BTIG analysts have published forecasts for retail chains
2023.02.07 13:35
BTIG analysts have published forecasts for retail chains
By Kristina Sobol
Budrigannews.com – In a note on Tuesday, BTIG analysts stated that they have assumed Deckers Outdoor Corporation (NYSE:) coverage. NYSE: Revolve Group, NASDAQ: Rocky Brands likewise V.F. Corporation and have started covering Allbirds Inc. (NASDAQ:), NYSE: Boot Barn Holdings, NASDAQ: Duluth Holdings NYSE: Foot Locker, NASDAQ: Lulu’s Fashion Lounge Holdings Inc. as well as Warby Parker Inc.
According to the analysts, the company anticipates a “challenging and noisy” first half for consumer retail and lifestyle brand companies.
At Neutral, they started covering Warby Parker, Allbirds, and Duluth Holdings, as well as Boot Barn, Footlocker, and Lulu’s Fashion Lounge at Buy. Boot Barn and FL both have price targets of $110 per share, while LVLU has a price target of $5.
In the meantime, the analysts rated DECK as Buy with a price target of $515 and RVLV as Buy with a price target of $35. The ratings of RCKY and VFC were assumed to be neutral.
According to the analysts, “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.” This is due to the fact that consumers are more wary of spending money.
However, the company is more optimistic about the back half of the setup because they anticipate that “multiple tailwinds are set to coalesce” by H2 and that fundamentals will significantly change.
Easy comparisons of top lines, lower year-over-year markdowns as inventory is reset, and numerous cost advantages, including inbound freight, domestic transportation, and raw materials, are among these tailwinds.
“Importantly, we anticipate a much more stable operating environment than the extremes of the previous three years, allowing management teams to plan and execute more effectively. The analysts stated, “We expect 2023 to represent a new baseline for underlying fundamentals.”
