Transcripts For CNBC The Profit 20240713

I make the tough decisions. I back them up, spending my own money. Nicolas whoa, whoa, whoa, whoa. Stephanie where did you learn to negotiate . Nicolas its just gonna be thrown inside boxes. Lemonis its not always pretty, but this is business. I do it to save jobs, and i do it to make money. This is the profit. Greenwich, connecticut, is one of the wealthiest towns in the country. Its shops cater to a fashionable clientele. Noemi wow, look at that. Lemonis the goureau family opened courage. B in 2008 and have been designing and retailing upscale clothing ever since. Noemi voila. Lemonis noemi has been the chief designer behind courage. B. Noemi look all the detail inside. This is what i love. You understand that . Lemonis her son, nicolas, oversees the operations. Nicolas did you make the labels for these yet . Lemonis while her daughter, stephanie, manages the finances and just as often plays the role of referee. [ both shouting in french ] stephanie stop. Stop, stop. Stop, stop. Lemonis despite generating 5 million in annual sales, courage. B is losing 500,000 per year. Stephanie were losing money. Nicolas calm down. Lemonis and with the losses mounting, so is the tension. Noemi when i wear this color, i dont need makeup. Nicolas you know what colors i care about . Red and green. And im trying to get this company back in the green. Lemonis if i cant figure out a way to break through all the family conflict. Noemi no, no, no, no, no, no, no. Miss stephanie . Lemonis . Courage. B will completely unravel at the seams. When i arrive at the greenwich store, the first thing i see is a handwritten 60 off sign not the greatest First Impression. I cant believe what im seeing. I feel like im in absolute chaos. Feels like a flea market. I see pants randomly plopped on a table. I see a crowded jewelry display. I see things on sale everywhere. And i see soap for sale . Theres so much product jammed on the racks that its hard to focus on a single piece of anything. Do you shop here . Woman no, no. I have a store right around the corner. Its actually my first time in. Lemonis she owns a business in this neighborhood and shes never been in this store . Well, that really tells me something. Whats your First Impression . Woman feels a little too busy for whats going on. Can you pick out one thing you would buy . Woman um. I probably would have walked out. [ chuckles ] lemonis really . Woman yeah. Lemonis okay. Thats great feedback. Thank you very much. Woman thank you. Nice to meet you. Lemonis have a great day. How you doing . Im marcus. Noemi ah. Lemonis how are you . Nice to meet you. Youre french, so you kiss . Noemi yep. Lemonis okay. How many years have you been doing this . Noemi i decide to dont talk more than 20. I think i born with this talent. I understand woman. A woman my age, you know . Shes 35, you know. Lemonis shes 35. Noemi [ laughs ] lemonis that was good. Stephanie hi. Noemi voila. This is my babies. Lemonis how are you . Im marcus. Your name . Stephanie stephanie. Lemonis stephanie, nice to meet you. Nicolas hi. Nicolas goureau. Lemonis nicolas, nice to meet you. Marcus. And so you deal with the operations. Nicolas i deal with the overall management of the entire business, stephanie finances, and my mother the product. Lemonis everybodys got a role. Nicolas theyre my captains, you know, if you want to call it that. Lemonis and youre the general. How many stores do you have . Nicolas so, currently, courage. B has seven retail locations. Lemonis and the business will do how much in sales this year . Stephanie we are shooting to do 6 million. Lemonis last year, how much . Nicolas 5 million. Lemonis and so theres some substance to that number. And how about margins . Nicolas 50 . Lemonis okay. Stephanie last year, we lost. Nicolas we lost a lot of money last year. Lemonis how much . Stephanie a half million. Lemonis okay. Industry average of margin on clothing is about 70 . In 2013, courage. B had margins of 50 . They do over 5 million a year in sales. If we can just get courage. Bs margins to increase by 20 , thats 1 million in gross profit. Courage. B would go fromloss of 500,000 to a profit of 500,000. All of the seven locations are cashflow positive . Nicolas correct. Stephanie no. Nicolas we did the numbers yesterday, stephanie. Stephanie fopps is losing money. Nicolas, thats its losing money. Nicolas okay. Lemonis what did the fopp stand for . Stephanie a fopp is a very elegantly dressed woman. Nicolas yeah. Lemonis a minute ago, i thought that courage. B had seven locations. Now im finding out that one of the locations isnt even callcourage. B. This business is looking more scattered by the minute. Nicolas there was a store that had been around for 20plus years, which was my mothers store. And through poor business management, if you want to call it that. The business was starting to go into debt. She called me. Shes like, i just want to design. And i said, fine. I can build the business. So, i started courage. B. Lemonis im finally starting to understand the goureau family business. Noemi has actually owned an Apparel Store in manhattan for decades. Courage. B started in 2008 when noemi decided to step back from management and just focus