We have established dedicated research coverage of several companies, including Deckers, Nike, Restoration Hardware, and Tractor Supply. You can find the respective landing page for each company using the drop down box. Further, we have provided examples of research that we have written on several other companies below.

OTHER RESEARCH NOTES

“Send In The Cleaners” Under Armour Style - 12/18/24

Tickers: UAA, NKE, FL, DKS, ASO, M, JWN, KSS, JDSPY

If there was ever a time for Under Armour to get its act together, it’s when Nike is in disarray. Under Armour was on a straight trajectory to ample success until Nike became determined to kill their footwear dreams out the gate. The investor day last week (12/12) highlighted both future product and new capabilities. But none of that matters if Under Armour hasn’t cleaned up its own act first.

Ground Zero in the Athletic Footwear Debate - 11/12/24

Tickers: FL, NKE, ONON, DECK, UAA, VFC, ASCCY, ADS-DE, PUM-DE

Nike recently admitted that “the multi-brand environment is very competitive today and it will take time to expand market share”. Newer brands such as On and Hoka have proven formidable competitors, particularly within the Running category. Meanwhile, missteps by Nike have opened the door for traditional niche brands (Asics, Brooks, New Balance) to expand. As the largest retailer of athletic footwear in the US, Foot Locker is ground zero in this once in a generation realignment of the athletic footwear industry.

Good Luck Shorting Costco - 6/25/24

So much hate towards Costco on Fintwit recently, primarily based on the valuation multiple alone. Really don’t want to spend time on this name but the noise is deafening. The reality here is that NOBODY shorts a stock professionally based on only a valuation thesis. Just like how value managers won’t buy every stock that is cheap – the overall market tends to need something more. That something can’t be only a macro call as that’s probably the easiest thing to hedge (i.e. there are much better ways to execute that idea).

Is This The Ceiling For Floor & Decor? - 4/21/24

I love Floor & Decor. Best story in 20 years for retail. Took it public and am honored I was Bookrunner on the IPO. Seriously love the entire management team, with a similar passion as how they approach their business. Alas, can no longer defend where it trades.

There are many historical examples of the buyside getting over its skis on their own volition, only to later penalize the company itself. You know what Floor & Decor itself is not doing? They are not pumping expectations whatsoever – they have been very fair with all of their guidance assumptions in 2024. Alas when you trade at a 55x+ FY1 P/E, there is not a lot of room for honest debate.