duty automotive transmission, 80% market share with an accelerating double digit top and fine >> and mphase is a recent purchase for that. we think there's big opportunity withthat >> i'll see you in a couple of hours. "the exchange" is now. ♪ ♪ thank you, scott hello and welcome to "the exchange." i'm kelly evans. here's what is ahead today the skip is in and the fed is not going to hike again. our market guest is sitting right there, going on the record with that view it'snot what the broader markets are expecting. so who's getting it right? plus, coinbase lower the fcc suing them for breaking market rules the fcc chair comparing the crypto compliance process with "catch me if you can." but does the fcc's wording

matter we have the latest and a brand new ceo of academy sports and outdoors. a disappointing quarter for sales and profits. could student loan payments be another head wind? the dow down 54. the s&p only half a point away from its closing high, but in the red by a point and for the nasdaq, it's 13,240, the new 52-week closing high the nasdaq is positive on the week, the seventh straight positive week, the longest win streak since 2019. third positive day in four for regional banks you can see there, dwgains of 6 to 10% we'll have more on that ahead. markets expect the fed to keep hiking after it pauses this june

my next guest thinks this skip will evolve into a pause, and says september will confirm the end of the rate hike cycle let's bring in barry naff. become >> thank you >> i'm really playing it up like this is a contrarian view. it seems natural it will evolve this way or maybe there have been other times we pause and started hiking again >> listen, i think the best analog for this is a very aggressive 94, 95 rate hike cycle. in that case, the fed tightened 300 basis points in a year the stock market rallied from that maximum point of hawkishness, the 75 basis point hike in november, through when they confirmed the pause in june, 22% we have rallied something like 20% the big difference is we had a similar magnitude of yield curve

flattening now we're stuck 100 basis points negative and the banking system has an ongoing problem. what we'll find over the next three, four weeks is that the money is not all coming out of the rrp program, it won't be government money funds that buy that, it will put more pressure on the bank reserves credit growth is decelerating rapidly -- >> and we're going to talk to my next guest about deposit flight going into money funds your point is we will see renewed stress on the banks. >> correct so i described it as the fed's trilemma we are going through deflation

we're bottoming right about now, but we won't know that until july at that point, cpi will be 3%, 4% by the time we see the june number that takes some pressure off the fed. they should be patient with respect to that. though at the same time, the pressure on the banking system is going to build. i suspect by the fall, bank reserves will fall from their current level of 3.2 trillion to about 2.7, forcing the fed potentially tostop quantitativ tightening >> jamie dimon alluded to this already. let me ask you, 1994 was a soft landing, and it seems like because of certain things like the tightness of the senior loan survey, we don't have the same setup as we did then do you think we're heading into recession here ultimately? >> this is the point we're at.

the probability of recession is much higher in mid 2023 than it was in 1994 because of the fact that that yield curve is 100 basis points inverted, no term facility is going to work when you own assets that yield 3% and you finance them at 5% so the only way out of this really is for the fed probably to reverse some of the rate hikes. i think they should sell some of the longer duration treasuries, buy short-rate treasuries, then the banking system can learn their way out of it. particularly when you talk about adding more capital. >> if someone was listening and say wow, this sounds bearish but you have been overweight equities a lot of people have said the market is rallying because it's rallying on the pause. this is all about the fed pause

or pivot, whatever you want to call it. if that's true, why is there a 80% chance of a hike in july i can understand if the market was rallying and thought the fed would be done, but i don't understand a rally if they thought they were going to keep going. >> until we got a debt ceiling deal, we were going to have liquidity in the system. but once that was done, we were going to have what i call another extreme liquidity climate change storm so when the fed started with qe, created all this abundant reserves, it's called an abundant reserve system, they created a system where we were going to have these violent storms i think we're do for one of those storms because of the issuance we'll probably have a risk-off episode. i don't think the weighted s&p will go down very much at all. the cap weighted one will go down

