Specialty Retail and Department Stores: Fit Check: Knickerbockers are back in style

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Specialty Retail and Department Stores: Fit Check: Knickerbockers are back in style

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Specialty Retail and Department Stores

Fit Check: Knickerbockers are back in style

Industry Overview

ROST: Not every dollar of inventory carries fashion risk 13 June 2026

We left our meeting with Ross‘s senior leadership team more comfortable that they are Equity

in the early innings on each of their strategies. Building on merchandising initiatives, United States

marketing and store operations should allow ROST to comp the comp. Higher in-store Retailing

inventory has been a point of concern for many investors, but we gained comfort with Lorraine Hutchinson, CFA

the test and react nature of this change, and the rapid turns of the product in store. We Research Analyst

expect ROST to continue to post strong comp and earnings growth as it benefits from a BofAS+1 646 855 0951

better assortment, marketing and store operations; we reiterate our Buy rating. See our lorraine.hutchinson@bofa.com

June 12th meeting highlights note (Just getting started). Kendall Toscano

Research Analyst

BofAS

+1 646 855 1704AS Deep-Dive: Catalyst path is the biggest question kendall.toscano@bofa.com

Our deep-dive report on AS was well received with the most common incoming around

Mary Sport

why the stock hasn’t performed better in light of the strong fundamentals. The note hit Research Analyst

on hot button issues like the fashion risk for Salomon Sportstyle, the sometimes-lumpy BofAS

+1 646 743 0227

investment cycle of an emerging brand, and the evolving capital structure. At ~20x mary.sport@bofa.com

earnings, valuation remains compelling relative to durable high-teens sales growth and Ryan Abbadi

improving margins.