Return to Transcripts main page

CNN News Central

Soon: New Report Will Shed Light On Consumer Sentiment; Gap Sales Surge Amid Warning Signs Elsewhere In Economy; Gap Flags DEI Scrutiny As New Risk Factor In Shareholder Report; HBO'S "The Chair Company" Renewed For Season 2. Aired 9:30-10a ET

Aired November 21, 2025 - 09:30   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

(COMMERCIAL BREAK)

[09:30:00]

JOHN BERMAN, CNN ANCHOR: All right. We are standing by for a new report on consumer sentiment. This has serious implications for the President's political standing. That standing has been slipping over the last couple weeks. How much? CNN's Chief Data Analyst Harry Enten is here on this special Friday. It's been a tough few days for the President in the polls.

HARRY ENTEN, CNN SENIOR DATA REPORTER: Yeah, John Berman. I would say this is probably the worst 10 day period for the President in the polls, his entire second term. The numbers are just atrocious.

What are we talking about here in terms of net approval rating? Well, take a look. These are all November polls. The best one of the group puts him at 14 points underwater. That's the Marquette University Law School Poll, tied for the worse he's ever had on that poll. Fox, 17 points underwater. Marist, 17 points underwater. The Reuters Ipsos poll, 22 points underwater. And then taking the cake, the AP North Poll, 26 points underwater.

When your best poll has you still 14 points underwater, you know it's truly bad, and it's as bad as 26 points underwater. We're talking about an average well, well, well underwater with the deep blue sea swimming with the fishes.

BERMAN: And now this is all parties here. If you think this is bad, Harry.

ENTEN: If you think this is bad, what is driving these horrific numbers for Donald Trump? Well, why don't we take a look at Independents? Trump's net approval reign with Independents. Back in January, he was close to even. He was at minus four points. Not great, but not terrible.

Look at this number. 43 points underwater with Independents in the most recent average of these polls. When you have 43 points underwater with Independents, you know you're doing terribly. You can't win with this. If this holds for next year's midterm election, wave adios, amigos. Goodbye. See you later to that House Republican majority and that Senate Republican majority very much in danger as well.

When you take a look at the Pew Research validated voter survey going back to last year, he was basically even among Independents with Kamala Harris. Now he is 43 points underwater. Whatever he is doing with Independents, it ain't working. They despise him at this point.

BERMAN: That is just a colossal.

ENTEN: Oh my god. It's a 40 move.

BERMAN: OK. That's among certain political groups here. How about what issues may be driving this?

ENTEN: OK. Yeah. So we'd say that Independents are driving Trump's decline overall, but what is pushing Independents and the rest of the electorate away from Donald Trump? Away from Donald Trump. John Berman, move out of this screen. Away from Donald Trump.

Well, it has everything to do with inflation. It's the cost of living, baby. That is the name of the game. You go back to January, he was three points above water. This was the reason why that voters gave him a second term. You look at this. Look at this. Now 34 points underwater. My goodness gracious, that is a 37 move in the wrong, wrong direction.

BERMAN: All right. I mean, inflation, you know, if people -- one of the things the Fed could do to fight inflation if that were a concern is they would raise interest rates right now. Right now, there's been an issue of whether it'll cut them or lower them after the mixed jobs report yesterday. What are the prediction markets say now?

ENTEN: Yeah. OK. So Donald Trump has been pushing, has been pushing, pushing, pushing. And you know what? The chance that the Fed Reserve in December cuts interest rates now up to 70 percent because one of the Fed Reserve members said essentially there was still room for cuts. This will be welcome news for Donald Trump.

Whether ultimately, though, gets it as true problem, which in my opinion is the cost of living, I think a lot of economists would disagree that it would. But that is what the prediction market say, and that's, of course, based upon one of the comments from one of the members of the Fed Reserve.

BERMAN: And this just changed big time. Not a happy Friday so far for President Trump in the numbers, Harry Enten, thank you --

ENTEN: Thank you.

BERMAN: -- very much for that. We'll be right back.