>> you're not going to be one of these people saying, i'm getting in on the nvidia trade, i'm piling in on the nasdaq? >> not now i love the idea that we will have a strong productivity cycle throughout the whole of the 2020s because of deeper capital expenditures and higher labor dynamicism right now, we're about to have a bit of a liquidity shock so things like buying equal weight, lightening up your tech exposure, you want to do that because we have a storm coming >> barry, thank you so much. appreciate you joining me today. the markets move on from the debt ceiling deal, but my next guest says, he's warning the agreement could cause more trouble at banks as people drain cash u.s. banks saw their largest

declines ever, about 2.5% of total deposits, the largest recorded since they began collecting the data in 1984. brian reynolds is chief market analyst. welcome. tell me exactly about how this might play out and the affects of the markets on the economy. >> i've been on with you the last couple of years, saying how complicated this environment is. it's going to become more complicated. we have money market funds surging and bank deposits declining. people realize that money market finds yield much more than banks. so we are seeing a shift it was a crisis in march when svb bank went out of business. but that warmed people up to the idea that money market funds yield more so we are seeing a transition out of banking, into money market funds that means less lending for consumers and businesses >> so now you heard what barry just said about that, a lot of

people recognize the dynamic, but some of them remain bullish or say look what risk is doing, or okay, the fed will respond to this and have to pause so kind of may this story out to the confusion you think it's headed towards >> it's been a choppy environment for the last year and a half you've had negative things go on, like the banking crisis, like the surge in the money market funds, but you have had positive things, like companies building up for buybacks buybacks don't leave markets, so i think there will be a negative surprise, and i want to be a buyer of that surprise, because the bank buybacks will take over i think it will be choppy for the next part of this year, but next year, i think it will be a better environment so i want to be a buyer on weakness i want to be a seller on strength in the near term, leading to higher stock prices

>> so far this year, we have been talking about going into the summer and how you would sell any rallies is that a change of view now have we hit an inflection point and if so, why >> i don't think we have hitt i. people are worried about the supply of treasuries that the government will start issuing. i think that supply will be overwhelmed by demand because we went on a buyer's strike during the debt ceiling battle. right now, people in the stock market, if they are worried about that, we have seen this the last year and a half that pushes stock prices down i want to be a buyer of that if we rally too much in the near term, i want to be a seller of that >> i'm surprised to hear you say you're more optimistic heading into 2024, when a lot of people say if we're not in recession by then, then 2024 is the moment.

>> that will be a positive surprise companies have been announcing more buybacks, even as they slowed their actual buybacks the buildup of buybacks will lead us in 2024, but i think we need to get through 2023 first >> final question, brian how do companies behave in terms of buybacks, leaning into them or backing away from them. it's my understanding that they tend to buy high, not low. and it sounds like you are expecting them to start picking up those buybacks if a recession were to come >> they used to buy high 20 years ago. but in the last decade, they have become laggards they buy when prices go up, but they don't buy when prices go down so i think when you have a down trend in stock prices, that will slow buybacks even more. but i think on the rebound, they'll pick up and lead us into 2024 >> that would be a very welcome

perspective. brian, thank you for your time today. appreciate it. still to come, the crypto crackdown. regulators announcing charges against a second crypto firm today. what does it mean for crypto holders? and three key consumer names giving us a read on the economy. talking soup, spirits and skeet ball ahead and as we head to break, here is a quick look at the markets as the dow tries to go positive the s&p is back up by five, and the russell up by 44 the ten-year yield, 3.70 back after this.

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welcome back, everybody. a shocking twist in the world of professional sports. the pga tour teaming up with rival saudi backed liv golf. they signed an agreement to enter a deal, and a memo to players acknowledging there is much work to do to get to a tentative agreement, but a partnership will supercharge the pga's future and the governor expects the merger to be done in weeks it would end the multiple

anti-trust suits they have filed against each other, but one outstanding issue are concerns about saudi arabia's human rights violations. joining me now to weigh in on it is golf channel sports caster mike tirico. thank you for your time this afternoon, mike. >> kelly, good eving from paris. we're here getting ready for one year out from the olympics we have a sports bombshell drop on us over here. >> unbelievable. donald trump, i saw a year ago, he told players on the pga tour to take the money because he thought they might end up combining. so what is the real significance of this? and what do you say to golf fans who are like, is the pga tour now controlled by the saudis and must feel a little confused. >> yeah, there are a lot of answers that need to come, and some will come, at least for the membership of the tour, when jay monahan has a players meeting at the canadian open, which is

