tv Mad Money CNBC October 2, 2024 6:00pm-7:00pm EDT
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the fundamentals, verrone. >> guy >> your son loves you, come see us at the show >> yes, for sure open invitation. t-mobile, mel. tc all right, thank you for wahing "fast money." don't go anywhere. my mission is simple. to make you money. i am here to level the playing field for all investors. there's always a bull market summer. i promise to help you find it. mad money, starts now. >> hey, i am cramer. welcome to mad money. welcome to cramer. my friends, i'm just trying to make you a little bit of money. my job is not just to entertain, but to explain everything for you. 1:807 -- when you hear about the presidential election, there is really only one issue.
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it is inflation. doing the absolute best to keep inflation levels in check. inflation has kept stock prices rising sharply, that doesn't mean they are coming back down. more important from our expect if it was his perspective, -- the inflation -- held back video w jones just 40 points today. s&p .01%. nasdaq, .08% higher. inflation is a funny beast. isn't it? nobody wanted to claim the inflation mantle. i think the undercurrent by nike's plunge, did a crevasse with mixed quarters. it is in the medic of how higher prices are changing the face of business. it is not changing the face nicely. nike now ceo, -- decided to go heavy into e-commerce. at the same time to go heavy into price increases. probably a similar idea that took -- took over when covid was
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having prices down. why show off your best effort locker and dick's sporting goods, why give them a chunk of the sneaker gross market when you can capture it all yourself and like you direct? it is a thoroughly technological boosting process. one problem. something issue guy or an athlete would have known instinctively. in a more fecal moment -- a frugal moment, people are not paying lip snackers for a pair of sneakers, at least without trying them on first. i see that nike can meet the new consumer. the one that has had it and doesn't want to take it anymore. price gouge consumer bump. have reached the limit of what they will pay. unfortunately nike is beyond that limit. especially if they turn out to not be your cup of shoe when they come in the box. i know politicians are trying to cash in on the price gouging. vice president kamala harris is even trying to bend this. i do know what will work. a savvy consumer that is beginning to upset the entire
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scaffolding of price hikes that we have been hit with since the pandemic. those price increases are going to have to be rolled back one way or another. or your ceo is going to get rolled, just like we saw at nike. i don't think it is a consultants -- coincidence. starbucks lost his job during the year of the $7.25 pumpkin spice latte. that is another tripwire that the consumer wants to sever. it coffee should not be the price of their lunch. interim ceo of aaa, scott boatright, -- former ceo -- we discussed this. >> there was a pullback on the consumer. i think there is more of a macro resistance to inflation in general in california. we watch the stuff very closely because there are three things. one of the three things is affordable. we are not going to give up on affordable. we want everyone to enjoy chipotle. >> brendan foley, ceo of mccormick. we talk about the deal on
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spices. >> consumers are looking for value. we think we are doing the right things across our business. if the flavor is a small part of any meal, but has such a big impact, we see a lot more consumers now shopping around the perimeter of the store. they have to flavor a lot more of their meals because they are making it from the produce department, or buying montreal% steak to flavor their steak. we are finding out what is working with consumers. particularly consumers thinking about their spending right now. they do want to explore. they may not want to expend -- to spend as much as they normally do. they will put out another dollar to try a new flavor. we working with this with this flavor. frank's, i love the creamy buffalo. we are seeing a lot of returns from that. >> come on, this is incredible. people are staying home and stapling hot sauce because they want the experience of what they used to be able to have? a nice dinner away from home? it is not too expensive to buy
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jordans without trying them on. it is too expensive to eat out at places, -- fighting inflation prizes with wingstop. your sales go down double digits. the price of the same, wingstop, you get double digit gains. this is why nike stock is down 23%. wingstop is up 65%. yes, you give the consumers a bargain, your stock source. everyone is mad about inflation. it is the case going to starting in the late 90s, they seem the most angry about it. having to compete against a slightly older generation from covid. plus, artificial intelligence -- white-collar jobs disappear? they are looking at the working rate for -- twice the national average. some of them are a daytime group of video gamers that like to throw their money away on draft games. i prefer to think of them as people who want to support their parents good, but because of inflation they find that impossible. they are doing what i call loud budgeting. they don't want to do it, but they kind of have to.
