Weekly Relative Value Update: Retail, Restaurant and Supermarket – 7/31/26

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Weekly Relative Value Update

Retail, Restaurant and Supermarket –

7/31/26

Industry Overview

Company and Industry News

31 July 2026

Upbound: Tightened underwriting has reduced risks; maintain Overweight

High Yield Credit

United States

Retail and Apparel

Weight Watchers: Still weighting for better results; maintain Marketweight

Valvoline: Not quick changing our rating; maintain Marketweight

We provide earnings commentary on: CRI, CROX, YUM and VFC

Moody’s downgrades Bloomin’ (BLMN) Sr Notes to B3, from B2

William M. Reuter

Research Analyst

BofAS

Victra (VICTRA) to acquire 73 stores from Verizon (VZ)

Victra news: Apple launches new device leasing program

Michael DeRienzo

Research Analyst

BofAS

Ratings

Exhibit 1: BofA High Yield Ratings

BofA ratings on High Yield Retail issuers’ bonds

Underweight

Carter’s

7.375% Sr Notes

Kohl’s

4.625%, 5.55% Sr Notes

Leslie’s Poolmart

TL-B

Nordstrom

4.0%, 6.95%, 4.375%,

5.0% Sr Notes

Papa John's

3.875% Sr Notes

RH

TL-B

Under Armour

7.25% Sr Notes

Marketweight

Academy Sports

Restaurant Brands

TL-B

5.75%, 3.875%, 3.5% Sr

Advantage Sales

Sec'd (1L) Notes, 4.375%,

9% Sr Sec’d Notes

4.0%, Sr Sec'd (2L) Notes

Albertsons

Sally Beauty

6.5%, 3.5%, 4.875%,

TL-B, 6.75% Sr Notes

5.5%, 5.625%, 6.25%,

Torrid

5.75% Sr Notes

TL-B

Crocs

Valvoline

4.25%, 4.125% Sr Notes;

3.625% Sr Notes

TL-B

VF Corp

Gap

2.8%, 2.95%, 6%,

3.625%, 3.875%

6.45% Sr Notes

Sr Notes

Victoria's Secret

Ingles Markets

TL-B, 4.625% Sr Notes

4.0% Sr Notes

Victra Holdings

Kohl’s

8.75% Sr Sec'd Notes

10% Sr Sec’d Notes

Wolverine World Wide

Kontoor Brands

4.0% Sr Notes

4.125% Sr Notes

WW International

Levi Strauss

TL-Exit

3.5% Sr Notes

Macy’s

5.875%, 6.125%,

7.375%, 4.5%, 5.125%

Sr Notes

QVC

6.875%, 5.45%, 5.95%

Sr Sec’d Notes

Yum! Brands

4.75% Sr Notes (Rstr

Group), 4.75%, 3.625%,

4.625%, 5.375%, 6.875%,

5.35% Sr Notes

Overweight

Bath & Body Works

Lucky Strike

5.25%, 7.5%, 6.625%,

7.25% Sr Notes

6.875%, 6.75% Sr Notes

Michaels Stores

(Gtd) 6.95%, 7.6% Sr Notes

8.5% 1L Sr Sec’d Notes

Bloomin’ Brands

11% 2L Sr Sec’d Notes

5.125% Sr Notes

Petco

Dave & Buster’s

8.25% Sr Sec’d Notes, TL-B

TL-B, TL-B

Upbound Group

Guitar Center

6.375% Sr Notes

1L 8.5% Sr Sec’d Notes

…