happening this yeweek a lot of guys had the opportunity to take big deals, up to eight, nine figures. some stayed loyal because of history of the game, legacy of the tour, system of their feelings about where liv is coming from. other guys, dustin johnson, phil mickelson leading the charge now they get to come back with their money, and compete on the pga tour the guys who stayed, they have nothing to show for it somewhere between a business deal gone bad, and guys let down by the leadership. >> will the rest of the players be compensated, the ones who held out will this make the pga tour more lucrative? they must feel pretty upset. >> it has become more lucrative

for them for a variety of reasons. we're talking about saudi arabia's pif, their public investment fund, which is part of their project 2030 as they try to go to 13 different sectors and spread saudi arabia's impact around the world. there's also this thing called the pip, which is the player impact program that was a pool of money that the pga players got for whomever moved the needle the most. that came about showing liv the doorstep and offering money. how do we get the best names more of the money than just having to play for it? so they have received some money, but nowhere near what they could have otherwise. there are so many questions. what is this new entity going to look at like there are a lot of questions that need to be answered, and at this point, this is not a done deal

so the deal making is going to answer a lot of the questions that we all have right now >> and just back in february, lpga star anna norquist ended her deal, so you have that pushback with this announcement. perhaps as you intimated, there could be something that makes this fall apart or if the saudis throw enough money at it, they can push over some of those concerns what do you think their ambitions might be next? >> this is hard to answer, because everything from khashoggi to 9/11 and sports washing, all these issues have come upregarding saudi arabia' government on the flipside, you have seen saudi arabia continue to invest in and be a part of the sports world. separately, let's look at the u.s. with the quoft relationship to saudi arabia. antony blinken happens to be in

saudi arabia doing meetings, furthering the meetings that joe biden went over to saudi arabia to have last year. the u.s. state department pushed out a memorandum today, talking about the relationship between the united states government and saudi arabia, pointing to the eight decades of partnership together, and talking about building a new embassy in riyadh so the u.s. government is speaking and acting as though saudi arabia is a partner. so you parallel that with the concerns on the other side for what saudi arabia might be doing to clean up past transgressions with their money involved in american sports, where we haven't seen the domination of american sports as they have tried to do here with liv golf man, this has really stunned the tour a lot of the big names in golf had no idea this was coming.

>> mike, thank you, joining us on a very busy day in paris. we appreciate your time. >> you got it, kelly >> mike tirico with nbc sports now to crypto under increasing pressure. in the past 24 hours, they sued the company for u.s. securities violations, and then today sued coin boyce shares are down 13% and 20%. and based on what the fcc chair said, there could be more charges on the way >> this is a field that's built, the whole business model is built on non-compliance with the u.s. securities laws we're asking them to come into compliance, and they're going a bit of catch us if you can >> bitcoin hitting its lowest level since mid march before rebounding all of this as one of the largest tech conferences is taking place in amsterdam.

mac, what's the feeling on the ground >> reporter: every firm i've spoken to on the ground here says that the u.s. is looking a lot less viable as a home base for operations, in large part because of this big enforcement dynamic spearheaded by the fcc they're all in amor the dam for this conference as everyone is bullish. the netherlands falls under a new and revolutionary set of crypto regulations that provide hard and fast rules how to operate a digital assets business, which many of these firms have been craving for almost a decade. the licensing regime becomes much smoother and translates to eas easy access to the entire eu you can launch in one country and have that license apply in other eu member states

so folks are still bullish on the space, just bearish on america. >> so we have seen some outflows i understand from finance, for instance what do we know about the impact this is having on coinbase at this point >> trading activity yesterday took a hit data shows that investors pulled $791 million from the crypto exchange, in a 24-hour period after they were charged with 13 violations by the s.e.c. retail money is not coming back into the space meanwhile, coinbase's stock is way down in the last -- since we got the news