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most companies are still on about pricing. maker of jack daniels, you think the sales have become a mystery. the fact is, liquor, after multiple price increases, just got too expensive. i'm not picking on brown forman. you don't get a 22% in decline of sales because of tequila by keeping prices lower, do you? you are going to hear holy cow, we took prices way too high, we better take them down now. liquor companies are pondering that perhaps generation z want to be healthier, maybe they have realized that alcohol is unhealthy. higher price, don't make that the issue. except it really is. inflation is insidious. it is also seeming unfair to the people who have been dealing with the price increases. unlike the other companies, mcdonald's was quite vocal when we said taking too much price. wow, maybe we didn't do this right. extending the five dollars value meal. beyond the summer?
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that was very well received. not just by mainstream, but by wall street too. do you think this continues if the stock is down 240 to 303 since they decided to rollback prices for good? those people, highest compliment. they got horse sense. companies are taking prices down because they don't want to hurt their treasured growth markets. i think it might be time for a joint reset. again, there are reason -- there are reasons they are down 20%. heart, the real enemy of the gougers with a whopping 53% run. if you keep prices low, you can indeed make it up in volume. consumers are a lot smaller than some of these companies are ever willing to admit. let me give you the bottom line. politicians can toss objectives about each other and get on their high horses about on who is price gouging.
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you and the public have taken matters into their own hands, and stop buying goods with inflated prices rom stores that refuse to lower them. the result, fired ceos and crushed stock prices for all those who refused to heed the thunder. the thunder of angry consumers who finally said no to the scourge of inflation. zeb, in texas. >> thank you for having me on. thank you for all you do to help educate us and win. >> thank you. >> my question is specifically on royal caribbean. over time, i have been able to build a good position with a cost basis of less than $60. i also took some profits recently. i'm also heavily invested in nvidia and the whole a.i. trade. i'm constantly trying to move that money. which one of these things will run faster? which one has more potential to grow? >> why choose one or the other? you have a terrific -- excuse me. duo of stocks. royal caribbean is a great play
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on the consumer. a terrific situation. we just heard the demand for blackwell, is insane. let's keep them both. i think we look back on 24 as the year that consumers took matters into their own hands and actually said no to inflated prices. the result of those who are not listening, fired ceos and lowering stock prices. oh boy. i work no matter what. fresh off of the new a.i. tool. finding out more about its role in infrastructure, which is more than a month in between -- the company line, slim jim, -- maybe it is a chance to buy. i'm getting into the packaged food space. do not miss my exclusive with a look at levi's latest numbers, and what a new celebrity endorsement could mean for this new power.
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why choose a mobile network built for places you'll probably never be... ...instead of for where you are most of the time? xfinity mobile was designed for where you need it most. xfinity internet customers, ask how to get a free 5g phone and a second unlimited line free for a year. last week, cloud flare, the leading productivity cloud company held its 14th birthday event, where they announced some major, new projects. this is a tool that helps publishers stay compensated when their content gets used it to train generative artificial intelligence models. right now, one of the biggest
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models with a.i., these are arguably copyright infringement procedures. trading there models. now, gratefully and graciously, and gloriously, cloud flare can help negotiate for a small piece of the pie. of course i say that as a content creator. with the rise of artificial intelligence, this is something we desperately need. i got a chance to catch up with matthew prince. he is the cofounding chair of the cloud flare. take a look. >> matthew, first of all, happy birthday week. glad to have you here on mad money. >> thank you so much. 14 years since we launched cloud flare, and we are just getting started. >> i feel strongly about as a content creator. a.i. audit. first thing i have seen. i have not seen anything like this. i want you to please tell her audience what it might do for both of the people who create content, but pretty much for
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everybody who scrapes the internet. >> our bread and butter is anyone on the cloud line, keeping it safe from attackers. we heard from content creators just like yourself, more and more we saw these a.i. companies that were taking content and not giving them anything in return as an active adversary. actually stealing from them. we listen to the content creators, and we said first of all we are going to give you visibility into who is scraping your content. second, we are going to give you control on how they can take your content or not, and give you back that control. lastly, we are creating a marketplace that allows you to actually say here is what my continent -- content is worth. if you want to go to the giant brain in the sky, you want to compensate me in one way or another. >> i see this as the great ripoff. if you are read it and you are creating a lot of content, and it is valuable to someone, it should appeal to you, not to the people who appeal for you. >> that is absolutely right.
