those are things that are fixable. and so, my offer is to put $100,00 of cash into the business to bring in the right inventory and the right systems and the right merchandising, and to bring in all of my resources, as well.

julie: wow. lemonis: but for that, i'm gonna want to have 50% of the business. robbie: with all that, will there be a system in place to get this debt down, too? lemonis: some of the money can be used for that, but what i want to do is i want to keep the pressure on you to learn how to find the margin, cut the expenses so that business can pay its own debts back. and you're not gonna lean on her, and you're not gonna lean on me. you're gonna solve it. robbie: i want that. my passion is with this company. i will work my ass off. i'm good with the deal. lemonis: we got a deal? julie: i'm excited to have you to teach us. robbie: yes, sir. all right. lemonis: yes. julie: yummy, yummy, yummy. lemonis: all right. you want to hug it out? robbie: i want to beignet it out. i'm gonna show you what we do in new orleans. lemonis: okay, show me. julie: don't do it. robbie: there you go. cheers. ♪

lemonis: good morning. julie: morning! lemonis: before we get started, i just want to make sure that you guys understand what exactly is happening and how the process is gonna work. last night, we made a deal. i agreed to invest $100,000. it's gonna go into the business for working capital. the way that i would have you think about the business today -- it has store revenue, it has social-media revenue, and it has no online revenue. julie: right. lemonis: and so, we want to have three distinct channels of revenue. i want to renovate one of their stores so we can begin to think about expanding into other markets, but i also want to work on improving their social-media game as well as launch a website. we're gonna do digital imagery so that when you go online, you'll actually see lots of photos of the products. robbie: whoa. julie: wow. lemonis: yeah. the other thing that we learned last night is that this store has awful margins, and so right now, the margins are 49%. not acceptable. we need to get to 62% margins minimum,

and so we're gonna look at the products that we don't sell, get rid of those, and then we're gonna go find new, innovative baby products. something that's gonna add a sense of color and fun. this store needs a lot of work. make sure that there's a color scheme and that there's a product assortment and that the customer service is clear and that the inventory is clear. ellie: fantastic. madison: that would change, like, the whole look. lemonis: let's go. thanks, guys. the first thing i want to do is help them find new resources for new apparel and merchandise to diversify the product offer. and so, i've asked them to come to los angeles to see can i start to change the way they think. the clothes that you guys carry are nice, but they're not... cool. but i feel like we need to young it up a little bit, and so i'm gonna take you to a couple places, and we're gonna talk about how to change the perspective of the store. lauren moshi is one of those fun, contemporary brands that truly understands

how to bring color and energy to garments. lauren, how are you? lauren: hi, how are you? lemonis: affordably priced, and michael and lauren, who are the founders and owners, they're also family working together. why don't you pull stuff and put them on the racks of things you like? why don't you do the same thing? robbie: okay. this is cute. so, i think of both boys. i feel like i need to pull for them. julie: yeah, i mean, just -- you make the decision. yeah. robbie: what do you think of that? julie: geez... robbie: julie? julie: oh, my god. you're, like, giving me anxiety right now. like, i feel like i could do this in five seconds. you're kind of stressing me out, like, all this. robbie: okay, do it. show me. julie: what do i do that frustrates you so much? robbie: the micromanagement, making sure that i'm pushing

this and that on a customer 'cause sales are down. do you not think that i know what i'm doing? julie: i can't go further.

julie: i feel like i could do this in, like, five seconds. it's kind of stressing me out, like, all this. robbie: okay, do it. show me. lemonis: i appreciate the fact that julie, for the last year, has had to do all of the work and solve all of the problems, but if this business and this relationship is going to survive, she's gonna have to respect the fact that robbie has reentered the business, and the way she's handling it isn't exactly the best way to help somebody boost their confidence. robbie: it makes me sad that we used to do it together and buy together. julie: when i go to market, i'm, like, a madwoman. like, i wake up at like 6:00 a.m., and i don't go to bed till like 12:00 p.m. 'cause i'm doing orders and everything. like, and i know that you, when you're at market, you can't last that long. robbie: but i had more relationships with the people we're dealing with that buy things. julie: i am really good at this.