>> absolutely. thank you, appreciate it will the fcc's actions chill interest in bitcoin? for more here, let's bring in emilie parker, executive director of global content and here onset, cryptic skeptic bill mckenzie. i don't know how many times it's not going to take for me not to feel a little starstruck maybe five, ten. >> oh, come on >> as i just try to put my crypto head on let me start with you, because do you feel vindicated to some extent let me read a tweet from bill miller who said it's a great day for bitcoin. shutting down these chop shot also bolster confidence. >> let's hope so let's hope that shutting down bucket shop also lead to what

crypto is supposed to do in real life i spent two years investigate ing crypto interviewing people like sam bankman freed, going to the bitcoin conference in miami. so the story will keep evolving, but i think the question is really what is the innovation here block chain, not new, over 30 years old, goes back to 1991 so what is the innovation? is it separating retail traders from their money >> let me ask this, which came out from the ceo himself, who said if all of this is the case, why did the fcc let us register as a public company? >> anyone is allowed to register, and coinbase filed the right paper work you can blame ginsler all you

want, but he wasn't in charge then that's an interesting question, and a question that i cover in the book, how did crypto grow t such a degree that 43 million american bought it one of the answers is that there is a gray area between commodities and securities regulation that, you know, obviously manifests with the fcc and different committees, different jurisdictions. and basically the notion that what is a commodity vshs what is a security it can be classified as a commodity if it's not been classified as a security that's created a gray area so it's an area that i think crypto has exploited >> let's bring emily into this conversation what do you think the typical retail holder of these crypto assets is likely to do in response to everything that's

happened over the last 24 hours? >> all i can say is if you look at the prices right now, remarkably green considering what's just happened the fcc has just filed lawsuits against a, the largest crypto currency ex-change in the world and in america by a long shot. and you have crypto prices by the standards of crypto volatility that are relatively static you're not seeing major standard changes. so in that sense, i would agree that this is bullish for crypto. i mean, if this is going to take crypto down, i'm not sure what will so if you are looking at prices itself, and specifically bitcoin, this is kind of like a fluke of concept bitcoin appears to be one of, if not the only toke than is decentralized enough to not be considered a security in the united states. bitcoin is not reacting that much to this news the past 24

hours. >> how are investors supposed to engage with these platforms, or are these platforms going to be moved overseas and what would the impact then be >> right i think finance is very active all over the world, so i'm not sure how critical the u.s. market is to its survival. finance has been saying it doesn't have u.s. investors. coin cabase is -- i think the pe action indicates that, you know, there is crypto investment and trade happening all over the world. so worst case scenario, and these companies can't make it in the u.s., it's not the end of the crypto storey. europe is becoming increasingly an important player in crypto. and asia, now you have hong

kong so the story is far from over. >> ben, i'll give you the last word >> it's not an honest market >> what's not honest about it? if i say i like the bitcoin white paper and i want to hold it -- >> as long as you're willing to put real money in something that calls itself a currency, that is not a currency -- >> it's like digital gold kind of >> as long as you're willing to separate from your real money in the hopes that you can make something out of this investment, go for it. i would caution you and encourage you to read or listen to my book, just -- i don't know, take a gander. i spent two years looking at this i interviewed sam before he was arrested we talk about finance, jacob and i wrote an article about finance in "the washington post" last year there's a heck of a lot of

fraud. so let's see how much fraud there is, and then see where that leads us. >> and i would be curious six months, even a year from now thank you both for your time today. coming up, the world's largest venture capital firm is breaking up. is it about china or internal drama? that's next. dow is down 69 "the exchange" is back after this my name is shannon knight, and i own little knights daycare. carolina sports incorporated. a paradise for parents. lomita feed, current caretaker and owner. we did not know anything about the employee retention credit. that is a legitimate tax credit. so innovation refunds has really helped guide me through the process. just had to get a few of my records together, submit that, and they made it as painless as possible.