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the first business model of the web was a search. the quid pro quo with google was that you let them scrape your content, and in exchange, they sent you back traffic. you could do whatever you want with that traffic. you can monetize with advertising, you could just brag about the fact that a lot of people watch your show. they view your content. whatever you did, that was up to you. the a.i. era is different. we haven't figured out what the business model is. does content creators are going to keep creating content. at cloudflare, we realize that so much of the web was behind us, we are in a unique position to actually pull this off. >> i have to imagine this is% almost immediate monetization. there are so many companies who desperately need this product. what has been the reception so far? >> first of all, it has been incredible to see some of the leading content creators say wow, for the first time, i totally understand cloudflare's proposition. our phone is ringing with other
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content creators that want to get involved. we are giving these tools away for absolutely free for anyone who uses cloudflare's platform. we think regardless of what your budget is, if you are creating content online, you should have that control. over time, we think there is going to be an opportunity for some marketplace development. we will generate some revenue off of that. the majority of that needs to go back to the content creators. if we don't have original content, then the web dies. more portly, we don't have anything to train these models on. none of this a.i. is going to amount to anything. cloudflare, is going to make sure that the original content creators like yourself are getting compensated for it. >> i have got to tell you, this was always my biggest fear. there is nothing in the end for content creators. in the end, they died. there is another thing that i don't think people realize how important this is. they take it for granted. which is speed. i am looking at a product that you are offering. it is called a speed brain.
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this eliminates latency. i don't know if everyone understands latency. how important is this product for all companies that are competing for your eyeballs? >> we talked about how a.i. is a challenge for content creators. there is also the opportunity for a.i. to have this incredible benefit. we have this strain on all of the traffic that we see.% cloudflare, we'll see more than 20% of the web. we can use that to predict in ahead of time, what someone is going to go to before they even click on the page. that means that can get loaded before you go there. what it means is that it is a magical experience to end users. it is a magical experience for the content creators. in the end it almost doubles the performance and increases the performance of the web by 50%. i-team told me we were able to do this. i was blown away. what i think is so powerful in the spirit of birthday week, this is available for every single customer of cloudflare.
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>> i want people to understand this. you are basically giving these things away. most people wouldn't do that. you do want universal adoption of what cloudflare does. >> our mission at cloudflare is to help build a better internet. every year, we use the week around our birthday, september 27, to really give back what we think of as gifts to the internet. regardless of what your budget is, everybody should be fast, everybody should be reliable, everyone should be secure online. every year, our team is incredibly excited about how we give these things back. what we find is that it creates this enormous flywheel. people want to work for us. our customers want to sign up for us. what has turned into a great business, it really speaks to the mission driven nature of cloudflare's business. our mission is to help build a better internet. we are incredibly proud of all of these announcements to live up to that goal and that mission. >> i want everyone to know something else that you do.
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there is a great, it'll page, helping you build a better internet. helping protect democratic elections, in which no matter what party, we know is so important. relies entirely in terms of the safety of what we do for elections on cloudflare. % >> when we saw in 2016, that there was foreign influence that was using technology in order to influence elections, regardless of your politics, we couldn't have built cloudflare without a stable democratic institution. we couldn't have built any of these businesses without having the government that people can trust. we need to do something. we need something called the fenian project to give all content creators advanced technologies to any advanced state or local official that is help administering an election. i don't care if you are a red state, blue state, purple state, or green state that is out there. wherever you are, we want to make sure that you have the tools to be safe. that is important. these election heroes are the patriots of our country. literally every day have to
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stand up to the gr you, and they have to make sure that our elections are safe. we want to absolutely relay this technology. i am absolutely proud of the fact that we are doing everything we can to make sure that the election in the united states is one that you can trust. >> i have to tell you, i think it is a birthday week that is helping everybody. it is a remarkable thing that you have given them -- remarkable to talk about. not something that we typically come up from silicon valley. you are different, what you do is different, and we thank you as voters for what you are doing. matthew prince, cofounder, chair, and ceo of cloudflare. thank you, matthew, for coming on mad money. >> thanks, jim. >> met money is back in a moment. >> can this stock have their cake and eat it too? stick with cramer.
