A two front trade war is terrible news for retailers. But just how bad is it for The Gap?
The gap is falling into a ravine on Friday.
Swans are graceful creatures. This one is going to gracefully place a minus sign in front of your P/L.
Lower your exposure to equities here and completely discard stocks of companies that are not earning their cost of capital.
Those wearing un-hedged long equity positions should probably sit down at this point.
The company's strong performance in Europe and Japan is being far outweighed by the trade war's impact on two of PVH's largest markets.
Let's take a fresh look at the charts this morning.
The iPhone maker could bounce in the short term, but the bigger risk is for further declines in the weeks and months ahead.
The retail and apparel sectors just got a bit rougher thanks to PVH's dim outlook.
Analysts now expect an earnings recession to become reality after negative Q1 growth, and ahead of projected negative Q2 growth.