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July retail sales came in higher for the first time in four months so what shake it up -- the team and find out how you can -- the data we got fox business's Jeff Flock in Chicago.
Matt Arnold a retail analyst at Edward Jones in saint Louis Missouri and Paulson and in Chicago.
So let me start with Jeff Jeff you're at a place that sell stuff what do they think about the sales number and what do you think about retail sales.
Despite job but I don't -- the July.
Cobra electronics they are market leader in hand held radios for consumers as well CB radios was why do people buy stuff.
One because they needed and two because there's something cool and need to -- I think it may be.
This month that you know people sort of -- stuff after some weak months the other reason is when you have an innovation this hand held radio by the way if -- miss what somebody said.
You -- -- -- rewind button on it.
And this little device over here they just developed that actually we'll tell you when there's a red light camera out there somewhere -- you don't get a ticket one of those red light camps.
That's what drives sales -- -- you know as far as I know.
And we've got two drivers this month.
I was busted -- you know you can't go to them say it wasn't made because meantime they've got a photo from twelve different angles of me.
Regular press -- it OK so I'm assuming that they're doing pretty well they make something of quality that people want let me get to Paul for Morningstar.
Are -- names out there that suddenly are looking more attractive because why the economy is looking a little bit better.
You'll first thought I don't know likens point to a red light camera -- where is the vice president need a I personally I'm I'm mark I'm trying to convince my whole -- -- stop at the red lights up.
But out of luck.
You know I cover department stores and luxury goods and sporting goods so that none of our products really come into the needs -- except for maybe.
We think about kids going back to school and especially on a sporting good side people need stuff for team sports so.
You're under armor isn't nineties that get bought it Dick's Sporting Goods -- sports authority sometimes that comes closer to that -- category.
But you know in general all of that that thinking is that.
Definitely all the stores I'm -- that July was better and office off often they were saying.
Sell accelerated throughout July and are starting to look good back to school so.
I think there's maybe some weather effect but there's definitely some improvement in consumer sentiment from where I stand -- It have to be anatomy when you see -- company like Michael course doing as well as it's been doing an and that.
Some of the other mid alert hi Karen names and you like -- is one of them but you'll select target.
Absent investor -- -- salt your money into a couple of these names on other different ends of the spectrum.
That's probably a Smart strategy to.
Diversify by income level and perhaps have a more value oriented name like a target and and then later in something that.
Place more today affluent side of things like a Coach but.
In the grand scheme of things and you talk about the timing of spending I think what you've seen for a couple years now is.
A consumer that comes out in in spends.
On the big occasions whether it's back to school which is probably what we saw in the recent -- and in continuing in August here.
In the spring Easter period and then finally in the holiday and then there's breaks in between that make folks worried a bit about the spending trend that.
When it -- the consumer seems to come mountain and spent on -- on the big occasions -- With Europe perspective would you take a chance at a Tiffany for example when we don't know what China's slowdown is really going to look like in a couple of months.
Yeah well I think that's -- -- history point.
-- Tiffany and Coach are.
You know luxury names took he's a little higher and -- Coach.
-- got Tiffany shares is just a little bit undervalued and right now.
I think they've got a little bit -- -- still for the rest of the year but over the longer term it should be -- good returns name.
I think another thing that's interstate.
Co chairs are actually off today when most of the sector is up.
I think investors are interpreting the Michael core strength -- the negative for Coach.
Michael -- -- so small it it sells a lot of different stuff -- coaches predominantly bags.
-- I don't see really any resist -- Coach if -- is -- I'm actually a fan approach especially with their high operating margin and great returns on capital.
OK and of Matt just quickly -- of what else you see that's that's undervalued.
We think and a and a and a world where you know there's likely to be some pretty modest economic growth -- domestically you need to find.
Differentiated stories that perhaps can complement that more modest cut rising tide if -- well.
Emission target is -- You know they have a remodel program and a loyalty program and in the Canada entry which should help.
Look outside domestic stories and some of the global companies whether it's Coach or ninety -- even VF core those are companies that are harnessing.
Pricing consumption overseas as as a point and differentiation so I think adding global feel to your portfolio also makes a lot of sense here.
All right and thanks thanks everybody for enduring the beeps and that the sounds coming out of Jeffs live shot at that if we called -- a -- Foster back -- -- in my eyes will -- All right thanks gentlemen great to have all of you -- --