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sequential volume improvement. two, they reaffirmed their four year forecast. runs more than up 15% in the last three months. did conagra simply fly too close to the sun? is there something else that we need to worry about here? executive decision, welcome back to mad money. >> jim, glad to be here. >> every word that you said, when you run last, when you said that there will be noise in the quarter, you said that there were going to be some difficulties when the filing numbers came out. you did everything you said. is that therefore as a ceo, a little appalling to some degree to see your stock down a percent if you did exactly what you said you were going to do? >> you know, jim, you don't last too long in these jobs if you live quarter to quarter. the market wanted more out of our first quarter, it actually unfolded largely in line with what we expected. this is why we went in guidance on the year. there are five particular
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positives that we are very pleased to see. number one, our investments to return volume to growth are working. number two, or market shares i've been excellent in absolute. especially in the peer group. three, cost savings programs are delivering. four, cash delivery flows remain very strong. we were excited to resume the portfolio with the reshaping efforts from the acquisition and the investment from the quarter. the one thing that worked against us this quarter, was an unfortunately timed temporary disruption in our hebrew national hot dog went. that cost us some sales in the quarter. that is behind us now. due to the strength of our fundamentals, we were able to easily overcome that and reaffirm our guidance. >> i just want to gloss over anything that did go wrong. it you did say on your own call that you got a flat tire on the way to your wedding. this is the way that you described what happened with hebrew national. let's go over that.
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tell people. it wasn't a glitch, it wasn't anything that is really going to impact the rest of the year. >> some businesses are seasonal in nature. hotdogs, not surprisingly, is a seasonal business. the grilling season is memorial day through labor day. that is when we drive the bulk of our sales. we got off to a gray start on memorial day. we did have an issue at the manufacturing facility that led us to pause production while we fixed it. we got that behind us. it is a temporary thing. my analogy of getting a flat tire on the way to your wedding, it is unfortunately timed it when we have a seasonal product like hot dogs, then you have a hiccup at that point in time. >> understood. taking share into categories that are growth categories. one of them is snacking. one which we care about tremendously varied --.. we talk about price.
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frozen is the winner. why don't you go over how those two are doing? >> we hosted some really astounding market share numbers. in our two key growth areas, which are frozen and snacks. 93% of the frozen and snacks portfolio is either holding, share, or gaining share. really ranks favorably to anything that you can find out there. in frozen, we are winning with the millennial's and generation z consumers who we are seeing pivot back to what they typically do. which is prioritize convenience in their meals. we saw a little bit of a low in that one year ago when they are doing scratch cooking because they were trying to stretch some dollars. that is coming back with a lot of momentum as we launch a bunch of new innovation. in snacks, something interesting is going on. our portfolio around snacks is typically into meat sticks. this is the fastest-growing snack subspace in the universe. as well as high-fiber snacks
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like protein. recently we have seen consumers pivot to permissible snacks. they are healthy for you, they are high in protein, they are away from high sugar and high carb snacks that tend to be friday. we are seeing very strong market share performance from there as well. >> people are looking at great snacks from conagra stuff. we are looking at the pickle ball paddles. that is not going to happen. what is this guy going to talk about? i can see fatty jalapeno sticks. how can that be protein if it is fat? >> you are misinterpreting the word. what fatty means, it is all about living large. this is a product that was built by a professional athlete. we acquire that business this quarter. it is incredibly healthy. one gram of sugar in the entire me stick. if you are working out, if you have an active lysol, looking for high-protein with great taste, but really virtually no
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sugar, fatty is a great product for you. >> people have to know, lifetime fitness ceo was saying that if you work out and you don't have the protein, or if you have the protein but you don't work out, gop's don't work. you have to have the protein, or to get ortiz or else you get frail. >> everyone is looking to protect muscle mass or build muscle mass. this is why we are seeing a migration towards protein central snacking. our portfolio is designed to win in that space. >> people don't understand what you can do with your portfolio. they care about that dividend. with the ratios as they are, dividends are fine. can we do both the increase? >> yes. that is what we have done over time. we have had a balanced approach to capital allocations. occasionally buying back shares.
