5/28/24 - $anf - see better setups elsewhere, risky. sidelines.5/28/24 - vrockstar - NYSE:ANF - heresy to dislike this valuation? i get it's had a renaissance. it's profitable. 5% yield that's good! 19x PE! good capital stack. it's still cheaper than NASDAQ:LULU without any of the baggage all else equal. the issue here, my friends, is this price point is becoming more and more problematic. NASDAQ:PDD 's temu just crushed it. discount brands are taking share. me-too styles are eating away at brand leaders. i worry we'll see this show up sooner than later in the ANF equation.
i'm going to be sitting out on this one b/c i'm not a fan of shorting a hot tape and nevermind a red hot individual chart like this one. but it's one of these situations where it's hard to park and ride for a few days of additional upside and in any down day, it could a. be large and b. see a follow-on reaction like we did in the white-girl-wasted names that reported earlier... NYSE:TGT , NASDAQ:LULU , NASDAQ:SBUX , NASDAQ:ULTA ( NYSE:ELF was the exception - congrats/ but the growth equation was like massive double digit and it's a discount brand too).
if you're gonna bet on retail that generates good margin, slightly larger biz, "less" discretionary - i'd go with NYSE:DKS reporting the same AM and i'll be writing up in a moment - though i'm not probably on the sidelines here.
careful fam. no need to get taylor-swift-kick-in-the-nuts.