on design. Well, i want to get more of a tour. Can you kind of give me a tour of the rest of the place and nicolas may i . Lemonis yeah. Nicolas we built this store fully finished. Lemonis mmhmm, and when you open a new store, who does the merchandising . Stephanie the merchandising is done by the employees in the stores but run by the managers themselves. Lemonis look, i have hundreds of businesses all over the country, and even my best manager cannot be left to do the merchandising. If youre gonna be a national brand, you have to have a National Look and feel. I want customers to be able to travel the country and land at any of our locations and have the exact same experience. Thats what a brand is about. Im fascinated by how all this stuff gets from someones head and how does it land finally on the shelf . Nicolas so, ill walk you through, for example, our handbags. Finest craftsmanship. You can probably just see the way that they are. The, um. Okay. Lemonis but who came up with the design . Nicolas okay, so for example, this bag right here lemonis just answer that. Nicolas noemi came up with the design for this bag. We mainly stephanie, myself, will come up with what connects to the rest of the merchandise that were producing for that season. Stephanie noemi is the one who is constantly looking out in the world at what the trends are. But for the last five years, noemi has, you know, made a lot of designs and brought a lot of things in. Many times not all things have come in that weve taken hits on. Nicolas right. Lemonis wheres all this bad inventory . Is there storage, stock room . Nicolas we have a storage room downstairs. Lemonis can i see what you have here . Nicolas lets go. Stephanie yeah. Nicolas so, the inventory that we have down here this is what didnt make it. Lemonis and so, because im not in your business, i just see cash. Stephanie yes. Lemonis thats what i see. Who designed, like, these two things right here . Stephanie noemi did. Nicolas noemi did. Noemi its funny. You pick two things. Its, like, popping out. It doesnt belong in this pile. Nicolas well, we could probably pick 100 things like that. Noemi we liquidate that. Nicolas it doesnt matter if we liquidate. Dont try and justify it. It wasnt correct. Lemonis and you know whats even more amazing to me . Youre doing 5 million with this product. Can you imagine what you would do if your product was right . And so what is the problem . How did it happen . Nicolas obviously, its a family business, so the problem is that noemis work wasnt up to par, and noemi i had a very bad year. Nicolas noemis work wasnt up to par. We were still depending on that product, and we ate it. Lemonis how much do you think its cost . Nicolas almost a quarter of a million dollars. Lemonis and who signed off on them to be designed . Nicolas nobody checked. Lemonis the fact that theyve lost 250,000 is alarming, but whats more alarming is the reason they lost it. You have one person designing it, and nobody is check and balancing that process. Anything else i should know about whats down here . Golf clubs, luggage . Nicolas no, those are my dads golf clubs. Lemonis is your dad still around . Nicolas no, he passed away. My mom raised us by herself. Lemonis cause i didnt know all of that. Stephanie in 87, they opened fopps. My father and her opened a small boutique on lexington, and six months later noemi he got sick. Stephanie . He got sick with cancer and died. Noemi the year after, he died. Very young man. Stephanie 38 years old. Noemi and he left me with stephanie, was 4, and nicolas was 7. Stephanie she got remarried. Nicolas two years ago, he divorced her. Because he was married to her, and he started suing us, and. Stephanie the little bit she had left, she put into this business. Noemi its why when we talked about the design, also, it was a part of that. Stephanie she checked out a little. Nicolas it was just bad. Lemonis for everybody. You could not have built this business without her. Period. Nicolas period. Lemonis you know, it seems like this business really thrives when noemis at the top of her game. When shes engaged, things are really good. The real courage to start the business came from you putting all your poker chips on the table. By the way, thats the courage. But i dont give you credit for whatever this is. All right. Nicolas lets move along. Lemonis now im going to visit fopps, the familys first location in manhattan, and it also happens to be the biggest financial drain. They should have called it flops. Stephanie these are the pants we just sold if you want to just replace that. Lemonis so, tell me about this location. Noemi okay, this is the first location we opened in new york and my first store. Lemonis this store suffers from the same issues as the one in greenwich no thought process, no merchandising, product all over the place, crammed into every crack and corner you can find. I couldnt imagine a 30yearold coming here and buying this stuff. Whats a good sales day here numberswise . Raquel would be like about 1,500 a day. Noemi but not enough for the rent we pay. Lemonis 10,000 . 12,000 . Noemi no. You must be joking. Stephanie [ chuckles ] noemi were talking about almost 30,000. Lemonis how much . Noemi almost 30,000 a month. 