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occasionally making an acquisition. all of that is kind of in our wheelhouse. our balance sheet is in a place now where we can get more active and get back to our normal playbook. reshaping, why do we do that? we are trying to accelerate our growth profile, and improve our margins. that is what reshaping is all about. >> i want to bounce a few off of you. generation z people are a little bit squeezed. a lot of people got laid off during covid. secondly, they don't have that level of assuredness and life that they have. i don't want to say optimism, that is too difficult. they seem to want to hunker down a little bit more. are you seeing those people still staying at home cooking or buying a frozen? rather than going out and spending a little bit more money than other generations? >> 100%. in fact, the fastest-growing demographic for our company are those younger consumers. there are two really important
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data points that i see when we study them. number one, they are actually eating out less. number two, they are looking for quick meal solutions. they don't want to spend a lot of time planning for meals, prepping meals, cleaning up meals. that is why our frozen singles serve business is such a winner with that demographic. >> you have always been a truth teller. i welcome back the idea that you can do the kind of reshuffle that i really love. that conagra does. i hope people understand a little bit better about what happened this quarter. i know that you have delivered on what you promised to our mad money viewers. thank you so much, ceo of conagra brands. that money is back, after the break. -- mad money, his back, after the break.
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all right, what do we make of the numbers tonight from levi strauss. tonight, levis reported a minor sales miss with a 2% earnings beat off of the 31% basis. they did cut their full-year revenue forecast, even though they believe their earnings will come from the previous year's guidance. we look at the quarter in an entirety. asian america is weaker. direct consumer business is doing great. up 10%. we need more clarity, in short. let's go straight to the source. president and ceo of levi strauss company, we know more about the quarter and missed costs. will come back to mad money. >> thank you for having me
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here. >> michelle, myself, like many people, are trying to parse these things. wow, dtc is on fire. then we worry about wholesale. how do we make -- that was just delivered? >> you bet. first, let me share the numbers. when we look at a business on an ingested -- adjusted basis, our business overall is up 3%. which is an improvement from the first half of the year. when you look at the levi's brand, that is up 5%, the strongest it has been up in over two years. that being said, we did have some headwinds in some areas that did not meet our expectations. that was around china, mexico, -- each of those created businesses. if we start with china, we had our own execution issues. we are addressing the market.
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that was clearly exacerbated by what was happening in a macro environment. a big piece of mexico is actually wholesale. like china, we had some executional issues that we are addressing. the biggest thing was one of our key customers. one of our top customers had a cyber security breach, which impacted our shipping. both of those we had actions to address. dockers underperformed. down 13% in the quarter. it has underperformed for some time. we have made a big decision which is to explore strategic options with intent to sell the business. >> i didn't want to have another quarter and ask what are you doing with dockers? you are biting a tough bullet. i do want to go back to mexico for a second. % there are a lot of companies that have business in mexico. mexico is a huge business for you. a cyber security breach could have reduced these numbers more than people who are trading on the stock right now sending it to lower. >> you are absolutely right.
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it is a big business for levi's. it is incredible for the brand strength for us. i will tell you the brand continues to be strong. % the direct consumer business was up double digits. we can isolate this to a wholesale issue. like i said, the biggest thing was the issue with the top customer being actively addressed. we do expect sequential improvement into the fourth quarter and 2025 in mexico. candidly, like our whole business. while we have strength in the levi's brand at five, a couple of these headwinds, we are expecting the improvement into the fourth quarter to be up single digits, and carrying that through into 2025. >> that is much better than people are thinking about. i do want to talk about something that i am very excited about. you can tell me otherwise. beyond yoga, come on, chip. you can take this brand somewhere. we are getting double digit growth. what do we have here?
