Hedgeye CEO Keith McCullough is adding Kohl's (KSS) to the short side of Investing Ideas. Below is a brief note.
With COVID's ROC (rate of change) re-accelerating, are you going to shop for groceries (ACI, KR, GO, SFM, etc.) or Kohls (KSS)? Asking for some friends...
We don't just short these Secular Slowers at any time and price. We wait and watch for an up day on decelerating volume... and we have that today.
Here's Retail analyst Brian McGough's recent Institutional Research recap on KSS:
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What matters now is the future. Stores are opening up and the company noted that stores are seeing comp rates at down 40%-50%, though e-commerce is apparently not being negatively impact at least, in those open store markets. You can't run a retail store profitably with comp rates down anywhere near this much, so we’ll need to see much better traffic trends before the P&L inflects to profits at KSS. |
Sell the bounce,
KM
