Below is a chart and brief excerpt from today's Early Look written by Hedgeye CEO Keith McCullough.
|
"... There are also innumerable extremes that have built up in the economy due to the combination of capacity being off line, demand surges, or supply chain constraints. In the Chart of the Day, we've highlighted a chart from our recent Q3 Themes Presentation, which shows retail inventory as a percentage of revenue. Simply put, inventory is almost as low as its ever been. This, of course, is very good for retailers in boosting margins to generate more earnings and free cash flow. It's also made it a heck of a period to generate alpha in retail ... just ask our colleague Brian McGough." |