i feel like i have a good eye for it, and i feel like you have a better role somewhere else. lemonis: i mean, but, julie, i don't know that you're a good buyer. you have to prove it to me. what are you missing in that assortment there? robbie: color? lemonis: no, a story. when you buy, you have to think about how the whole messaging is gonna work not only here but with everything else you have. any time you're building an assortment to bring into your store, you want to build a story around the collection, whether that's the color palette or whether that's "summer fun." they're buying into your story. they're buying into the look that you're trying to create, and the likelihood of them buying more than one garment is improved. how high can you go up to in age, guys? lauren: we go up to age 12. lemonis: 12. so, we'll probably go to 10. where do you stop today? julie: 6. lemonis: why are we gonna go to 10? julie: to keep the customer longer. lemonis: right. thank you so much, guys. michael: thank you. lemonis: dl is one of the largest jean manufacturers in america, and they recently entered the kids business, and i wanted to take julie and robbie there to see

if they'd be open to carrying the most popular garment on the planet -- denim. tai: so, i have some of my core styles here. so, these can come year-round. they're super cute, great styles to wear to, like, school. julie: i don't carry denim for children at all. lemonis: do people in new orleans not wear denim? julie: i don't feel like it's as common. robbie: i think we haven't tried before, so i don't know how we really can have the answer yet. julie: no, it's very true. lemonis: don't think about baton rouge or new orleans. you may have a store in chicago. you may have a store in l.a. who knows how many stores you'll end up having. julie: mm. robbie: we're just in that mind-set with the south. we're thinking southern, and we haven't gone this route -- julie: it's hard for me to get my mind. robbie: we haven't done that before. i've had people come in ask for it. i've -- just recently. i know this stuff. i could sell it. lemonis: so, let's get it. do you believe that you can replace the maternity business with a wider variety of kids business and accessories and the overall business will go up or down? julie: up. robbie: i looked at the maternity numbers. maternity margins are somewhere in the negatives.

lemonis: so, then let's get out of the maternity business. robbie: yeah. i think bringing in more trendy and putting it where maternity once was will sell big-time. lemonis: great. i'm starting to notice that robbie's getting a little more comfortable in this environment, and he's really saying things that are adding value. tia: yeah, so jackets are gonna be around like $30 wholesale. lemonis: wholesale, okay. i have a big relationship with this company. robbie: okay. lemonis: now, i get a discount. $11 is what i get. robbie: okay. lemonis: so, $26.70 is now the cost... robbie: yes. lemonis: ...and $66 is the sell. what is the margin? robbie: so, a 60% margin. julie: that's great. that's really good. robbie: that's really good. lemonis: so, this is a line that i definitely want to see in stores. julie: sounds good. royce: hi, sir. would you like some lemonade? man: oh, no, thank you. royce: okay, maybe later then. we also have arnold palmer. hello, you look thirsty. can i offer you some lemonade? lemonis: what's happening, guys? royce: hi. julie: look how cute. lemonis: earlier in the week, i had met a family

who operated a lemonade stand, and they blew me away with their knowledge of numbers, and i thought it would be good for robbie and julie to see this, and after this, there should be no more excuses. what does it cost of a small lemonade? what does it cost you to make it? royce: 22 cents. lemonis: and what are you selling it for? royce: i'm selling it for $1. lemonis: and do you know the margin on that? royce: 78%. lemonis: okay. you see how she knew that? julie: mm-hmm. royce: do you guys know your profit margins? robbie: we're learning our profit margins. we need to be in a better spot than where we are right now. royce: well, if you don't know your profit margins, you don't know how to sell it 'cause you might be either overselling it or underselling it. lemonis: so, i think larchmont lemonade's a pretty cool brand. is there a way for us to license the brand to sell the t-shirts in our stores? royce: maybe. i'd have to talk with my lawyer, but after i talk with my lawyer and if he says it's a smart business move and i come up what the royalty is, then easily we can do it. lemonis: well, what do you think the royalty should be? what about 7%? royce: 15%.

