DG - Foot Locker Boot Barn and Victoria's Secret are among Jefferies' favorites in specialty retail
Jefferies launches coverage on a number of specialty retailers as it takes a positive bias on the sector. Analyst Corey Tarlowe: "We believe strong retailers and brands with tangible catalysts ahead present opportunity. In Specialty Apparel, valuation is generally attractive vs. historical levels and we are constructive on Off-Price, given the increasingly pervasive gravitation toward value-oriented purchasing." Valuation in specialty apparel is noted to now be 11X on average vs. the 3-year historical average of ~13X, while the ongoing share shift toward value-oriented purchasing is a dynamic that is seen setting up well for off-price chains. The setup for the footwear industry is also said to be promising with the global market projected to grow ~7% on average through 2025. Top picks in specialty retail from the firm are Dollar General (NYSE:DG), TJX Companies (NYSE:TJX), Abercrombie & Fitch (NYSE:ANF), Victoria's Secret (NYSE:VSCO), Foot Locker (NYSE:FL) and Boot Barn (NYSE:BOOT). Buy
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Foot Locker, Boot Barn and Victoria's Secret are among Jefferies' favorites in specialty retail