The HedgeyeRetail Team will be hosting a Q3 RETAIL THEMES call this Thursday. There are some critical themes evolving within Retail that should be the bedrock for idea generation in 3Q. The HedgeyeRetail team will explore them in depth with a conference call and Black Book on Thursday, July 12th at 11am EST.
Topics will include:
- James Cash Rolling in Other People's Graves. We all know about the problems at JCP. After a year, that call is finally consensus. But what is not consensus is the impact that JCP will have on different competitors, suppliers, and 'partners' as its shop-in-shop build out program rolls out.
- Capital Intensity Intensifying. 'Invested Capital' is completely misunderstood in retail. It's not just capex, working capital, or sg&a. A company can tweak any of these factors at any point in time, and get much different outcomes. The reality is that we need to look at them in aggregate, for each company and the industry. The results are not pretty as it relates to industry returns.
- Who's Margin Dollar Is It Anyway. We're now in 2H, where raw materials costs are 'easy' vs. last year. But when most retailers say they're going to keep the savings, brands say they're going to keep it, and manufacturers staking their claim as well, it adds up to a number above 100%. We'll identify who wins and who loses.