Putting This Rally into Perspective

Retail stocks ripping 15% month-to-date is not simply a function of the market’s performance. Our call has been for a fundamental improvement in the delta on nearly every line of the P&L and operating cash flow statement. I still think that holds (note, I don’t need an improvement in the consumer to make this work). But more near-term, we’re already starting to see the stocks move more tightly with earnings revisions, which have – without question – been getting better. I think that will continue for a while as downward revisions for the industry in aggregate prove to have bottomed.