28,000 a month, yes. Lemonis 28,000 a month . Nicolas yeah. Lemonis if their average daily revenue is about 1,500, that means on a monthly basis, theyre doing about 45,000. Lets assume that their margins are 50 . Their rent is 28,000 a month. Before you pay any bill of any kind, including labor, theyre already cashflow negative. No wonder they got a problem here. How do you make that work . Nicolas well, were eating up profits from the other locations. The lease has about another year and a half left on it. This is the only manhattan location . Nicolas this is the only manhattan location, yes. Lemonis after visiting two courage. B locations, the picture is much clearer on how this company got in trouble. Even though they were smart enough to pick excellent retail locations, bad merchandising and design inconsistencies is why this company is all over the place. Now i need to meet the family at their corporate offices and dig into the financials. Well, this looks a lot different than the store. Nicolas yeah. Stephanie yes. Lemonis looks nice. Nicolas thank you. So, this is home base, if you want to call it. Lemonis yeah. Nicolas this is our Conference Room showroom. Lemonis i like it. I walk into their corporate office, and im surprised how different it is than the two Retail Stores ive been to. It looks like an edited collection of what courage. B actually stands for. Its much cleaner, and its much clearer. Stephanie this product is our bestselling product. It is just an easy hanging cardigan, in essence, that we call the duster, cause it literally kind of dusts the floor. Lemonis who designed it . Nicolas mom did. Lemonis retail price on that . Nicolas 99. Lemonis cost . Nicolas 11. Lemonis look, theres very few businesses in the world where the margins are as explosive as they are as the clothing industry. Fashion is a feeling. The better they feel, the more theyll pay. If you can take a product for 11 and sell it for 99 a 900 markup those are amazing margins. Youre not gonna find that in very many industries, and thats why i think theres a great opportunity here. I like it, but im gonna tell you something youre not gonna like. I think that the fit and finish, cause i looked at it on her, could use a little tweaking. Noemi exactly. Nicolas right here is the aspen bag in all the various different colors. Lemonis thats almost like a signature design. This is a good product. Did somebody bring you this design . Noemi no, this is me. Lemonis well, im noticing that noemi has a keen sense of fashion. But while noemis talent tells me this company has a real shot at success, these financials are telling me a very different story. The loss on this statement shows 500,000, which is what you told me. Stephanie exactly. Lemonis okay. Professional fees of 250,000. Stephanie we went through a tough lawsuit last year. Lemonis was it the divorce . Stephanie yes. Lemonis ah. So, this is not a recurring. Stephanie no. No. This does not happen normally. Lemonis so, if i look at the financials for last year, i take out the lawsuit, which means i still lost 250,000 for the year. We have about 900,000 of inventory. How much of that would you say is wrong . Stephanie right now were stuck with about 400,000. Lemonis you have cash tied up in inventory that isnt right for your business. I understand that they lost 500,000 last year 250,000 from a lawsuit and 250,000 of bad inventory. But thats not the real problem. The real problem is the company doesnt have the right product on the ground, and if i can fix the product Going Forward and then merchandise it in a creative way, i know i can make money immediately. Youre at a very weird place. This has the makings of being something great, but the Business Needs money, and all i have to get my head around is were talking about changing the product and changing the process, and its extreme, and putting money in at the same time. Im gonna study these a little bit more. Thank you. Stephanie thank you very much. Lemonis yep. Stephanie [ sighs ] lemonis well, you know, ive spent the last couple days asking you guys a lot of questions. While i struggle a lot with the product, you guys have spent a lot of time working really hard, but the business is really in trouble. I mean, you do 5 million of sales. But at the end of the day, last year, you lost money. Stephanie how do you envision the growth of this business . Lemonis its about changing every single product that you have. You have 900,000 tied up in inventory. Half of it should go into the garbage. How long can you survive . Nicolas were trying to be as lean as possible. I have about three months where i wont be able to pay my rent at home. Lemonis how much money do you think this Business Needs . Nicolas i believe it needs around 1 million. Its 20 of what we do on an annual basis. Lemonis well, its 20 of what you sell. My offer is 800,000. I have full control. Theres 100 of the stock today. Ill have 50 of it. Noemi [ gasps ] stephanie whoa, whoa, whoa. Nicolas whoa, whoa, whoa. Stephanie we away off. Nicolas at this point, its gonna be 50 for you and 50 for me. Lemonis im at 50 . Nicolas marcus. Lemonis and before you answer, just know that if you dont do a deal with me, you may not make it. Nicolas