6/13/2023 0 Comments Fade in softwareCPRI YTD mountain Capri shares have fall 31% since the year started. Capri shares were down nearly 5% on Tuesday. Higher income households are feeling the pressure of inflation and rising interest rates, and that will hurt Capri, she said, noting an increased pace of promotions in its fiscal third quarter. Exposure to China's economic reopening can benefit some companies, but not enough to help Michael Kors-owner Capri, according to the analyst. Lululemon shares have risen 19% year to date, while Nike is almost 9% higher. Among those are Lululemon and Nike, she said. Also, some companies have "structural moats" or "company-specific drivers" that will help their performance. FinalDraft is still the industry default. Ive been able to share files and collaborate with folks who dont use FadeIn. You can import/export files from FD, Celtx, Highland, Trelby, etc. However, she expects that consumers are more likely to seek out value by buying the items they need at off-price retailers such as TJX Cos. FadeIn is a lot more agnostic and stays compatible with other software. Which names are well-positioned in retail? "Taking a look back at the 2008/2009 recession, we have found that no company was immune to the broader pullback in spending," Yih said. Figs shares shed 6%, Canada Goose fell more than 5% and Victoria's Secret was down more than 3%. While National Vision shares were slightly positive in trading Tuesday afternoon, the other downgraded stocks were all lower. Yih said that not only will the company face the same economic pressure as other retailers, it's also facing new competition from Fabletics, which recently entered the scrubs market. The cut in Figs' target price to $4 from $6 implies 45% potential downside from Monday's close. Figs was downgraded to underweight from equal weight. With that in mind, Barclays slashed its investment ratings on the following stocks to equal weight from overweight: Capri, National Vision, Canada Goose, Under Armour and Victoria's Secret. When investing in retail, pick "best-in-class" stocks, she said. Yih said investors should structure their holdings to protect against a "product recession." In other words, they should limit their exposure to consumer discretionary names. FIGS 6M mountain Barclays downgraded Figs shares to underweight from equal weight. However, Yih said, the pace of sales and discounting suggests that this scenario - a V-shaped recovery - is now less likely. Many retailers had expected weak sales in the first half of this yea, followed by a pickup in the second half. "Our bottom-up approach to analyze promotions across the retail landscape, regardless of category and target income bracket, suggests that retailers are struggling to drive traffic, conversion, and sales, despite markedly cleaner inventory levels," Yih wrote in a research note Tuesday. Personal Loans for 670 Credit Score or LowerĬonsumers across all income levels are pulling back on spending, according to a Barclays Capital promotions tracker, prompting analyst Adrienne Yih to downgrade a host of retail stocks. Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
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