(COMMERCIAL BREAK)

[09:35:00]

KATE BOLDUAN, CNN ANCHOR: Take a look right now at markets this morning just after opening bell. The market's pointing in the green, pointing north at the moment. Also, this week, earnings reports from some of America's major retail companies have been coming out and have been flashing some warning signs about the U.S. economy. One big take away really seems to be consumers are becoming more cautious about their spending.

But one retailer that outperformed Wall Street's expectations this week in a pretty big way is Gap Inc., and they're pointing to a recent ad campaign that went viral over the summer as a major reason why.

(VIDEO PLAYING)

BOLDUAN: Joining me right now is the CEO of Gap Inc, Richard Dickson. I was -- we were joking in the break, like, any opportunity to play milkshake is a good start to a morning. So thanks so much for being here.

RICHARD DICKSON, PRESIDENT AND CEO, GAP INC.: It's always a good start. Always a good start to our morning, at least.

BOLDUAN: Exactly. Gap blew away expectations for company wide sales as you were announcing earnings, growing by 5 percent this quarter. Is it all about this viral denim ad?

DICKSON: Well, I would ladder it up. I mean, it it's clear our strategy is working, and it's showing up in the momentum and in our results. We're seeing real consistency and strength. Quarter-after- quarter, our overall, net sales were up 3 percent, comps were up 5 percent. That's actually the seventh consecutive quarter of positive comps.

[09:40:00]

And as you've called out, Gap had a strong quarter up 7 percent. By the way, that's on top of 3 percent last year. Eight consecutive quarters of positive comp. Gap is really setting new records for the brand, and it's really reinforcing our confidence in the growth trajectory of the brand.

Certainly, this campaign was an incredible, momentous moment for the brand, particularly attracting younger, highly engaged consumers, particularly with Gen Z as they discover the brand or rediscover the brand. But important to recognize, we're doing all of this while we're reinforcing loyalty with our core consumers.

So absolutely incredible. You played it. We got more than 8 billion impressions, 500 million views. It was the denim story everybody wanted to be part of, and it continues to be a really exciting part of our brand and lots more to come.

BOLDUAN: Good teaser. You're talking about, I mean, up, up, and up in, like, many different regards, especially when I was looking at sales rising 3 percent from last year. I did see, though, the company's net income during the last quarter declined nearly 14 percent that was being discussed as well. Is that largely because of tariffs?

DICKSON: That's exactly right, Kate. It's primarily due to tariffs. We also had some timing on SG&A and tax rate. Happy to break that down even more specifically. We did see success in sales with growth up 3 percent, which exceeded expectations. We also exceeded gross margin expectations, deleveraged about 30 basis points.

There was about a 190 basis points impact of tariff, but the underlying margin expansion of about a 120 basis points reflects the strength of our brands driving less discount. So tax rate was a little up, which also impacted net income. But overall, we just took up our outlook for net sales and operating income for the year, and it really reflects the strength in our performance.

BOLDUAN: Is Gap just eating the tariff cost, or are you needing to pass it on to consumers? How are you going to navigate this going forward, because it doesn't look like it's changing.

DICKSON: Our team has done a fantastic job, with our mitigation plans, which we've shared. It's been focused and thoughtful. We've made adjustments to our sourcing, manufacturing, our assortments, and many other actions.

As I said, the third quarter tariff impact was a 190 basis points. That was actually in line with our expectations. And despite this, we exceeded our gross margin outlook. As we continue to pursue our mitigation plans, we're just going to remain focused on sustaining the momentum of our brands, market share gains that our playbook is driving, and most importantly, ensure that our customer gets the style, quality, and value that they are accustomed to.

BOLDUAN: Seems to be, you're doing well in that plan so far, that's for sure, when you look at what you're dealing with this quarter. I was looking back in March. Gap had told investors that heightened scrutiny of corporate diversity, equity, and inclusion initiative kind of posed a risk to Gap's business.

But then if you take a look at just the Katseye campaign, I mean, diversity is very much celebrated throughout. I even saw when announcing it -- announcing the partnership, it was talked about as we -- the partnership with Katseye, we share a bold, expressive, and inclusive point of view. What does diversity and the scrutiny around it of recent mean for a big company like Gap?

