Football Season `Tremendous' for Modell's: CEO

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Aug. 28 (Bloomberg) -- Modell's Sporting Goods CEO Mitchell Modell discusses the importance of football season to the company's sales. He speaks on Bloomberg Television's "Street Smart." (Source: Bloomberg)

50 years later, just the imagery, was martin luther king then, now president obama, the first black president in the u.s. because they marched, doors opened.

Because they marched, voting rights became law.

Because they marched, congress changed.

We all changed.

Those were the president's words and those are the words that really stand out for me.

We're going to take a very short break.

We're going to be back with more on the market which seems to like the speech as well.

Dow moving higher.

We'll talk about jcpenney.

We'll see you back here in 10. i have a dream that one day this nation will rise up and live out the true meaning of its creed.

We hold these truths to be self-evident that all men are created equal.

Before the break we were discussing a silver lining in the jcpenney saga, the company's recent success in online sales especially in the start of the school year.

How e commerce could revitalize the brick and morton back to school season.

We have a panel of experts.

I'm going to start with you, a really remarkable story.

We've seen so many bad headlines.

But here's a good one.

The news that they're actually second in online sales.

This is great following the news that one of their biggest investors sold off $750 million of stock.

I think he should have held on to it.

I said that earlier, i think they're going to come back a lot stronger.

This is like the super bowl for retail.

This is where we're heading into it.

The biggest shopping day of the year besides the christmas holiday season is this back to school season, about $85 billion was spent last year, more this year.

This is where it happens.

It's the biggest shopping season and you can take mother's day, father's day, valentine's easter, combine them together, not as big as back to school.

And j jcpenneys is getting a piece of that.

People are migrating on line.

They don't want to necessarily go to stores.

Are there companies and stores out there that are not benefiting with this?

Walk us through this sort of who is winning, who is losing.

Sure.

Most of the traditional teen retailers, have been suffering.

They are on line but not to any huge extent.

I think the reason penny's move seems like such a big deal is because they have easy comparisons.

It also shows the power of the brand name, a big old retailer.

All they have to do is turn on the right kind of marketing.

They will see people go on line.

Are you saying that all will be forgiven if they can put the right products in front of customers?

That's absolutely not what i'm saying because i don't know their story as well and i think the brand name is somewhat tarnished.

But you can get a quick hit.

And we're seeing that with different brands.

I think it gets back to the strategy, the real strategy of the former ceo coming back with discounts and 83% of the consumers said they would go back and start shopping if the discounts would come back.

I think that's what you're seeing in the online environment and where you can make a difference.

It takes a while to change the signs in the store, to get a commercial on broadcast but it's easy to go change the ads every single minute by minute on line.

I think that's what we're seeing here.

It also shows you the power of brand.

Right?

Because there's been a lot of concern that you're going to lose jcpenney customers for good.

It seems like some of them are going to the online space.

Is that because of the brand or just whatever they've strategized in terms of their search engine?

I think online is primarily a function of getting the inventory in the store back on line.

Last year they lost a half billion in online sales because there was a big disconnect.

Masmey's -- you mean the same stuff?

-- had a lot of success.

Nordstrom's integrating that inventory.

So now that the inventory is getting back to what's in the stores and on line, july sales on line at j.c. penny were up.

Chuck says this is an opportunity.

Do you agree?

I agree.

Laura?

Time will tell.

You need more than online to work.

As you mentioned, the product is what it's all about.

I think they're in a hard spot because why shop there if you can shop, for example, at target or maybe a lower price point place?

It seems to be stuck in this really weird middle ground.

That was the problem in the first place.

I don't think that problem has been solved.

They're still in the middle, which is a soft middle.

Thank you very much.

We're talking beer, wings, football all starts next week, a week from today.

Mitch mode el is going to kick off the season with us right here.

Football season starts a week from tomorrow.

You probably already have your fantasy picks lined up.

Do you have your jersey yet?

Whether you are a manning or brady fan, you can get it at mode el's. the company one of a few vendors.

Mitch joins us now.

Great having you here in the studio.

I've been in your stores more times than i can count.

How big is football season for you?