no. You want all of the accolade without doing any of the work. Stephanie nicolas. I dont want him to walk out that door because of this. Here, hello starts with hi mple. How can i help . A data plan for everyone. Everyone . Everyone. Lets send to everyone [ camera clicking ] wifi up there . Ahhh. Sure, why not . Howd he get out . a camera might figure it out. That was easy glad i could help. At xfinity, were here to make life simple. Easy. Awesome. So come ask, shop, discover at your xfinity store today. Lemonis so, 800,000. My total offer to courage. B is 800,000. I feel they need 300,000 in renovation, 300,000 in inventory, 100,000 in working capital, and another 100,000 to pay off existing debt. How much equity in your business is that worth to you . Nicolas 10 . Lemonis im insulted. At 10 , ill give you a halfamilliondollar loan and take the stock of the company as collateral. I mean, if you default, ill take the business. So, you dont want that option. The option that you want is you want me to be just as excited as you are. Nicolas is it just because you want 50 . Lemonis forget about what im asking for. Nicolas so, lets get close. Lemonis you wanted me to have skin in the game. But at 10 , i dont really care. Stephanie i was just gonna say that. Lemonis i dont really care. Nicolas 25 . Lemonis it aint even correct at 25 . It aint gonna happen. Are you willing to give your sister equity . Nicolas absolutely. Lemonis does she have equity today . Nicolas no. Lemonis okay, so im willing to come off my 50 if i know she has equity. Does your mom have equity . Nicolas no. Lemonis im willing to come off my 50 if everybody has equity. And so, my final offer it is it is im comfortable with you having the most. No doubt about it. Youll have 40 of it, ill have 30 of it, stephanie will have 15 , and the lady that founded the business, your mother, will have 15 . Let me be very clear. Im gonna be 100 in charge. We have a deal . Nicolas i accept this. Stephanie wow. Lemonis partner. Stephanie thats right. Thats right. Lemonis partner. Im gonna write a check to courage. B for 800,000. Were gonna be partners. And well let the fun begin. Nicolas ive never seen a check that big before. Stephanie [ chuckles ] lemonis youll be making checks much bigger than this. So, you guys want to get everybody together and we can tell them whats happening . Noemi lets talk. Lemonis you guys may or may not know why im here, but im here to make an investment in this business. And i believe in the potential of this business, and so im investing 800,000 to be a partner with them. Woman oh, my god yes lemonis i will be a 30 partner. Nicolas will have 40 , and stephanie and noemi will each have 15 . Everybodys gonna have very defined roles, but noemi will not be controlling design. Noemi okay. Got it. Lemonis i actually think that the foundation for the business is sound. People, process, and product my three principles. The people are awesome, and so thats why im standing here today. The process to design merchandise is broken. We are going to rebrand and remerchandise all of the stores. Woman wow. [ cheers and applause ] lemonis and we are gonna install a planogram system. Stephanie i have been saying planograms to nicolas for six years. Lemonis a planogram is a visual merchandising tool used by retailers. It ensures that the product is displayed properly. It also ensures that multiple locations have a consistent look and feel. Since courage. B has seven locations, this is the first step in creating consistency across all their stores. We have hundreds of thousands of dollars in mistakes in inventory. We will never make those mistakes again. I think the clothes are affordable. What we wont be doing is selling things that dont have good fit and finish. Its disturbing. What we want to do is improve all of that. My goal is to really improve the fit and finish of all the products. Im gonna do that by improving the quality of the fabrics and also being more selective about the manufacturers i use really raising the standards. Lets get to work. Woman okay. Woman 2 all right. Thank you. Lemonis hi, guys. Stephanie hey. Lemonis i thought we could maybe all huddle in the Conference Room and start looking at those five foundational products. Stephanie great. Yeah. Lemonis right now courage. B has way too many products. In order to move this business forward, i have to simplify things. A good example would be pants. We can have different shapes and different sizes, but theyre all still pants. Lets use this space nicolas for merchandise . Lemonis yeah. Nicolas okay. Lemonis i want to go through all the products that we have today and see if any of these existing products will contribute to one of the five pillars. I want everybody to pick what they think is a foundational item. Stephanie i look through this, and im just like i dont understand how we made any money. Lemonis honestly, for me, the dresses and the tops are the ones that need the most work. You want to have a 35yearold buyer . Really . You look at these tops, you wouldnt wear this stuff. Noemi absolutely not. And i dont. Lemonis and that should be your first signal that theres a problem. Weve lost our way here, and were bringing in a designer to fix them cause i