Below is a note written by CEO Keith McCullough:
|
With our call for a Quad 4 Scare in motion and an ongoing Bearish @Hedgeye TREND signal in SPY, I'm not looking to buy dips. I'm selling rips (and bounces to lower-highs) in names that we don't like - we're getting a rip in Williams Sonoma (WSM) to sell into today. Here's our Retail analyst Brian's McGough's note to our Institutional Research subscribers on WSM today: WSM Pulls the SG&A Goalie. Big $0.11 beat by WSM last night…but by my math, a dime of it was that it held SG&A flat – pulling the goalie on the cost side. I don’t fault them for it, as the furniture business is riddled with uncertainty around the tariff situation. To management’s credit, they got the job done. Only raised the year by $0.05 on an $0.11 beat – conservatism given tariff movement. This was not a beat due to a sharp acceleration in the business. There’s top line risk to 2H. Sell the rip, KM |