Tremendous.

Especially when kickoff comes, that thursday night game where it really kicks off.

A week from tomorrow.

Gets everyone excited.

When a home team wins, we're in 11 states, any one of our teams when they got hot, the passion, energy, it's incredible.

So very specific who gets to sell n.f.l. brand-name merchandise, what did you have to do to get that contract?

Nike is the official licensee for the n.f.l., and we're an authorized nike dealer.

As a result we have access to all the premium goods.

When you look at all the franchises, and take a look at sports all the way across the board, football is by far the biggest winner.

Is that the same thing on the retail side for you?

Yes.

Baseball and football are pretty much on the same even keel.

Again, when a team goes to the super bowl and it wins, it just creates a fever and energy that's incredible.

I was going to get into sort of the history of the business, family-owned.

100-plus years.

Started by my great grandfather and they say i was born in the stockroom.

You had to be in the business.

It's in the blood.

How have you seen retail change?

It's been the theme of what we've talked about a lot.

How have you adapted to all that change?

At the end of the day, it's all about taking care of your customers and taking care of your associates.

You have those two ingredients, it's got to be a winning success.

You went underground as the undercover boss.

Not an easy business.

Check this out.

Here's mitch pretending not to be mitch.

My last job didn't go so well.

Why don't you give us the stuff on 42nd street?

I don't have adult pants.

None.

We need to have the zphurem feel we are the hometown community sporting store.

That's a great look for you.

You've got to go back to that look.

That's worth a million bucks right there.

It was absolutely game-changing.

A life-changing experience.

I lost 70 pounds and i lost that moustache.

What did you learn?

As you think about how you're running the business, what did you learn?

You don't have to be an undercover boss to really go on the front line and really talk to your associates, understanding what their issues are and then setting up a vehicle to really solving the problems.

It was life-changing.

To really understand what goes on behind the scenes.

What kind of changes did you make in the business as a result of that?

In our distribution center we probably made about 25 changes, anywhere from how we treat our truck drivers to what the associates wear to setting up incentive programs, to setting up coolers on trucks.

Little things that weren't important or at least we didn't think they were important.

As a ceo you're always looking to cut but when you work the front lines you understand that you have to invest in the people to make it work.

You take care of your people and your people take care of you.

And they take care of the customer.

A happy associate makes a happy customer.

Words to live by.

Thanks for joining us.

And remember, the season kicks off next thursday.

Now you know where to go.

We'll be right back h 6. the dow jones industrial average having a nice day.

Off the high we saw earlier, a gain of 4/10 of a percent.

The s&p up nearly 6 points.

Coming off the worst estimate or the lowest level in eight weeks.

So back with the close right after this.

I hope you have an umbrella.

A rainy, cloudy day.

Looking at the empire state building.

If you missed everything that happened, don't worry we're getting you caught up.

Time for street smarts top ten.

They also posted higher than expected fourth quarter comparable sales.

They report a strong third quarter.

They also gave a solid revenue forecast for the current quarter.

The company sees its revenues for the fourth quarter jumping from 12-15% year after year.

Number eight.

They plan to introduce the my ford touch system starting next year.

Into tainment.

Never get tired of that term.

Number seven.

Up more than four percent of investors overlook a disappointing third quarter.

Net income fell during the quarter.

Express up about 7% as the company reports a 6.8% rise in second quarter profit.

Also lifts the full-year earning forecast.

Margins contracted amid some slightly higher costs.

Brown foreman down about 1-1/2% the maker of jack daniels says earnings fell 2.7% because of higher costs.

Still, the company backed its full-year guidance and says it remains encouraged.

The company also said that it plans to raise prices.

So we'll see if consumers are willing to pay.

There's been concern that people have moved or migrated more to wine and sort of special beers as opposed to alcohol.

I suppose.

Should we do a survey of the panel?

It's not true at the johnson household.

I was like, no.

No.

all right.

Number four, climbing more than 5% after reporting better than expected revenue.

Issuing an optimistic outlook.

They believe they have now su stained profitability.

And down 1% today.

This text has been automatically generated. It may not be 100% accurate.

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