dont like where were sitting today, and i dont think you guys do, either. Courage. B has a terrible identity crisis. They dont know who theyre selling to. In order for this brand to be relevant, it has to be more youthful and more innovative and more comfortable. You look at this duster, the quality of its terrible. Noemi. Noemi yeah. Lemonis this is your responsibility. The quality is your responsibility. Were gonna make sure that the fabric doesnt rip. And were gonna add some things to it so we can make a whole collection out of it. Were gonna have five pillars. Pillar number ones gonna be this duster. Its a great moneymaker for us, and so lets get it made right. Were gonna have dresses. Theyre gonna be classic and simple. Were gonna have tops that are gonna be cleancut that are more flattering. And the pants we got to have more variety and we got to be a little bit more on the strike zone. Bags we basically just knocked off everybody elses bags. What most important thing do you want to be known for . Stephanie i fight for the fiji. Im sorry. Woman the old design was the winner. Lemonis so, why did you change the design if she says its a winner . Nicolas because it was falling apart. Stephanie ill tell you what happened. Nicolas wait one second. We tried different factories, different patterns, and this is the one that noemi i never approved this design. Stephanie yes, you did. You made this design. Noemi no, no, no. It was so quick. Im sorry. Nicolas you approved this. Stephanie are you kidding . You made that. Nicolas dont even. Dont even. Noemi okay. You went too quick with that. Im sorry. Nicolas excuse me. Stop it. Noemi i blink, and somebody approve it. Im saying the truth. Stephanie no, youre not. Noemi i designed the other one. Nicolas enough with your ego already. Enough lemonis were gonna literally take all this stuff out, so if were gonna get started stephanie wait, what . Hold on. Nicolas what do you mean . Lemonis were gonna be closed for a period of time probably for about a month. Nicolas what . noemi i never approved this design. Stephanie yes, you did. Nicolas enough with your ego already. Enough noemi its not ego. Nicolas you want me to show you a million things that you approved that you claim you didnt . Noemi this design i didnt approve it. Lemonis why are you frustrated . Nicolas because shes just not comprehending what were doing right now. Noemi no, we dont have to agree. One second. Nicolas its not agreeing or disagreeing. Lemonis lets leave it to the side for just a moment. Noemi has talent, and shes made some beautiful pieces. But theres been more mistakes than there have been winners. But nicolas is ultimately in charge of the business, so im not interested in them playing the blame game anymore. What im interested in is getting these five pillars established and getting these products selected. And if theyre gonna waste time swirling around with a bunch of nonsense, im gonna pick the products. This will end up becoming our signature product. Stephanie messenger. Lemonis what i want to task you with is going back to the drawing board on this product. Nicolas yep. Lemonis and i want to see five to six variations of things with this. I want to see a diaper bag, i want to see a duffel bag, and i want to see a computer bag, a computer cover like this. Courage. B will now focus its business on five key items dusters, tops, pants, dresses, and bags. Going forward, if its not in one of those categories, it wont be on the shelf. This is gonna end up being a name change, as well. This is gonna be called the courage bag. Stephanie love it. Woman oh, my god. Lemonis our stores gonna be badass. Today, im headed back to greenwich to rethink and relay out the way this store is merchandised. I just look around, and i feel like im in a flea market. Once i get that figured out, this will now become the blueprint for all the existing stores and any new store Going Forward. Were gonna literally take all this stuff out, so im gonna were gonna get started stephanie wait, what . Nicolas what do you mean . Lemonis were gonna be closed for a period of time probably for about a month. Nicolas what . stephanie hold on. Whats gonna happen with this merchandise . Lemonis were gonna liquidate it. Designing and buying products for the five pillars is gonna be expensive. In order for us to do that, i need to liquidate the existing bad inventory that we have so that i can take that cash and reinvest it in new inventory that sells. Stephanie sorry. Get right in there. Noemi is still the face of the brand, and its still her eye that i trust. But in order to make sure that shes successful, im gonna hire legitimate designers with legitimate track records. Lynn make one version striped and make another version solid. Lemonis lynne hiriak, whos worked with great designers such as michael kors and derek lam, is gonna work directly with noemi to help courage. B establish a real retailbrand identity. Now that weve ensured that our designs are gonna be taken care of by an experienced designer, its now time to fix the quality. Woman hi. How are you . Lemonis Going Forward, we will only be sourcing the finest fabrics for our collection. Feel this. Noemi oh, my god. Lemonis this fabric is a highergrade