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solely on china. diedra bosa has more >> with geopolitical tensions rising, remember that sequoia has that big investment in bytedance. but they largely operated separately, so there may have been pressure there. also, look at the nature of venture capitalism basically, the returns were huge the environment we've been in over the last few years when value cases have come down, when maybe the bcs have had a little more control, that has changed a lot, and sequoia has been hit hard by this changing environment. the leader of the firm has seen the breakdown of billions in

their portfolio. i thought it was interesting what the leaders of the other units had to say about this move he said many chinese entrepreneurs probably don't even know how to spell sequoia and then the head of the india business saying we love sequoia, but our brand is our relationship and we feel our own brand is strong, which is quite a statement. sequoia is seen as the gold standard in venture capital, known all over the world but what they are saying is that, you know, the brand isn't what it used to be, at least in these markets, and they want to strike out and do it on their own. >> why would they jettison the brand if it's the most important asset that they have and yet, that's what they are issuing in a couple of these key markets. >> i spoke to him this morning, and he said this is largely a business decision. the markets have become more

complicated and that founders have global ambitions and b boarders fuzzy they're seeing brand confusion, which is the idea that a venture capital firm could become so big that they invest in different companies that compete with each other. take for example, they're kind of merging there he says that there is plenty of other venture capital firms. think about tiger or softbank that has similar relationships between their portfolio companies and a presence in areas like china where geopolitical tensions are rising >> diedra, great reporting thank you so much. coming up, a check on the consumer we have the action, the story,

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what is your message to american ceos who are still trying to do business in china, is that possible >> foreign policy is going to be set by the united states government if you listen to secretaries blinken and yellen, jake sul sullivan, the president, what are the things we need to do to make sure we have national security they also want to deal with unfair trade but this takes time. it will take a lot of work and professional, proper policies. so i think they're doing the right thing and getting a lot of help in the business community the other very important thing is this needs to be done on a bipartisan basis with our allies we have to keep the allies together on this

we [ inaudible >> i'm not going to talk about that i went there, taiwanese employees and clients and they were thrilled to have me there and i was thrilled to be there so i'll leave the foreign policy questions up to the people that do that. [ inaudible question ] -- they said you were positive on china >> i have written a lot about china. read what i have written the think about the economy is, today is still doing fine, the consumer is in great shape, the debt is in good position it's okay. we have issues down the road and that the excess money, gas, et cetera. we have to deal with those so hopefully we get through all of that. >> -- does that make you more

optimistic avoiding recession and having a strong economy next year >> i think it's fabulous we didn't have a debt ceiling crisis i think it's great these folks were strongly in favor of not having a debt ceiling crisis if i haddruthers, i would get rid of it. it is potentially terrible, and when you travel around the world, the united states is the fundamental foundation of a global economy the u.s. dollar is the fundamental reserve currency people rely on the consistency standarding that we have, the rule of law, we shouldn't be challenging that so i hope one day we do something to eliminate this as a problem. yes, it's a small pos it to the economy. last question. >> is it important for the white house to tackle this challenge

with china >> oh, my god, i think they're all talking about it they have given extensive speeches and comments, talking to business communities. it's just a little more complicated than a binary thing. there's a great poem, remember that poem, as you keep your head about when everyone else is losing theirs, that's what we should do. america is in good shape we made some mistakes in the past, let's just fix it going forward. we have the most prosperous economy the world has ever seen. no war in north america, south america, the landing in the pacific, the world's strongest military take a deep breath >> is that a campaign speech >> is that a campaign speech you heard that question being

asked to jamie dimon meantime, we have a consumer focused edition of earnings exchange campbell soup, dave and busters about to report. campbell's soup down 11%, as investors hook to see how much pricing power is in their tank they had some concerns about margin compression rival smucker this morning said they expect inflation, supply chain snarls and a tough macro to continue to impact results. jeff kilburn joins you now campbell's soup, down 2.5% today. would you buy snit -- buy' it? >> i'm a seller here so this looks like a broken thing to me.

