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No. of Recommendations: 4
just getting reacquainted with the story.

Minor nitpicking. SSS was solid but helped by the 13 week Q. Transactions were down. Half of categories were negative (i know it was explained later that this was biz usual). still, i would have expected a bit better given the environment.

LT, the 1-2% SSS target feels not strong enough to get leverage on margins, and their own history shows more fluctuation than the typical off-price/$ stores.

And this is getting priced for perfection. Let's say they open 1000 stores (3.5x from today) @ $4.5 sales/store, and do 10% op margin. That's $450m EBIT vs. $3.7B mkt cap/EV, a multiple where most mature retailers trade at. For sanity check, BIG did $5.3B sales and trades at a $1.8B mkt cap.

mgmt sounds a bit promotional on the call, though i get a chuckle out of the "one star two star generals".

Then again, i have never been to a store, so...
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