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>> it is a big opportunity. it goes back to the portfolio. leaning in and sharpening our focus on levis, and also accelerating beyond yoga. we brought in a new leader, nancy greene. she has brought in a pair of retail veterans. 19% in the quarter. this business can be a half 1 billion or more. it is a category that is expected to grow over time. i am thrilled that the brand was acquired a couple of years ago. we are just in the early stages. >> many people would think it is the lead. the levi's brand says it is a new campaign. global icon, beyonci, following -- do i have to hear this one more time in my radio or my spotify with my wife? cowboy carter. tell me what this can be. what a spokesperson. >> incredible. beyonci■ is a global icon. she's an artist and fashion icon. really, to bring levi's, which is also an icon with beyonci,
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we think this is going to be a really powerful partnership. this builds on decades of relationships with beyonci. she has been a big fan of levi's. it really a natural evolution. you know as we were just talking about the levi's business, a big bright spot, is women's. levi's has been talking about women's for quite some time. we see this as growing to at least half of our business. doubling overtime, 2 billion just this year. think about everything we are bringing with women's, fashion bottoms, loose and baggy, head to toe denim. if you bring beyonci into the system, we think we are set up for the long term really well. we are so honored to partner with her. >> even though a lot of people are saying you are into the holiday season, when it comes to apparel, the holiday season has already arrived. is this what you need with beyonci■for the holiday season? >> i love that question. as you saw with our first chapter with beyonci, this is
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about beyonci■with our iconic products. she is wearing the 501. while we are excited about the innovation that we are seeing with the system head to toe, 501 was up 10% in the quarter. that has been many quarters in the making. beyonci■ wearing the 501, the essential tee, i think we are set up overall for the holiday season. as we shared, we are expecting mids to -- single digit growth over the holiday season. we are expecting to end the year stronger than where we started. we have had great products for men, for women, for gifting, for self purchase. we are fueled by the strength in our dtc business. as i said, up 12%. globally, up 12% here in the u.s. i'm excited for retail. this is our super bowl, the holiday season. we had a really great company,
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nike, not have good dtc. maybe there was a price point where we have to try. you don't have to spend $200 to do a dtc. can you give us a reason why levi's work? they know their size. your prices very reasonable. is that why dtc is so reasonable? >> yeah. i think for levi's, we are such an approachable brand that approaches all demographics. all channels have their place. when we talk about being a dtc first company, it is really dtc plus wholesale. this is the dtc first strategy. we reach millions of consumers in wholesale. even in that channel, which was negative again this quarter, we saw improvement. it was down 3%, we expect sequential improvement over time. the fact is that you can buy your levi's in a great, wholesale partner, and they are really important to us. when you come into our stores,
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you do get the full assortment of levi's. it is also important mentioning that our bottoms are strong, but the top is business. the tops business for the company was up 8%. even stronger in the direct to consumer. we realize it is not about being the best pair of jeans on the planet, but really the head to toe lifestyle apparel company. we expect to accelerate into the fourth quarter. >> i hope that yoga keeps going well, and we do not have to talk about doctors after this. beyonci■ yes, doctors, no. ceo of levi's, thank you for coming on. mad money, his back here after the break.
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it is time. [ inaudible ]. and then the lightning round is over. are you ready? time for the lightning round. trey, in texas. >> jim, i was brutally denied. the director said he quote for the intellectual horsepower. sadly, i figured i would show him. after an all-out win on palatine, maybe he was right. down 90%, really no reason for me to sell this. i guess i'm wondering if i should sell this or buy more.
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>> pick yourself up off of the dirty linoleum floor. it stopped drinking cheap scotch, and take the loss. it is worth a lot more than the potential gain. someone figures out that they are paying $2 million and buying the whole company. let's go to paul in massachusetts. >> i have never been better. thank you for asking. >> i am an investor. china competitive with tesla, took the position about three years ago. pre-pandemic. i paid about 40 for the stock. taking a massive nosedive. i have held on. >> my friend, says you want to buy everything. it i have never been wrong. that is good. when the eagles play the panthers. let's go to tyler in georgia. tyler?