i'm staying away, even though i love campbell's soup >> let's move on to brown foreman. shares behind jack daniels down about 4% this year perhaps indicating that booze is not recession proof, although yesterday the company announced plans to distribute brands in japan starting in 2024 what would you do with this stock many >> to piggyback off of jamie dimon, let's remember brown foreman. this is jack daniels this is their premium brand. so this is a $30 million market cap company. it has the ability to take over its 50-day moving day average. it's fascinating to see that distribution component japan's whisky market is growing at 10% a year. currently it's $4 billion, so it

will be projected in 2023 to be $10 billion. so i want to be a buy here, even though it's been a laggard year to date. >> let's move on along to dave and dusters, shares down 8% this year they're expected to be helped by lower food costs now, and guidance will be key to watch. are you surprised the stock is doing what it's doing? it's up 4% today >> i'm not surprised, but it is interesting to see a little jump before earnings. dave and busters is a place near and dear to my heart, but i think it's a range bound stock it's a very small market cap, under $2 billion so this is not really a long-term investment from a trading perspective, i

think you buy it here at $30 this is a stock that goes up and down if you look at a chart, it's provided traders, not necessarily investors, but traders an opportunity to get in and out. >> you're right, that market cap is tiny. jeff, thanks for your time today. good to see you. >> you bet switching gears to private equity last year, kkr sold garage door maker chi for $3 billion what's the big deal? it was a wind fall for the private equity firm, but also to the employees. k >> leslie is here with the latest >> kkr announcing it plans to be the new owner of circor, but every employee there, including

hourly factory workers, will get a stake in the company ownership has been championed by kkr since 2011 the portfolio companies have awarded billions of dollars in total equity value to over 50,000 non-management employees, saying the payoff is huge. >> the program is more than handing out stock but giving people a voice in their work, teaching financial literacy. and it's all of those things taken together that deliver the kind of outcomes we have seen the other 30 times that we have done this. when it's done well, all of those metrics go in the right direction, and everyone anticipates in the end >> they'll likely hold on to circor for a while but those employees will get cash or stock at an ipo, depending on the returns, payouts can be worth six

figures, creating more workforce loyalty, especially in a tight labor market >> you can see people less likely to quit their jobs, more engaged on the job if you look at statistics on turnover, we're living in a world right now where almost 4 in 10 americans quit their job every year 70% of americans, according to gallop, are not engaged on the job. these statistics are bad for workers, because people are bouncing around from job to job, and not advancing their skills and it's bad for companies >> of course, this program is incumbent upon the deal closing, which is expected in the fourth quarter of this year, subject to various approvals. >> henry mcveigh first told me about this i wonder if it should be more widespread do people have to take lower annual comp to make up for this? >> great question, and i just

spoke to him about that, as well as an added benefit of the program. they don't have to take wage cuts to make this happen they're not taking on any additional risk as a result of that that was my concern too, given what we are seeing with wage inflation. this is a way companies -- they are not use thing to work around it the pushback they get from ceos is time management it does take some time, especially the financial literacy component of it, the awarding of the stock, so he says that's the number one pushback they get. >> or do people just sell the shares there might be people who say i would rather diversify because i don't want all my stock eggs in the same basket. >> they're locked up just alongside kkr's investors. so they'll get liquidity here when kkr investors get

liquidity. these funds, you know, often times are ten years. it can last a full decade. >> fascinating leslie, we appreciate it still ahead, shares of academy sports and outdoors is higher today. despite an earnings miss we'll talk to the newly installed steve lawrence in his first tv interview since taking the job. that's next. e software to help you connect and analyze data— from hvacs to elevators to lights. what if we use ai-driven insights to pinpoint inefficiency? yep. and act on it. saving energy, money... ... and emissions. yup. that's a big one. now you've built something better for everyone. that's the sustainability solution ibm and a global real estate company created. what will you create? ibm. let's create. if you wake up thinking about the market and want to make the right moves fast... get decision tech from fidelity.

