This is a partial transcript from Your World with Neil Cavuto, November 20, 2002, that was edited for clarity. Click here for complete access to all of Neil Cavuto's CEO interviews.
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NEIL CAVUTO, HOST: Retailers are hoping that this holiday season won't be quite as bad as some have been predicting. My next guest says he has high expectations for this year's holiday sales. Brookstone missed Street estimates by 3 cents a share. Still, Michael Anthony says he is optimistic. He is the CEO and he joins us right now.
Mr. Anthony thanks for coming.
MICHAEL ANTHONY, CEO, BROOKSTONE (BKST): Hi, thanks, glad to be here.
CAVUTO: You missed a little bit, what happened?
ANTHONY: Actually, we beat those estimates by 2 cents. We had a range out of an 80 to 85-cent loss and we came in at 76 cents.
CAVUTO: I guess it depends whose estimates you are buying. But let's talk a little bit about the kind of stuff you sell. It is unique, for hard to find person, you're the right to find shop, that is your shtick. What is selling well right now?
ANTHONY: We have really a nice lineup of new products at our stores right now. And we are just thrilled with the penetration of those products into our sales mix. We have got some terrific new products that just got into the store, our Wafer Sound System which I think we brought here today, has just been absolutely terrific. It's a very, very cool looking product with an incredible sound.
CAVUTO: And all for $275, what a deal.
ANTHONY: Yes, yes.
CAVUTO: So that is one of the big draws here. But I am always wondering how you put up with competition on the Internet. A lot of these same type of things, although not exact, can be found on the Internet. Does that hurt you or does it drive traffic to your stores regardless?
ANTHONY: One of the things that we do and how we've changed our business model over the last four or five years is we create most of our products. So our product is really unique to us, and it is very difficult for you to find product that is like what we sell. Now granted you can find other CD players, but you won't find something with the flat panel NXT speakers that look so great, yet sound so good. And so we have been able to really differentiate ourselves with the unique, better product.
CAVUTO: I'm wondering, too, who would be your primary competitors? I'm just wondering, you fit like between quite a few different characters, who would they be?
ANTHONY: We're in the gift business. We provide a unique alternative for gifts. And so our biggest competitor is the local department store.
CAVUTO: Yes, but it's also Sharper Image, it's also Neiman-Marcus, maybe to a lesser extent RadioShack. And certainly in the case of RadioShack, they are easy to get to, easy than going into a mall than going to you, how you do counter the convenience issue?
ANTHONY: Well, I think that our locations both in shopping malls and on street locations, and of course, in U.S. airports. We have almost 30 stores in U.S. airports, really make us pretty convenient. And of course, as you mentioned earlier, you can shop us 24 hours on our Internet site or through our catalog and our phone lines.
CAVUTO: Do you have those vibrating chairs?
ANTHONY: Yes. We do.
CAVUTO: I think I fell asleep in one, one time, the mall closed. But Michael Anthony, thank you very much.
ANTHONY: All right. Thank you.
CAVUTO: The CEO of Brookstone, Michael Anthony.
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