Today on The Call @ Hedgeye, Retail analyst Jeremy McLean recaps recent headlines on Kohl’s (KSS), which saw a 19.6% decline on Friday, July 1st. An expected deal between Kohl’s and Franchise Group (FRG) was not reached during the strategic review process, leading to the stock falling further.
“There is not going to be a sale of the company… big win for us on saying that wasn’t going to happen and sticking with the short despite the multiple news articles saying that the company was going to be bought by multiple bidders,” says McLean.
“We still think short apparel is one of the better places to be in the back half given what’s going on with inventories. So, Kohl’s moving lower, but we still think its net on the short side here even after the fall of the stock.”
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