fabric than we have today. Noemi yes. Lemonis we charge 99 today for a product that, labor and material, costs us about 11. Noemi mmhmm. Lemonis if we go to 22 or even 25 lemonis in order to increase the margins in this business, we have to increase the quality of the product. Today, the duster is made for 11 and sold for 99. I believe that if we dramatically change the fabric and the stitching, all the fit and finish that goes along with it, well be able to charge 145. The new cost will probably be around 25. That gives us a net gain of 32. Were gonna be instilling this philosophy across all the products and all the pillars. Im confident that courage. B is now heading in the right direction. Hey, guys. Stephanie hey. Good morning, marcus. Lemonis whats happening . Nicolas i made a new version of the duster with the different type of trim. Lemonis okay. Nicolas you talked about the trim was fraying. Lemonis can i see it . Nicolas yeah. Let me get it. Lemonis noemi, can you come on down . Nicolas the weaving is a little tighter, so it feels slightly different. Lemonis whos the one that actually changed this . Nicolas i did. Lemonis nicolas, why are you working on the duster . Nicolas because i had the resources to do it. Lemonis but you didnt include your mom . Noemi no, because we went through that. Lemonis it sounds like you have a problem with that. Nicolas i dont have a problem with that. Noemi its the control. I told you. This is another problem we have. Nicolas so, are we talking about the past or the future or i dont understand. Noemi future. Nicolas okay, so noemi we already decide. Why are we going back and talking about it . Nicolas so, if were talking about the future, what happened in the past is irrelevant. Lemonis nicolas, i told you to work on the bag, not this. It looks exactly the same and it feels the same. So you wasted time. I specifically tasked noemi with improving the duster line. I wanted her to upgrade the fabric, and i wanted her to upgrade the finish. But what baffled me is that nicolas decided to take charge and do this on his own. So Many Companies fail when people do jobs that theyre not supposed to do. Going forward, i want her to deal with this kind of stuff. Nicolas okay. Lemonis i dont really understand why nicolas has so much animosity towards his mother, but i need to understand it because, ultimately, its gonna determine if courage. B succeeds or not. Im struggling with how nicolas talks to you. Noemi hes a good person. But sometimes, he doesnt know the limit. Lemonis how does it make you feel when you fight . Noemi bad. Bad. Nicolas you dont change that. We will tell you whether it is financially and logistically feasible to do. Lemonis i need to kind of understand what i just walked into. If your business is in trouble and you need my help, log on to. My bladder leak underwear. Orried someone might see so, i switched. To always discreet boutique. Its shapehugging threads smooth out the back. So it fits better than depend. And no one notices. Always discreet. Introducing a razor that works differently. The Gillette Skinguard has a guard between the blades that helps protect skin. The Gillette Skinguard. Here, hello starts with hi mple. How can i help . A data plan for everyone. Everyone . Everyone. Lets send to everyone [ camera clicking ] wifi up there . Ahhh. Sure, why not . Howd he get out . a camera might figure it out. That was easy glad i could help. At xfinity, were here to make life simple. Easy. Awesome. So come ask, shop, discover at your xfinity store today. Lemonis you need whento stand up for yourself,. Because i dont see you tell him how you feel, i dont see you fight back, so i wonder if he just thinks you just accept it, he can get away with it. Noemi no. He cannot. Lemonis i know i can fix many of the business problems that exist at courage. B, but if noemi and nicolas dont work through their issues, its gonna undermine the success of this business. Ive hired professional visual merchandisers to come in and assist in the renovations. Woman this is 128 inches. Lemonis our goal is to create a new and inviting showroom to highlight and feature our new courage. B line. Were gonna need to totally transform this store. Were adding new shelving, recessed lighting, and hip chandeliers to boost the upscale vibe. Woman the mirrors are going here. Lemonis were opening up the floor plan to increase the visibility of merchandise and increase the customer flow. The purpose of redoing the floor plan at courage. B is not only to increase sales per square foot, but its also to have a cleaner presentation for the customer. I want them to walk in and see the five pillars that weve created. I dont want to have a cluttered mess like we had before. Fixing the floor plan and fixing the merchandising is the first step. Second step is fixing the product. And were also renovating the manhattan location. The biggest change is gonna be taking the fopps sign down and putting the courage. B sign up. Now for the merchandise. I want to see some of the samples. Im excited to see the new product, but i know what i want when it comes to quality, and im not gonna accept anything less. The fit and finish has to be right. Look at the quality. You guys got this one