lemonis: how about 12%? royce: deal. robbie: we'll do it. lemonis: good seeing you, buddy. royce: good luck in your store. julie: thank you! woman: hi! welcome to kidville. robbie: hello. lemonis: hey! now that we've gotten a pretty good idea directionally on where we want to go with the apparel, i wanted to take them to a children's play center called kidville so they can get inspired on what the interior of their space needs to look like. in the case of a kids' store, it should be bright and colorful and cheerful and exciting, and it should get people in the mood to buy kids' clothes, not white and sterile and boring where i want to lay down and take a nap. who's this? woman: this is ziva. lemonis: hi! woman: say "hello." lemonis: by the way, i love your jean jacket. robbie: it looks good on her. julie: it's cute, very cute. lemonis: i would say you're a cool kid. wouldn't you say? look at his clothes. robbie: that's awesome. julie: ah, i like that motorbike. lemonis: that's the kind of stuff. it's just a balance. high five. can somebody give us a tour?

woman: absolutely. this is our muscle gym. lemonis: what's up? whee! woman: wow! lemonis: as you look at all these kids here, i want you to see them as customers, and they're all dressed differently and they look beautiful. ♪ boop, boop, boop, boop, boop, boop, boop ♪ what do you think of his pants? julie: so cute. his little tye-dye. cutie! lemonis: they're cool kids. robbie: they are. lemonis: everybody rocks their own vibe. robbie: that's right. lemonis: and we want to let that happen. robbie: aww... lemonis: no? robbie: he scares you, too? lemonis: okay, okay, okay. woman: this is where we have our rockin' railroad band. lemonis: so, i think what you really have to think about is how do you stimulate the buyer, having them walk in and feel happy? like, the key to candy stores -- the colors are fun. robbie: that's right. lemonis: what are the colors of the company gonna be?

julie: one of my favorite colors is, like, that mint color. lemonis: that mint color. what else? robbie: i like red. lemonis: okay. julie: well, no, that's not a good color. robbie: julie, i want my opinions to be valued, too. like, i want you to respect my opinions, too. so, not just like, "no, that's not gonna work." i said "red," and -- i mean, i know it doesn't really go with that, but it's just, like, quick. julie: i think that i should be the one picking out the -- i mean, it's more of a feminine -- i would respect your opinion, too. robbie: look, i get frustrated with you at times, and you know that. julie: what do i do that frustrates you so much? robbie: the micromanagement, making sure i'm doing all my tasks, making sure that i'm pushing sales or pushing this and that on a customer 'cause sales are down. it's, like, do you not think i know what i'm doing? i'm feel like i'm walking on eggshells. julie: sorry. robbie: i see it in your eyes. julie: it -- i can't go further. robbie: i-i don't...

mm. i need a minute. lemonis: if your business is in trouble and you need my help, log on to...

is part of a bigger picture. that bigger picture is statewide mutual aid. california years ago realized the need to work together.

teamwork is important to protect the community, but we have to do it the right way. we have a working knowledge and we can reduce the impacts of a small disaster, but we need the help of experts. pg&e is an integral part of our emergency response team. they are the industry expert with utilities. whether it is a gas leak or a wire down, just having someone there that deals with this every day is pretty comforting. we each bring something to the table that is unique and that is a specialty. with all of us working together we can keep all these emergencies small. and the fact that we can bring it together and effectively work together is pretty special. they bring their knowledge, their tools and equipment and the proficiency to get the job done. and the whole time i have been in the fire service, pg&e's been there, too. whatever we need whenever we need it. i do count on pg&e to keep our firefighters safe. that's why we ask for their help. i do count on pg&e to keep our firefighters safe. julie: it just -- i can't go further.

