The first takeaway from this chart comparing 10 retail names that reported earnings this week, is that select discount play are alive and well (except OLLI which cratered more than 29% this week after reporting and having issues with the round par number back in May). BURL jumped 16% and DG by 14% this week after well received reports. BBY trades in bear market mode down 22% from most recent 52 week highs, and flashed a warning after a breakout above a cup with handle trigger 75.74 on 7/23, unraveled quickly. Other notable developments are the travails of former leaders PVH and TIF reside 52 and 36% off their most recent yearly peaks. Tread carefully in the bifurcated retail sector.
Beauty Battle Loses Peer:
Looking good has its consequences, at least in the stock market arena. In my opinion there are three real names in the beauty space, not including REV which underwent a reverse split and now trades 44% off most recent 52 week highs. ELF should be given a nice mention as it tests it 50 day SMA for the first time following a recent cup base breakout from a 13.49 pivot taken out back on 6/25. But the two behemoths in the group, have taken a drastic turn as of Fridays CLOSE, after ULTA fell off a cliff after earnings. The stock lost more than a quarter of its value this week, on easily the strongest weekly volume in at least the last 5 years.
The casual diner space has seen some strong names strut their stuff in 2019. They could include CMG WING and SHAK (having current issues at the very round par number). Below is the chart of JACK and how it appeared in our 8/26 Consumer Note. This one still seems to be dripping lower, although it did record a huge weekly gain of 20.2% the week ending 8/9. That rapid move was most likely short covering, as the previous 8 weeks were ALL lower. The chart was stopped cold at the very round 90 number on 8/14-15, and look for this name to gravitate back toward the 80 number where the gap emanated from. A move above the recent highs would negate the bearish thesis.