LREN‘s Cabreúva DC; Netshoes expands store footprint; Government benefits to support consumption

研报英文原文证据摘录

LREN‘s Cabreúva DC; Netshoes expands store footprint; Government benefits to support consumption

US Softlines Retail: UBS Evidence Lab inside: Secondary Sneaker Market: June

Data a Modest Negative for Nike

New UBS Evidence Lab data shows Nike brand footwear prices in the secondary

sneaker market decreased 1.7% in June. Growth remained negative for the second

consecutive month. The June growth rate was a ~190 bps improvement from a 3.6%

decrease in May. At the same time, Jordan brand prices increased 2.0% y/y in June,

and this was a 610 bps improvement m/m (Fig. 11). Overall, we view these data

points as a modest negative for NKE. We believe Nike still has much work to do in

order to return to sustainable sales growth with meaningful margin expansion (link).

We believe the market is still pricing in a solid turnaround. Thus, our rating is

Neutral. See full report here.

U.S. Hardlines Retail: Highlights from an Expert Call on Farm, Ranch & Home

Retail

We hosted an expert call with the CEO of a leading cooperative in the farm, ranch

and home retail industry. According to the expert, the cooperative's members

experienced comparable store sales growth of 2% to 4% in the second quarter,

largely driven by favorable weather trends in geographies such as the Midwest and

central US. This translated to the first half of the year being up in the same 2% to 4%

range. The ongoing geopolitical tension and elevated oil prices translated to a

modest sequential deceleration in June, as the consumer remained cautious and

focused on needs-based items. Plus, the expert noted that the first couple weeks of

July looked similar to June. Looking ahead, the expert's outlook for the back half of

the year calls for growth in the 3% to 5% range, assuming normal weather

conditions.