DICKSON: Yeah. I think it's important that you or we always go back to our roots and the foundation of our brand. Gap started August 22, 1969, a 56 years ago. And it started in San Francisco with one store, and that one store sold jeans, records, and tapes. And the jeans themselves were all sizes for all races, all sexes. It was the a really interesting progressive model where at that time, jeans were not available for all races, all sexes, all sizes.

And so we were an inclusive company before inclusivity even became a word. We take a lot of pride in the fact that we appeal to multiple generations, and reflect the identity, if you will, of our consumer. Gap as a brand is a canvas for cultural conversation. The expressiveness of GAP is about your originality, your individual style, how you style GAP. And so we take a lot of pride in our origin, and we take a lot of pride in our relevance narrative for today, which, of course, as you see with Katseye, expresses fun, music, creativity, innovation, inclusivity, and all the things that really do matter to our brand, our corporate culture, and our customer.

[09:45:00]

BOLDUAN: It is interesting to see that it's good for business. The Gap is proving it when you see other companies nervous about it, shying away from it, and making big corporate changes because of it. It's good to see you, Richard. Thanks for coming in. I really appreciate it. John?

BERMAN: All right. A conspiracy wrapped inside a mystery all in the middle of a chair. One of the hottest new comedies out there.

(COMMERCIAL BREAK)

BOLDUAN: Crazy video, of a truck. Just watch this.

(VIDEO PLAYING)

[09:50:00]

BOLDUAN: You see that right there a truck slamming through the wall of a pizza place right into a group of people eating dinner. Two people were injured. One of them was hospitalized with minor injuries. The truck driver was arrested and charged with operating while intoxicated.

A social media prank has now led to at least five kids in California being under arrest. It's called the door kick challenge. Police say that they're running up to homes, kicking in the doors, and then running away. Two of the kids arrested so far for vandalism are 13 years old.

Scientists off the coast of Colombia recovered gold and bronze coins, a porcelain cup, and even a cannon from a shipwreck. It could all be worth billions of dollars, the Spanish warship sank more than 300 years ago, loaded with gold, silver, and emeralds meant for the Spanish king. The treasures are now at the center of a legal fight between Colombia and a U.S. salvage company. John?

BERMAN: Of course, it's in the middle of a fight.

BOLDUAN: Exactly.

BERMAN: All right. HBO just renewed its comedy/thriller, The Chair Company, for a second season.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: What are we trying to say here with this mall?

UNIDENTIFIED MALE: Well, I think we're trying to say this is a beautiful, smartly designed place where people can go and shop for the most wonderful things.

UNIDENTIFIED MALE: Let me show you something. I was in Sedona last weekend. Look at it for a second.

UNIDENTIFIED FEMALE: I like the zig zag pattern on the poncho.

UNIDENTIFIED MALE: Yeah. Maybe we could take some of those colors and put it in --

UNIDENTIFIED MALE: Look. I don't mean this exactly. I'm just saying that this stuff is inspiring, this stuff is cool.

(END VIDEO CLIP)

BERMAN: All right. The show centers around a guy named Ron who sits down on a chair during an important work presentation. And not to give it anyway because it's right at the beginning, the chair breaks right there. And what unfolds is this vast rabbit hole conspiracy thriller that's honestly hard to explain, but worth learning about.

And with us now, and I wish you could have seen him watching himself do that scene there, is Lou Diamond Phillips who plays Ron's boss, Jeff, on the show.

SARA SIDNER, CNN, ANCHOR: Welcome to you. Thank you for being here. You couldn't even keep a straight face as you were as you were watching that.

LOU DIAMOND PHILLIPS, ACTOR: No, I only saw it once. So, yeah, the repeat, you know, for people out there who want to stream it, yeah, it's just as funny. And when you're in it, you don't really -- you can't be cracking up all the time. So it's a treat for me to watch it as well.

SIDNER: Can I give you some of the headlines that we saw about this show?

PHILLIPS: OK.

SIDNER: It's been described as "delightfully unhinged, a violently funny nightmare, and a hilariously hypnotic rabbit hole." I've got one more after watching it. "A conspiratorial comedy where cringe is king." How would you describe the show?

