Retail stocks remain in a challenging environment. There are few true leaders in the group with the exception of the discount names. Consumers remain strapped and are making selective purchases with AMZN benefitting handsomely. Even the banks are now quietly coming out with the new 3% down mortgages as WFC and JPM have done recently. Heck even URBN sank almost 6% Friday after weak same store sales, and they bought a pizza firm last November. Are they going to try to bring customers in to beef up sales, pun intended. Below are 3 retail names we profiled on the short side in our Tuesday 6/7 Game Plan that may have more room to run to the downside. In the sporting good arena, The Sports Authority is my generations Hermann’s Sporting Goods. Watch DKS and HIBB going forward.
Stocks to be considered shorting opportunities are KORS DKS JACK. KORS is a retail play up 24% YTD and 1% over the last one year period. Earnings have been very well received with four consecutive advances of 6.6, 23.9, 8.3 and 10/8% on 6/1, 2/2, 11/4 and 8/6. The stock is up nicely the last couple weeks by more than 16% with the overwhelming majority of those gains coming last week. Round numbers and gap fills have played an important role with KORS as it filled in a gap near the 40 number on 5/17 from 2/1 and now to the upside it has filled in a gap at the 50 figure from 5/10. The stock is also grappling with 50 day SMA resistance here for the second time in 6 weeks. Short at 49.80.