Retail

EssilorLuxottica: Ray-Bans and Plans

Magic Markets2024-01-25T00:05:05+02:00

Ray-Bans are the eyewear of choice on the highway to the danger zone. High valuations are always a danger zone, as investors in some of the most famous brands in the world have found out the hard way. EssilorLuxottica certainly isn’t light on brands, but it’s a complicated task to figure out whether the valuation reflects the consumer part of the business or the professional lenses side, which is more of a medical devices operation.

EssilorLuxottica: Ray-Bans and PlansMagic Markets2024-01-25T00:05:05+02:00

Abercrombie & Fitch: From Abs to Riches

Magic Markets2024-01-17T21:46:43+02:00

Abercrombie & Fitch is proof that a retail leopard can change its spots – and its entire brand for that matter! There was a time in the world when this business was famous for having shirtless men helping in the stores. That business model aged about as well as the washboard abs themselves: i.e. not very well at all. Today, the brand has much broader appeal and the results are clear for all to see, with the share price up more than 250% in the past year! Is there any value left in it, or can we only learn lessons here about how well a retailer can be turned around?

Abercrombie & Fitch: From Abs to RichesMagic Markets2024-01-17T21:46:43+02:00

Recap: Simon Property Group

Magic Markets2023-12-20T18:14:16+02:00

In our final report for 2023, we look back on Simon Property Group. This is the apex predator in the US when it comes to retail property, owning a vast portfolio of high-end malls and investments in various other portfolios around the world. This puts the group at the centre of macroeconomic concepts like consumer spending, inflation and yield curves. What has this meant for the share price this year and the prospects in 2024?

Recap: Simon Property GroupMagic Markets2023-12-20T18:14:16+02:00

Magic Markets Ep155: Lululemon and SA Fashion Retail

Magic Markets2023-12-10T20:23:44+02:00

Welcome to episode 155 of Magic Markets. This week, we’re talking about fashion retail. Moe is representing the global north with his choice of athleisure brand Lululemon, while Ghost is keeping things more general with a selection of South African fashion retail brands including The Foschini Group and Mr Price.

Magic Markets Ep155: Lululemon and SA Fashion RetailMagic Markets2023-12-10T20:23:44+02:00

Magic Markets Ep154: Dis-Chem and Ulta Beauty

Magic Markets2023-12-06T18:42:58+02:00

Welcome to episode 154 of Magic Markets. We're diving deep into the beauty sector this week, exploring stocks that bring a touch of glam to the market scene. Moe has his sights set on Ulta Beauty, the US-based beauty specialist retailer while Ghost chose to delve into the South African beauty scene, focusing on Dis-Chem, the pharmacy group that is more than just a pharmacy: it's a beauty and healthcare haven. This is an exciting sector...join us!

Magic Markets Ep154: Dis-Chem and Ulta BeautyMagic Markets2023-12-06T18:42:58+02:00

Recap: MercadoLibre

Magic Markets2023-11-29T22:06:56+02:00

We first covered MercadoLibre in March 2023. We talked about Alibaba meeting Amazon in Latin America. Mostly, we were just highly impressed with the cohesive ecosystem that the company has built. We were also big fans of the commitment to profitability, something that many tech companies could learn something from. With Argentina in the headlines and renewed focus on the broader LatAm region, how has the business performed this year?

Recap: MercadoLibreMagic Markets2023-11-29T22:06:56+02:00

TJX: Black Friday Every Day

Magic Markets2023-11-22T21:52:54+02:00

Could TJX be the best retailer you've never heard of? With a regional moat that executes off-price retail with great success at scale, we really like this company. The valuation has run hard though, so what does that mean for entry tactics?

TJX: Black Friday Every DayMagic Markets2023-11-22T21:52:54+02:00

O’Reilly Automotive: Are Electric Vehicles the Real Risk?

Magic Markets2023-10-11T21:54:59+02:00

O'Reilly Automotive isn't on anyone's list of famous global stocks. With a share price CAGR over the past decade of well over 20%, perhaps it should be. Is the electric vehicle risk worth worrying about, or are their other near-term headwinds that are cause for concern at this valuation?

O’Reilly Automotive: Are Electric Vehicles the Real Risk?Magic Markets2023-10-11T21:54:59+02:00

Dollar General: Meme Stock Thesis

Magic Markets2023-09-27T22:48:33+02:00

Dollar General was a darling of the market for the past decade. In a classic example of how quickly a retailer can be humbled by the market and competitive forces, the share price has collapsed this year and there are good reasons why. Far from being a bargain, we think the pain is only just starting. With a strategy that seems certain to cause a structural drop in margins, Dollar General is in trouble.

Dollar General: Meme Stock ThesisMagic Markets2023-09-27T22:48:33+02:00

Kroger: The “Simple Truth” of Large Grocers

Magic Markets2023-09-13T22:01:05+02:00

Kroger is the OG - Original Grocer! With a history of organic growth and M&A to supplement the story, Kroger has now embarked on the biggest acquisition in its history: the proposed merger with Albertsons. It introduces a lot of risk into the mix, but can it propel the share price CAGR above the index and make this a worthwhile stock to hold?

Kroger: The “Simple Truth” of Large GrocersMagic Markets2023-09-13T22:01:05+02:00

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