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Bloomberg Talks

Oliver Chen, senior equity research analyst at TD Cowen, Talks Retail Outlook

28 Nov 2025

Transcription

Transcript generated automatically by AI and may contain errors.

Chapter 1: What is the main topic discussed in this episode?

0.031 - 18.756 Michelle Hussein

Hello and welcome. This is The Michelle Hussein Show. I'm Michelle Hussein. I speak with people like Elon Musk. I think I've done enough. And Shonda Rhimes. That's so cute. This will be a place where every weekend you can count on one essential conversation to help make sense of the world.

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19.257 - 27.267 Michelle Hussein

So please join me, listen and subscribe to The Michelle Hussein Show from Bloomberg Weekend, wherever you get your podcasts.

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27.367 - 29.43 Oliver Chen

You certainly ask interesting questions.

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32.87 - 37.598 Michelle Hussein

Bloomberg Audio Studios. Podcasts, radio, news.

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37.839 - 68.412 Tom Keene

And now we finish strong in this hour with Oliver Chen, definitive at TD Cowan. I can't say enough about his acuity over the years. Oliver, I remember the day a pair of 501 Levi's became more than $999 a pair. You feature in your research note Levi's. What is their strategy given Amazon and given 2025 retail?

69.927 - 89.729 Oliver Chen

Well, Tom, it's a pleasure to be here. Happy Black Friday as well. Levi's is an iconic brand with dominant market share at the premium end of the market. Also, as we think about what's happening now in product execution, it's about classics with a twist. It's about getting great value as well. And denim fits really nicely into these themes.

90.129 - 103.166 Oliver Chen

What Levi's is doing specifically is more direct to consumer, basically opening their own stores globally and consumers are looking for value. It plays quite nicely with quality. As you know, 501s last forever and you shouldn't wash them either.

103.626 - 114.501 Tom Keene

We turn to surveillance. Oh, tell me. Yeah, I get that lecture at home. We turn to surveillance fashion correspondent Lisa Mateo. Lisa, Brandy Melville is on the Mateo target, isn't it?

114.521 - 128.52 Lisa Mateo

Oh, okay. So yesterday I received my daughter's seven-page PowerPoint presentation for her Christmas list. My question to you, Oliver, is are people going to be spending as much as they did last holiday season? That's what I want to know because I put a budget out there.

Chapter 2: What insights does Oliver Chen provide on the retail outlook for Black Friday?

129.428 - 151.341 Oliver Chen

Yeah, Lisa, first of all, I want that deck, please. Second, we are seeing spending. We're seeing a consumer that does have plenty of anxiety that's looking for great deals. That being said, the consumer still has money, wants joy. We're forecasting up two to three percent. Keep in mind, inflation and pricing will be about two to three percent.

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151.461 - 166.654 Oliver Chen

So your units are flat and there's a bit of a struggle. On the one hand, consumers want joy and wellness and and gifting. On the other hand, they're feeling anxious. So we're watching both, and there's a bunch of cross currents, but don't bet against the US consumer. It's been solid.

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166.954 - 182.554 Tom Keene

Worldwide, Oliver Chen with us, TD Cohen, and we continue. Oliver, are we going to get out charge cards or like the affirm buy now, pay later kind of thing? How are we going to acquire our Christmas, our holiday, 2025?

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183.344 - 203.593 Oliver Chen

We're going to be using both. What's still happening is mobile is in the new mall. So we're seeing increased rates of mobile use, but a bit of everything from buy online pickup and store to curbside pickup to delivery is being used so much. And then I like the good old fashioned way. It's just thrilling to be in the stores this morning and across the country and earlier this week.

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203.653 - 213.267 Oliver Chen

So it's all happening. And certainly these new ways of payment and the future of payments is very different for younger customers too.

213.247 - 224.223 Tom Keene

Oliver Chen on luxury right now. Kevin Gordon is in the French Alps at that hotel Audrey Hepburn was in in Charade with Cary Grant. He emails in Oliver with a great question.

Chapter 3: How is Levi's adapting its strategy in the current retail landscape?

224.243 - 238.444 Tom Keene

This is Kevin Gordon of Charles Schwab. Bottega Venata blew it up and is doing better with the British type Louise Trotter. The fashion heads of different luxury brands, they still really matter, don't they?

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239.74 - 265.964 Oliver Chen

Yeah, what's happening is lots of change. The creative matters are really creating desire, having new design. And we're seeing a lot of newness at Gucci and others. And Bottega has been doing great. The themes for luxury continue to be quiet luxury in terms of what's happening with less focus on logos and a real emphasis on quality and materials. So Bottega Veneta fits nicely in that trend.

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266.085 - 275.219 Oliver Chen

As you know, Brunello Cucinelli, Laura Piana, And I'm a personal lover of Gucci, so I want to see them win. We're watching some creative change there at Tom Ford, too.

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275.599 - 281.791 Tom Keene

Right. We've seen that. Lisa, you mentioned today Burberry a little bit off the mark. They've been hugely promotional. Lisa Mateo.

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281.971 - 282.752 Lisa Mateo

Yeah, they have.

282.792 - 283.634 Tom Keene

With Oliver Chen.

283.654 - 293.271 Lisa Mateo

Now, also on the luxury segment, I'm going through the Wall Street Journal this morning and it has this article that says jewelry is outperforming the rest of the luxury world. Are you seeing that?

294.398 - 322.231 Oliver Chen

Yes, we are. We love Cartier. So there's definitely a barbell and bifurcation where more pressure at the low and middle and then some real strength at the high end. And Cartier Richemont Group is outperforming Van Cleef as well as Cartier. customers are gravitating towards gold, jewelry, real stores of value. And the prices here are compelling because handbag prices have gotten extreme.

322.752 - 336.015 Oliver Chen

So the Love Collection at Cartier, Love Unlimited at Cartier, the Maison, really enduring value and timelessness. And overall, the jewelry growth rates have been in the high single digit. And we've been struggling to grow in handbags.

Chapter 4: What consumer spending trends are emerging this holiday season?

447.373 - 456.807 Oliver Chen

And they're serving the middle and low well too with that everyday low price. I grew up in Louisiana going to the Walmart Supercenter and it's a real community driven retailer as well.

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457.006 - 478.137 Tom Keene

Oliver, thank you so much for having us finish strong in retail this Black Friday. Mr. Chen is with T.D. Cowan. I can't say enough. We protect the copyright of all of our guests. For Oliver Chen, please go to T.D. Cowan to get his brilliant note. You heard it there, Walmart. Single best buy.

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478.522 - 486.112 Karen Moscow

Bloomberg Daybreak is your best way to get informed first thing in the morning, right in your podcast feed. Hi, I'm Karen Moscow.

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486.293 - 499.551 Nathan Hager

And I'm Nathan Hager. Each morning, we're up early putting together the latest episode of Bloomberg Daybreak U.S. Edition. It's your daily 15-minute podcast on the latest in global news, politics, and international relations.

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499.531 - 506.054 Karen Moscow

Listen to the Bloomberg Daybreak U.S. edition podcast each morning for the stories that matter with the context you need.

506.295 - 529.46 Unknown

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529.76 - 533.605 Nathan Hager

A lot of this meme stock stuff is, I think, embarrassing to the SEC.

533.99 - 541.938 Unknown

Amanda Mull, who writes our Business Week Buying Power column. Very few companies who go viral are like totally prepared for what that means.

542.579 - 556.354 Zoe Tillman

And Zoe Tillman, senior legal reporter. Courts are not supposed to decide elections. Courts are not really supposed to play a big role in choosing our elected leaders. It's for the voters to decide.

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