robbie: i just -- i don't -- lemonis: you all right? robbie: mm-hmm. lemonis: yeah, come on. sit down. what's up? robbie: no, it's just... lemonis: it's a very big deal. are you kidding? robbie: at the same time, you know, the business was hurting so bad, and i wasn't there, you know? it's like that whole thing that men have. like, i want to be the man of this business and my family and make it right for them, and, you know, it's like when you have that, it put me into this, like, funk, this depression, and i just hurt when i saw julie always pressured or stressed to the max, and i couldn't be there. but, look, i don't have it anymore, you know, so it's amazing. so, i'm ready, and this opportunity we have right here, i can't tell you how, like, humble we are about this and just i know we're gonna rebound. we're gonna be stronger than ever, you know?

so... lemonis: you all right? julie: i do need to trust you. i do need your confidence back because i do see that you lost that. i want you to run our business. i want you to kind of man up. robbie: mm-hmm. julie: and so, i'm gonna take a step back. i'm gonna try my hardest to pull back. robbie: i know you will. lemonis: you have to gain your confidence back. robbie: yeah, i do. i know that. lemonis: but i think in order for you to get there, you're gonna have to get past all the things that you overcame. never forget them because the fact that you're a cancer survivor is a huge win, but i know that the reason that you struggle with numbers isn't because you're not good with numbers. it's because you get frustrated, and you've lost your confidence. we got to get back to the basics and have fun. robbie: yeah. i love you. julie: i love you, too. ♪

lemonis: hi, guys. robbie: hello. julie: hi. lemonis: have you guys had any thoughts about the name? robbie: i mean, i know the name needs to change. lemonis: before julie and robbie leave l.a., i want to talk to them about how we're gonna brand the company going forward. now, i know that new orleans people don't like to be too cool according to you. ♪ julie: shut up. robbie: oh... julie: that is awesome. my mind is blown right now. what? robbie: that's amazing. wow. julie: that's awesome. lemonis: so, you guys now own the shop at koolkids.com. robbie: are you serious? lemonis: mm-hmm. this is part of the reason why this brand meant something to me. kids today really struggle with being included in the cool kids, and for me, we want to have a store where every kid is cool. robbie: yeah. lemonis: i was not a cool kid. i'm still not a cool kid. and this idea that every kid isn't cool isn't cool with me. i want to create a safe place for parents and for children

to shop where regardless of what your size is, what your color is, what your tastes are, that every kid is cool. i think you guys should go out and have a nice couple's night and go enjoy yourself because from this point forward, it's gonna be intense. now that they have their new brand, we're gonna start the process of remodeling the new orleans location. you can see how they're suspended on the wall. i want to cut this open. i want this panel to be plexi. marc: okay. lemonis: and then i want to fill it with gumballs. julie: what? marc: okay. julie: that's awesome. lemonis: it'll add a sense of color and fun. and while the contractors are getting started on creating the new look... paul: hey, guys. robbie: hey. lemonis: ...i have a company called infusionsoft coming to work with julie and robbie because they specialize in clienteling and customer data. paul: what we do is we take all the information scattered throughout the company and bring it into one place. all the activities, all the history of each customer. robbie: this is serious. this is nice. i mean, this is legit.

lemonis: this has to -- no nonsense, has to go on your shoulders. robbie: but you're, like, telling me all these things i have to do and things i've never learned before in my life, and it's like, "how am i gonna learn all this stuff?" lemonis: do you feel too overwhelmed to handle all of it? just be honest. robbie: like, i want to be able to do it all. another thing, i feel like i'm gonna build an e-commerce site. you're gonna rely on me, i mean... lemonis: i am gonna rely on -- robbie: well, like, i'm gonna go sit at home and build a website on my own. lemonis: you're not alone... robbie: okay. lemonis: ...on anything. robbie: that's what i need to know. lemonis: i feel like i still need to spend more time with robbie, but maybe on a one-on-one basis to really help him gain some confidence. robbie, are you feeling more confident? robbie: um...things are better, but i still sense just, like, like, "this is your fault we're in debt," and, you know, i got us into this. julie's seeing baby steps already, but it's not like it used to be where we were 100% altogether. but, i mean, that's, like -- i feel like there's just doubt from julie because i just never did it correctly, so...

