Takeaway: We’re a dime ahead of the consensus for 2Q EPS. Will revisit short side when we de-risk positive earnings revisions.

While we are bearish over a TAIL duration on WSM, the reality is that the consensus estimate looks low by a dime. We’re modeling 5% top line growth, about in line with the 2-year stack from 1Q, along with 50bp GM erosion (inventory is heavy), and 1% SG&A growth (company is burning the furniture this year on the SG&A line) and we’re coming out at $0.93 compared to the Street at $0.83. With 17% of the float short I’m not going to stay here and sit through a squeeze on a relatively hated retailer just because it’s a net loser six months out. Moving from Best Idea Short list to our Short Bench. We’ll revisit when the timing is right and we de-risk positive earnings revisions.