Brew Markets – Episode Summary

Episode Title: Automakers Hit the Brakes on EV & Can Macy’s Be Luxurious Again?

Host: Ann Berry
Date: December 3, 2025

Episode Overview

This episode centers on three major stock market stories:

1. The impact of the Trump administration's rollback of Biden-era fuel efficiency and pro-EV policies and the resulting automaker strategy shifts.
2. Macy’s latest earnings and its bid to revitalize its brand through luxury, with on-the-ground insights into whether this "reimagining" is more than cosmetic.
3. The growing trend of share buybacks overtaking dividends as the prime method for companies to return cash to shareholders. The episode weaves in market context, audience questions, and sharp commentary on key players including Ford, General Motors, Macy’s, Pure Storage, and American Eagle, with host Ann Berry providing expert analysis and producer John offering supporting insights.

1. Automakers Reverse Course on EV (00:58–05:01)

Key Discussion Points

• Fuel Efficiency Mandates Rolled Back:
  The Trump administration announced the reversal of Biden-era standards that would have required passenger cars/light trucks to reach 50 mpg by 2031. This is a significant step back from previous pro-EV policies.

• Cancellation of Federal EV Support:
  Early termination of EV tax credits occurred on September 30th, 2025, much earlier than the originally planned 2032 expiration.

• Mass EV Delays and Cancellations:
  Many major automakers have halted or delayed new EV projects for the U.S. market since the new administration took office. Notable examples:

  • Volkswagen scrapped the U.S. launch of the ID.7 sedan.
  • GM discontinued their BrightDrop vans and took a $1.6 billion impairment charge ($400 million in EV-related costs).
  • Dodge, Kia, Ram (Stellantis), Nissan, and Ford all delayed or canceled significant EV models.
  • Ford delayed its next-gen full-size electric pickup to 2028.

• Automaker Profitability Remains Strong:
  Despite lost momentum on EVs, traditional automakers are thriving—e.g., Ford's record third-quarter revenue ($50+ billion) and GM's stock up almost 40% YTD.

Notable Quotes

• Ann Berry on the wave of EV reversals:

  “This is a really big reversal in an entire sector we’re going to keep watching.” (04:25)

• On policy rationale:

  “The White House is very much positioning its reversal ... as a real attempt to help Americans with the cost of living ... The claim is, Trump’s actions will now save American families $109 billion.” (03:41)

Timestamps

• Presidential policy changes and automaker reactions: 00:58–04:30
• Automaker stock performance context: 04:31–05:01

2. Macy’s Turnaround – Is "Luxury" Working? (05:31–13:59)

Key Discussion Points

• Macy’s in Transition:
  After years of declining department store relevance, new CEO Tony Spring initiated a turnaround pivot toward the luxury market and store modernization.

• Earnings Snapshot:

  • Net sales: $4.7 billion.
  • Macy’s brand same-store sales: +2%.
  • "Reimagined" 125 store locations: +2.3% same-store sales.
  • Bloomingdale’s: +8.8% same-store sales (highest in over 3 years).
  • Company raised full-year guidance.

• The “Reimagine” Strategy:

  • Focused on store refreshes, reorganizing the floor, updating visual presentation, and curating higher-end products, including new brands like Rod and Gun, Reiss, and Prada Beauty.
  • Host Ann Berry is skeptical of the “reimagine” label, feeling changes are more cosmetic than transformational tech-driven experiences.

• Customer Experience Metrics:

  • Macy’s achieved its highest Net Promoter Score (NPS) on record for Q3.
  • CEO Tony Spring claims to personally read all customer emails.

• Luxury Tilt Nuanced:

  • Higher-end growth is mostly concentrated in the Bloomingdale’s banner.
  • Products like watches, jewelry, handbags, and men’s professional wear outperforming core Macy’s.

• Holiday Uncertainty:

  • Despite positive Q3 signals, management expects "a more choiceful consumer" for the winter quarter and is cautious about holiday spending.

• Cultural Impact:

  • Macy’s Thanksgiving Day Parade was the most-watched live event in seven years, second only to the Super Bowl in 2025.

Notable Quotes

• Ann Berry on department store headwinds:

  “I’ve had a long question mark about department stores in general and their ability to weather the storm of specialty retail continuing to go online...” (06:46)

• Producer John (on branding shift):

  “When I went to the website ... what color do you think of when you think of Macy’s? ... It’s a lot of gold.” (09:26)

• Ann Berry on the store ‘reimagine’ strategy:

  “This is not a reimagining ... this is just doing what they should have done, which is refresh, modernize a little bit.” (10:42)

• Ann Berry on luxury growth:

  “Even within the Macy’s merchandising portfolio, we are seeing that very high-end piece do a lot better.” (12:56)

Timestamps

• Macy’s turnaround context and strategy: 05:31–08:31
• Discussion of “reimagine” and luxury approach: 08:31–10:42
• Customer experience and feedback: 10:43–12:32
• Bloomingdale's/luxury split and holiday views: 12:33–13:59

3. Pure Storage’s Shocking Drop (14:05–17:48)

Key Discussion Points

• Market Reaction:
  Pure Storage (PSTG) share price fell 25% after earnings, dropping market cap from $30B to $22B.