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>> boo yah. go dogs. my question is on a company that you have had on the show. the dance has been made many times. ceo, the party seems to be over. how do you look at and traded healthcare from here? >> i feel the same way that we do. ever since you left, the party is over. she had control of these things. i don't think the company is doing that well. not doing as well as those georgia fellows. let's go to daniel in new york. daniel? >> hey jim. longtime caller. second time caller. >> oh yeah, right. >> how are you? seems like no one on social media ever loses money in the back market. i want to be authentic with you, i have the misfortune of owning humana. it is miserable, it is a
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disaster. >> i was talking to jeff marx about it today. we were lucky enough to get out before this brutality. if you can't price the product, get out of the business. sorry, that is the way i feel. let's go to david in california. >> hey jim, this is our silver anniversary. i'm calling you because i have been watching you since 1999. >> man, that is fantastic. congratulations. what is going on? >> the only things that i would say, is that your parents misspelled your name. it should be jim -- g e m. i am wondering if i should double down. >> does hold it. no one has ever heard of it. what a good story.
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let's hold onto it. it is a good story. and that, ladies and gentlemen, is the conclusion of the lightning round. >> the lightning round is a sponsored by charles schwab. awkward question... is there going to be anything... -left over? -yeah. oh, absolutely. (inner monologue) my kids don't know what they want. you know who knows what she wants? me! with empower, we get all of our financial questions answered. so you don't have to worry. empower. what's next. (man) look at this silly little sailboat... these men of means with their silver spoons,
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only on wall street, will people worry endlessly that things are too good. right now, we have a host of things that are going incredibly well. some people think they are too good to be incredibly true. i think you are wrong. we have two candidates for president. we have plans that would take a ridiculously large budget deficits, and add trillions to it. long-term interest rates, the ones not controlled by the fed are remarkably low. a 30 year treasury at just over 4.1%. they had a surplus by 2001.
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i know it seems insane. no one is looking at the balance that we have an incredibly positive anomaly on our hands. maybe anomaly is the wrong word. inflation has been mostly tame, the deficit is a non-issue again. the issue for the markets are totally wrong. trillions upon trillions of dollars of bonds are training those levels. how can they really be? if you think it is all about one giant fake out, we can sell the bonds right now. other than 2020 through and 2023. they are dead wrong. what else? a major regional war, they actually quadrupled the price of oil for americans in order % to punish us for supporting israel. israel is fighting a two front war, and deciding whether to declare war on iran too. this is $20 below what it is now. that is right.
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it is a subtle gambit that runs 4 million barrels per day if production gets shut down. -- making of the difference when the price of crude oil is coming down. saudi arabia hates iran more than it hates israel. either we had 1972, we have the opposite. how is oil about to have a huge spike when it is his -- historically going to be lower? this could be a bad case of fighting the last war over again. we have a chinese conomy that is on death's door. the chinese stock market has absolutely exploded. the communist party decided to move higher. they have demanded higher stock prices to stimulate the economy. normally stock prices would go up in response to stimulus. they put the cart before the horse. i say so what. it is a dictatorship of the proletariat. we are constantly told that this chinese rally is dead wrong.
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this is total force reality. we have a command economy. we can create your own economy. it will cost you 115 million bucks. what if the company is not doing any busier than it was then the 77 bucks two months ago? nobody is perfect. how about the price of very open a.i.? in the expansion of $157 billion, even as it is expected to lose $5 billion. is anyone saying you know what? i think this company has completely revolutionized the world. they actually have a pretty good price here. especially when you consider a 1700% revenue going up. versus those losses, who would% even want to participate in that lunacy? how about you and me? you won't even let us. what we want to say about these owners of wall street, they are not -- at all. they are what people are willing to pay. talking about bonds, stocks, or private federations. maybe we should stop clearing, maybe we should stop the money.
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maybe we should just stop denying the money and accepting the truth. like it or not, these prices are self-evident, and they should be considered truthful at least until proven otherwise. which doesn't seem like it could happen anytime soon. i like to say that there is always a market sometimes right here for you on mad money. i am cramer, .see you this is "shark tank."u ♪♪ next time. for the modern outdoor adventurer. hello, sharks. i'm an our company is oru kayak,
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