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welcome back shares of academy supports is higher today despiting missing on the top and bottom lines, a lower revision to the outlook. they're seeing 680 to 750 a share this year. a little over 6 billion. management says customers are dealing with macro head winds and being cautious with how they spend. joining me in his first interview since taking the helm a week ago steve lawrence, ceo of academy sports nice to meet you and have you here. >> nice to meet you virtually too. >> we enjoyed speaking with ken. i'm curious about the timing he told us the good stuff happening and now you have to come in and tell us the stuff that's weakening somewhat. >> i'll point that out to him. it's been an honor working with ken the past four and a half years a legend in the industry and i have big shoes to follow. >> people took notice of the stock after they said you should

check out what's happening with academy sports and having him on he was able to highlight the business model, the growth but a lot of that was hyper fuelled by the pandemic. and what happens now >> you know, so we just announced back in early april a new long range plan that has three pillars to it, first new store growth opening 120 to 130 stores over the next five years a lot of it is new markets we think there's opportunity to expand the store based in new markets and states we think there's a lot of growth in our dot com business about 10% penetration we think we can get to the 15% or higher and then increase our productivity in our existing store base so we're looking at that, making sure the existing stores we have are productive and profitable so we're very confident in our plans to move forward. >> who are you taking shares

from a dick's a walmart >> i think it depends on who the competitive market set is. we're not as focused on who we take it from we know the value proposition we offer, the strong operating model we have translates to new geographies we just know the share we're going to pick up. >> i remember one time it was bicycles, jerseys were a hot seller and lately we've had to float the question a little bit and say what are the weak spots you're noticing. where do you see the consumer behaving differently in 2023 than in 2022 >> we saw a bifurcation in the customer in the first quarter. one end, the customer is gravitating towards value, any place they can stretch dollars that's working and the other thing is newness

if we have a brand in our store less than a year, we launched berken stocks, black stone or yeti with new colors, that's worked well for us on the flip side, customers aren't paying more for the same so in some cases some supply chain pressures out there pushing prices up, customers aren't accepting that. we've had to be thoughtful as we navigated this and make sure we're representing value and newness to the customer. >> crocks investors will be relieved to hear hey dude is an area of focus. i thought you were going to talk about pickleball as well in terms of new sports. >> that is growing very fast for us that's the point we are across a lot of categories, it's our job to go out and find the newness, highlight it and make it a big deal in our stores. >> i'm a sucker for the yeti

colors as you mentioned, customers are pushing back on price. when you talk about how much you can see ahead, three months, six months out, i don't know what the horizon is on how do you expect the summer into the back to school season to go for you guys >> we revised our guidance down. where it was before we got on the upside down four and a half, down seven and a half. we think it's a challenging environment the remainder of the year that being said we can control the things in our power. make sure we're delivering a strong stable of brands to add value against. we have newness coming in. i think that's going to help us gain market shares. >> are they all just on a plane or trying to get to a taylor swift concert? is that the problem? >> i don't know. my daughter is certainly looking to be at the taylor swift

concert. >> thank you for joining us. it's a pleasure to have you on good luck. >> thanks. >> steve lawrence and academy sports and outdoors. that does it on the exchange "power lunch" picks up next looking at this company with a 4% earnings beat the ceo of boot barn tyler has his cowboy hat ready i'll see him on the other side of the break this is cynthia suarez, cfo of go-go foodco., an online food delivery service. business was steady, until... gogo-foodco. go check it out. whaatt?!

overnight, users tripled. which meant hiring 20 new employees — and buying 20 new laptops. so she used her american express business card, which gives her more membership rewards points on her business purchases. somebody ordered some laptops? cynthia suarez. cfo. mvp. built for cynthia's business. built for your business. amex business. ♪ opportunity is using data to create a competitive advantage. ♪ it's raising capital to help companies change the world.

♪ opportunity is making the dream of home ownership a reality. ♪ ...and driving the world forward to a greener energy future. [applause] sometimes the only thing standing between you and opportunity is someone who can make the connection. at ice, we connect people to opportunity. good afternoon, everyone welcome to "power lunch" alongside kelly evans i'm tyler mathson. coming up the next big thing ai is everywhere right now apple breathing new life into virtual reality and the metaverse and a crypto crackdown so which is a fad and which owns the future, kelly? >> we'll ask that. thank you. we'll get a view on the economy with the ceo