• Earnings Details:

  • Revenue: $965 million (+16% YoY, beat estimates).
  • Adjusted EPS: $0.58 (in line).
  • Subscription services revenue: +14% YoY.

• Reasons for Sell-Off:

  • Company will not provide 2027 guidance on hyperscaler deliveries (i.e., cloud clients like Meta).
  • Investors rattled by uncertainty and lack of clarity at a time when capex guidance in AI/data infrastructure is crucial.
  • Analysts also flagged supply chain costs, memory pricing, and possible overvaluation after Sept. 2025 gains.

• Pure Storage’s Role:

  • Describes itself as an “IT pioneer” in all-flash data storage, providing solutions as an alternative to traditional hard disk drives.
  • Ships to big clients (Meta, hyperscalers) but still less than 1% of the data storage market.

• CEO’s Vision:
  Quoted as seeing a world where “data will be eating the world and potentially even eat software in the next” decade. (17:20)

Notable Quotes

• Pure Storage CEO Charles Giancarlo:

  "While software may have been eating the world in the last decade, it appears that data will be eating the world and potentially even eat software in the next..." (17:20, read by producer John)

• Ann Berry (on exec messaging):

  “It was lots of nice words... sort of the way I read that one. Not surprising analysts will listen to that, when that’s no new information.” (17:48)

Timestamps

• Pure Storage context and earnings: 14:05–15:05
• Market concerns/anxiety: 15:06–16:37
• CEO philosophy and analysis: 17:04–17:48

4. Buyback Bonanza: Why Buybacks are Overtaking Dividends (19:44–23:01)

Key Discussion Points

• Audience Question:
  Listener Eric (LA) asks why companies favor buybacks over dividends.

• 2025 U.S. Corporate Buybacks:

  • Buybacks on track for a record $1 trillion (vs. $750B in dividends), fifth consecutive year buybacks have led.
  • Apple ($100B), Alphabet ($70B), Nvidia ($60B) are leading; banks like JP Morgan, Goldman Sachs, and Bank of America also major participants.

• Buyback vs. Dividend Logic:

  • Buybacks reduce the number of shares, theoretically increasing value for remaining shareholders without triggering immediate tax consequences, unlike dividend income.
  • Buybacks are flexible—can be ramped up or quietly trimmed without signaling distress.
  • Dividends, once instated, set rigid investor expectations and are riskier for management to reduce.

• Potential Downsides:

  • If share prices fall post-buyback, shareholders can lose out.
  • Criticisms include executives using buybacks to inflate compensation or mask weaker EPS growth.

Notable Quotes

• Ann Berry on buybacks:

  “When a public company repurchases its shares, it reduces the number of shares in circulation... each one left becomes more valuable ... and as a result, the stock price, all things being equal, typically goes up.” (21:02) “Because buybacks are not burdened with the expectation of continuity, companies can quietly scale them back ... without signaling distress.” (22:08)

Timestamps

• Listener question and summary: 19:44–21:02
• Tax/strategy implications and company rationale: 21:03–22:45

5. Market Headlines and Quick Hits (23:08–25:03)

Key Discussion Points

• Day-End Indices:
  S&P 500 near record high (+0.3%), Nasdaq (+0.2%), Dow (+0.9%).

• American Eagle:
  Surged 15% on strong Q3 results, with notable growth from Aerie brand (lingerie/intimates), not just headline campaigns.

• Netflix:
  Dropped 5% post-news that founder Reed Hastings sold $40M in shares; speculation links to Warner Brothers Discovery acquisition bid. Paramount, Comcast, private equity all mentioned as deal competitors.

Notable Quotes

• Ann Berry (on digging into earnings):

  “When you’re a nerd like me ... I actually dug in, and most of the growth ... came from Aerie ... so just a nugget there about digging into the details.” (24:14)

Timestamps

• Market closing, American Eagle/Aerie: 23:08–24:29
• Netflix and Warner Brothers acquisition rumors: 24:38–25:03

Memorable Moments & Quotes – At a Glance

| Timestamp | Speaker | Quote | |-----------|---------|-------| | 04:25 | Ann Berry | "This is a really big reversal in an entire sector we’re going to keep watching." | | 06:46 | Ann Berry | "I’ve had a long question mark about department stores in general and their ability to weather the storm of specialty retail..." | | 09:26 | Producer John | "When I went to the website ... it’s a lot of gold." | | 10:42 | Ann Berry | "This is not a reimagining ... this is just doing what they should have done, which is refresh, modernize a little bit."| | 17:20 | CEO Charles Giancarlo | "While software may have been eating the world ... data will be eating the world and potentially even eat software in the next..." | | 21:02 | Ann Berry | "When a public company repurchases its shares..., each one left becomes more valuable ... and typically the stock price goes up."|

Conclusion & Forward Look

Ann Berry and the Brew Markets team deliver an episode packed with real-time market reactions, skeptical takes, and grounded explanations. The episode’s main narrative: policy changes and shifting economic data can quickly reshuffle industry strategies (as in EVs); “transformation” in retail often requires closer scrutiny; and the underlying mechanics of capital return—like buybacks—matter more than ever for investors.
The episode rounds out with quick reactions to emerging headlines, keeping listeners sharp and informed for the next trading day.