Video Replay and Slide Deck Link CLICK HERE
We’re kicking off the new year with new monthly ‘Retail Idea Hunt’ call series, which will take place on the first trading day of every month in 2021 – come hell or high water. We’ll spend the first 10-15 minutes of this call going through recent data points that makes us incrementally more or less confident in our current Best Ideas. Then we’ll dedicate the rest of the time on select themes that are particularly relevant in retail right now, and will vet through all the tickers in each sub-sector space to drill down where the best long and short opportunities lie. We won’t always walk away with the fully-vetted call in every instance, but we’re opening up our research process so you can see which way we’re leaning, and what questions we think we need to get answered to find the right out-of-consensus calls.
Today, we focus on CPRI, GME, and NKE long side. And HBI, BBY and KSS short side as it relates to existing Best Ideas. Then thematically we go through the Home (Décor and Home Improvement) space – including RH, WSM, W, HD, LOW, TSCO, FND, HOME and LOVE. We also go into the Auto Parts Retail/Aftermarket space – which should emerge as a battleground space in 2021 given the ridiculously tough comps, but also the potential for additional stimulus to drive comps. Main tickers there are ORLY, AZO, AAP, VVV and MNRO.
All-in, we hit on ~20 tickers over 50 minutes, focusing on the key critical modeling and sentiment uncertainties for each name.
