So Gap Stores (GPS) catches an upgrade over at Wolfe and the good news on apparel spreads like wildfire? Suddenly, L Brands (LB) roars as does Macy's (M) and Kohl's (KSS) and Target (TGT) and Nordstrom (JWN) ?
How mercurial can you get? It's almost like, "OK, if it is good for the worst, meaning Gap, then it has to be even better for the others."
We know these retailers have been eviscerated. But here's the way this market works. It's like an object that's in motion and stays in motion until it is blocked, and right now the retailers are in motion regardless of how well or badly they might be doing.
I was out the other day with a real good retail guy and I was saying don't write off L Brands, it's had a change of management at Victoria's Secret. He came back and said, "It's in the mall." I shrugged my shoulders with "Yeah, you are right, what am I thinking."
That said, when I went to Rome recently, my most fashion-conscious daughter said "We should go to Gap because it's changing."
I didn't want to be caught dead in a Gap in Rome. But she said I was out of date.
We were dazzled.
The stuff was both fashionable and incredibly inexpensive.
I wanted to come home and recommend it, but that's the stuff of anecdote and I have nothing to hang my hat on. The truth is, though, if this company, or any of these companies, can actually make their numbers, they will go higher provided they don't go up that much from here.
Otherwise, they will be stealing from their upside.
We have seen a heck of a lot of group moves of late that are based on one performer doing better in that group. Here we just have an upgrade.
But that's what happens when a group falls so out of favor that a good word about the worst from a quality house on retail, as Wolfe is, boosts everything.
Random musings: Will it matter to General Dynamics that Honeywell HON says business jets are soft? I like what Fill or Kill has to say about it.