Retail Callouts (9/28): RH - Finally Tapping One of Many New Markets

Takeaway: RH - Finally Tapping One of Many New Markets (Milwaukee, WI). Marathon winner's Nike shoes struggle to make it through the race.

RH - Finally Tapping One of Many New Markets (Milwaukee, WI)

 

RH currently operates in 62 markets in the US (as we define them). All but 3 by our math could support a store over 20k sq. ft. and 38 could support a store 40k sq. ft. or lager. But, what gets lost in the conversation sometimes is the new market opportunity.

 

By our math there are 19 markets in the US and Canada with spending and demographic characteristics on par with RH's current portfolio and of those markets 10 could support an Atlanta sized full line design gallery and another 7 could support a Houston/Greenwich sized store.

 

One of those markets is Milwaukee, where it looks like RH will be opening a new 27k square foot store. Most likely a 2017 or 2018 event. It’s a market where the company previously operated (closing its mall location in 2012) and by our math could support a store as big as 45k sq. ft.

(http://www.jsonline.com/business/restoration-hardware-planned-in-third-ward-b99582884z1-328958261.html)

Retail Callouts (9/28): RH - Finally Tapping One of Many New Markets - 9 28 chart1

 

NKE, Adidas - Marathon Runner Eliud Kipchoge's Nike shoe insoles came apart in the beginning of the Berlin Marathon.  He still won the race, but fell short of his goal of a world record.

(http://www.wsj.com/articles/kenyan-marathoner-falls-short-of-record-after-nike-shoes-fail-1443375160)

 

Truth be told, Nike running shoes were originally designed to fall apart after crossing the finish line. Less materials, less glue and adhesives = lighter shoe and significantly less weight carried over the course of a few thousand strides. But the picture below is certainly not what Nike had in mind.  Didn't Eliud wear-test them first? It seems like he pulled this pair right out of the box, which is unusual for a runner on a big race. The whole thing is just weird. And Adidas probably loved that the gaffe happened in its back yard.

Retail Callouts (9/28): RH - Finally Tapping One of Many New Markets - 9 28 chart2

 

WBA - Walgreens automated pharmacy system went down last Tuesday following planned maintenance, the problem was fixed on Friday.  Pharmacists had to manually fill prescriptions during the outage.

(http://www.chainstoreage.com/article/report-walgreens-pharmacy-system-goes-down)

 

WFM - Whole Foods is cutting 1,500 jobs (1.6% or workforce).  Company expects some of the displaced workers to find a job from 2,000 open positions the company currently has.

(http://www.sec.gov/Archives/edgar/data/865436/000110465915067547/a15-20321_1ex99d1.htm)

 

ROST - Ross stores continuing aggressive store openings, 8 new openings over 2 weeks.

(http://www.chainstoreage.com/article/ross-stores-continues-aggressive-store-growth)

 

APP - American Apparel receives delisting warning from NYSE.  NYSE states "financial condition has become so impaired that it appears questionable, as to whether the company will be able to continue operations and/or meet its obligations as they continue to mature"

(http://wwd.com/business-news/financial/nyse-warns-american-apparel-of-possible-delisting-10242668/)

 

CONN - Appliance and Furniture retailer Conn's is on track to open its 100th store next month.

(http://www.chainstoreage.com/article/here-comes-conns-100th-store-sight)


Neurofinance: The Psychology Behind When To Sell A Bull Market

"Most momentum investors stay invested too long, under-reacting and holding tight after truly bad news finally arrives to break the trend," writes MarketPsych's Richard Peterson.

read more

Energy Stocks: Time to Buy the Dip? | $XLE

What the heck is happening in the Energy sector (XLE)? Energy stocks have trailed the S&P 500 by a whopping 15% in 2017. Before you buy the dip, here's what you need to know.

read more

Cartoon of the Day: Hard-Headed Bears

How's this for "hard data"? So far, 107 of 497 S&P 500 companies have reported aggregate sales and earnings growth of 4.4% and 13.2% respectively.

read more

Premium insight

McCullough [Uncensored]: When People Say ‘Everyone is Bullish, That’s Bulls@#t’

“You wonder why the performance of the hedge fund indices is so horrendous,” says Hedgeye CEO Keith McCullough, “they’re all doing the same thing, after the market moves. You shouldn’t be paid for that.”

read more

SECTOR SPOTLIGHT Replay | Healthcare Analyst Tom Tobin Today at 2:30PM ET

Tune in to this edition of Sector Spotlight with Healthcare analyst Tom Tobin and Healthcare Policy analyst Emily Evans.

read more

Ouchy!! Wall Street Consensus Hit By Epic Short Squeeze

In the latest example of what not to do with your portfolio, we have Wall Street consensus positioning...

read more

Cartoon of the Day: Bulls Leading the People

Investors rejoiced as centrist Emmanuel Macron edged out far-right Marine Le Pen in France's election day voting. European equities were up as much as 4.7% on the news.

read more

McCullough: ‘This Crazy Stat Drives Stock Market Bears Nuts’

If you’re short the stock market today, and your boss asks why is the Nasdaq at an all-time high, here’s the only honest answer: So far, Nasdaq company earnings are up 46% year-over-year.

read more

Who's Right? The Stock Market or the Bond Market?

"As I see it, bonds look like they have further to fall, while stocks look tenuous at these levels," writes Peter Atwater, founder of Financial Insyghts.

read more

Poll of the Day: If You Could Have Lunch with One Fed Chair...

What do you think? Cast your vote. Let us know.

read more

Are Millennials Actually Lazy, Narcissists? An Interview with Neil Howe (Part 2)

An interview with Neil Howe on why Boomers and Xers get it all wrong.

read more

6 Charts: The French Election, Nasdaq All-Time Highs & An Earnings Scorecard

We've been telling investors for some time that global growth is picking up, get long stocks.

read more