We’re hosting a Flash Call on Wednesday, November 5th at 11:00am ET to outline why we added KATE to our Best Ideas list as a long. We’ll review, in detail, our thesis across durations (Trade, Trend and Tail) and will explore where the stock should go as well as where we could be wrong ahead of the company’s print (on Thursday the 6th).
Key Topics Will Include:
1) Bottom-up category growth model. Penetration and growth potential in handbags, apparel, footwear, accessories, etc…
2) Where KATE is in its store maturation curve, and the implied impact on comp.
3) A look at earnings and profitability under a real reporting structure – one that we think it will adopt within 2-years – as opposed to the opacity that exists in the model today.
4) Property strategy relative to other brands, and cost implications.
5) Process by which KATE could jettison Jack Saturday.
6) Scenario analysis for updated guidance to long-term model – both the risk and the upside.
7) Where we could be wrong in having KATE as one of our Best Ideas on the long side.
Participant Dialing Instructions
Toll Free Number:
Direct Dial Number:
Conference Code: 213986#
Materials: CLICK HERE
