VFC - Retail reckoning: Winning and losing stocks from the supply chain inflation backdrop

Wells Fargo is cautious on a large chunk of the retail sector amid a wall off worry that includes inventory shortages, inflationary pressures, rising cotton prices and "very tough" comparable coming up in the first half of 2022. The firm says it is taking a realistic approach about the near-term supply chain and inflationary challenges to lower estimates on Burlington Stores (BURL +0.7%), Hanesbrands (HBI -0.6%), Gap (GPS +0.4%), Ross Stores (ROST +0.7%), Urban Outfitters (URBN -0.2%), V.F. Corp (VFC +0.4%) and Victoria's Secret (VSCO +1.3%). In addition, the price target on Ralph Lauren (RL +0.5%) is lowered to reflect Vietnam sourcing headwinds. At the other end of the spectrum, Wells Fargo sees a few retail name as top ideas for investors looking for a much lower degree of supply chain and inflation risk. Bath & Body Works (BBWI +1.0%), Signet Jewelers (SIG +1.8%) and ThredUp (TDUP -1.2%) make the

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Retail reckoning: Winning and losing stocks from the supply chain, inflation backdrop