right. Youre 80 of the way there. By making these changes, its gonna really upgrade the new courage. B brand. I want all this stuff ready for the relaunch. Its got to be ready. Noemi we discussed how to do the duffel bag, you know . Nicolas you werent you werent part of that conversation. Noemi yes, i was. I was there. Nicolas i know, but this isnt your job. You were never asked to do this. This isnt your job. Noemi i did this bag. Nicolas you came up with the original idea. Thank you very much. And now the rest, youre off. Noemi yeah, but do the rest, im sorry. Nicolas no, ycant do the rest. You dont know how to finish anything. Its either a hobby, a game, or its a business. Noemi its business. Nicolas ill give you a little bit about business. You have your job to do. Your job is to come up with an idea, and then it is your job to advise, so when the product comes in, we will tell you whether it is financially and logistically feasible to do. Stephanie can you stop . Nicolas, please. Noemi im sorry. Nicolas no. No, no, no. Youre not liable. Theres absolutely no ownership to your actions. Stephanie please. Noemi i cannot take it anymore. Lemonis i need to kind of understand. What i just walked into. You guys truly have real love for each other, except when you get in here it gets a little toxic. Noemi hes raising his voice, and hes upset. And i dont know what to do when hes like that. Nicolas so, this is my fault. Im not a good son. I dont take care of you. Stephanie she never said that. I havent taken bullet after bullet for you. This is ridiculous. Stephanie nobody said that. Nicolas i am your son. I have sacrificed life and limb for you, and im not doing any of this noemi i did it in the past for you, nicolas. Nicolas and we started this business with debt that weve just gotten ourselves out of, okay, that your children have been carrying. You want all of the accolade without doing any of the work. Stephanie she also went through a tough time in the last couple years. Nicolas yeah. We all did. I understand that. Stephanie okay, so we have to have a little bit of understanding for each other. Nicolas okay, well, tell that to the bank, tell that to the landlords, tell that to the people that call me for bills. Tell that to all them. Stephanie nicolas. I dont want him to walk out that door because of this. Please stop. Please. Im begging you. Nicolas you want all of the accolade without doing any of the work. Stephanie nicolas, she also went through a tough time in the last couple years. Nicolas yeah. We all did. Stephanie i dont want him to walk out that door because of this. Please stop. Please. Im begging you. Please. Lemonis im there to help fix the business. Im not a therapist. And candidly, im embarrassed that he thinks its okay to talk to his mother this way. And if i cant understand why he feels this way, im not sure that i can respect him in business. Nicolas this is a woman that was able to do anything. Like, she could move mountains. Lemonis so, where it gets very blurry for me is when you walk in that door you are her boss. But you also would never talk to an employee that way. So why do you . Nicolas i think my sadness is manifesting itself in anger. Its just sadness ive been carrying my whole life. Lemonis about your dad . Nicolas [ voice breaking ] yeah. I dont think i ever truly, like, just, like, dealt with it, you know . I was 8. I was 8 years old. Wed just moved to the u. S. And i heard something fall, and i got up and the first thing i saw was my mother on top of him trying to wake him up. He was dying. She was saying in french, like, patrick, wake up. Patrick, wake up. And i was watching all this happen. I didnt speak any english. And i still managed to call 911 and say, my fathers dying. Please send an ambulance. Then when i hung up the phone, i saw my 5yearold sister, and she looked at me, she goes, whats going on . And i said, everythings gonna be okay. And i grabbed her, we went into our room and i took out games. She goes, whats going on with dad . I go, nothing. Lets just play. And i put her to bed, and. And then i woke up the next morning and i saw my mother on the couch, and she said, your father died last night. And i looked at her, and i said, i think stephanie and i need to go to school. I was 8 years old. Thats what i remember. This is another piece of that puzzle. Lemonis what is . Nicolas our relationship. I mean, she is everything mom, dad, friend, partner. Lemonis employee. [ chuckles ] nicolas employee. Lemonis discipline her to be creative, but be constructive. And be encouraging and be supportive. Shes your mom first. Nicolas yeah. Lemonis and shes your employee last. Dont ever forget that shes your mom first, or she will smack you upside your head. Nicolas maybe she should more often. Lemonis yeah. The fact that nicolas was able to open up and be vulnerable and express his feelings with me, i gained a lot of respect for him in that moment. Look, i know that youve been wearing the weight of the world on your shoulders, and your mother and your sister are grateful. Im grateful because you got us to this point. But you got to let it go. You got to let it go. She knows she made mistakes. You made mistakes. She made mistakes. Ive made more mistakes than