micromanaging is going along with me and telling me how to do things, you know, how she wants things done, and i feel like i won't have peace with her, so i make her -- let her have the decisions. lemonis: were you worried you were gonna lose her? robbie: yes. i wouldn't let it. i mean, it's come close many times. lemonis: this store looks half empty. julie: so many shipments were supposed to be here. lemonis: it almost looks like we're days away, not a day away.

lemonis: were you worried you were gonna lose her? robbie: yes. it's come close many times. lemonis: what i have to help you do is we have to get julie back onboard. robbie: yeah. lemonis: do you understand how a strong knowledge of numbers can change how she feels about you in business? robbie: big-time. and it's like, for me, i'm telling myself in my head, "it's time to man up." lemonis: so, the two documents that you're gonna have to get very comfortable with are the p&l and the balance sheet, and the goal is to own more than you owe. even though robbie ran his business for many years, he never had a true, formal business education, and my job is to make sure he has a business knowledge from the ground up starting from the basics. the way you fix your balance -- sell more, improve your margins, control your expenses. that is how you make the profit. okay? robbie: got it. lemonis: that's it. robbie: that's it. let's roll.

lemonis: while the store's under construction and the clothes are being ordered, we're heading to new york to century packaging. frank! frank: hey, marcus. lemonis: how are you, buddy? good to see you. with instagram and online being important components of revenue, we need to make sure that the customers get wowed when they get their garments. frank: so, this is a prototype we came up with. it's a gift box. julie: that is so great. robbie: that is so awesome. so, i'm thinking we do, like, a holiday box. lemonis: robbie, i want you to take the lead on all of that. robbie: sure. lemonis: and now that we're building a website, i'm taking them to splashlight. how are you? i'm marcus. benoit: hey, i'm benoit. nice to meet you. lemonis: how are you, sir? nice to meet you. they specialize in the highest-end photography for websites that i've ever seen. benoit: this is our cgi digital paper doll. the idea of this technology is photographing it once, and then we have digitized model library. eurel: we have the flexibility in terms of, "is this top gonna sell better with a different pair of pants?"

lemonis: you can do this image in the midwest, and down in south florida, you may change it to shorts. robbie: you want to do it first? go ahead. julie: this is your job. you go for it. robbie: that's it? lemonis: that's it. robbie: that is amazing. lemonis: also, we're going to a professional design and embroidery house to take the burden off of julie and robbie. juan: we've got any clothing, and then we embroider. lemonis: so, how much does a hat cost? $5? and what are you gonna sell that hat that's embroidered? julie: $18. lemonis: so, what is the margin? robbie: 19% to 73%. julie: okay, that's good. lemonis: zero to hero. do you want to grab some of these orders and pictures that you have? julie: yeah. lemonis: and i also want to check in with julie to see what she's been buying since our l.a. trip. you sure this isn't too fun for new orleans? yeah, you've got some great stuff. and the price point works for you? julie: yeah. lemonis: oh, it's a three-piece set. saving dollar costs. i'm impressed that julie is really taking direction well in picking out things that are hip and fun. ♪

it's been a few weeks, and the grand re-opening for the store is about to happen. i wanted to make a surprise visit to new orleans to check in on how robbie and julie are doing. how have you guys been working together? robbie: really good. lemonis: so, you feel like things are better at home? robbie: yeah, yeah. i just can't thank you enough for this whole opportunity 'cause it's healed our -- it's healing us. julie: yeah, i just feel like so much pressure's off. robbie: yeah. julie: i just want to thank you. robbie: it's fun to wake up in the morning now, and, like, say, "let's go to work." you know, more like, "let's have fun. let's go do this." i'm loving this new life. lemonis: it actually feels really good in here. but do you guys feel like you have enough product? all the top shelves are empty. julie: like, so many shipments were supposed to be here yesterday. lemonis: it almost looks like we're days away, not a day away. what about toys and things like that? julie: i got my orders in like three weeks ago.

