I ran a screen in The PPT for Apparrel and Department stores. I ranked them highest to lowest based on their hybrid score from The PPT. I printed the screen out then asked the lady for her picks, they were JWN, GPS, and LTD. JWN, because it skirts the line between Macy’s and Saks/Neiman. They have far better quality and service than Macy’s, and you can buy a Duffle Coat for less than $700. GPS, has really stood up its game lately, my lady loves a lot of their items, and their store on Chestnut is always going H.A.M, even in the middle of the day during the week. I also must admit that I currently love their athletically cut slacks, they look great and are super comfortable.
LTD’s Victoria’s Secret Pink should have huge numbers this quarter from college girls buying their merchandise on the way back to school.With both college and pro football starting, and baseball going to the post season, their team themed merchandise should provide plenty of revenue. Their normal Victoria’s Secret Line is also a very popular gift for the upcoming holidays, as is most of JWN’s merchandise, with their half-yearly sales for women and kids starting November 1st.
Besides LTD for for back to school clothes, I like PSUN and AEO, and I think FL and URBN may be sleepers. So what is the trade? I think GPS is the safest candidate: great field research, high hybrid score, and they look to beat earnings again after being on an absolute juggernaut mission. LTD will probably become a tiny position, because I think they beat this quarter’s earnings and they have a 2% yield. PSUN seems like a no brainer here, it is almost Over Bought, with great results (see below), and I will be a buyer if it hits OB, 100% sure.
The key is to get in if September is a garbage month for markets as usual. Good evening.
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