all of you combined. Nicolas [ sniffles ] think you need to buy expensive skincare products to see dramatic results . Try olay skin care. Just one jar of microsculpting cream has the hydrating power of 5 jars of a prestige cream, which helps plump skin cells and visibly smooth wrinkles. While new olay retinol24 provides visibly smoother, brighter skin. For dramatic skincare results, try olay. And complete your routine with the olay eye collection. Brand power. Helping you buy better. I dont have to worry about that, do i . Harmful bacteria lurk just below the gum line. Crest gum detoxify, voted product of the year. It works below the gum line to neutralize harmful plaque bacteria and help reverse early gum damage. Gum detoxify, from crest. Sfx upbeat music a lot of clothes you normally take to the cleaners arent dirty dirty. They just need a quick refresh. Try new febreze clothing quick dry mist. It eliminates odors and refreshes lightlyworn clothing. Breathe happy febreze. La la la la la. Here, hello starts with hi mple. How can i help . A data plan for everyone. Everyone . Everyone. Lets send to everyone [ camera clicking ] wifi up there . Ahhh. Sure, why not . Howd he get out . a camera might figure it out. That was easy glad i could help. At xfinity, were here to make life simple. Easy. Awesome. So come ask, shop, discover at your xfinity store today. The goureau family and i have been partners for about eight weeks now, and a lot of transformation has happened. The products been totally redone, and most of the stores have been renovated. Im taking them to greenwich tonight so they can see the first one. Dont peek. Stephanie yeah, right. Lemonis welcome to your new store. Nicolas [ chuckles ] stephanie it looks so different. Nicolas oh, my god. Lemonis greenwich feels like a brandnew business. Doesnt feel tired and dark. It feels bright, it feels open and airy. My investment feels really good right now. Stephanie this is so cool. Noemi i love that. I love that. Nicolas this is awesome. Stephanie oh, my goodness, that chandelier. Wow. Lemonis do you now understand why the product also had to be different . Noemi oh, definitely. Stephanie i mean, im blown away. It looks like a brand. Nicolas look at all the the colors came together and the whole thing. Its like a story. Wow. Lemonis my goal at the beginning of courage. B was to transform the brand into something new, youthful, fresh, and fun. The store looks different. What i love the most is i love the merchandising. I feel like the customer can easily understand whats happening in the store, and its not filled with a bunch of merchandise that doesnt fit in the pillars. Noemi thank you so much. Nicolas marcus, it looks great. Lemonis i think the thing, guys, that maybe is the best is that the relationship of all of you has transformed. Noemi oh, i love my children. Nicolas yeah. Noemi oh, my god. Thank you. Lemonis lets get ready for opening tomorrow. Noemi [ gasps ] wow. Lemonis okay. Nicolas do it. Noemi wow. Lemonis all right, guys. Noemi thank you. Lemonis todays the grand opening for greenwich the primary location that we renovated that will be the blueprint for all courage. Bs Going Forward. Stephanie thats a nice one. Its a little more, like, business conservative. Lemonis how busy it is. Nicolas yeah. Noemi i love it. The color. Woman i love this. Woman 2 and guess what. This you can put it in the wash. Woman shut up. Lemonis the new courage. B brand, for me, is fresh, its youthful. Customers seem excited. Woman oh, my god, i love this top. Lemonis and its got much better margins. Woman this is amazing. So highend. Everything that ive tried on fits to the t. Lemonis there was a lot of work that went into transforming the product. When a customer picks up a garment, they want to know that theyre getting their moneys worth. You know what i think im happiest about . The fit and finish. After many long days. Noemi yes. Lemonis i like the fact that youre listening and realizing that quality will drive value. Woman did you see this . Woman 2 no, i didnt. Stephanie there you go. Enjoy everything. Woman thank you. Stephanie okay. 103. 69. Thank you. Lemonis you know, sometimes i say that people cant be changed, but in this case, i feel like the people transformed, as well. Im honored that you guys let me come in and change things as much as i did. Noemi thank you for that. Lemonis and that youve accepted me into your group. You guys are a dangerous trio. Im just trying to keep up with you guys. [ cork pops ] stephanie whoo lemonis if i can get the rest of the new courage. B stores to open just like this one, were gonna make a lot of money. Nicolas, the numbers every day, the margins every day, i want to hear about them. Noemi we got it. Thank you so much. Lemonis okay, guys. Nicolas love you guys. Awesome. Courage. B. Well, its 5 30 on a friday here at the nasdaq market. That can only mean one thing, heres options action. Coming up on the big show. Vegas, baby, vegas were headed to sin city. And the chart masters feeling lucky. Hell tell us the one name hes rolling the dice on. Plus, a whole new world. Thats right. Its a whole new world for disney as the company gets ready to launch its new streaming service. Dan nathan says there is