Huge week for consumer news. Target and Deckers tanked, Urban Outfitters soared and Williams-Sonoma managed to get out of a tricky earnings report more or less unscathed.
But one of the bigger stories, and biggest moves, happened in a name from the past for reasons no one is really discussing.
Peloton started the week strong in both calls and price action. Suddenly on Thursday morning, in an otherwise bland tape shares started popping, ramping 10% apparently out of nowhere but, as it turns out for pretty good reasons. Trump's Biggest Beautiful Bill didn't just crush solar stocks. It also revised some key terms applying to health savings accounts (HSA). Specifically, the bill expanded the amount and ways money put into an HSA can be used without incurring a 20% penalty.
Among the uses now approved with a pre-existing medical condition? Buying a Peloton.
In effect, customers can now potentially buy almost anything from Peloton's suite of Treads, Bikes, and Rowers with what amounts to pre-tax dollars. Depending on your tax bracket, that can take quite a cut out of the price of a premium bike (a bike that happens to be perfect for HSA purposes since it...
Deckers closed out an eventful week by offering frankly terrifying guidance for the current quarter and refusing to even speculate as to how much worse things could get from here.
The makers of Hoka and Uggs said demand for the former has fallen to a multi-year low of 10% yr/yr growth; numbers that seemed particularly horrifying after everything we heard from On Holdings last week.
Analysts were quick to pounce, dragging DECK 20% lower and lowering estimates across the street.
With FootLocker and Dicks Sporting Goods (soon to be one company) report next week we'll have a better picture of why On seems to be the only shoe game in town.
The moves are huge and losers and getting stomped in the shoe world. Stay tuned to this space for the latest as it happens.
Also check out the brand new Hot Mom's Index I put together with my friend JC.
Below is my weekly video for members of Macke's Retail Roundup.
We're still in the heart of retail earnings season. This week we heard from names like TGT, TJX, and WSM. Next week we've got DKS, COST, M, BBY, DKS, BURL, KSS and ANF.
All in all, we had a good week in the Macke Retail Roundup Portfolio, outperforming both the XRT and SPY.
Here is my latest video update on the portfolio, as well as a couple of new potential adds I'm considering.