robbie: there's a lot of boxes in limbo for some reason. lemonis: where are all the shoes? julie: shoes are -- robbie: we got them. they didn't put them out yet. we haven't gotten to them. lemonis: did they add more lights? robbie: we added a lot more lights. lemonis: you know you still have to reposition them, right? julie: mm-hmm. lemonis: after weeks, i would've expected them to be further along.

lemonis: where are all the shoes? robbie: they didn't put them out yet. lemonis: did they add more lights? robbie: we added a lot more lights. lemonis: you know you still have to reposition them, right? there's no way this thing is ready, and it's overwhelming, and it's new for them. i'm a little concerned. julie: you're stressing me out. robbie: whatever you think, we can figure it out. we can get it done. lemonis: but rather than criticizing it, i just need to jump in myself and roll up my sleeves and help. ♪ i'm gonna move this down a little. we're in the final stretch of getting the new store ready, and today's the day that really julie and robbie get a fresh start. what did the margins used to be? robbie: margins used to be around 48%. lemonis: and what do you think they are with all the new private-label stuff? robbie: very close to 61%. lemonis: okay. robbie: we'll hit it. lemonis: i actually feel like what you know today

compared to what you knew when i met you is totally different. julie: plus his confidence is coming back. that makes me happy. lemonis: i couldn't be happier with my experience here at baby bump now kool kids. wow, i think it looks spectacular. i spent about $50,000 on all-new fixtures and about $45,000 in new lighting, but what i really wanted to do is bring their space to life with personality and color and even a gumball ceiling. i also added about $55,000 worth of new inventory so that the store had the right assortment and it covered all the different age groups. what was an overcrowded and cluttered maternity section is now a dedicated infant section with all the toys, jewelry, blankets. a brand-new pos system has been installed with unique clienteling software,

and the professionalism is at a whole new level. who's ready? [ crowd cheering ] lemonis: wow! let's do it. enjoy yourself! woman #2: isn't it so pretty? girl: mama. lemonis: high fives for everybody. hi. girl #2: this one is good. this one here i tried. robbie: are we still hiring? you're a little young. lemonis: by eliminating maternity and freeing up that space and the dollars for inventory for a broader range of youth, they should go from averaging around $1,000 a day to $2,700 a day. over the next couple of months, julie and robbie will be updating their website, shopthekoolkids.com, and as they open up stores around the country, i'm expecting their revenue to more than triple in the next couple of years. but more importantly, there's proper planning and there's managing with numbers and data. robbie: hey, guys, i think we just really appreciate

all of the support that we've had from watching our kids to helping us in the store. we're excited about growing this company, and, oh, there's also marcus i'd like to thank. julie: i think robbie said it really well. marcus, it was great to have you with us. woman #3: aw! lemonis: what's interesting to me is that there's proof that a family business can thrive, survive, and grow, and they'll be opening up a kool kids in jacksonville. i know that the future is bright, but more importantly, their family has a bright future. i looked this morning. do you know how many e-mails that you actually sent me? robbie: no. lemonis: 384. julie: oh, my god! lemonis: you sent me... julie: right on, baby. lemonis: ...384 e-mails. robbie: i'm persistent. lemonis: but that got you the shot. your persistence got you the opportunity, but your work ethic and your courage and your strength

is what is going to continue to make you successful. thank you for the dedication that you guys have shown. and so, i've gained respect for you as a business partner and a friend. robbie: oh, thank you, man. ♪ letonight on "the profit"...s. we head back to some of the business i've partnered with over the past year. -carolyn? -carolyn: i'm carolyn. -nice to meet you. -lemonis: when i make a deal, i come in with a plan and a check. man: thank you, marcus. woman: i was gonna work you a little bit more. lemonis: [ chuckles ] but what happens after the cameras shut down... michael: i've let it slide for three freakin' years! lemonis: ...may surprise you. one struggling novelty sporting good company has been totally transformed. wow. look at this place. but the owner is still making the same sort of short-sighted decisions that nearly brought them to the brink. i'm pissed that you bought the printer. i'm not gonna lie. if you were me, would you stop putting money in this business?