Keeping it short today as I'm heading out to do some field research at the malls for Black Friday.
Strong week for the Portfolio+. Gap tacked on to post earnings gains, and American Eagle ran higher ahead of earnings next week. I do love it when a plan comes together, and that's certainly been the case for the oft-discussed Denim Thesis, which I wrote about in last week's letter and multiple times over the last few months.
To quote last week's letter: "In a bullish market, Gap shares would fill the gap in the chart up to $28. In this week's market, $GAP is up about 5%. In the words of the POTUS, “no crying in the casino”. This was a great quarter from the largest specialty clothing merchant in America. Gap confirmed what we saw from Walmart, TJX, and Williams-Sonoma earlier in the week: consumers are being “choiceful,” but chains that give shoppers what they want at a good price are able to turn in solid results."
All that still holds true, and I'm adding to the bet.
Adding Macy's to the Portfolio
One stock we didn't catch is Kohl's, which rocketed higher on better-than-expected earnings news. While Macy's rose in sympathy already, I think the department store chain has more room to run. I'm buying shares of Macy's ahead of earnings next week. We're long at $22.43.
With that, I wish you all a blessed holiday weekend. Thank you for being Portfolio+ members. I can't wait to show you all the stuff we have planned for next week!
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