Lisa, Paul, Gregg Jarrett discussed on Bloomberg Markets

Automatic TRANSCRIPT

Bloomberg markets Lisa and Paul thank you so much Gregg Jarrett it's time to take a look at small and mid captures the will to live work socks that are joining us here in our interactive brokers studios out looking a bit of a softer tone today yeah you could say that I mean smaller companies down more than larger ones the Russell two thousand index floor by six tenths of a percent the S. and P. five hundred only lower by a quarter of a percent well Arrested steepest drops once a cubic whose ticker is C. U. B. the defense and mass transit company has fallen about nineteen and a half percent gauge of fiscal fourth quarter earnings travails average Asman Bloomberg survey quite common Matix ticker G. L. Y. C. has flip seventy and a half percent the drug about percent now specs files they study results were leukemia treatment and twenty twenty one rather than the end of twenty twenty as previously scheduled and lazy boy ticker LZB is down twelve percent fiscal second quarter earnings the furniture maker and retailer came up short of the lowest analysts estimate dispensing the Russell sharp this game that's twenty second century group ticker ax ax hi the tobacco producer has rallied almost forty three percent twenty second century tumbled yesterday by forty three percent if the US regular as part of a plan to cut nicotine in cigarettes Bloomberg stock senator add Dave Wilson let's switch gears here and get take a look at the business of pets run Coughlin is the C. E. O. of petco pet co was taken probably back in twenty fifteen by CVC capital partners and some others Ron thanks so much for joining us love to just get an update on petco and kind of where the market is right now for you guys absolutely thanks for thanks for having me a year ago I I join you and talking about taking a hundred million dollars that our business by taking out all products and artificial ingredients and today I'm proud to say that not only have one point five million pounds of food with artificial ingredients but our business is gone from declining three to four percent to three to four percent so we've had this contention what's good for the cat is good for Paco and it's proven true run are we reaching peak Pat where people are buying health food for their dogs either one of the wonderful things about the pet market is it's a growth market so I would say it's not picking more more it is if there's an adage that used to be in the outdoors than they were in the backyard and they're in the house now they're not dead so more more folks are wanting to take care of the cats the way they take care of themselves and that includes avoiding artificial ingredients so interesting here so give us a sense of kind of the growth dynamic of kind of that the global pet food industry or the U. S. pet food industry yes Sir two six percent growth business one percent growth in the number of pets but in terms of how folks are taking care of their pets the type of food that they're serving that they're more more they want to move away from you know the old rulers of the world towards isn't it better for you foods and a perfect example is my my dog yeah I mean he's a yellow lab he goes it's going on eleven years old and before I joined pet co I was feeding him a middle of the road food and shame on me and I switched him to a chronicle just food for dogs which is a human great food fresh fish and sweet potatoes he needed a lost fifteen pounds of these back acting like a puppy I feel like this is a PSA I know this is the reason why yeah it but I wanted to talk about you know the growth market there has been a shift people having fewer kids having more dogs and I'm wondering you know how far along in the evolution are way wasn't something like people adopted more debt Paxson that had kids last year something I I've heard that statistic I I I I don't I do that this point my mind essentially the house but I have heard that are your first comment about PSA one of the things that we're moving your officials did was it regained the soul of echo and really unlocked are our partners passion for pets and really powerful for us but people are there waiting longer to have kids and pets are replacing some of that that they're not loving being in the house and the I think it's good for for people in America I would just say this given the fact that dogs are more likely to be consistently loving that your soldiers what do I do with getting talk back so give us a sense of the competitive environment is is the pet food business one of those retailer consumer businesses that's been disrupted by a C. technology much like Amazon is done so give us a sense of the competitive environment absolutely I'm not going to claim that that has impacted the pet industry you have the Amazon factor you have to truly factor and they've seen success a pet market and quite frankly at go head to go back and re tool and that was the bad news the good news is we did and it's working so in the last year we've launch time line picked up in store it's many usually successful we've reached over a million downloads of our we have repeat delivery and so are my business is growing twenty plus right now so what what is a was a threat is now turning to a talent for us what we've seen out recently is a bit of volatility in the speculative grade credit market and I'm just wondering how much money you need to raise at this point given the fact that you have a B. tear credit rating and things are getting a little bit more challenging for some companies yeah we we don't need it we don't need to raise money and we have access to capital as we need it so from that standpoint we're sorry we have two great private equity partners in CVC partners and see if you can the pension fund and we're back to close on the top line and we're looking forward to sharing a result on the bottom line lectores few weeks so we're good on that front and us we feel good about our execution and our financial worst biggest opportunity for growth for petco I'd say two things one is digital continuing to driver digital business and the second is shifting to services and those are services errors don't have so we've taken a grooming business from a declining seventy eight percent to a clinic near double digit business our training businesses and growth and we are driving probably the fastest network build out in history and what's significant about that is too for the benefit of the pets were talking about affordable that care a lot of pets don't get the right care they need because affordability and the second thing is whatever could have that get that that income but we also get a four to seven point left in our center store sales so it's good for the pet good for business run Kaghan thank you so much for being with us Ron Conklin is pet co chief executive officer talking about a push toward more natural ingredients for a people's pets I got to say it is just shocking to see the trend line of births the birth rate is the the head option right absolutely you know diametrically opposed in terms of those trend lines and it makes sense it's a lot easier to get a dog to love you sometimes than a seven year old child who is tired and hungry and very stubborn just say it ready clean so that I have it exactly I thought I finishing the you know just kind of how the the that you need the organic movement in in human food is also finding its way in pet food as well I wasn't aware well I mean come on I'll be if if you care about yourself and then you don't care about your pet I mean there's an entire industry to guilty for that to tell you why you're destroying their health hi and your own personal mail to health with respect to animal rights anyway right now its head down toward I.

Coming up next