Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
Free Webinar - Decode the market's secrets! | Tuesday, May 30, 2023 | 01:00PM EDT Enroll Now
BTIG sees a 'choppy' H1 followed by a strong H2 for consumer retail and lifestyle brands firms
Published Feb 07, 2023 12:09PM ET
Updated Feb 07, 2023 12:20PM ET
© Reuters BTIG sees a 'choppy' H1 followed by a strong H2 for Consumer Retail and Lifestyle Brands firms
By Sam Boughedda
BTIG analysts said in a note Tuesday that they have assumed coverage of retailers Deckers Outdoor Corporation (NYSE:DECK), Revolve Group (NYSE:RVLV), Rocky Brands (NASDAQ:RCKY), and V.F. Corporation (NYSE:VFC) and have initiated initial coverage of Allbirds Inc (NASDAQ:BIRD), Boot Barn Holdings (NYSE:BOOT), Duluth Holdings (NASDAQ:DLTH), Foot Locker (NYSE:FL), Lulu's Fashion Lounge Holdings Inc (NASDAQ:LVLU), and Warby Parker Inc (NYSE:WRBY).
The analysts said the firm expects the first half to be "challenging and noisy" for consumer retail and lifestyle brands companies.
They initiated coverage of Allbirds, Duluth Holdings, and Warby Parker at Neutral and Boot Barn, Footlocker, and Lulu's Fashion Lounge at Buy. LVLU was assigned a $5 price target, with FL's price target set at $55 per share and Boot Barn's at $110 per share.
Meanwhile, the analysts assumed coverage of DECK at Buy with a $515 price target and RVLV at Buy with a $35 price target. RCKY and VFC were assumed with a Neutral rating.
"We expect the first half to be choppy, as many companies face the concurrent headwinds of challenging compares from the last several years (driven by stimulus, pent-up demand) against the backdrop of a more cautious consumer," said the analysts.
However, the firm is more bullish on the back-half setup as they expect fundamentals to inflect significantly by H2 as "multiple tailwinds are set to coalesce."
These tailwinds include easier top-line comparisons, lower YoY markdown levels as inventory is reset, and multiple cost benefits, including inbound freight, domestic transportation, and raw materials.
"Importantly, we expect a much more stable operating environment than the extremes that characterized the last three years, which should allow management teams to better plan and execute. We expect 2023 to represent a new baseline for underlying fundamentals," the analysts stated.
Related Articles
Add Chart to Comment
Confirm Block
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
Report this comment
I feel that this comment is:
Comment flagged
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.