PHILLIPS: All of that and more. Put it in a big blunder. I mean, what's amazing to me is, you know, when we first signed on to do this and I'm reading the scripts, I'm going, wow, how is this going to translate? What tone are we going for? And, you know, when you see the show, it is everything you expected it to be and more.

And ridiculously time -- the timeliness of it in the zeitgeist where so much is absurd out there, and there's so many conspiracy theories. And there -- I think we have, an audience now who is ready for something as weird as this.

BERMAN: That's an interesting take on it that you think that this taps into people's propensity for conspiracy theories?

PHILLIPS: Because there's so much of it going on. And so, you know, there was a time when you would have, thought about Ron doubling down on a chair breaking as being the most, you know, petty and inconsequential thing in the world. But all of a sudden, there's this vast network of things going on below the surface that that, you know, just keeps dragging him down into that rabbit hole.

BERMAN: Oh, can I ask one, so am I allowed to call it cringe comedy?

PHILLIPS: Sure. Why not?

BERMAN: OK. So I'm always curious what's it like to be an actor in a in a cringe comedy like this. Because watching I mean, honest to god, I've been watching this with my wife, and we --

SIDNER: You're literally like --

BERMAN: -- we are honestly sinking into the couch.

SIDNER: Yeah.

BERMAN: She's, like, trying to --

SIDNER: Hiding her face.

BERMAN: But when you're there performing, what's it like?

PHILLIPS: There -- you know, there's an old rule. It's commit to the bit. You know? Which -- commit to the bit, which doesn't mean that he's not going to crack me up, because I've worked -- you know, Tim is one of those guys, you know, like Andy Samberg or James Roday that I've worked with that will improv and go do something that unexpected where you know?

And I'm usually the most straight guy on the set. You know, I'm supposed to be the tough guy. And they'll get me. They'll get me, you know, and, fortunately, they can cut around it. But it's -- the process itself is such a joy.

SIDNER: There's, like, this mundane struggle that happens, and then it goes way off the rails. Do you know what inspired this?

PHILLIPS: I have no clue.

SIDNER: A strange comedy.

PHILLIPS: I don't even know why I'm there. I don't know who thought of me. You know?

[09:55:00]

SIDNER: It's fantastic.

PHILLIPS: I love the role so much, but it's like, who thought of Lou Diamond Phillips with this? Because I'm kind of outside the box, which is, you know, true of everything we're doing in the show.

BERMAN: But you're -- I have to say you're utterly convincing --

PHILLIPS: Oh, thanks.

BERMAN: -- as a I don't know if a detached CEO who -- not that any of our CEOs are detached. I have the utmost respect for all of them. They do a wonderful job. That's my statement.

SIDNER: Now we're cringing.

PHILLIPS: But --

BERMAN: But exactly, you're so believable.

PHILLIPS: Yeah. And it's fun. I mean, the thing about it is that I don't even really know where it's going. My wife is in the business. She does my hair and makeup, and she's here, and I love her.

BERMAN: Wonderful job.

SIDNER: She did a great job.

PHILLIPS: Thank goodness. You don't know, it's an uphill battle. But, you know, I've directed for television. I've done so many things. The process on this is like nothing I've ever experienced where, you know, you can go on. You know your lines, you you're ready to do your thing, and then they'll turn it on its head and they go, we'll try this or we'll try that.

And once again, they just keep mining this comedy gold, you know, right there on the spot. It it's beautiful.

SIDNER: You've done so many things, you said you directed. We know that. We know that you're a great actor. You've been on stage in film, but not Saturday Night Live. Can we make that happen?

PHILLIPS: You know, I'm here. I'm local. I'm easy to find.

BERMAN: Well done, Phillips. It's been an honor. Everyone was so excited to have you coming in. Thanks so much.

PHILLIPS: Thank you so much.

SIDNER: It was great.

BERMAN: Thank you all for joining us. Have a great weekend. This is "CNN News Central." "Situation Room" up on next.

SIDNER: See you.

(COMMERCIAL BREAK)

[10:00:00]

PAMELA BROWN, CNN ANCHOR: Happening now, quote, "seditious behavior punishable by death," serious accusations for President Trump after a video message from six Democrats to military members. The outrage in Washington this morning as the White House responds.