00:00I'm going to start with a loser today, and that would be Costco.
00:03The stock is down nearly 2% here in the pre-market.
00:07Year-to-date, though, it's been doing quite nicely, up about 10.5%.
00:10So we know that gas is really the driver a lot of the time for sales at Costco.
00:15That was the case in June as well,
00:18except that gas sales were not as strong as they were in both March and April.
00:23And I wonder if that's because gas prices started to pull back a little bit.
00:26I don't know.
00:26Yesterday, I get to my house, pulling up, getting off the train.
00:30My neighbor, this elderly lady, pulls up, car completely filled with Costco bags.
00:36I love her.
00:36So I had to help her take in the bags because we're taking her all day.
00:39I mean, people go, when they go to Costco, they load up.
00:42Oh, they go to Costco.
00:43Big time.
00:44You have to make it pay.
00:45Big time.
00:46Especially if you're paying for the, I mean, there's an annual subscription,
00:48so when you go, make it worth your while.
00:50But here's something interesting.
00:51Food and Sundries posted, I love that word, Sundries.
00:54Sundries, yep.
00:55They posted low to mid single digit gains led by food, candy, and frozen.
01:00Fresh food rose by mid single digit.
01:02So still, gasoline continues to be a leader for Costco.
01:06Can I remind in the last 10 years, they're enjoying a 21% per year gain?
01:11Perfect.
01:11Yeah.
01:11Like Apple-like gains and they get no respect.
01:14That is true.
01:15They kind of don't, right, on the street.
01:17Next.
01:17But people who know, know.
01:18All right, PepsiCo.
01:20Oh, wow.
01:20It's down 3% right now.
01:23Really doing nothing year to date.
01:25The stock is, I'm going to say, down just about 1% year to date.
01:27But PepsiCo's saying consumers pulled back in the second quarter.
01:31The company saw a 2% decline in revenue in its North American food business and flat volume.
01:37This is after cutting prices by as much as 15% in some brands.
01:41So that is, you know, hitting into a profit.
01:43And they definitely called out the gasoline thing.
01:45They called it out in their comments on their conference call.
01:47The CEO said, hey, we saw it, you know.
01:49You are absolutely right.
01:51Yeah.
01:51They're saying that people are stretched.
01:53Budgets are tight.
01:54And so they're seeing that in the way people are shopping.
01:57Even so, PepsiCo reaffirmed its guidance for the full year.
02:00I said it expects those lower prices are gradually going to help its turnaround efforts later in the year.
02:07Remember, the company actually slashed prices by up to 15%.
02:10I think it was earlier this year in those medium-sized bags to win over customers.
02:14But I don't know.
02:15Maybe it's just because we're eating less salty snacks, you know, and drinking less Gatorade.
02:19And sugary drinks.
02:21I'm not.
02:21I don't know what all these kids are doing.
02:23Is that the case in your house there, Tom?
02:25No.
02:26It's gotten.
02:27I think we're really made a shift.
02:29I mean, it's like you hear about in the country.
02:31You know, I mean, there used to be, you know, Trix, Cocoa Puffs.
02:35Yeah.
02:35That's all gone.
02:36Yeah.
02:37We've gone to something healthy like Cinnamon Toast Crystal.
02:41They're very nice.
02:42More nutritious.
02:43All right.
02:43Let's move on to Levi Strauss.
02:45Yes.
02:45That stock is down about 3%.
02:48And I'm trying to find out why.
02:51Because quarterly expectations on both the top and bottom lines they beat.
02:55They increased guidance.
02:57They raised their dividend.
02:59The CEO, Michelle Gas, saying the company's core consumer is resilient even in the face
03:03of higher gas prices.
03:05She said about two-thirds of the quarter sales growth came from units.
03:09And that's what you want to hear, not just higher prices.
03:11So that gave the company the confidence to raise their guidance and their dividends.
03:15So again, Levi Strauss down about 3%.
03:17But it is up a 17.5% year to date.
03:20I don't know if this is like a buy the, buy on the room or sell the news kind of
03:23story.
03:24But it is definitely coming under pressure here today.
03:26I am a Levi's jeans person.
03:28Are you?
03:28As opposed to Lee or Wrangler and things like that.
03:30Okay.
03:31I am definitely at Levi's.
03:32Like huge brand loyalty there.
03:34I've never done any other brand.
03:36Classic.
03:36Never will.
03:37Yep.
03:37Is that like the 500, like the Levi's, 501s.
03:41Yeah, sure.
03:41Boot cut.
03:42Gotta go boot cut.
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